FRANCHISE DEVELOPMENT
At SPM Communications, our franchise development experience stems from working with a wide variety of franchise systems that include restaurant, retail, pet care, wellness, education and home services. We work to generate qualified leads that facilitate brand growth while also help to maintain strong franchisor-franchisee relationships and protect franchise systems from brand damage due to local issues.
Some examples of our franchise development work include:
- Messaging and Brand Story: We develop company boilerplate copy, company mission statements, executive team bios, talking points and full-fledged brand stories, working with clients to create messaging that communicates their differentiators, mission and vision.
- Lead Generation Strategies: One of our team’s greatest strengths is showcasing our clients’ franchise brands to potential franchisees and fill the top of the development pipeline through media relations, news releases, awards, trade speaking opportunities, industry listings and bylined articles.
- Internal Communications Development: The SPM team has worked with numerous clients on strategic internal communications to franchisees during sensitive moments, including company announcements, unit-level operations innovations, marketing initiatives, product updates and ownership changes. We also create franchise communication plans to help franchisors maintain positive relationships with franchisees particularly when their buy-in is needed, whether to maintain brand standards across franchise system or to move brands in new directions.
- Franchisee Support: We work in franchisees in local markets to develop grand opening plans, generate traffic- and sales-driving earned media stories through news releases, tailored pitching and media drops and engage local influencers to mobilize their followers to visit franchised locations.
- Franchisee Crisis Management: Through our robust crisis management practice, we support franchisees to quickly resolve local issues before they spread, potentially damaging the full system. Conversely, we help brands mitigate support center-level issues before franchisees are affected.
OUR BRAND BUILDING EXPERIENCE
Frequently Asked Questions: Franchise Development and Compliance
What is the 14-day rule for franchise disclosure?
Under the FTC Franchise Rule, a franchisor must provide a prospective franchisee with the Franchise Disclosure Document (FDD) at least 14 calendar days before any agreement is signed or any money is paid. This mandatory cooling-off period allows the prospect time to review the legal and financial obligations of the system.
Can a franchisor guarantee specific earnings to new leads?
No. Franchisors are prohibited from making any financial performance representations, such as estimates of future sales or profits, unless those specific figures are formally disclosed in Item 19 of the FDD. Any verbal or written earnings claims made outside of this document are considered a violation of federal and state franchise laws.
What are the legal requirements for a valid franchise termination?
Termination generally requires a material breach of the franchise agreement, such as non-payment of royalties or failure to maintain brand standards. Most states and agreements require the franchisor to provide a written notice of default and a reasonable cure period, typically 30 days, to allow the franchisee to correct the issue before the agreement is cancelled.
Who regulates the registration of franchise offerings?
While the FTC sets the federal standards, several registration states (such as California, New York, and Illinois) require franchisors to register their FDD with state regulators before offering or selling a franchise. In 2026, many of these states have moved to electronic filing systems, like California’s FRANSES, which require all documents to meet specific digital accessibility standards.
Are franchisors liable for local issues at a franchisee’s location?
Generally, franchisors are protected by the legal distinction between the two entities, provided they do not exercise excessive day-to-day control over the franchisee’s operations. However, a franchisor can face legal and brand risk if they fail to enforce the system standards defined in the Operations Manual or if their degree of involvement triggers a joint-employer status under labor laws.