November 18, 2019  
  Articles for Entrepreneurs  

How to Start Franchising is a daily online magazine covering small business news. We help entrepreneurs transform ideas and innovations into greatness.

Designing Franchise Programs

Wondering how to start franchising? We've got some great advice on franchising from one of the nation's leading franchise consultants, Ed Teixeira.
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Implementing a franchise program allows you to duplicate the successful elements of your operations and replicate them around the country with the assistance of motivated franchisees. The process involves five simple steps:

Step 1. Establishing a Franchise Operation

Step 2. Designing the Franchise Program

Step 3. Completing the Uniform Franchise Offering Circular (UFOC)

Step 4. Developing a Franchising Operations Manual and Training Program

Step 5. Selling New Franchises

In this second part of a five-part article, we discuss Designing the Franchise Program.

Designing the Franchise Program

The first step in the process is to design the key components of your franchise program. This includes the initial franchise fee, ongoing royalty, territory size, key operational processes, advertising fund, grand opening program and other key components of what will become your franchise agreement.

You’ll use the pro-forma financials and actual operations of your location as the basis for establishing these items. Contrary to popular belief a franchise attorney is not needed for this initial step. In fact, a highly experienced franchise consultant can work with you to develop these items before “handing off” to a franchise attorney.

Ready for the next step? Learn about Completing the Uniform Franchise Offering Circular (UFOC)

Ed Teixeira is President of FranchiseKnowHow, LLC, a franchise consulting firm; and a managing principal in the Bridge Business Broker Franchise Company. He may be reached at (631) 246-5782 or at

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