Three C's of Franchise Development Services
If you are a business owner looking at the possibility of franchising your business, then you know that you are going to need some help. The three C’s of franchise development services are: Consultants, Counsel and CPA. These three service providers make up your franchise development team. Your consultant is the person who understands business development, market forces and your industry. Your counsel is the licensed attorney who understands contracts, corporations, intellectual property and franchise law. Your CPA is of course the accountant who understands taxes and financial document preparation.
How many C’s do you have?
Three is the magic number as any more or less and you aren’t getting the best service. For example, some consultants will attempt to cover the role of the counsel by providing document preparation, or application-filing services that are probably considered the practice of law. Similarly, some attorney’s will attempt to cover the role of the consultant by developing operations manuals or business plans. Either way you only end up with two C’s and likely got some bad advice. Another concern when selecting an attorney is ending up with to many C’s. You’ll need legal assistance in franchise, intellectual property and corporate law at least and may need additional areas of law depending on your business. If your attorney doesn’t have experience in all the areas of law relevant to your franchise business you could end up with four or more C’s resulting in inconsistent advice and additional fees. The CPA is a C you just need to have. Many franchisors take advantage of the relaxed rules for first year franchisors and do a balance sheet themselves without thinking about how that looks to a prospect. And if you are in a registration state, you will need audited financial statements anyway so don’t skimp on the third C.
Choose your team wisely.