This is the FMS proposal and agreement system. Enter the team password to continue.
Five integrated workstreams, delivered end to end. Every item below is included in the development program fee.
The Franchise Marketing Systems development team will introduce resources, background, and the overall process for the franchise development model. Client will introduce the brand, background, and leadership team to the Franchise Marketing Systems team. An implementation call will be conducted to both start the development process and initiate the engagement and relationship between both parties.
Franchise Marketing Systems will collect key information from the client to review, discuss, and analyze the business model, brand, and current state of the organization in order to best prepare to launch the franchise system and begin awarding franchise units.
Franchise Marketing Systems will develop and work with the brand to complete a franchise strategy questionnaire that accurately describes the brand's expansion goals and key success targets. These points will be used in the franchise development process and communicated through the franchise business plan.
Franchise Marketing Systems will review the industry competitors for the brand concept and industry segment. This competitive analysis will then be used for benchmarking purposes to understand where to position your brand against competing franchise systems. This will provide the brand with a full understanding of the industry layout and the strategic implications of the brand franchise strategy. Franchise Marketing Systems will document a competitive summary based on the following analysis of the industry segment.
Franchise Marketing Systems will run a comparative analysis of the top potential competitors of the brand offering. Franchise Marketing Systems will examine the basic concept, operational format, and general marketing characteristics of the brand business model. Each element of the brand concept will be benchmarked against the comparable franchisors and businesses. These comparisons will be evaluated in terms of their overall effect upon the franchise program, encompassing types of products and services offered; types and sizes of locations utilized; total investment for establishing a territory; and sales and earnings of the corporate entity and franchising concept. As a [segment] franchise, the brand will inevitably be compared to other similar concepts, and will be able to benefit from the mistakes those companies have made in their franchise programs.
Franchise Marketing Systems will review brand revenue options and recommend appropriate revenue sources that may contribute to the new franchise organization's income and profits. Among the available revenue sources are the following:
Franchise fees will be determined after weighing various factors, among them the marketability of the franchise at various price levels, competition from other business opportunities available to potential buyers, and the cash flow produced by the business. The recommended initial franchise fee will be structured in light of a number of factors, such as front-end selling expenses, advertising, commissions, training, site and start-up assistance costs, market needs, and other variables. Franchise Marketing Systems will develop the appropriate franchise fee for the brand based on numerous factors:
Franchise Marketing Systems will develop a structure and business model for working with brokers and independent referral agents for the brand.
Royalties will be recommended after a review of the brand business and considering the needs of franchisees and current industry practices. They will be based on the need to maintain sufficient corporate cash flow, to support general and administrative costs and franchise services, and to provide ongoing income for the continuing operation of the franchise. They must also be affordable for franchisees.
Franchise Marketing Systems typically recommends three levels of franchise advertising requirements that your franchisees will follow:
Franchisee maintains a minimum advertising spend in their own market.
Franchisees in a region pool funds and advertise together in a given market.
Franchisees pay a marketing fund fee to the franchisor alongside royalty fees.
Local, cooperative, and corporate advertising fees will be recommended after an evaluation of the amounts currently spent for advertising in operating units and the type of advertising needed at the unit level. Corporate advertising fees required of franchisees will be based on the opportunity for leveraging buying power to promote the brand and scale the offering. The franchise business plan, in addition to the franchise operations manual, will document and define exactly how brand franchisees may use brand logos, marketing collateral, and branding. Everything a franchisee does from a marketing standpoint will be required to pass through franchisor approval before being released into the marketplace. The brand will retain direct control and management over where the advertising fees will be spent: the corporate ad fund is managed directly by the franchisor, while local advertising is managed by franchisees with franchisor oversight.
Franchise Marketing Systems will work with the brand to develop a business model for additional revenue streams from products and item sales to franchisees. This may include sales of advertising, print, or other related products or supplies, marketing materials, items needed to operate the business, or research and development for new products, lead-support products, materials, supply items, and other services to be offered within the brand business model.
