internet franchise business legal?

[scared123]

Hello All,

Is it legal to start an internet based franchise? Wherein I would offer my territory thru the internet as a franchise to potential franchisees?

I currently sell electronics on line and would like to franchise the business.

No brick and mortar requirements. I would offer it for a small amount per territory and the shopping cart stays on the main site. So if there is a sale on the site and that sale came from a franchisees area, they would collect the monies and pay us a royalty. And if there is no one in that region than the franchise keeps the moneY??

thnks

 

[Michael Wechsler]

You can create a franchise agreement that allows parties to sell products online using your brand name. It might prove to be more difficult than you think given the way search optimization works and involving a business lawyer might be a good idea. The manner in which you describe above is probably not a good idea. You'll probably want customers who are out of the franchisee's region to refer the business to the appropriate franchisor. Otherwise, if a franchise collects money, it will likely be in contract with a party with whom it should not be in contract. Obligations of support, etc. would fall upon the appropriate franchise. It's a mess. An experienced business attorney will be able to help sort it out.