Franchising:
From June 2005
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Power Play
Josh Dellar hopes to grow Pasghetti, his Roseville pasta restaurant, into a chain through licensing. While the Federal Trade Commission regulates franchises, licensing agreements fall outside its authority and have fewer rules.
“In franchises, the franchisor has all the power,” Dellar says. “Licensees get your trademark, name or logo, the recipes and business system, but if licensees want to change something, they can.”
Roquet says the biggest mistake people make is going into an enterprise underfunded, not realizing they need the initial capital investment, plus money to cover operating losses and personal and living expenses.
“They have to do their investigation and determine if the business is something they know or something they just think they know,” he points out. “They have to back up emotion with facts.”
Once they’ve done a thorough examination, it’s time to take the leap, says Roquet, because “if you don’t follow your dream, you might end up working for someone who did.”
Josh Dellar hopes to grow Pasghetti, his Roseville pasta restaurant, into a chain through licensing. While the Federal Trade Commission regulates franchises, licensing agreements fall outside its authority and have fewer rules.
“In franchises, the franchisor has all the power,” Dellar says. “Licensees get your trademark, name or logo, the recipes and business system, but if licensees want to change something, they can.”
Roquet says the biggest mistake people make is going into an enterprise underfunded, not realizing they need the initial capital investment, plus money to cover operating losses and personal and living expenses.
“They have to do their investigation and determine if the business is something they know or something they just think they know,” he points out. “They have to back up emotion with facts.”
Once they’ve done a thorough examination, it’s time to take the leap, says Roquet, because “if you don’t follow your dream, you might end up working for someone who did.”
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