Franchisor Development Program
Your Franchise Development Program will be "stage-specific" and individually designed to methodically bring you through the franchising process. The flow of the delivery of our services is described in the chart below. During the First Quarter, as we prepare your Franchise Disclosure Document, we will be offering you instruction on strategic planning, elements of leadership and management, and financial structure and processes. Meanwhile, all of the information and knowledge in the production of the disclosure document will also be compiled for insertion into your Franchisee Operations Manual. The same process will continue, Quarter to Quarter, as we deliver the remaining services and products involving marketing, sales, franchisee training and business-support systems. Each of those steps will be accompanied by appropriate consultation in learning modules that will be rolled into your Operation Manual. When the complete, approximately one-year cycle is finished, you should have 1 to 3 franchises in operation and be looking forward to future profitable expansion.
CONSULTATION AND TRAINING:
1. Scheduled Sessions: Presentation by us of our 12 Comprehensive Learning Modules. (Periodic sessions, as arranged for your convenience, during the term of this agreement in order to fully develop your strategic plan, franchisor/franchisee business operations systems, franchisor organizational set-up, financial budgeting and internal reporting systems.)
2. Franchise Marketing Strategy (Franchise Lead Generation and Media-Mix Optimization): FGP will supply Client with samples of suggested advertising materials designed to attract leads and prospects for the sale of franchises, and suggested wording for use on the franchise sales portion of your website and marketing brochure.
3. Franchisee Recruitment and Sales Training Certification: (for the Founder and Sales Executive).
4. Franchisor Training and Operational Support Plan (New Franchisee Training Itinerary and Regional Field Support Methods):
5. Financial Management Training Certification:
6. Franchisor Compliance Program: Complete training for, and a detailed written description of, your compliance requirements as a franchisor with respect to documentation, advertising and sales, state registrations and renewals.
(All of the above training will be conducted by electronic communication where possible. Personal training, where requested, will be conducted at our corporate headquarters in Westlake Village, California).
FRANCHISE OFFERING DOCUMENTS:
FGP will ask you to supply. with our guidance and assistance, the answers to our detailed Franchisor Questionnaire and return these to us together with any additional written materials that describe your services and/or products. Based upon the information received from you, FGP will draft the required documents setting forth the contractual relationship between the Client and potential franchisees, and the required disclosures pursuant to federal law and the law of your state. Pursuant to further discussions between FGP and Client, a final copy of these documents will be prepared by FGP, reviewed by our counsel, and forwarded to Client. If Client desires personal representation by its own counsel this will be at Client’s sole expense and we will cooperate fully with your attorney.
The Franchise Disclosure Document (FDD) is the primary document for the sale of franchises and is a complete compilation of the information required by the Federal Trade Commission and your home state in a form suitable for immediate registration in your state (if required), including:
Franchise Agreement
Area Development Agreement
All Supporting Documents required by statute.
(You will be responsible for payment of corporate or LLC formation fees, accounting fees for financial statements and a registration fee for your home state, if required).
FRANCHISEE OPERATIONS MANUAL:
A comprehensive Table of Contents will be provided to assist you in the development of your Franchisee Operations Manual, which outlines the duties and responsibilities of the franchisee in operating the franchised business. FGP will consult with you and assist you in the internal production of your Operations Manual. The manual will necessarily be dependent upon the documents and information provided by you with regard to the detailed operation of your business. We will work with you to develop and continuously update the manual during our agreement with you.
FGP OFFERS THE FOLLOWING OPTIONAL SERVICES TO OUR CLIENTS:
1. Franchise Sales – FGP will assist in the recruitment of the first (3) franchisee sales, on a commission-only basis, to launch your expansion plan.
2. Graphic Design Services – Upon request, and for an additional fee, FGP will produce your franchise information website, franchise sales brochure and any other requested electronic or print products, to use in the promotion and sale of your franchises.
3. Further State Registration Services:
After initial registration in your home state, and at a time your organization wishes to expand into further registration states, we will provide this service for additional fees on a state by state basis as you may request. In addition to our fee of $600 per state, you will be required to pay registration fees in each of the following states: California, Hawaii, Florida, Illinois, Indiana, Kentucky, Maryland, Michigan, Minnesota, New York, Nebraska, North Dakota, Rhode Island, South Dakota, Texas, Utah, Virginia, Washington and Wisconsin. (Florida, Kentucky, Nebraska, Texas and Utah require an exemption filing and smaller fee, but are not full registration states).
4. Support Management System™:
Our proprietary, web-based, Support Management System™ is available for a monthly licensing fee.
OUR CONSULTING FEE:
A total fee of $48,750 for our complete package of consulting services as outlined in the agreement.
PAYMENT TERMS:
1. Initial Payment of $12,750 upon signing our agreement;
2. A payment of $12,000 due the last day of the month following the month of the initial payment; and
3. Eight (8) payments of $3,000 each, with each payment being due on the last day of each of the next consecutive 8 months following the date the second payment is due.
ENGAGEMENT TERM:
The consulting agreement will end on the date that the last scheduled payments is due, except for the obligation of FGP to conduct commissioned sales as promised above.
The Franchisor Development Program involves a consulting and mentoring process normally lasting approximately nine (9) months. In some cases a franchise system can be successfully launched within 4 to 6 months, depending upon the complexity of the system and the level of cooperation from the client.
FGP will provide consultation services by telephone, facsimile transmission, and e-mail through Internet services and/or regular mail. This will considerably reduce the cost to both parties.
EXPENSES:
FGP will pay its own expenses of word processing, typing, photocopying and mailing of materials prepared on behalf of Client as well as telephone communications made by FGP on behalf of Client.
Client will reimburse, on an as-billed basis, for any travel and room & board expense incurred by FGP on behalf of Client, provided that the incurring of any such expense has received the prior written or e-mail approval of Client.
Client agrees to pay for all printing costs of the Franchise Disclosure Document, Franchise Documents, brochures, advertisements and for all photography and camera-ready artwork and all other advertising and marketing materials.
Client agrees to pay for all fees or charges of any regulatory or governmental agency for registration or other documentation of the offering of sale of Client’s franchise opportunities.
Client is responsible for payment of corporate or LLC formation fees, accounting fees for financial statements and all state registration fees (the fee in California is $675). If you do not have a registered Trade Mark or Service Mark you may hire an attorney to do so, or we will be happy to accomplish this for you for a fee of $750.
COOPERATION:
Client acknowledges that its full cooperation is essential to the timely completion of the services to be performed by FGP pursuant to the agreement. Therefore, Client agrees to make its staff and facilities available to FGP upon reasonable request, to promptly provide FGP with all requested documentation and materials, and to timely respond to inquiries of FGP. FGP will perform its duties in a timely and professional manner in the best interests of serving the Client.
CONFIDENTIALITY AND NON-COMPETITION:
FGP promises that all information received from Client will be treated as absolutely confidential and will not be divulged to anyone for any purpose without the specific, written or e-mailed permission of a person signing the agreement on behalf of "Client." FGP further promises that it will not compete in any manner at any time in any business or venture related to the business of Client.
Our program has been designed to offer you the highest level of personalization, affordability and meaningful experience. Our low-cost structure maximizes the return on investment of our franchisor clients.
“The Right Relationship Is Of Highest Importance.”
