Heading with your family down to Florida on Spring Break, your kids start yelling from the backseat that they are hungry. As you look around for a place to stop, you notice a sign containing the familiar golden arches quickly approaching. You also see an advertisement for “Frank’s Truck Stop” on the side of the interstate. Where will you stop? While the ultimate

decision may come down to personal preference, there is a high likelihood that your children’s choice will be McDonalds, the owner of the highly recognizable golden arches.

Many McDonalds restaurants around the country are franchises. Franchising allows another to use a firm’s business model and brand according to certain requirements. The franchisor may provide a franchisee with the right to utilize its business plan, intellectual property, products and services. In return, the franchisee pays royalties and fees for the right to utilize the property and ideas of the franchisor. The franchisor often provides training and quality audits to ensure that the franchisee is running the business according to the standards set by the franchisor. The franchise usually lasts for a fixed period of time and applies to a specific geographical area. Franchisees benefit from the popularity of the brand which often draws customers due to familiarity.

For more information about franchises, contact an experienced business law attorney at the firm of Paulson & Paulson, PLC.