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

What is Franchising? Three Primary Elements define a Franchise Relationship: 1. The use of a common trademark 2. The provision of assistance to the franchisee 3. 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. 2 Franchiselink

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 franchisor Fewer concerns over day-to-day operations 3 Franchiselink

In order to franchise your business should be: Established and Profitable Unique in the marketplace Easily teachable to others Attractive in terms of a proven return on investment Marketable as a franchise opportunity Transferable to other markets 4

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 strategy Advertise your franchise opportunity to generate sales 5

The Business Plan The business plan is your key to success; we recommend using the F Vision Business Plan formula It should be developed by experts Make sure the person doing the work has extensive franchise experience Must focus on the implementation as well as the development of your franchise program 6

The Business Plan (Cont’d) As recommended by the F Vision training system, it must include: Organizational chart(s) Staffing analysis Primary and secondary market research Detailed cash flows and sensitivity analysis 7

The Business Plan (Cont’d) Don’t rely on guesswork – a thorough strategic plan is critical to the long term success of any franchise program. 8

Legal 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. 9

Quality Control: The 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 10

Marketing 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. 11

Marketing Materials: Essential for Speed Your marketing materials create a critical first impression that differentiates your franchise opportunity Your web page should be a HUGE priority Develop a mini-brochure for the sake of economy A full sized, colour brochure is essential for credibility Only work with professionals who understand the unique nature of a franchising concept 12

The Sales Process: The 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. 13

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 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 14

Who is the FranchiseLink Group? (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) 15

Who is the FranchiseLink Group? (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. 16

What can we do to help you succeed? The relationship is based upon the unique needs of each client: Develop business and implementation plans Develop required legal documents Create Operations Manuals & Training Tools Develop Marketing Plans Design Web-Based Marketing Strategies Develop Marketing Tools Develop Franchise Sales Strategies Long Term Implementation Assistance 17

Costs 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. 18

Next Steps If your business is qualified, we will schedule a no cost consultation to determine if: Franchising is the right strategy for you If your business is franchiseable What steps you need to take What specific costs you should expect 19