I have successfully built a chain of 5 self-serve frozen yogurt and smoothie stores in California. My stores are doing very well while most stores fail after 6 months. I am very passionate to grow my business
nationally by helping other people to repeat the business model I have built.
Some industry experts have advised me that Franching option will NOT be a viable model as there is too much competition and yogurt industry is maturing. So, I will not get enough number of franchised stores (30+ store sin first 12 months) to cover all initial legal cost, staffing costs and ongoing legal costs. This makes sense to me.
So, I am considering the option to either LICENSE my brand OR provide CONSULTING to potential operators to open the store. In addition to charging one time fees for Licensing or Consulting, my ultimate goal is to sell products (yogurt powder, syrups, cups, etc.) to these new store owners, is I have recurring revenue.
Licensing would include providing them all branding materials (logo, graphics, ad copies, etc) for $15K Fees And consulting would additionally include phone and onsite training and support for 40 hours for a total of $20K.
1) From contract
management prospective (obligations, liability, binding laws), what would be the major trade-offs between licensing VS consulting model?
2) Do you suggest any other model for my needs?
My goal is to provide real value to new operator, get them successful and earn an initial and reoccurring income for the value created by me.