What You Need to Know About Franchising
The District of Columbia is considered a “federal state”, meaning that no registration is required in order to sell franchises. However, keep in mind the proximity to Maryland and Virginia. If your prospective franchisee is a resident of one of those states, even if they want to open in DC, then you must disclose them with an FDD approved in those states.
And like all federal states, there could be specific local franchise laws known as franchise relationship laws or business opportunity laws that govern the relationship between you and your future franchisees in DC.
Don’t assume just because it is governed as a federal state, that the franchise agreement between you and your franchisee is the last word on the relationship.
10% of DC franchise units are sub shops.
Franchise.org
In 2022, the government and government enterprises industry added the most real value to the gross domestic product (GDP) of the District of Columbia, amounting to around 40.54 billion U.S. dollars.
Statista.com
District of Columbia small businesses employed 250,345 people, or 47.5% of the private workforce, in 2017.
US SBA
Flat Fee Program for Franchisors
Spadea Lignana’s CORE program for franchisors is a cost-effective and practical solution for the ongoing legal needs of franchisors, including but not limited to, FDD updates, state registrations and franchise agreement executions. Through a proprietary cloud-based system we can effectively and efficiently manage FDD Disclosures and Franchise Agreement executions for fair flat fees billed monthly. We believe that hourly billing, although necessary in certain circumstances like complex M&A deals and litigation, can weigh on the relationship between client and attorney. By coming up with a fair flat monthly fee, the uncomfortable negotiating of whether or not a 6 minute increment in your bill for replying to an email was legitimate goes away.
Attorneys Who Understand Washington DC Franchise Law
Franchise laws vary from state to state, and it can be difficult to understand the requirements. Spadea Lignana has streamlined the process to ensure you remain compliant as you grow nationally.
We also work with franchisors nearby in Virginia, Maryland & Delaware.