Franchise Marketing Systems will support the brand in making decisions related to vendors, suppliers, and structuring vendor rebate programs. This includes potentially identifying vendors, negotiating vendor relationships, and structuring rebate compensation models.
These recommendations are incorporated into the legal, operations, and marketing documents and strategies. These issues include policy formulation, market potential, speed of expansion, the franchise structure best suited to the brand situation, and current company resources available to meet franchise goals.
Franchise Marketing Systems will make recommendations relating to the critical business decisions that become the foundation of the franchise program for the brand. These recommendations are incorporated into the legal, operations, and marketing documents and strategies. These issues include policy formulation, market potential, speed of expansion, the franchise structure best suited to the brand situation, and current company resources available to meet franchise goals.
Following the analysis, Franchise Marketing Systems will review all critical decisions and weigh the impact of these decisions on key aspects of the franchise program. This will include a written business plan for the brand organization, in addition to the individual-unit business plan, which can be used for brand owners.
Brand Licensing — The brand will also retain the rights to license the brand to other areas and markets outside of the franchise distribution model. This will be documented in the business plan as well as in the legal documents for the brand.
Vendor & Supplier Management — As the brand develops the franchise system, vendors will be added and removed from the strategic growth plan based on discounts, strategic advantages, and relationship-management issues.
Location Analysis — Franchise Marketing Systems will work with the brand to develop a plan for territory types: how large and expansive the territories are, where they are located, and what the office requirements should be for franchisees.
Protection of Intellectual Property & Proprietary Work — Franchise Marketing Systems will develop a business plan that accounts for the brand retaining and protecting all the rights and ownership to all copyrights, trademarks, logos, information, and developments.
Corporate Structure & Defining Entities — Franchise Marketing Systems will develop a business model and approach that defines the overall corporate structure and the relationship between each of the entities. This will require legal input from brand counsel.
Franchise Marketing Systems will prepare a structured and detailed business plan that franchise partners of the brand may use in presenting to financial institutions, malls, community centers, or other purposes. This business plan will also include a marketing plan for the franchise owners of the brand. This will be a final written document for the brand.
The franchise law firm will draft and prepare the Franchise Disclosure Document for use in signing franchise relationships. This document will define the franchise relationship as based on the Federal Trade Commission guidelines and rules. There are 23 points of disclosure that will be handled in putting together these documents. The Disclosure Document will appropriately describe the principals involved in operating the business and the structure of the franchise program as defined by the franchise business plan.
The franchise law firm will prepare the franchise agreement for use in signing and acquiring franchisees. The Franchise Agreement will appropriately define the structure of the franchise relationship and protect the brand as a franchisor.
The franchise law firm will prepare and manage the state registration process for the brand. The state registration fees will be in addition to this proposal — Franchise Marketing Systems will develop a strategic plan for the brand that appropriately develops a strategy to manage the state registration process.
Franchise Marketing Systems will develop a preliminary outline that identifies and describes the topics that should be covered in the brand Operations Manual. Based on discussions through our planning meetings and material supplied by the brand and employees, this outline will reflect Franchise Marketing Systems' initial understanding of the issues relevant to the franchisee and will be specifically tailored to the franchise concept. It will also indicate the points at which the manual should cross-reference the provisions of the Franchise Agreement and will delineate the areas for which systems must be developed to monitor the operations of the franchisee. The outline is designed to aid the process of implementing the franchise program and will further serve as the agenda for the field visit.
Franchise Marketing Systems will visit the brand headquarters and areas of business to observe the operations first-hand and to discuss the preliminary outline. Franchise Marketing Systems will be at the place of business for at least a one-day visit. At the client's discretion, Franchise Marketing Systems will be available for a second trip as well. This time spent in the operation will be long enough to fully understand the operation and business model. Subject to brand approval, Franchise Marketing Systems will determine the manual's style, scope, and format, and will document procedures, collecting any materials that are to be included in the manual. The manuals will cover every aspect of running and operating a location, including establishing the business, OSHA requirements, hiring procedures, and other start-up processes. The Operations manual will also include photographic representations of the operating unit. The photos and illustrations will coincide with the operational documentation and will aid in describing the business in further detail.
