System Standards
Building a strong franchise system requires developing and enforcing system standards that can adapt to new changes in consumer demands and technology. We advise franchisors on structuring these standards, enforcing them when necessary, and implementing system-wide changes.
We help franchisors develop, protect, enforce, and adapt system standards. System standards are perhaps the most important aspect in franchising. System standards specify what franchisees can and cannot do, and are usually included in the Franchise Agreement and Operations Manual. Properly constructed standards will ensure brand consistency across multiple locations, quality control, and provide marketing and supplier value to franchisees.
Developing System Standards
Developing system standards is an ongoing process for franchisors. First, when starting to franchise, franchisors will need to prepare an initial Operations Manual. We work with startup franchisors in reviewing these Operations Manual to ensure they cover many of the most important aspects in franchising, based on our decades of experience working with some of the largest and fastest growing brands.
Emerging and mature franchisors should periodically review and update their system standards to adapt to business and regulatory changes. We work with these franchisors to document these new standards.
Protecting and Enforcing System Standards
Protecting and enforcing franchise system standards take a variety of forms, including obtaining intellectual property registrations for critical elements of the system, ensuring the confidentiality of your system standards, providing default and termination notices to franchisees who fail to comply with system standards, and, if needed, filing legal actions seeking injunctive relief.
