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FMS Franchise
Franchise Development Proposal

Franchise Development Program

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four months
Development program
5
Integrated workstreams
23
FTC disclosure items
Cancel anytime. This agreement runs month to month with no lock-in.
Prepared for
Prepared by
Franchise Marketing Systems Franchise Marketing Systems
Date
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Proposal ID
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Valid until
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FMS FranchiseI · Franchise Strategic Planning
Prepared for —
At a glance

What this engagement delivers

Every item below is included in the development program fee. This list is the complete scope of the engagement.

I

Franchise Strategic Planning

Included
  • Franchise implementation call to launch the engagement.
  • Current business examination: brand, website, logo and brand colors, social media, customer profile, suppliers, technology, existing financials, market size, local competitors, market trends and government regulations.
  • Strategic expansion plan built from a completed franchise strategy questionnaire, covering brand development focus, goal establishment and a regionalized market layout.
  • Franchise competitive analysis: documented benchmarking against comparable franchise systems, competitor fee and royalty analysis, sales and earnings research, and publicly available franchise documentation from competing systems.
  • Franchise fee structure recommendation: initial franchise fee, royalties, and broker and referral agent model.
  • Franchisee advertising structure: local advertising requirements, regional cooperative advertising and corporate marketing fund.
  • Additional revenue model: product sales to franchisees, vendor rebate program structure, and ancillary fees (technology, training, transfer, inspection).
  • Franchise structure report: target franchisee profile, franchise types offered including owner operator, area development, multi unit, conversion, international, license model and co-branding, territory structure, franchisee support programs and internal staffing plan.
  • Franchise business plan for the brand organization: financial projections, cash flow analysis, franchisee ROI analysis, growth goals and operational, legal and marketing recommendations. All projections are illustrative.
  • Unit level business plan franchisees can present to banks and landlords, including a franchisee marketing plan.
  • Documentation of brand licensing rights, vendor and supplier management, location analysis, IP protection and corporate structure.
  • SBA funding readiness presentation prepared by FMS affiliate Franchise Funding Solutions.
Franchise Marketing Systems · Confidentialwww.FMSFranchise.com
FMS FranchiseII · Franchise Legal Documentation
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II

Franchise Legal Documentation

Included
  • U.S. trademark application prepared and filed with the USPTO by the trademark law firm.
  • Franchise Disclosure Document drafted by the franchise law firm, covering all 23 FTC disclosure points.
  • Franchise Agreement prepared to define and protect the franchisor relationship.
  • State registration applications prepared and managed, with a strategic plan for the registration and filing states. State fees payable to the states are additional and are the client’s responsibility.

State coverage for this engagement · 50 states

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U.S. franchise compliance landscape

Registration · 14 Filing · 9 FDD-registered
Alaska & Hawaii follow the same coverage. Hawaii is a registration state.
Registration states
California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
Filing states
Connecticut, Florida, Kentucky, Maine, Nebraska, North Carolina, South Carolina, Texas, Utah
States not highlighted on the map are covered through the completed Franchise Disclosure Document without a separate registration or filing classification. Government filing fees payable to individual states are additional and remain the client’s responsibility.
Franchise Marketing Systems · Confidentialwww.FMSFranchise.com
FMS FranchiseIII · Operations Services
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III

Operations Services

Included
  • Operations manual initial analysis and preliminary outline, tailored to the brand concept and cross-referenced to the Franchise Agreement.
  • Optional onsite visit to the brand headquarters, where mutually agreed, to observe operations first-hand and refine the manual outline.
  • Efficiency consulting to design a model that replicates cleanly through franchising.
  • Detailed, customized franchise operations manual across six sections, Sections A through F: introduction and franchise services; establishing the business, taxes and fees; personnel; administrative procedures; daily procedures and safety; selling and marketing.
  • Documented ownership position: any improvements a franchisee makes to the model become the brand intellectual property.
  • Business development and vendor sourcing guidance through FMS Sourcing.
Franchise Marketing Systems · Confidentialwww.FMSFranchise.com
FMS FranchiseIV · Franchise Marketing Services
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IV

Franchise Marketing Services

Included
  • Franchise marketing plan: recommended marketing activities, creative materials including direct mail and ad copy, media suggestions, campaign budget and implementation timetable.
  • Detailed franchise brochure plus cover, delivered electronically.
  • Franchise sales website built and delivered within the program, presenting the client brand, the franchise model and the opportunity to prospective franchisees.
  • Virtual franchise sales training covering compliance, sales process, candidate tracking, lead generation, lead nurturing and closing, with supporting documentation and materials.
Franchise Marketing Systems · Confidentialwww.FMSFranchise.com
FMS FranchiseV · Ongoing Support
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V

Ongoing Support

Included
  • Leadmaster lead management platform, included at no additional cost.
  • FMS presence at targeted franchise expositions, included at no additional cost.
  • Listings across FMS's network of franchise lead generation platforms, included at no additional cost, on platforms such as Entrepreneur, Franchise Conduit, American Veteran Franchises, The Franchise Courier and Buy A Canadian Franchise.
  • Real estate support for franchisee site selection and lease negotiation through FMS Franchise Real Estate.
  • Ongoing coaching and consultation through launch: strategic planning, leadership decisions, hiring the franchise support team, vendor analysis, system management, marketing support, franchisee training support, technology advice and compliance support.
Franchise Marketing Systems · Confidentialwww.FMSFranchise.com
FMS FranchiseInvestment
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Investment

Investment

$30,000 USD
12 monthly payments of $2,500 · Development program, Steps I through V

Third-party expenses included: designated franchise counsel fees for the listed legal documentation, franchise website programming, preparation of state registration applications, agreed travel, and U.S. trademark application preparation and filing. Government filing fees payable to the states are additional.

