Frinchising to individuals only?

[castsafe]

Can I set up a franchise as a one person operation? This would be in the agreement preventing the franchisee from having employees or using third-parties, subcontracting, etc.

Basically limiting the franchise to just that one individual.
Is this legal?

Does the franchise model support single person service providers with the franchise providing back-end office support (scheduling, rout planning, surveys, etc.)

- Robert

[LinkAdage]

You can not. You can say you have to work full time in your business and you can only use XYZ approved venders but you can not tell them how many employees they can have. Plus no offense but who would by a franchsie that required them to be the only worker. If that is your concept I would think about starting over.

Shaun

[castsafe]

I curently do residential janitorial services as a single member LLC. As the owner it works out great for me. I am looking into different ways of expending, the obvious one is using the employee/employer structure... I'm still researching other ways.

Any suggestions on other structures available other than emplyee/employer to legally make my service model available to other people under my nsme/trademark?

[johnc]

When franchising out your company, you have a contract with the franchisor - I don't see why you couldn't put a clause in there, stating they could not employ anyone - it must be a one-man business. Personally, I wouldn't do this, it won't help you expand your business. ;-)

[FileSharing]

this is your private business in my opinion...it's like me doing my private auto detailing on the side...I build my reputation up, people use word of mouth advetising, to where I NEED to expand, so I decide to invest in a shop that allows you to have 3-4 cars done at once, and get involved with a company that PROVIDES products to me so I buy from them...I need to spend to make money at this point, I hire a few skilled workers under me to help or help train. Then as I see profits coming in after some time. I open another shop and hire more people then I see myself the top guy, not going to work anymore and watching an "ASSET" grow and your income grow after sometime of expenses and liabilites trying to destroy you and your hope...

What I just described is how it all begins, some can disagree, but in reality this is how small-timers make it big...!

[AffiliateHookup]

Another business that I was involved with was very particular in saying in their agreement that I was picked to operate the business due to my unique qualifications, and that I could not assign my rights or responsibilities to anyone under that agreement without their approval of the person. There was also other language in the agreement that made it pretty clear that you were a one man show.

This company did not call their opportunity a franchise, but a "distributorship." Perhaps that is why they used this legal term? However, I do not see why similar language could not be put in a franchise agreement. It would definitely be something to contact a lawyer about.

My franchise now is a true franchise, with a protected territory. It says nothing about hiring people to conduct business. It does say that they must approve anyone that I sell the franchise to, but that they will not withold that approval without good reason (such as credit or criminal background.)

To sumarize, I would imagine that you can put it in, but I think that it would be more of an independent contractor than a franchise. In other words, it would probably be very few "business" people who would want such an arrangement, for the reasons that have been discussed.

[castsafe]

Great imput everyone! Thanks

[LinkAdage]

There are laws regulating what can be in a franchise contract. You can't say you must stand on your head twice a day and send me pictures so I can laugh a lot, your business idea or not you still have to obey the laws. Sounds to me like you need employees or really dumb business people.