As a general rule of thumb, every franchisor will want to build a non-compete into their Franchise Disclosure Document (FDD). Once you give a franchisee the complete playbook to running and operating your successful business model, you don’t want them to turn around and start running their own offshoot. Which is where the non-compete comes in. It protects you.

I’ve stressed the importance of trademarks on many occasions. In short, owning (and controlling) the brand name is essential on the journey of franchising. It’s one of the many reasons that California cannabis companies can’t franchise. 

For individuals seeking the rewards of entrepreneurship but looking for a safer bet when launching into the business space, purchasing a franchise is a great route to go. Some even refer to franchises as a paint-by-number business. You get the proven game plan from the franchisor and then implement their rock-solid system. This route is especially popular for individuals looking for a second career, often times exiting the corporate world.

As a franchise lawyer, I see the incredible value for business owners to take a proven business model and rapidly expand through franchising. It also builds in revenue streams and places dedicated individuals at the helm of each individual franchise unit.