The Franchise 101 Development Program - Understand the benefits of franchising. Franchising in Canada just got easier.

The Franchise 101 Development Program

Franchise 101 Incorporated has a systemized approach to the franchise development process, which incorporates all those decisions, strategies and documents that a company must have before it can legally and practically consider itself a franchisor. We can provide expert assistance in every phase of the of the franchise development process. We ensure that all documents, manuals and procedures are consistent, complete and inter-related.

The Initial Planning Phase

The information, decisions, and strategies developed during the Initial Planning Phase are critical to the proper development of the franchise documentation, disclosure documents, management information systems, operations manuals, franchise marketing strategy and materials. This phase includes, but is not limited to, the following:

Analyze the current business concept and determine any changes that would be needed in order to build a franchise program.
Determine if there is sufficient demand for the particular type of business.
Determine if there are suitable locations available at a cost which does not hinder profitability.
Determine if margins are significant enough for a franchisee once royalties have been paid.
Advise the Company on the structure and level of initial license fees, ongoing fees, renewal fees and assignment fees and set out the guidelines for the franchisor/franchisee relationship.
Determine if the company will expend by selling Unit Franchises, Area Franchises, or Sub-franchises.
Determine the best ways to structure the controls, policies and contracts for operating your franchise, based on current standards in franchising, legal criteria, efficiency and profitability.
Determine how assistance and support services will grow and evolve as the number of franchises grows so that we may structure the documents to allow for these changes and protect future options and additional revenue streams.
Determine if the company should offer a protected territory, the type to be used, and the criteria for establishing the territory.
Determine a typical franchisee's investment to get started and a realistic return on investment.
Develop policies regarding ownership or leasing of premises.
Research other similar franchise concepts and those that may appeal to your ideal franchise buyer, analyze their strengths and weaknesses, and position your franchise offering so that you can effectively compete in the marketplace.
Determine the best way of structuring the franchise corporate entity in terms of regulatory acceptance, limitation of liability, financial disclosure requirements, trademark usage, future spin-off possibilities, and Provincial, Federal and State regulatory requirements.
Review the Canadian and/or U.S. trademark applications.
Review the franchisor’s existing systems, procedures and controls and determine if they need to be modified or strengthened for a successful franchise operation. The franchisee must have all systems, procedures and methods in place and functioning smoothly in order to learn and run the operation as quickly as possible.

Second Phase

During the second phase we focus on creating the documentation, agreements, forms, manuals and marketing materials. Essentially, everything that is required in terms of documentation is completed during this period.

Develop documentation which reflects the recommended business model and provides the strong enforceable controls necessary to achieve a successful franchise program. The Franchise Agreement defines the relationship between the franchisor and each franchisee and protects the franchisor’s image and reputation. It helps ensure a uniform and consistent operation from one franchisee to the next and protects an individual franchisee from adverse actions by another franchisee. By necessity, this document is very extensive. Since the Franchise Agreement is usually in effect for a minimum of five years, it is extremely important that possible problems that could arise in a franchise relationship are covered. It must reflect the latest developments in franchise law; it must be flexible and capable of accommodating future business changes; and it must be marketable. The various documents needed in order to franchise, such as:
- Confidentiality/Non-Disclosure Agreement
- Franchise Application Report
- Offer to Purchase Agreement
- Franchise Agreement
- Disclosure Documents
- Uniform Franchise Offering Circulars
- Sub-lease
- Conditional Assignment of Lease
Disclosure documents provide potential franchisees with detailed background information on the franchise company, such as: specific details about the officers--who they are and their business history; the organization structure of the franchise company; the business concept; funds required by the franchisee; training provided; termination provisions; etc. This document is required by law in certain provinces before you can sell a franchise.
Assist the company with its Canadian and/or U.S. trademark applications.
Produce the various manuals required for a franchise program e.g. Pre-Opening Manual, Operations Manual, and Policies and Procedures Manual. The manuals are an extension of the Franchise Agreement so its style, format and tone must be such that it enables the franchisor to enforce its rules regulations, policies and procedures. A proven and documented system of operation can be the single most valuable asset a Franchisor provides a Franchisee. Well written manuals can be a strong selling point for a franchise program.

Third Phase

Assist in the development of an initial training program for new franchisees.
Design management information systems to evaluate the performance of the franchisee’s particular business in relationship to other similar franchises in the system.
Determine a realistic rate of expansion, the organization structure required to support this growth, and develop financial projections for the franchise program.
Develop the marketing strategy for selling your franchises. We will prepare a geographic expansion plan, and determine the best methods and approaches for attracting ideal franchisee.
Develop a complete franchise sales program and train your staff in the franchise sales process including the following:
- The psychology of the franchise buyer
  Planning, organizing and controlling the sales effort
- Handling and controlling leads
  The sales process and steps to be followed with prospective buyers
- Typical questions and answers
- Scheduling and organizing meetings
- Candidate screening and selection
- Closing/selling ratios for your concept
- Complying with franchise laws
Develop a loan application guide and business plan template to assist candidates in obtaining financing from lenders.
Prepare the overall design and copy for newspaper ads, sales brochures and the franchisor’s website that will comply with federal and state laws and at the same time be attractive to prospective franchisees.

Once this phase has been completed, the recruitment of franchisees can commence.

Is franchising a legitimate option for your business?