is it possible to franchise a towing business?
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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 5 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.
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