is it possible to franchise a towing business?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
is it possible to franchise a towing business?
I have a tow business running for about 14 years to date and have grown to 3 locations and working on more. As my business is growing, it’s getting harder and harder to control everything from employees to trucks. I was thinking if there’s a possible way to franchise the business and get my own employees to invest in the company and have them long term as I know once they have their own money invested, they will care for the business much more than just being an employee clocking out after a shift. Also, I am looking for a lawyer to work with in terms of investments and legal advice.
Asked on September 10, 2018 under Business Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
You can franchise any business, but franchises are suprisingly complex legally--there is a whole body of law relating to franchises. There are many other options you can explore: giving them some ownership interest in your business's LLC or corporation (you do have an LLC or corporation, don't you, to protect you from liability), though you should keep a majority ownership interest (and control) for yourself); creating new LLCs for them, partially owned by them, and partially by you/your LLC; giving them a share of profits without giving them ownership (e.g. they get X% of the revenue); etc. Consult with a local business attorney to explore what option is bet for you.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.