Franchise Consultant Debrief Ventures Team Tuesday, December 21

Everyone on the same page? Ventures is in the process of researching a franchise to purchase at the beginning of Current timeline Research the purpose of a franchise consultant- Dec. 15 Research and evaluate 6 potential franchises- Jan. 15 Continue further research and interviews of 2 selected franchises Businesses for research: Zaxby’s, Bruster’s Ice Cream, a mortgage brokerage, storage units, banquet facilities, tax franchise

What is a Franchise Consultant? Franchise Consultant- an agent that matches potential franchisees with franchisors works with a selected, pre-screened group of franchisors uses models to suggest potential franchises paid by the franchisor when contract to franchise signed came about as a method of screening for serious potential franchisees

Process Prescreen In depth consultation Use of model to determine 3-6 potential franchises Franchisee researches to narrow options (UFOC’s) Introduction to franchisor Franchisor evaluation process interviews with franchisor interviews with existing franchisees Discovery Day sign agreement

Pros and Cons Pros Experienced in the industry Ability to raise issue of which we may be unaware Have access to may franchises Research done for us Free for the potential franchisee Cons Have interest in selling their clients; can exert pressure Limited number of franchises Preferred short turnaround Typically work with individuals or small groups

Interview Results Do not match investors with operators Suggestion is to use networking, place ad for owner with equity Will not work with potential franchisees whose timeline to purchase is more than 6 mos. All consulting is done via phone, placement done across the country Experience- about 10 years in the franchise system on the franchisor side own a franchise unit

Options Continue to research ourselves Benefits Do things with our own interests first We control the timeline Concerns Potential for missed ideal opportunity Lack of access to franchising expert Opportunity cost of our time Utilize the services of a consultant Benefits Access to more franchises Use of a model to narrow choices Saves time for the Ventures team Concerns Sitting idle until the time window Consultant pushing for certain company

Recommendation Utilize the franchise consultant beginning in June Use the next 5 months for the following: Further educate the Ventures team and GRIG on franchising Survey the organization for owner/operators Determine the structure for ownership

Questions If you are unable to attend the conference call and have questions, please contact Dorian Lee at