Franchise development (Franchising)

The development of a franchise is necessary when the owner has decided to scale his business with minimal investment on his part and with a guarantee of making a profit in the future. This is a form of business organization in which the owner (franchisor) transfers to an independent businessman or company (franchisee) the right to organize a similar business under his own trademark. This business can be associated with the production, sale of goods and / or the provision of services for a fee in exchange for compliance with the rules of doing business – a franchise package.

What conditions are needed to create a franchise?

1. An authoritative, well-established brand on the market.
2. Clear methods, technology of work, certain know-how or intellectual portfolio of the business as a whole.
3. Well-coordinated team, proven over the years.
4. Reliable suppliers and contractors.

Franchise development is one of the priority areas of work of the SION patent tax law firm. Our specialists help with franchise business plan other legal, finance process an documentations. They carry out of IP protection, prepare rules, standards for doing business, as well as methods and conditions for working on interaction within the network of the franchise object.

The leading lawyer of the practice recommends conducting a comprehensive Due Diligence before starting to draw up a franchise business plan and agreement in order to identify possible unprotected rights and prevent the risks of losing a business.

Franchise registration

Given that this transaction is a type of licensing transaction, the right to transfer industrial property for use can be entered into the State Register. These are managed by the Patent office of the specific country.

A prerequisite for registration is the presence of registered objects of intellectual property rights, these are:

• trademark;
• industrial model;
• invention or utility model.

Royalty in the franchise

Based on the research of the International Franchise Association (IFA), the world traditionally uses the following approach to payments within the framework of franchising:

• The lump-sum fee is a one-time payment-greeting, it is made as a guarantee of fair use of the trademark of another IP, compliance with the rules and standards.
• Royalty – periodic payments (once a month, quarter or year), they are a specific percentage of revenue, can be fixed or mixed.

Royalty rates depend on many factors, such as the business industry, country or region where the franchise is used, competitive advantage, and so on.

To determine the optimal royalty rate, an assessment of intellectual property rights is most often carried out. Our experts will conduct an assessment at a high professional level and in the shortest possible time. We have been working for over 11 years, the average professional experience of a certified appraiser is 20 years.
The advantage of contacting us is a qualified, professional preparation of business rules for franchising, a draft agreement, an assessment of the cost of a franchise, registration of intellectual property rights, and other legal and consulting services.

Franchise business experience

For more than 11, our company has been analysing different businesses for the implementation of franchise opportunities. We have developed and successfully operate franchises in the following business sectors:

• beauty salons 
• medical centres
• flowers boutiques 
• fitness gums
• catering business
• real estate agencies

We create a franchise business plan for the development, taking into account the legislative characteristics of more than 50 countries. Our main feature among the franchise developing company is the identification and study of financial, tax and legal risks.

Franchise development price

The documentary guide to starting a business is about the rules and other requirements of running a business. They are carefully detailed so that the franchisee does not have any questions about where to purchase raw materials, which premises to choose, and how to act in a given situation.
The cost of our services is formed taking into account the creation of the manual, the preparation of the franchise agreement and legal support of the transaction.

The sections included in the manual, the prices of services are presented below:

Before starting cooperation, we always sign a non-disclosure agreement for confidential and commercial information.

To order the development of a franchise formation, contact us by email: info@sion-ip.com