How to Start Franchising

Designing Franchise Programs

Written by Ed Teixeira for Gaebler Ventures

Thinking about franchising your business and selling franchises? We discuss important considerations when designing franchise programs

In this second part of a five-part article on the steps to franchise a business, we discuss how to design a 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

Share this article

Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms

Franchise Opportunities


Business Glossary


Conversation Board

What's the business you plan on franchising? What questions do you have about the franchising process? All comments, questions and tips are welcome.

Leave a Reply

Questions, Comments, Tips, and Advice

Email will not be posted or shared
Code Image - Please contact webmaster if you have problems seeing this image code

Problem Viewing Image? Load New Code