Legal Question in Business Law in California

Can you franchise a non-profit organization?

We would like to set up a for profit corporation that has multiple franchisees which are non-profit. How does one do that?


Asked on 4/22/02, 11:09 am

3 Answers from Attorneys
James Burns R. Zebulon Law & Associates

Re: Can you franchise a non-profit organization?

Rather than give a huge explanation you should hire competent counsel to assist you with this because it is not a do-it-yourself project.

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Answered on 4/22/02, 11:23 am
Ken Koenen Koenen & Tokunaga, P.C.

Re: Can you franchise a non-profit organization?

So, you want to make money off of people who don't make any money. Who will invest in an operation like that?

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Answered on 4/22/02, 11:23 am
D. Alexander Floum, Esq.

Re: Can you franchise a non-profit organization?

The short answer: as long as the corporate structure of a franchisee was originally set up as a non-profit entity and it follows the regulations for non-profits, then a for-profit company should be able to franchise to it. This assumes that you have no direct relationship with the franchisees.

Feel free to contact me should you need any assistance in preparing the franchise agreements or setting up any business entity.

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Answered on 4/22/02, 12:54 pm


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