Franchise Development Program

1. Initial Interative Meeting
Client will meet with Department Heads and individuals assigned to the project for the purpose of reviewing the company’s history, operations, and goals, as well as identifying the Client’s principal franchise strategy. Subsequently, in meetings with individual departments, issues related to developing a customized franchise program will be discussed in detail, and preliminary schedules for completion of work product will be established.

2. Concept Research and Review
FranchiseIndia personnel will examine the basic concept, operational format, and general marketing characteristics of the Client’s business. Each will be benchmarked against those of comparable franchisors and businesses in various industries and will be evaluated in terms of their overall effect upon the franchise program. This review will encompass types of products and services offered; types and size of locations utilized; total investment for establishing an outlet; and sales and earnings of the corporate entity and franchising concept.

3. Senior Consultant On-Site Analysis
A Senior Consultant will visit the business to be franchised to review its operational characteristics and recommend policies and procedures aimed at retaining or improving those suitable for franchising and altering or eliminating those that are not. The Senior Consultant will also identify operational elements ofthe business critical to the legal, operations, and marketing aspects of the franchise program, and relay this information to appropriate personnel.

3.1 Senior Consultant Analysis
Our Senior Consultant will review and recommend policies and procedures aimed at enhancing the franchise program.

4. Franchise Structure
Will make recommendations relating to the critical business decisions that become the foundation of the franchise program and that 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 Client’s situation, and current company resources available to meet franchise goals.

4.1 Franchise Owner Profile
The ability to identify specific characteristics of the target franchisee is essential to structuring a franchise program. Qualifications, such as financial resources, previous experience, and business skills, will be addressed, based on the needs of the Client and our’s knowledge of the franchise marketplace.

4.2 Type of Franchise Offered
A franchisor may offer individual franchises, multiunit franchises, or sub-franchises – or all three – depending on such factors as unit investment, complexity of operation, cost and nature of support programs, and expansion goals. In addition, a franchisor may offer a start-up franchise or a conversion franchise (to a compatible existing business) or both. We will recommend a franchise program designed to meet the Client’s needs.

4.3 Determination of Territory
Based on the nature of the Client’s business, competition and other factors, we will suggest whether or not the franchisee needs an exclusive territory and the degree of exclusivity. If it does, will analyze available territorial and demographic data from the Client’s existing business and prioritize appropriate criteria, such as population, competition, income levels, size of the market needed to support a franchise, industrial base, or business base.

4.4 Franchise Support Programs
Identify the type and scope of services to be provided to franchisees, including initial training, supervisory visits, site selection, and advertising support. In this manner, a comprehensive support program can be planned and the cost of that program anticipated.

4.5 Internal Staffing
FranchiseIndia will assess human resource needs for implementing the franchise program and will determine how best to meet those needs, whether by expanding the roles of current employees or by creating new positions. Also review the Client’s organization structure, assess its adaptability to franchising, and recommend changes, if necessary.

5. Franchise Revenue Sources
Review the Client’s revenue options and recommend appropriate revenue sources that may contribute to the Client’s income and profits. Among the available revenue sources are the following:

5.1 Initial Franchise Fees
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 startup assistance costs, market needs, and other variables.

5.2 Royalties
Royalties will be recommended after a review of the Client’s business and in light of 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.

5.3 Advertising 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 need for finished advertisements in their various forms.

5.4 Other
Some franchisors derive income from other sources as well, including the sale of products and services, leasing of assets and real property, and financing. FranchiseIndia will assist the Client in determining which sources are appropriate and practical.

6. Franchise Business Plan
Following the Senior Consultant’s analysis, team members assigned to the Client’s project will review all critical decisions and weigh the impact of these decisions on key aspects ofthe franchise program. FranchiseIndia will prepare detailed pro formas and financial projections, including a fiveyear cash flow analysis of both individual units and the franchisor organization. In addition, will make recommendations relating to the operational, legal, and marketing characteristics ofthe business that may impact the success ofthe franchise program. Finally, we will make recommendations relating to the operational, legal and marketing characteristics ofthe business that may impact the success of the program. This plan provides key franchise business decisions, assumptions, and financial projections needed to set short and long term goals. Clients can use this plan in presentations for financial institutions or for corporate planning.

