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Thinking of Franchising Your Business?
Are you considering franchising your business as a means to expand? Businesses seeking experienced franchise developers to assist them with the start up aspects of the franchise development process are often discouraged to discover that many franchise consulting and development companies charge in excess of $50,000 to $100,000 along with ongoing monthly maintenance fees to assist in franchising a business, and this doesn’t even include the cost of preparing the Franchise Company’s FTC required Franchise Disclosure Document (FDD) and Franchise Agreement (FA) by an experienced Franchise Attorney.
As a result, this greatly inflates the cost of launching your new franchise business. We know franchising your business is a big decision. From the very beginning, we have set out to disrupt the franchise process through reimagining the way franchise development services are provided.
We are committed to the expansion of the franchise community through the inclusion and empowerment of small businesses with the ability to access franchising affordably utilizing our nationally recognized network of franchise professionals throughout the United States.
The first step is determining whether or not franchising your existing business is the right move by determining if your current business is “Franchisable”. The Stanwood Group assists start-up franchisors answer this question, and then creates a strategy for expansion having years of experience and also providing you with affordable access to our Team Members made up of nationally recognized franchise professionals throughout the United States. We focus on providing the services you need now to launch your new franchise program.
The Stanwood Franchise Start Up Program is designed for businesses possessing those variables needed in order to become emerging franchisors. For businesses that qualify, the Stanwood Franchise Start Up Program enables clients to defer a large portion of the development fee until initial franchise sales commence, which substantially reduces the amount of initial capital required to launch the new franchise business.
For established franchisors, The Stanwood Group assists in expanding your current franchise system fueled by placement of new franchise sales using our franchise sales & marketing system along with our preferred partnerships to national Franchise Sales Referral Groups including FranServe and Buisness Alliance, Inc. (BAI). If you are interested in learning more about The Stanwood Group, or any of our Team Members’ respective services, make sure to schedule an appointment.
To learn more about Franchising Your Business Today, make sure to schedule an appointment.
Ready to Franchise your Business?
Schedule An AppointmentFind out if your business is “Franchisable”
We will help you determine if your business is a good fit for franchising and if so, what type of strategy is needed to ensure successful growth. We’ll look at established criteria to help you answer these questions and develop a plan to franchise your business. Take The Test Now
Develop The Right Strategy to Franchise Your Business
Preparation of the Franchise Disclosure Document (FDD)
The Federal Trade Commission, or FTC is the governing body that regulates franchisors in the name of protecting consumers. The Federal Trade Commission (FTC) requires 23 “items” to be disclosed in the Franchise Disclosure Document concerning the franchise company and provisions contained in the Franchise Agreement. The FTC requires that franchisors provide factual information about their businesses to franchise candidates before they sign any contracts or pay any sum of money. The FDD lets the candidate know what to expect as a franchisee and summarizes the legal terms of the franchise agreement. The FTC Rule on Franchising states that Franchisors are required that the FDD (Franchise Disclosure Document) be presented to the prospective franchisee at least fourteen days prior to the signing of the franchise agreement or any related agreements to the franchise.
The FDD, and other Franchise Documents are prepared by outside counsel of your choice in conformance with the FTC Franchise Rule. Learn more about the FTC Franchise Rule.
View Franchise Disclosure Documents in your industry using a free search, click Here.
The Stanwood Group maintains a relationship with many of the leading franchise attorneys practicing today in the United States. We will introduce you to franchise attorney(s) that best fit your needs and budget. We will consult you and your attorney in the preparation of the franchise documents by establishing the business terms of the franchise program. As a franchisor, you are required by law to create and maintain this document for distribution to all prospective franchise candidates.
Find a Franchise Attorney to assist you with the preparation of the Franchise Disclosure Document (FDD).
Franchise Registration States, Filing States & Non-Registration States
Franchise Registration States: A franchise registration state is a state that requires franchisors to register their FDD prior to offering or selling a franchise within that state. Franchisors must renew and update their FDD state registrations no less frequently than annually. For franchisors that maintain federally registered trademarks, the franchise registration states include: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, Virginia, Washington, and Wisconsin. Additionally, franchisors who do not maintain a federally registered trademark are also required to register their FDD / franchise offering with the following additional states: Connecticut, North Carolina, South Carolina, and Maine.
Filing States: Filing states are states that do not require the registration of a franchisor’s FDD but do require a filing or a notice with the state. For franchisors that maintain a federally registered trademark, the filing states include: Connecticut (one time filing), Florida (annual filing), Kentucky(one time filing), Nebraska (one time filing), North Carolina (one-time filing), South Carolina (one time filing), South Dakota (annual filing), Texas (one time filing), and Utah (annual filing). Additionally, franchisors who do not maintain a federally registered trademark are also required to file a notice (consent to service of process) in the states of Georgia (one time filing) and Louisiana (one time filing). The filings within these states vary and the frequency of the filings also vary with some filing states requiring a one-time filing and others requiring annual filings.
Non-Registration States (FTC States): Non-registration states are states that, unlike registration states or filing states, do not require a franchisor to register the franchisor’s FDD or submit a filing or notice with a local state regulator. For franchisors that maintain a federally registered trademark the non-registration states include: Alabama, Alaska, Arizona, Arkansas, Colorado, Delaware, District of Columbia, Georgia, Idaho, Iowa, Kansas, Louisiana, Maine, Massachusetts, Mississippi, Missouri, Montana Nevada, New Hampshire, New Jersey, New Mexico, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Vermont, West Virginia, and Wyoming.
What’s an Accidental Franchise, and Could I Be One?
Before considering alternate vehicles such as licensing your business to others, rather than franchising, learn what constitutes a franchise and how to avoid falling into the accidental franchise trap. Learn more about the Accidental Franchise presented by Fox Rothchild, LLP National Co-Chair of Franchising and Distribution Group; attention: Eleanor Vaida Gerhards (215) 918-3642.
Create a Regional & National Marketing & Sales Strategy That’s Right For You
The Stanwood Group will assist in creating a local market, regional and national franchise marketing and sales strategy to best suit your goals.
Please visit our Franchise Sales & Marketing Resource Center
Ready to Franchise your Business?
Schedule An AppointmentMeet The Team
Robert Katz
Franchise Development
Harold L. Kestenbaum
Franchise Attorney
Hanna Groves
Digital Marketing
Chad Bickle
Kerrin O'Connell
Lory Meyerson
Franchise Development
Mike Drumm
Franchise Attorney
Jonathan H. Stanwood
Franchise Attorney
Joseph E. Maenner
Trademark Attorney
Dan Warshawsky
Franchise Attorney
Dan Matthews
Franchise Attorney
David L. Steinberg
Franchise Attorney
“My experience with the team at the Stanwood Group has been exceptional. Their support, direction and expertise has allowed us to launch the perfect franchise offering to the marketplace and we are excited as we continue to open more locations with the Stanwood Group.”
Jared Welch, President
Civil Axe Throwing
Memphis, TN