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Business Format Franchising

International Franchise Attorney

In business format franchising, a broad and ongoing relationship exists between the franchisee and franchisor. The franchisee is in essence, purchasing the franchisor’s expertise, experience, and method of doing business.

I am international franchisee’s attorney Mario L. Herman. Contact me for information regarding international franchising that will help you, as a prospective franchisee of an existing system, to avoid potential franchising pitfalls and in turn, lead to your success story.

Business format franchisors are a one-stop shop for franchisees. They provide the franchisee a full range of services, including site selection, training, product supply, marketing plans, and assistance in obtaining franchise business financing. Key elements of a business format franchise include a marketing strategy and plan, operating manuals, and a uniform business concept on how to conduct business. It’s as though the franchisee is buying the idea or concept by the franchisor, in the form of a small business.

The franchisee pays an up-front franchisee fee and ongoing royalty fees which enable the franchisor to provide training, research and development, and ongoing support to its franchisees. UPS stores are an excellent example of business format franchising, in which the franchisee is buying the intellectual property or format for the business, as well as the product (service) itself. Fast food restaurants such as McDonald’s and Burger King also are examples of such franchises, as well as convenience stores, hotels, and real estate agencies.

By contrast, product or trade name franchising, the simplest form of franchising, is a franchise relationship in which the product itself defines the franchise, such as a soft drink bottlers like Coca-Cola or Pepsi.

Contact me, franchisee’s lawyer Mario Herman, for competent, reputable legal advice, and representation concerning business format franchising.

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