franchise plan


Prior to the franchise development work beginning, consultation is scheduled and materials are provided to the client that will educate, inform and discuss various aspects of the business to be franchised and an overview of various of requirements, laws, regulations, guidelines and
necessary items relevant to the franchise system are explained.


Most prospective franchisors already have an existing business in operation and in these circumstances, we recommend a separate corporation be formed in order to insulate your ongoing business from franchising activities and to minimize the cost of audited financial statements required to be included in your FDD.

Selection of Corporation Name

Preparations of the Articles of Incorporation

Filing Articles of Incorporation – additional fee incurred Client completes EIN Registration

Client Orders Corporate Minute Book – additional fee incurred Assistance in establishing Initial Meeting

Client Opens Corporate Business Checking Account Structure for Directors & Officers

Advisory Board Requirements


Trade Mark and Trade Name

Trade name selection

Commercial Symbols – Tag lines – Signature requirements

Logo requirements – colors – additional fees are incurred for designer Federal Registration requirements – additional fees incurred by

Perhaps the most important thing about offering and establishing a network of franchisees is the access to and right to sell goods (or services) that the public already knows, trusts, and buys.
Unlike businesses that are started from scratch, a franchise gives the franchisee instant name and brand recognition.

As the Franchisor you are licensing the name and business system all identified in the

trademarks or trade name. This is often considered the most crucial aspect of almost every

franchise. The franchisor’s trademarks (or “marks,” as they are sometimes called) are at the heart of the franchise deal. It’s absolutely vital that you understand generally how franchises and
trademarks go hand-in-hand, and more importantly, the controls you have over the use of the “Marks” and how you must enforce the use in a franchise network.

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Preparation of Franchise Disclosure Document – Required by the FTC
Client is provided an electronic copy of FTC Rule 436/437
Structure content for client’s business

Consult with client concerning options
Establish Fees, Terms & Conditions

Make necessary changes for the next 12 months

Preparation of the Area Development Agreement (if applicable)

Financial Audit – Required by the FTC

Assist client’s CPA

In order to complete your franchise FDD, you must obtain certified financial statements from an
independent accountant. The costs for an audit vary depending on the length of time the
corporation has been in existence and accounting activity. For a newly formed corporation, the
costs of an audit should be relatively minimal. If you elect to conduct the franchise from an
existing entity that not previously been audited and is conducting (or has conducted) retail
business operations, the cost of the audit will be greater. Accountants’ fees vary and you should
determine what your existing accountant (if you have one) would charge. If you have no
accounting firm that would be willing to provide audited financial statements, we could refer you to
various accounting firms who can prepare audited statements on a newly-formed company for a
very competitive flat fee.


Logo Design – additional fees incurred

Client orders logo –

Franchise System

Defining and developing the system

The decisions made initially that are involved in the creation of the franchise systems will

continually be evolving over time. All franchise systems change based on a number of conditions,
circumstances, and requirements that occur in the franchise network. Understanding how to
adapt to these changes is critical and necessary maintain the quality and integrity of the system.

Web Site Development – additional fees incurred

Provide client with content for web site
Work with client’s web developer

Develop the Confidential Franchise Application Form

It may not be necessary to create and produce printed materials to be mailed on handed out to a
potential franchisee. All related information can be presented through web presence in print or
web video.

Development of Manuals

Employee Manual

Development or Pre Opening Manual
Operations Manual

The manuals are vital to the success of the franchise network and the daily operations of the

business being operated by the franchisee. The manuals are the corporate guidebook to assist franchisees and their employees in the operations, procedures and requirements of the
operations of the franchise. Depending on the actually business, the manuals can be hundreds of pages and require a great deal of time to develop.

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