Texas is leading the nation in franchise growth. The International Franchise Association (IFA) projected approximately 86,000 franchise locations in Texas in 2026, supporting more than 910,000 jobs and generating nearly $94 billion in economic output. According to the IFA, Texas is expected to lead the nation in franchise growth this year.
For successful Texas business owners, that growth may raise an obvious question: Could my business be next?
Franchising can provide a path to take a successful business beyond what its founder could build alone. The opportunity is to turn what already works into a business model that others can replicate successfully. Making that transition requires more than preparing a franchise agreement and finding someone ready to buy a territory. It requires a strong brand, repeatable operating systems, sound unit economics, the right legal structure, and an infrastructure capable of supporting franchisees as the system grows.
For business owners considering that next step, here are five places to start.
1. Make sure you have a replicable business.
Every successful business has something that drives its success, whether it is a distinctive customer experience, a recognizable brand, an efficient operating model, a specialized product or service, or a combination of these elements. The first step toward franchising is identifying those elements and proving that they can be replicated.
Operate at least two or three pilot locations long enough to demonstrate consistent profitability without the owner’s daily involvement. A strong franchise concept should have demonstrated demand, sound unit economics, and the ability to succeed across different locations, operators, and economic conditions. The goal is to prove the business model works and capture what makes it successful so that the model can be replicated as the brand grows.
2. Turn what you do into a system.
Once the concept is proven, document how the business runs. Create an operating playbook covering day-to-day procedures, training, marketing, technology, vendors, supply chains, and quality standards. The goal is to give franchisees a clear roadmap for operating consistently while maintaining the customer experience and brand standards that made the original business successful.
Build the financial systems alongside the operational ones. Maintain clean, consistent records across locations so you understand unit economics and have reliable data to support any financial performance representations you choose to include in the Franchise Disclosure Document (FDD).
3. Protect the brand before you franchise it.
Your brand is one of the most valuable assets franchisees are buying the right to use. Secure federal trademark protection for your business name, logo, slogans, and other important marks, with registrations that cover the products and services you expect the franchise system to offer.
Protect the other intellectual property that makes the business distinctive as well. Copyrightable materials may include training manuals, marketing materials, and original content, while recipes, methods, processes, customer information, and other confidential know-how may require trade-secret protections. Proprietary inventions or technology may also warrant patent protection.
4. Build the legal infrastructure for franchising.
Work with franchise counsel who understands both franchise law and business growth strategy. The FTC Franchise Rule requires franchisors to provide prospective franchisees with a FDD containing 23 categories of information about the franchisor and the franchise opportunity. The legal foundation should also include the Franchise Agreement, appropriate entity structure, and other agreements needed to support the system.
Texas does not require franchisors to register their FDD with the state, but franchisors relying on the franchise exemption under the Texas Business Opportunity Act must file an exemption notice before offering or selling franchises in Texas. As the brand expands, counsel can help navigate additional state registration and filing requirements.
5. Prepare to sell franchises compliantly.
Once the franchise system is ready, make sure your sales process is too. Franchise sales are regulated at both the federal and state levels, with rules governing disclosures, timing, advertising, and what may be communicated to prospective franchisees.
Establish a process for delivering and tracking FDDs, maintaining required records, monitoring state registrations and filings, and executing franchise agreements. Train everyone involved in franchise sales on what they can and cannot say, particularly about potential revenues or profits. As the brand expands, confirm applicable state requirements before offering or selling franchises in a new market.
Texas is leading the nation in franchise growth, creating an opportunity for successful businesses ready to scale. With the right foundation, franchising can transform a proven concept into a brand with reach far beyond its original market.
You have built the business. The next question is how far you want to take it.
Elena Villaseñor Sullivan is founder and managing partner of San Antonio-based Endereza Law. Sullivan has over two decades of experience spanning litigation, in-house counsel, and executive leadership, bringing a rare blend of legal precision, operational insight, and strategic thinking to businesses and entrepreneurs.
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