Efficiency Consulting — Franchise Marketing Systems will work with the brand to effectively design, document, and implement a business model that is as efficient as possible to replicate the brand system through franchising.
Developments & Discovery — Any discovery or improvements that are made to the business model by a franchisee will be the ownership and intellectual property of the brand.
Business Development & Vendor Sourcing — FMS will provide guidance as to how to structure the business for maximum efficiency, locate vendors and suppliers for increased scalability, and optimize the business model for growth. This is provided through FMS Sourcing.
Franchise Marketing Systems will create a customized, comprehensive operations manual that documents the full brand operating system — the definitive reference a franchisee relies on to run a unit to your standards. It captures every part of the business: establishing and setting up the location, day-to-day operating procedures and standards, hiring and managing staff, customer service, administration and reporting, compliance and safety, and local marketing and sales. The manual is built specifically around your concept rather than a template, drawing on detailed meetings with the brand team, first-hand observation of the business, the final franchise documents prepared for the program, and Franchise Marketing Systems' extensive franchise-development experience. It is structured across six sections (A–F), cross-referenced to the Franchise Agreement, and supported with photographic and illustrative documentation so the system can be consistently replicated across every location.
Franchise Marketing Systems will develop a comprehensive plan for generating franchise sales leads in the United States. This plan, based on an understanding of the expansion goals for the brand and the profile of the target franchise owner, will recommend specific marketing activities and will include appropriate creative materials — such as direct mail letters and copy and layout for franchise sales ads — that can be utilized in the franchise sales campaign. The Marketing Plan will incorporate specific media suggestions, a budget for the campaign, and a timetable for implementation. It will also contain useful information on topics such as legal constraints on franchise marketing, how to obtain publicity, and whether to conduct seminars and participate in trade shows. Copy for the ad and letter will be developed within the context of Franchise Marketing Systems' experience, with guidelines established by the Federal Trade Commission and by various state regulatory agencies whose approval is required before any advertising materials can be used in connection with the offer of a franchise.
Franchise Marketing Systems will develop copy and layout for a brochure of approximately six to twelve pages for the brand, plus cover, designed to describe the franchise and to build enthusiasm among prospective franchisees. Current marketing materials and documentation will be used to develop this process and sales model. The brochure will describe in detail the distinctiveness of the concept, the benefits of the franchise program, and the market for its products and/or services. Franchise Marketing Systems will provide an electronic copy of the brochure containing the franchise brochure layout.
Franchise Marketing Systems will be developing and building a franchise portion of the corporate website for the brand. This will be used to market not only the brand, but also the franchise model and concept. The current site will be adapted with franchise marketing and a sales presentation incorporated into the site presentation.
Franchise Marketing Systems will provide franchise sales training and structure. The franchise sales training program will typically be provided online through a virtual sales training program to all brand team members who choose to take part in sales training sessions. Franchise sales training will include documentation and materials supporting franchise sales execution, and provide the necessary information to the client to execute the franchise sales model.
Franchise Marketing Systems will leverage existing strategic alliances and relationships in the franchise industry to develop value and enhance the effectiveness of the overall franchise development model. This would include the following relationships and groups in the franchise market:
Franchise Marketing Systems will provide real estate support to help franchisees find the right locations, finalize locations, and establish quality leases for franchise units. This is provided through FMS Franchise Real Estate.
Franchise Marketing Systems will provide ongoing management, consultation, and coaching throughout the launch of the franchise system. The Franchise Marketing Systems team will be available for assistance and support needed to implement and execute the franchise model. This will include the following categories:
By signing below through Franchise Marketing Systems' electronic signing system, both parties agree to execute this agreement electronically and accept that the electronic signature is binding and enforceable under the U.S. ESIGN Act and applicable state law (see clause 23). A timestamped, retainable copy is generated for both parties.