Factors to Consider Before Buying or Creating a Franchise | 30

Felicia Harris, CEO of EverythingHR and EverythingHR Financial Services Interviews David Steinberg, a prominent franchise lawyer in Michigan that has worked in this area since 1982 after graduating from Georgetown University.  David Steinberg explains exactly what a franchise is, what you need to know before you take on a franchise or offer franchisees to buy into a branch of your business, and the responsibilities that you can expect to have. 

Highlights:

• David Steinberg shares his background in legal services. 
• What is franchising? 
• What is the difference between licensing and franchising? 
• How do we prevent violations of franchising?  
• What is a franchise disclosure document? 
• What is a personal guarantee in franchising? 
• What types of questions should you ask to see if a franchise is right for you? 
• When is your business ready to be franchised?  
• What would make franchising worthwhile on both sides? 
• Are there franchises that might surprise people?
• When should a business owner talk to a franchise attorney?     

Key Points:

1. Franchising is a method of distributing goods and services under a licensing format. 
2. Franchising has 3 components that differentiate it from licensing: 
   1. Give someone else the right to sell a product or a service under a trademark/logo/name. 
   2. Operate under a consistent system. 
   3. Pay a fee.   

The most successful franchisees follow their system all the way and don’t deviate.  

https://franchiselawyer.com/