Basics of Franchising

There are nearly 800,000 franchise establishments in more than 120 industries employing over 9 million people in the United States. Franchising is the dominant creator of small independently-owned businesses in the United States, and has been for decades. PAST AND...
Franchising is a system for expanding a business and distributing goods and services, and is based on a relationship between the brand owner and the local operator to skillfully and successfully expand. By Michael Seid, Managing Director, MSA Worldwide Put...
As a franchisee, you are agreeing to follow someone else’s operating system, including specific requirements for marketing, suppliers, and the products or services you offer. By Michael Seid, Managing Director, MSA Worldwide When you're considering making an investment in a...
Pros Cons Becoming Franchisee
Only you can determine whether becoming a franchisee is right for you and your family. It’s a personal decision – take the time to do your due diligence before making a life-changing investment. By Michael Seid, Managing Director, MSA Worldwide...
Franchise Disclosure Document
By Michael Seid, Managing Director, MSA Worldwide The FTC Franchise Rule mandates franchise disclosure The Federal Trade Commission (FTC) is the Federal agency that governs the manner in which a franchise is offered for sale in the United States and...
What is a Franchise Agreement
Every franchise is governed by the terms of a contract between the licensor - the franchisor - and a licensee - the franchisee. This contract is called the Franchise Agreement. By Michael Seid, Managing Director, MSA Worldwide A Franchise Agreement...
Typical Franchise Fees
When you enter into a franchise agreement as a franchisee, you will typically be agreeing to pay the franchisor a variety of one-time and ongoing fees. 1. Franchise Fee The Franchise Fee (also called the “initial franchise fee”) is the...
About Franchise Royalty Fees
In most franchise systems, the “financial relationship” element is usually met in two ways: a one-time upfront payment (known as the “Initial Franchise Fee”), and an ongoing payment (known as the “Royalty Payment”). By Andrew Seid, Consultant, MSA Worldwide The...
The article addresses three important but too-often overlooked realities that anyone interested in becoming a franchisee needs to know BEFORE engaging in the process. By Andrew Seid, Consultant, MSA Worldwide Buying into a franchise system can be an incredibly fruitful...
The key to choosing the right opportunity for the next phase of your life is to ask yourself some very important questions; how you answer each of these questions will guide you towards specific types of franchises. By Theresa Huszka,...
The various types of franchise relationship structures and how they function, from single-unit and multi-unit franchising, to master franchising and area representatives, as well as other franchise options. By Michael Seid, Managing Director, MSA Worldwide The Various Types of Franchise...
In addition to the Franchise Agreement that each franchisee signs, a multi-unit developer enters into a multi-unit development agreement with the franchisor. By Michael Seid, Managing Director, MSA Worldwide While a franchisee may over time acquire multiple locations, an Area...
For countless people, franchising has changed their lives from employee status to business ownership. But only those who understand the fundamentals of franchising are likely to succeed. By Tom Portesy, President, MFV Expositions LLC Franchising doesn’t include any guarantees for...