The following is a list of additional items that are not included in the Signature Franchising Development Package,that are the responsibility of the Client (Franchisor).
Client attorney review - Approx $1,500 - $2,500
It is imperative that the Franchise Disclosure Document, Franchise Agreement and all Exhibits be reviewed by an attorney that is not employed by Signature Franchising, Inc. This attorney will be of the Clients choosing and we will make recommendations of experienced Franchise Attorneys. It is imperative that the Franchise Disclosure Document, Franchise Agreement and all Exhibits be reviewed by an attorney that is not employed by Signature Franchising, Inc. This attorney will be of the Clients choosing and we will make recommendations of experienced Franchise Attorneys
Corporation filing fees - approx $200.00
Signature Franchising recommends that the client form a new Corporation or Limited Liability Company (LLC) to operate the Franchise Business. Signature Franchising has made arrangements with a Major firm to handle this for the client and has achieved a discount for the client if this firm is used.
Trademark filing fees $325.00
It is a requirement that the Franchisor secures their Trademark with the United States Patent and Trademark Office to enable them to Franchise their Business. Signature Franchising will pay our Trademark Attorney to File the Trademark, but the Federal Fee of $325.00 to the United States Patent and Trademark Office, is the responsibility of the Client.
Audit of Balance Sheet of new entity
The Federal Trade Commission requires a financial statement of the Franchisor to be inserted into the Franchise Disclosure Document. If the Franchisor is located in a non-registration state (35 states), then a compilation or review is sufficient for the first year.
Approximately $200-$300 for a compilation of a new corporation or LLC
If the Franchisor is located in, or want to be registered in, a registration state (15 states) the registration states require that this financial statement be a certified audit by a certified public accountant.
Approximately $600-$800 for a certified audit of a new corporation or LLC.
After the first year the Franchisor is required by the FTC and all states to secure a certified audit each year and keep three (3) years of financial statements ongoing in the documents.
Web Hosting – approximately $20.00-$30.00 per month
The Franchisor will need to keep their Franchise Website online and this will be an ongoing expense for the hosting of the site. Signature Franchising offers this hosting service at the option of the client.
Registration State (15) Filing Fee $250-$750
There are Fifteen States that require registration approval to be able to sell Franchises. The fee will vary in each state and must be paid in advance of registration. Signature Franchising will register the clients franchise if the client is located in one of the registration states, but it does not pay the registration fee for any state, that is the responsibility of the Client. There are also filing states that require a fee, but do not require any approval of the Franchise. If the franchisor is offering franchises only OUTSIDE of the registration state in which the franchisor's office is located, most, but not all, of the registration states will not require registration. Any offering made to a franchisee prospect within a registration state must be registered, regardless of where the franchisor is headquartered.
A. List of Registration States and their individual fees:
California -$ 675 / Hawaii -$125 / Illinois-$ 500 / Indiana - $ 500 / Maryland-$ 500 / Michigan -$ 250 (notice only) / Minnesota -$400 / North Dakota -$ 250 / New York -$ 750 / Rhode Island -$ 500/ South Dakota -$ 250 / Virginia-$500 / Washington-$600 / Wisconsin-$400 / Oregon $0
B. List of Franchise Filing States and their fees:
Texas $25.00 / Connecticut $ 400 / Florida $100 / Kentucky $0 (must file, no fee)/ Maine $ 25/ Nebraska $ 100/ North Carolina $ 250/ South Carolina $ 100 /Texas $ 25 /Utah $ 100 .
Client will be responsible for all costs of advertising their Franchise to secure buyers. Signature Franchising will list the clients franchise on the Signature Franchising website for one year at no cost to franchisor.