Learn How To Franchise A Business
OUR FRANCHISE DEVELOPMENT PROGRAM
Successful business owners reach a point where they must consider various alternatives for market expansion. Of the many choices (company owned facilities, partnership arrangements or franchising) we can show you convincing reasons why we consider franchising as the best of these methods. And, if you then agree with us that franchising is the best method, we will be more than pleased to explain why you should select Franchise Growth Partners to provide the instruction and procedures for you to learn how to franchise a business and to develop an active and profitable franchise system.
Strategic and Operational Planning
The first step is strategic planning. During this three-day classroom instruction period, we will teach you our basic concepts, methods and philosophy for building a successful and profitable franchising business. The result will be that everyone involved in the process of “how to franchise a business” will learn the mutual expectations for the next 30-90 days. Together, we will work through the operational issues that must be decided upon before launching your national franchising program.
There will be two parts to this initial process: (1) a strategic planning, and (2) operational planning.
The strategic planning session will address the following:
How you should organize your franchising operations, the size of territory that you will award, the length of the franchise agreement, rules concerning the services and products that will be offered, marketing concepts and methods, single location and area agreements, and possible subfranchising;
How you intend to sell your franchises, advertising and lead generation, sales procedures and closing the deal, franchisee financing, site location, and lease negotiation techniques;
The costs of selling a franchise compared with the initial licensing fee you intend to charge, the basis of your continuing monthly or weekly royalty, and the percentage or flat fee that must be charged. (For instance, are you aware of the 15 separate financial calculations needed to determine each fee, so that you can operate profitably?);
The operating standards you will require of your franchisees, rules to protect your trademark, and reports and auditing to maintain standards and compliance;
The total investment that your franchisees must expend - and how to reduce and control those initial costs to avoid opening in conditions set for failure; and
The extent and timing of the training and ongoing support you intend to provide.
Operational Planning will involve:
Preparation of financial models showing the investment needed to begin generating positive cash flow, and a pro forma projection that reflects staffing needs (times to add staff, how many, when, and at what salary and benefits). This analysis will reflect general and administrative expense for the franchisor, and will reasonably project franchisee and royalty fee revenues based on a timing schedule for the granting of franchises and determining when each will open and begin generating royalty revenue.
Complete guidance on how to develop your franchise program to achieve your defined objectives.
Full definition of your company’s franchise offering to establish your markets, strategy, rate of growth, key development issues, costs, etc.
A written description of your mission, core values, vision, strategy, systems, internal strengths and external opportunities, internal and external threats, analysis of current systems, identification of operational issues, key result areas, major objectives for each key result area, projects and accountabilities – all with established time lines.
Identification of the critical issues pertaining to the creation of the Franchise Disclosure Document, including the differences among single, multi-unit and area development strategies.
We will provide a complete a Franchise Disclosure Document and Franchise Agreement, prepared by experienced counsel. Every issue, including the initial franchise fee, royalty, advertising fund, protected territory, training fees and franchisor/franchisee obligations will be legally defined and ready for registration in the state or states of your choice.
Within five weeks of your three-day strategic planning classes, we will provide a written Strategic Plan including the financial projections discussed above. We will also provide a detailed Operational Summary of the organizational procedures that we have mutually designed for your franchise system.
We will designate an approved attorney for your project, at a predetermined fee, who will be provided with a copy of the Operational Summary. It will contain the detailed operational information that your attorney will need in order to prepare the Franchise Disclosure Document and the appropriate Agreements, so that you may legally market your franchises.
We fully understand “How to franchise a business.”
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.
“The Right Relationship Is Of Highest Importance.”
