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California is a franchise registration state. Under California's Franchise Investment Law franchisors are required to register their FDD with the California Department of Financial Protection and Innovation. The initial FDD registration fee is $675 and the FDD renewal fee is $450.
Cruise Planners. Franchise fee: $10,995. Jazzercise. Franchise fee: $1,250. Help-U-Sell Real Estate. Franchise fee: $15,000. United Country Real Estate. Franchise fee: $8,000 to $20,000. Stratus Building Solutions. Anago Cleaning Systems. JAN-PRO. Dream Vacations.
The initial franchise application process is a screening mechanism by which franchisors begin to determine your interest and qualifications.Most franchise applications include many of the same requests for information, and it can get quite detailed.
A detailed personal information of the applicant or the franchisee. Your business interests. Specific preferences for a business location. Your employment history. Your educational background. Your financial statement. Other information.
The Department of Corporations (DOC') regulates franchises in California, and it interprets the three elements of a franchise broadly.
The franchise fee is recorded at its full present value amount. On the balance sheet, the franchise fee is listed under the assets section as an intangible asset. To record the initial franchise fee purchase cost, you debit Franchise Fee for $50,000 and credit Cash for $50,000.
Introduce yourself. Be clear about your intentions from the first paragraph. Introduce your company: type of business, years of operation, etc. Anything that might interest the franchisor. Explain the benefits of the franchise to the reader. Provide additional material to support your case.
These legal documents, along with the operating manuals, staffing, training programs, and marketing initiatives, are your main investments in the franchise system. The two primary documents you'll create are the Franchise Agreement and the Franchise Disclosure Document (FDD).
Some of the most successful franchise businesses in the United States include Subway, McDonald's, Pizza Hut, Burger King, and Dunkin' Donuts; but restaurants are not the only kind of franchise businesses available. Some business types are more appropriate for franchising than others.