6.1 Franchise Structure Report
Will prepare a report comparing the Client’s business to similar franchises or business models. This report will contain income and expense projections, including a five-year cash flow analysis. It will recommend structural elements of the franchise as well as fees and royalties. A franchise business plan for use in presentations to financial institutions or for corporate planning is also included.

6.2 Franchise Structure and Assumptions
Develop financial pro formas and projections containing information needed for the drafting ofthe franchise documents.

7. Individual Franchise Agreement
FranchiseIndia will draft and submit to the Client’s attorney for review and approval, a Franchise Agreement defining the contractual relationship between the franchisor and the franchisee. This Agreement will be developed in conjunction with input received from FranchiseIndia’s program analysis and recommendations, and will be based on currnet industry practice and recent developments in franchise law.

8. Disclosure Document
FranchiseIndia will draft and submit to the Client, for review and approval, the required Disclosure Documents

9. Initial Analysis and Outline
FranchiseIndia will develop a preliminary outline that identifies and describes the topics that should be covered in the comprehensive Franchise Operations Manual. Based on discussion at the initial Client meeting and material supplied by the Client, this outline will reflect 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 ofthe Operations Consultant.

10. On Site Analysis and Consulting
A FranchiseIndia Operations Consultant will visit the Client’s place of business to observe its operations first-hand and to discuss the preliminary outline. Subject to Client approval, the Consultant will determine the manual’s style, scope, and format, and will document procedures, collecting any materials that are tobe included inthe manual.

11. Franchise Operations Manual
FranchiseIndia will create a customized, comprehensive manual incorporating information essential to the operation of the franchise. Its content will be based on data obtained in meetings with the Client, the observation of the business, the final franchise documents prepared for the program, and FranchiseIndia’s extensive experience.

12. Manual Outline and Editorial Review
For Clients who prefer to draft their own manuals, FranchiseIndia provides the Client with an outline and will edit theClient’s manual.

13. Franchise Structure
FranchiseIndia will develop a comprehensive plan for generating franchise sales leads. This plan, based on an understanding of the Client’s expansion goals and the profile ofthe 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 FranchiseIndia's experience.

14. Franchise Kit
FranchiseIndia will develop copy and layout for a fourcolor brochure of approximately six to twelve pages, plus cover, designed to describe theClient’s franchise and to build enthusiasm among prospective franchisees. 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. FranchiseIndia will provide a disk containing the franchise brochure layout. Photography and printing costs, including final formatting, stock photography, photography scanning and final photography placement in the layout are not included in this Proposal.

15. Franchise Internet Marketing
Through FranchiseIndia Connect’s Essential Internet marketing program, FranchiseIndia will be providing the Client with Six months of online visibility on the www.franchiseindia.com. This entitles the Client to also receive a website review and critique of their current website with suggestions for improvement pertaining to marketing a franchise opportunity.

16. Franchise Marketing Training
FranchiseIndia will conduct a full-day class franchise marketing. The class is designed to help Clients implement their franchise marketing plans in order to achieve maximum lead generation per dollar spent.
Topics include:

16.1 Setting Achievable Goals
The class will focus first on establishing realistic franchise sales goals based upon the company’s overall budget, type of franchise and capacity for growth. It will also recommend marketing tactics for Clients whose growth becomes too rapid, thus allowing the company to temper franchise marketing activity while adding to its capacity for franchise training and franchisee services.

16.2 Market Evaluation
The class will review with specific recommendations of the Client’s marketing plan both in terms of the suggested profile of the franchisee and to the markets recommended for initial expansion. In addition, the class will offer recommendations for long range growth, exploring opportunities for franchise marketing outside the scope ofthe marketing plan.

