There is a reason why franchised locations of restaurants have proved to be popular throughout Florida and the rest of the country: they can be quite profitable for both franchisor and franchisee. However, there are several aspects of franchise law that someone not familiar with the process needs to be aware of before considering entering into a franchise agreement.
One of the relatively new players in the restaurant franchise business in Florida is CiCi's Pizza. The chain announced recently that it is planning to open nine South Florida locations via franchise partners. The restaurant, for those unfamiliar with the concept, is a pizza buffet-style chain that already has more than 500 locations throughout the country.
An outfit such as CiCi's has a great deal of experience in franchising its concept to multiple franchisees. However, a smaller company without franchised locations has a lot of work to do before attracting franchisees. One of the most important points is to have a franchise agreement, a document that will guide each side of the relationship.
Additionally, franchisors should be aware of the regulations regarding intellectual property and copyright permission. While the introduction of franchised locations can add to the scope of a brand, it is important that the brand not be diluted. Above all, a potential franchisor needs to protect the business interests that made the company a success in the first place.
Regardless of the size of a business, consultation with an attorney experienced in franchise law can often help a business owner to understand the idea of franchising.
Source: Sun Sentinel, "CiCi's Pizza plans to expand South Florida presence via franchise partners," Miriam Valverde, Aug. 16, 2013
