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    5 Replies Latest reply on May 21, 2012 11:52 PM by snmo4him

    Starting a Franchise - what to do?

    reachbball Newbie

      We have a small company and have been requested to start up our business (or something very similar) in another state.  Does anyone know what needs to be done to do that?  We are an established LLC in Arizona but want to expand in Las Vegas.  It seems like a Franchise is the way to go given that someone else would be handling things there but we would provide the foundation and the support but not sure how to get started.  If franchising is not the thing, possibly starting a division of the LLC in Vegas is the way to go?? Any thoughts would help.

       

      Thanks,

      Nicole

        • Re: Starting a Franchise - what to do?
          LUCKIEST Guide

          Welcome Nicole. You are an established LLC. Great

           

          Do you have an accountant?? He would be the first person to ask.

          If you have an accountant and he or she prepares your taxes, he should know your company and the best way to expand

           

          Second would be your lawyer.

           

          Best of luck, LUCKIEST

          • Re: Starting a Franchise - what to do?
            snmo4him Adventurer

            Preparing tax! First thing and foremost!

            • Re: Starting a Franchise - what to do?
              Aliasgar Adventurer

              Hello Nicole,

               

              You have a well developed business and you have been encouraged by an investor to lay down your business name in the other state of the same and he wil be managing it.

               

              It is really simple, You need to prepare frenchisee terms and consditions for the complete process.

              1) As what will be the basic investment for the owner,

              2) What will be the depostite the frenchisee has to pay for the use of the brand name,

              3) What no of yers will the initial contract lie and will the frenchisee owner be able to renew the contract after the time span.

              4) What will be the royalty the company is asking for from the frienchisee owner. ( Generally its 20-25%)

              5) What budgets the company will be asking for the frienchisee owner to pay for adds, ( At the inital stage generally the company will ask for 40-45 % of the total income to be enforeced in marketing and adds so that a brand value is created and this is carried for 3-4 months where a pre prepared marketing plan is submitted to the company. and later the reduction of add is lowered to 15-20%)

              6) At big MNC companies the overall add focus is managed by the company in the area where company will be for the share as the company is marketing in the entire country the cost will be divided to all the centers and so its really cheap.

               

              You need to have a company account + Frenchisee Manager + Start social media marketing accourding to your brand and start expanding.

               

              The other few thing to keep in mind is - You need to register you firm under the frenchisee act if there are accounding to your zone law, You need to regiter® &Compyrigh © your firm name and logo.

               

              Hope this will be helpful for you .

               

              If you need any assistance let me know.

               

              Regards,

              Aliasgar

              • Re: Starting a Franchise - what to do?
                Moderator Berta Guide

                Hi Nicole,

                 

                Have you found the answers helpful? How are things going with your business expansion?

                 

                ~Berta

                • Re: Starting a Franchise - what to do?
                  snmo4him Adventurer

                  Nicole,

                   

                  I hope what we share is helpful and Aliasgar hit the point  so I assumed it is very helpful.

                  And so with Berta, we hear sooner from you.