16.3 Media Analysis
Clients will receive a tutorial on the use of a wide range of media in their long-range franchise marketing programs. Newspapers, magazines, radio, direct mail, trade shows and the Internet will be discussed and analyzed. Clients will learn how to evaluate these sources and the criteria for allocating their budget among them. Special emphasis will be given to Internet marketing, where a familiarity with search engines and payper-click options is of increasing importance in franchise marketing.

16.4 Performance Evaluation
Finally, the class will focus on results of the lead generation program, including the need for keeping accurate records of leads. INR cost averaging and other factors will be considered in evaluating the results of individual media, as well as how to make changes in the marketing plan based upon results obtained.

17. Franchise Sales Training
FranchiseIndia conducts a two-day Franchise Sales Training course at its offices. During its comprehensive discussion of the franchise sales process, the course explores such topics as use of the Disclosure Document, prospect evaluation, initial presentation, effective closing techniques, lead followup procedures, state and federal legal requirements, franchise trade shows, seminar presentations and much more.

17.1 Franchise Sales Support
FranchiseIndia will be available for hands-on assistance in your franchise sales process.This critical support can include preliminary trade show training, inshow consulting and guidance, sales presentations and follow-up meetings with prospective buyers, reviewing the Client’s sales techniques, coaching sales staff, and guidance in establishing proper methods of their franchise sales presentations.

17.3 Providing Effective Field Support
Itis important that franchisors develop a qualified field support program to assist their franchisees and evaluate the standards of each franchise atthe unit level. This segment establishes the needs and guidelines to develop your appropriate field support capabilities.

17.2 Franchise Sales Manual
Each person attending sales training will receive a copy of FranchiseIndia’s copyrighted franchise sales manual, "The FranchiseIndia Sales Strategy", for use in establishing an effective franchise sales program, as a reference guide, and as a textbook for instructing franchise sales personnel. The FranchiseIndia Franchise Sales Strategy manual provides useful information on all aspects of the franchise sales process, including the psychology of the franchise buyer, establishing a lead-tracking system, showing the Client’s facility to its best advantage, and conveying the benefits of franchising. Also included is information non how to conduct seminars, hold an open house, work trade shows, plus sections on special franchising situations, including area development, and master and conversion franchises.

17.4 Marketing As A Franchisor
This segment is one of the most critical and dynamic areas of any franchise organization. It discusses the importance of building a marketing program to assist franchisees in building their sales and in gaining market recognition and success.

17.5 Franchisor Compliance
The success of any franchise program depends, to a great extent, on the effectiveness of its compliance program, where the legal, logistical and sales elements converge. This segment covers the necessary steps to understand and implement compliance issues.

17.6 Franchisee Relations
The issues in this segment go beyond the technical obligations articulated in the Franchise Agreement. They address many of the ways in which the franchisor can create a positive, longterm business relationship with its franchisees, which are essential to the success of the franchise.

18. Management Training Course
FranchiseIndia conducts a two- day Franchise Management Training course designed to educate the Client’s management team on the complexities of operating and managing a growing franchise organization. Detailed and comprehensive manuals are provided to all attendees on all course segments. This course covers topics that include:

18.1 Building The Franchise Organization
This segment includes the key development issues that franchise companies need to address asthey expand their business systems.

18.2 Training Your Franchisees
This segment establishes the procedures for a franchisor to build a comprehensive training program. It also encompasses relevant issues such as management and operation of the franchise business, preparation of products or services, quality assurance, personnel management, advertising, bookkeeping, use of trademarks, maintenance of trade secrets, legal obligations, customer relations, operational requirements and many other issues that may vary from business to business.

18.3 Providing Effective Field Support
Itis important that franchisors develop a qualified field support program to assist their franchisees and evaluate the standards of each franchise atthe unit level. This segment establishes the needs and guidelines to develop your appropriate field support capabilities.

18.4 Marketing As A Franchisor
This segment is one of the most critical and dynamic areas of any franchise organization. It discusses the importance of building a marketing program to assist franchisees in building their sales and in gaining market recognition and success.

