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Legal Documents

As a company prepares to franchise, there are many steps necessary in order to accomplish a successful venture. Management 2000 has a well trained staff to assist in all areas and we discuss each item separately so as not to overwhelm individuals looking to grow their business using franchising as a growth strategy.

One of the first areas that must be addressed is the writing of:

  1. the Unit Franchise License Agreement,
  2. the Franchise Disclosure Document (FDD) and, if needed,
  3. an Area Development Agreement.

Management 2000’s process it to consult with a company’s attorney regarding the strategic and operational issues contained in the documents. This includes issues that affect the success and profitability of the franchisor and the franchisees. Management 2000 does not prepare legal documents. We believe a company will be better served having an established law firm that will, if necessary, defend your documents in court, prepare them for you.

Some of the issues that Management 2000 believes are vital for you to have in your FDD and License Agreement include:

That the franchisee does not own the franchise.

  • That the franchisee understands, accepts, and agrees to and is committed to accepting the right and the obligation to fully, completely and consistently implementing the Intellectual Property of the franchisor.
  • That the franchisee understands that the philosophy is the franchisor is equally as important as the mechanical aspects of producing the products and services of the franchised business.
  • That the Initial Fee paid to the franchisor “buys nothing” and is the franchisor’s way of recouping some of the costs they incur when generating, qualifying, and granting the franchise, and the costs incurred in putting the new franchisee into their business [new franchisee training, site selection, architectural drawings, lease negations, build out, opening assistance, etc.].
  • That the royalty is not the franchisees’ money paid to the franchisor, but rather is “the franchisor’s share of the customers’ money” generated by the franchisee using the franchisor’s Brand, Operating Systems, and Ongoing Performance Improvement Resources.
  • That other franchisees of the Brand are not competitors but rather are associates in creating and keeping VERY satisfied and loyal, frequent user, promoter customers and capturing more and more market share.

Management 2000 works with the franchisor in several capacities in this project, including participating in meetings (phone and face-to-face) between franchisor and attorney, input on all drafts, discussions with the attorney, reading of all documents and serving as project manager for completion of the documents on schedule.

Management 2000 has worked with over 1,350 Franchise Companies in our 31 plus years of operation. Our experience includes working with existing franchise companies as well as companies who are just getting the franchise area up and running. References are available upon request.