This article aims at highlighting the various important documents which you must have to franchise your existing business model.

Franchising, being a widely practiced business expansion practice, involves a series of legal work which need to be done accurately for establishing a successful venture. To franchise your existing business model, you need to adhere to a number of laws and regulations imposed by both the state and nation. And a few important legal documents also need to be prepared well, in which all the terms and conditions of your franchising partnership with franchisees will be stated. This important task is not something which, can be done without in-depth knowledge and expertise. And this is why, you should always seek franchise advice of experienced consultants who can help you through the complex legal paperwork of the franchising process.

Following here we have listed down some of the important documents which, you must prepare while franchising your business.


Prospectus is an integral document which, comes as one of the marketing materials offered by the franchisor to franchisees. It mainly offers a generic overview of all the franchise operations along with vital financial information of the trading franchises and other financial projections.

Information disclosure/memorandum document

Though not required as a mandatory one, franchisors mostly have their own bank of information where all kinds of details on franchise offering, and business are being documented. It is mainly offered to the franchisees only after they have signed the confidentiality agreement.

Franchise agreement

This is another vital document which is non-negotiable and being signed by both the franchisors and franchisees. This document will detail about everything of both the parties including business system, use of the brand and its objectives, financing and accounts, ongoing and continual training to be offered to the franchisees, fees and payments, minimum performance attendance, insurance, use of compliance, along other various other crucial terms, and features.

Confidentiality agreement

The prospective franchisees must be given to sign this document along with the intent to deposit/proceed agreement to ensure confidentiality of information related to the business and their franchise collaboration.

Trademark licence

Though it can be included in the franchise agreement, you can also prepare a separate document which mainly specifies the licence to franchisees for offering the rights to use trademarks of the franchisor.

Operations manual

Each of your franchisees must be provided with an operations manual where all the operational aspects of your business will be described. They would be given a copy or access of the original manual after completing their preliminary training and signing the franchise agreement. This manual may be in electronic format or hard copy and thus, adequate access of the same must be provided to franchisees.

The final word

All the mentioned documents must be prepared well and in detail to ensure you follow the right steps to franchise your business rightly. Legal documentation is something very important for an aspiring franchisor to establish a franchising venture, and hence, shouldn’t be neglected at all. With expert franchise advice and knowledge of reliable consultants, it would be certainly quite easy for you to understand the steps, prepare the documents, and adhere to the legal implications clause by clause such that you get closer to achieve success as a franchisor.

Author's Bio: 

Being a well-known consultant,the author has been consistent in offering comprehensive franchise advice to entrepreneurs who are willing to franchise their existing business model. He also likes to write blogs and articles on a number of related topics as well.