Congratulations! Your business is successful and growing. The faster it grows, the more you start to wonder as a business owner if franchising your business makes sense. A franchise is a business operational structure that allows others (called “franchisees”) to legally use your entire business plan and product to profit. Franchising your business is a difficult decision, and laying the foundation for a successful franchise business starts with contacting an experienced business attorney at Coepio Legal. We specialize in legal advice for the business owner in California and can help you as you make this exciting and important business decision.

California Franchise Law

California franchise law is governed through regulations and laws within the state of California. The Division of Corporations (“DOC’) regulates all aspects of franchise law including applications, legal documents, filings, fees, and more. The legal laws regarding franchise law in California are complex and challenging to navigate alone. If you are considering becoming a franchisor as a business owner, developing your legal business path and growth strategy is critical. While franchising can allow you to offer your product or service throughout California, or even nationwide, learning the legal requirements regarding your business systems, products, and trade secrets can be overwhelming without guidance.

Franchising your Business: Pros and Cons

Franchise law includes not only allowing others to profit from your business idea, it also includes practical legal issues such as tax and corporate law, professional and personal liability, and more. As a business owner, franchising your business can have both advantages and advantages as follows:

Advantages of Franchising

• Growing and scaling your successful business
• Uniform marketing for your entire business model
• Decreased costs for growth
• Excited and enthusiastic franchise owners
• Recurring revenue

Disadvantages of Franchising

• Loss of control over each particular and specific franchise
• Large capital investment initially to establish a franchise network
• Potential legal costs to develop a franchise business plan

Types of Franchises

Along with the decision to franchise your business, you will also have to determine what type of franchise operation and business model you will follow. Franchising options include:

• Single Unit – This franchise type is an agreement for only one location. This business arrangement is common and can be a stepping stone to determine if expansion in the franchising market is right for you.
• Multi-Unit Franchise – This franchise type includes multiple locations. It can include franchise agreements based on location (area development agreement).

Contact Coepio Legal

We are excited that your business is successful enough for you to begin considering a franchise business plan. However, the decision to branch out and make your business a franchise is one that will require you to navigate complex legal issues. Visiting with an experienced business law attorney can help you understand your choices with regard to franchising your business. Coepio Legal specializes in business legal advice and contracts for business owners, especially in San Francisco. We would welcome the opportunity to visit with you regarding the success of your business, and how to scale it using franchising. As experienced business attorneys, we can help. Call our office at 415-323-6212 for a free consultation today.