How to Turn an LLC into a Franchise
The franchise structure allows investors to use names and systems. A franchise has an ownership structure. Define functions and expected results when granting brand rights. Benefits of conversion franchising include growth and shared financial liability.
- Three franchise types: business format, product, and manufacturing.
- Three franchise agreement elements: a fee, trademark, and products/services.
- Analyze ROI, a substantial customer base, and market viability to determine fit.
Naming an LLC for a Franchise
Typically, your business’s name must end with the words “Limited Liability Company,” “company,” or “Limited.” Register your LLC with the state government. Many franchisors will require the franchisee to set up their entity before drafting contracts. Franchisee entities are usually LLCs.
Choosing the perfect name for your LLC is critical. Your company name can’t falsely imply it is another type of enterprise. An LLC name is unique, legally identifying the company from others.