If buying an existing business is not your thing, and starting from scratch seems a bit challenging, you might benefit from franchise ownership. A franchisee pays a preliminary cost from the onset and monthly royalties to the franchisor once the business starts operating. In return, the franchisee takes advantage of the training, supply chain, established payment systems, and the right to utilize the franchisor’s system of doing business. Every state has some legal requirements that govern the procedure for registration, termination, and renewal of franchises and Washington is no exception.
Franchise laws in Washington
- A person is given the right to engage in the business of offering, selling, or dispensing items or services under the franchisors marketing plan
- The operation of the business is substantially guided by the offering of specific products and services in the hope to build the brand.
- The brand remains a property of the franchisor, and the franchisee should not alter the nature or labels without authorization by the grantor or its affiliates
- The franchisee must adhere to the payment schedules as agreed in the contract
The Washington state’s Franchise Investment Protection Act (FIPA) develops a dispute resolution regimen that solves the problems that might crop up in the business relationship. The key factors address the pertinent issues such as terminations, transfers, or non-renewals. First, both parties should uphold full disclosure, good faith, and honesty when dealing with each other. It is critical to avoid any unfair acts that might give the rivals a competitive advantage. The franchise laws stipulate that every party should:
- Honor the contract unless the franchisor proves that any changes are justifiable, unavoidable, or beneficial to the company
- Shun any dealings that may considerably boost competition or bring a conflict of interest
- Honor and apply the company laws of the United States in addition to the local statutes
- The franchisee is not authorized to get extra cash and introduce foreign goods or services without consulting the franchisor
Why entrepreneurs prefer to start businesses in Washington
In Washington, most businesses enjoy a vast array of competitive advantages that you cannot find in any other state. The incentives include minimal personal or corporate taxes as well as a broad range of funding opportunities. The state offers lots of industry-specific incentives to spur innovation and growth in conjunction with the government’s development policies. Washington has embarked on a $16 billion infrastructure development upgrade that will improve access to the ports. The project aims to ease congestion by expanding the highways and introducing new ferries in the ports. By improving the public transportation, you can now transfer your goods to market much faster and more cost-effectively. When you require professional assistance, a capable team of technical professionals will help you. When you need new ideas, you can depend on the research and development programs from the local universities that fuel development within the state.
Best places to start a company in Washington
Redmond’s 6,200 companies get an income of over $7.3 million annually. A few examples of these teams include Nintendo of America and Microsoft. The success of these companies attracts the best talent in the United States.
There are plenty of breweries, wineries, and great recreational facilities that attract a vast array of tourists to Woodinville. Since the locals love to explore the city’s recreational features, there are plenty of franchising opportunities in the food industry. The local universities also support the local businesses with the technical information they need to grow.
- Gig Harbor
Since Gig Harbor is one of the most populated cities in Washington, there are plenty of opportunities for investment. Tourism gets a boost from the broad range of recreational features, and the investors who specialize in developing some modern hospitality facilities can take advantage of these resources. Also, the Chamber of Commerce provides constant support to the local businesses through networking conferences and training opportunities.
Washington attracts a host of new investors with its attractive recreational features and a friendly business environment that guarantees success for existing businesses and startups. Whether you want to invest in the city or look for investment opportunities in the suburbs, you will realize that Washington has a lot to offer. The leading franchises in Washington include Claimtek systems, Tailored Living, Homevesters of America, and Club Pirates. A franchise attorney can assist you to get started in the registration process by highlighting the red flags that can frustrate you down the road.