Legal Question in Business Law in Utah

Franchising is fairly complicated. It requires a proven business plan and a franchise plan that is reasonably certain to provide success to the purchaser. These packages require a complete and detailed plan. The reason franchises are not sold in all states vary from franchise to franchise - and often have to do as much with the viability of the franchise as local laws. You do not need to have a company store in states where franchises are sold, but you do have to comply with the franchise laws in each state.

As a Franchise Attorney with 30-plus years of practicing franchise law I can tell you this. The usual reason is fees and costs to register in the 14 franchise registration states. A physical location in the state is not required. Limitations include having to maintain a franchise registration in various states and supporting geographically distant franchise owners. It all depends on the business cycle a company is in and your strategic plan. There's a good page on the Franchise Foundations website called Franchise Budget that details the legal and business expenses to plan for. There are also a number of good articles there about franchising a business and how to evaluate attorneys and others who offer franchise development services. Consult with a good franchise attorney for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation