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What Permits and Licenses are Typically Required for New ShelfGenie Franchise Partners?

Posted Sep 10th, 2019

An entrepreneur examines many considerations in weighing types of industries and franchise concepts, from cost of entry (such as franchise fees and initial investment) to time requirements of the venture, to staffing, and beyond. And many of the potential business avenues one might be looking at require some manner of permitting and/or licensing.

In this candid Q&A session, Wes Barefoot, director of franchise development at ShelfGenie, shares some insights into what permits and licenses are typically required for new ShelfGenie franchise partners to get their new business up and running.

What permits and licenses does a ShelfGenie franchise partner typically need?

Barefoot: “Typical” may not be the best word, because it really varies by state. It can even vary depending on the county. Many states require a business license, which is pretty basic. You just register as a business entity with whatever state you’re doing business in, and we have some franchisees that do business across multiple states.

A business license is the most typical type of license, and that’s not difficult to get. And some states do not even require a business license.

In several states, we are required to have a contractor’s license to operate this business now, and states have their unique requirements. They have different definitions of what type of work requires a contractor’s license, and then some states even have multiple levels of contractor’s licenses based on the type of work that you’re doing, the scope of the project, and the average price per job that you do in that particular business.

The good news is that most states do not require ShelfGenie franchise partners to have any sort of specialty license.

A triptych photo shows three ways to neatly organize spice racks that are kept hidden until needed.

Is it difficult to navigate the requirements for contractor’s licenses in various states?

Barefoot: In states where it’s required, a ShelfGenie operation typically only has to get the lowest class of a contractor’s license — at least to get the business started. As the business grows and does more and more revenue, that may require that you continue to upgrade the license that you have.

And in different states, again, if the franchise owner does not have what the state says are the right qualifications to get their own contractor’s license, or if they don’t already have a contractor’s license, there are ways that they could go about either hiring someone that has the license or partnering with someone who does.

Another option in some states is if we already have a franchisee in that state who has the licenses needed, then a new franchisee in some cases can leverage that existing license with our existing franchisee — working under that license to comply with the state; until they have enough experience.

Can ShelfGenie provide legal counsel to potential franchisees?

Barefoot: These are things we’re advising candidates themselves to look at as they are working through the discovery process. We certainly can try to guide people in the right direction, but we are not, as the franchisor, in a position to understand the rules and regulations in every single state, and, in some cases, in different counties across the country.

We can’t give legal advice, so it really up to a prospective franchisee to investigate, and do the due diligence to understand what licensing and permits are required.

To learn more about ShelfGenie franchise opportunities, simply download our Franchise Information Report and someone from our Franchise Development team will be in touch with you shortly. Now is the time to take advantage of ShelfGenie’s unique value proposition and franchise offering.

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