We all have our favorite franchises, whether they are department stores, fast food restaurants or other popular business establishments. In fact, many franchises are now household names and have seen decades of success.
Some people in Denver wishing to establish their own business will choose to do so through franchising.
Franchising is unique, in that it allows a person to own a business while still being able to reap the benefits of being associated with a successful parent company. For example, franchisees can use the franchiser's logo, advertising, business operations, equipment and sell the franchiser's products. The popularity of many franchises can make franchising an attractive means of doing business.
It is important to note, though, that franchising is not a form of legal structure. The franchiser and the franchisee are two separate business entities. It is up to the franchiser and franchisee to determine how to legally structure their respective businesses. Some examples of business structures include corporations, limited liability companies, partnerships and sole proprietorships.
Franchising is an attractive option to those who want to own a business, but do not necessarily want to start solely on their own from the ground up. However, like any other business formation, there are many legal aspects to franchising. For example, the legal requirements for establishing the appropriate business entity must be met and oftentimes there will be contracts between the franchiser and franchisee. Franchising can be a lucrative means of doing business, but it still must have a solid legal foundation for both the franchiser and franchisee to see monetary success.