Franchise sales: FMS will run a franchise sales campaign for the brand within the selected state coverage on a non-exclusive commission basis. Commission is calculated only on the initial franchise fee actually received by the client; FMS receives no royalties.

25% of the initial franchise fee when FMS sources the sale
15% of the initial franchise fee when the client refers the lead and FMS completes the sale
0% no commission on units FMS does not directly sell
Franchise Marketing Systems · Confidentialwww.FMSFranchise.com
FMS FranchiseTerms
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Terms

Terms

  1. Term and cancellation. This agreement runs month to month. Either party may end it at any time with written notice. There is no lock-in. Termination does not affect fees already due, approved third-party costs already incurred, or franchise sales commissions already earned.
  2. Payment. Amounts are due on the dates stated above. Payments unpaid 30 days after the due date may bear a one-time late charge of 5%. FMS may pause work if payments are missed or if materials FMS needs are not provided in a reasonable time.
  3. Timelines and cooperation. Program timelines depend on the client providing complete information, feedback and approvals within a reasonable time, together with the response times of attorneys, government agencies and other third parties. Delays caused by these factors automatically extend the estimated program timetable and are not a breach by FMS.
  4. You own the work. Every deliverable created in this engagement belongs to the client. All materials are a “work made for hire” as defined in 17 U.S.C. § 101, with the client as author, and FMS irrevocably assigns to the client any copyright interest it may hold in them. Any client-specific inventions or processes created for and embodied in the completed deliverables are patentable solely by the client, and any client-specific trade secrets created for and embodied in the completed deliverables are the client’s exclusive property. FMS retains ownership of its pre-existing templates, systems, methodologies and general know-how, and the client may freely use any such material incorporated into its completed deliverables for its own franchise system. FMS requires written confidentiality agreements from everyone working on your account.
  5. Confidentiality. Each party will keep the other’s confidential information strictly confidential, will not disclose it to any third party without prior written consent, and will use it only for this engagement. This covers business, financial, customer, pricing and operational information in any form.
  6. Your own counsel. FMS is not a law firm and will not act as the client’s attorney. The client should have its own legal counsel review this proposal and the franchise documents; on request, FMS will submit any necessary documents to the client’s attorney, which is included in this program.
  7. No guarantee of results. Projections and forecasts prepared by FMS are illustrative, and FMS does not guarantee that actual results will match them. Because these outcomes depend on market conditions, government agencies and other parties outside FMS’s control, FMS does not guarantee franchise sales, revenue or profitability, funding approval, trademark registration, state registration or other regulatory approval, or any completion date controlled by a third party.
  8. Responsibility. Each party will indemnify and hold the other harmless from losses, including reasonable attorneys’ fees, arising from its own breach of this agreement. Neither party is liable to the other for indirect, incidental or consequential damages, including lost profits or lost business opportunity. FMS’s total liability under this agreement is capped at the amount actually paid to FMS.
  9. If something goes wrong. A party is in breach only after receiving specific written notice of the issue and failing to cure it within 30 days. Before either party files suit, both agree to at least 8 hours of good faith mediation in the Atlanta metro area, costs shared equally, within 30 days of a mediation notice. This agreement is governed by U.S. federal law and the laws of the State of Georgia.
  10. Notices. Notices must be in writing and sent to the parties’ principal email or business addresses provided during the engagement. Email delivery of a PDF with confirmation of transmission counts.
  11. General. This proposal is the entire agreement between the parties on its subject and supersedes prior discussions. If any provision is unenforceable, the rest stands. Both parties agree to sign electronically through the FMSSign system; electronic signatures are binding under the U.S. ESIGN Act (15 U.S.C. § 7001 et seq.) and applicable state electronic transaction laws, and a timestamped copy is retained for both parties.
Franchise Marketing Systems · Confidentialwww.FMSFranchise.com
Payment Authorization

Payment Authorization

Select the authorized payment method and complete the corresponding payment details before signing the agreement.

Franchise Marketing Systems · Confidential www.FMSFranchise.com
Acceptance

Acceptance and signatures

A legally binding agreement
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 Term 11). A timestamped, retainable copy is generated for both parties.
Client
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Signature
Franchise Marketing Systems
Franchise Marketing Systems
Christopher James Conner · President
www.FMSFranchise.com
Signature
Signature
Date
www.FMSFranchise.com
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