Franchising

Franchising

Franchise (or franchising) is a type of business distributing products or services involving a franchisor, who establishes the brand’s trademark or trade name and a business system, and a franchisee who sells the products or services under the franchisor's business name. The franchisee pays an initial fee and a periodical (mostly annual) licensing fees or royalty.

This is a proven model to promote entrepreneurship as it provides the opportunity to own and grow a business by an entrepreneur (franchisee) without much risk and also enables the parent organization (franchisor) to expand rapidly with lesser investments.

The first and foremost step in franchising is the franchisor providing the Franchise Disclosure Document (FDD) to the franchisee, which details the complete picture of the franchise. The franchisee shall review the same and clarify any ambiguities before moving further.

The next step is preparation and execution of franchise documents. Normally, a franchise document includes fee & payment schedule, franchise duration, renewals, training, transfer of ownership, etc. However, the clauses may vary according to the nature of the businesses.

FWC provides the requisite franchising expertise and consultation services in preparing a legally tenable and sustainable franchise business model.