OVERVIEW OF FRANCHISING Is it an appropriate growth strategy for your business? 1 Powered by F Vision accelerated business success training

OVERVIEW OF OVERVIEW OF FRANCHISINGFRANCHISING

Is it an appropriate growth strategy for your business?

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Powered by F Vision accelerated business success training

What is Franchising?What is Franchising?

Three Primary Elements define a Franchise Relationship:1. The use of a common trademark2. The provision of assistance to the franchisee3. The collection of fees, royalties, mark- ups or other monies from the franchisee

If you have all three of the above elements you are a franchise regardless of what you call it.

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Why do companies Franchise?Why do companies Franchise?

The ability to expand using franchisees capital

Franchisees are typically more motivated to succeed than managers

Franchising promotes increased quality at the unit level

Franchising enables a company to grow faster than it otherwise would through corporate expansion

Reduced risk and liability for the franchisorFewer concerns over day-to-day operations

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In order to franchise In order to franchise your business should be:your business should be:

Established and ProfitableUnique in the marketplaceEasily teachable to othersAttractive in terms of a proven return

on investmentMarketable as a franchise

opportunityTransferable to other markets

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How do I franchise?How do I franchise?

Develop a business implementation plan using Franchiselink’s unique F Vision approach

Draft legal agreements required by Provincial Laws

Establish quality control mechanisms that franchisees will be required to follow

Develop a web page dedicated to your franchising effort

Develop marketing materials to help sell franchises

Design a franchise sales strategyAdvertise your franchise opportunity to

generate sales


The Business PlanThe Business Plan

The business plan is your key to success; we recommend using the F Vision Business Plan formula

It should be developed by expertsMake sure the person doing the work

has extensive franchise experienceMust focus on the implementation as

well as the development of your franchise program


The Business Plan The Business Plan (Cont’d)(Cont’d)

As recommended by the F Visiontraining system, it must include:Organizational chart(s)Staffing analysisPrimary and secondary market

researchDetailed cash flows and sensitivity

analysis


The Business Plan The Business Plan (Cont’d)(Cont’d)

Don’t rely on guesswork – a thorough strategic plan is critical to the long term success of any franchise program.


Legal Documents: The FoundationLegal Documents: The Foundation

Franchising legal documents should be drafted by a qualified franchise lawyer.

Make sure that the lawyer is a franchise expert and has at least 10 years of franchise experience.

Consultants with expertise in developing and managing franchise systems can assist you and your lawyer in developing the business relationship between the franchisee and franchisor to be detailed in the legal documents.


Quality Control: Quality Control: The Assurance of LongevityThe Assurance of Longevity

Motivate and train your corporate staff to understand and support the franchise system

Develop a comprehensive Operations Manual specifically for franchisees

Prepare a detailed training program (including training manuals) for franchisees

Consider online training tools


Marketing PlanningMarketing Planning

If you are planning for aggressive expansion:Create a formal written plan outlining your

strategies and budget.Maximize quality control and brand

awareness by expanding regionally first before you consider national growth.

Don’t expand faster than your support capability.

Use a specialist in helping you plan for growth – remember, one incremental franchise sale can create hundreds of thousands of dollars gained or lost.


Marketing Materials: Marketing Materials: Essential for SpeedEssential for Speed

Your marketing materials create a critical first impression that differentiates your franchise opportunity

Your web page should be a HUGE priorityDevelop a mini-brochure for the sake of

economyA full sized, colour brochure is essential for

credibilityOnly work with professionals who

understand the unique nature of a franchising concept


The Sales Process:The Sales Process:The Ultimate TestThe Ultimate Test

Your franchise program will NOT succeed unless you select QUALITY franchisees.

Develop a comprehensive and detailed strategy for evaluating and approving franchise candidates.

Prepare your staff for supporting your franchise sales effort.

Obtain ongoing coaching from experts with experience in franchise sales.

The franchise sales process cannot be taught in a day.


Who is the FranchiseLink Group?Who is the FranchiseLink Group?

Franchiselink specializes in highly customized relationships with start-up and established Canadian franchisors.

Founded in 2002, Ted van Samang has been in the franchising business since 1980.

We have worked with many successful Canadian and American franchising companies.

We have sold over 500 franchises for our clients throughout Canada and the US.

We are experts in creating regional franchising opportunities for fast growth



(Cont’d)(Cont’d)

We provide extensive experience in five functional areas of expertise:

1. Strategic Planning

2. Operations and Training

3. Franchise Marketing

4. Franchise Sales Implementation

5. Access to investment capital through the Thomas Franchise Solutions group (TFS)



(Cont’d)(Cont’d)

We specialize in our exclusive F Vision accelerated business success training based upon our extensive experience with E-Myth Mastery, F.A.S.T. (IFA approved), Life Pilot, TFS University, as well as our experience with hundreds of established franchising companies.


What can we do to help you succeed?What can we do to help you succeed?

The relationship is based upon the unique needs of each client:

Develop business and implementation plansDevelop required legal documentsCreate Operations Manuals & Training ToolsDevelop Marketing PlansDesign Web-Based Marketing StrategiesDevelop Marketing ToolsDevelop Franchise Sales StrategiesLong Term Implementation Assistance


CostsCosts

Varies depending scope of the project.Our pricing is designed to meet the needs of

each client we work with.DO NOT get into franchising undercapitalized.Expect to pay up to $50,000 and up for a

Canadian franchising roll out. In addition to consulting, plan on spending

$8,000-$10,000 on advertising per each franchise sale at start-up.

Be wary of anyone who tells you that you can franchise without a significant commitment of resource.


Next StepsNext Steps

If your business is qualified, we will schedule a no cost consultation to determine if:

Franchising is the right strategy for youIf your business is franchiseableWhat steps you need to takeWhat specific costs you should expect
