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Contract Management: Have a fitness training company which has built quite a reputation due to name clients. I would like to branch off and allow people to use the name...
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DC
David C Barnett, I help you buy, sell, plan, value a business answered:

Hi,

What you're contemplating is a licensing model. It's like 'franchise lite.'

There are several questions you need to answer for yourself before you go recruiting any licensees.

For example, are there any business systems that will come with the franchise in addition to the brand name? How will you control the systems and guarantee the client experience?

The more 'controlling' your agreement is, the more you may be deemed to be selling a franchise which introduces complicated compliance requirements.

I've helped many others work out licensing schemes before. Arrange a call if you'd like to chat.

Also, you should read Franchise Warnings. Available from Amazon.

David Barnett

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