18.5 Franchisor Compliance
The success of any franchise program depends, to a great extent, on the effectiveness of its compliance program, where the legal, logistical and sales elements converge. This segment covers the necessary steps to understand and implement compliance issues.

18.6 Franchisee Relations
The issues in this segment go beyond the technical obligations articulated in the Franchise Agreement. They address many of the ways in which the franchisor can create a positive, longterm business relationship with its franchisees, which are essential to the success of the franchise.

19. One-Year General Consulting
For one year, beginning the date this contract is signed, members of FranchiseIndia’s professional staff assigned totheClient’s project, will be available on a consulting basis to advise and assist in the implementation of the Client’s franchise program and to supply useful information concerning current practices inthe industry and in franchising in general. Toward this end, FranchiseIndia personnel can be consulted, via mail, electronic mail, or telephone. These consultation services may be used to discuss franchise issues, review theClient’s marketing and sales performance, monitor development of the Operations Manual, refine growth objectives, or for any other consulting purpose, provided that these services do not constitute creation or revision of actual work product beyond that specifically described in this Proposal. If FranchiseIndia’s attendance is required at meetings elsewhere than at FranchiseIndia’s headquarters, the Client will be charged only for reimbursable expenses, as specified atthe end of this Proposal.

19.1 Annual FranchiseIndia Client Conference
Each year, FranchiseIndia holds a conference on developments in the world of franchising for all current clients. Topics range from sales and marketing strategies and better use of the Internet in the current economy to franchisee financing, new franchise laws and issues related to franchise management.

19.2 FranchiseIndia Podcasts
FranchiseIndia conducts podcasts, addressing a wide range of topics that apply to the development of a franchise program.

19.3 Franchise Your Business Seminars
It is imperative that all employees of a franchisor have knowledge and a thorough understanding into the nature of franchising. All Clients –and their employees – are encouraged to attend FranchiseIndia’s Franchise Your Business Seminars wherever they are held. These seminars provide valuable insights into the complexities of franchising, its advantages for franchisors and franchisees, legal and compliance and concrete information on the many elements of a well-structured franchise program.

19.4 Trade Show Briefings
Held before every major franchise trade show, FranchiseIndia’s trade show briefing will teach Clients how to work, design, manage and prevail at franchise trade shows.

19.5 FranchiseIndia Monthly Newsletter
FranchiseIndia’s Newsletter is sent via e-mail to all Clients. Its purpose is to keep Clients abreast of new developments throughout the world of franchising, addressing topics such as global activities, new laws, financing and marketing breakthroughs, and upcoming franchise events.

20. Prototype Development Consulting
For clients without an existing operation on which to base a franchise program, FranchiseIndia will guide the client in developing an operating unit which will serve as the franchise prototype. This service may include some or all of the following: secondary or primary research on competitors, interviews with experts in the field, analysis ofthe client's current channels of distribution, interviews with staff, analysis of products and services and recommendations of an appropriate product mix, and development of site criteria. FranchiseIndia will also assist in monitoring the performance ofthe prototype from opening until the point at which the client can make an informed decision whether to go forward with franchise program development. At no time will FranchiseIndia assume responsibility for actually operating the business.

21. Implementation and Ongoing Consulting Option

21.1 Ongoing Consulting
Ongoing availability of all FranchiseIndia staff to advise and assist in the implementaion, monitoring and execution of your franchise program

21.2 Website Listing
On-line listing and visibility on the www.franchiseindia.com.

21.3 Training Programs
Discounted offering at all of FranchiseIndia’s training programs.

1.Franchise Marketing and Lead Generation
2.Franchise Sales Training
3.Franchise Management Training

21.4 Ongoing Educational Enrichment
Unlimited attendance at FranchiseIndia’s Franchise Seminars, trade show briefings, and annual FranchiseIndia Client Conference.

21.5 FranchiseIndia Podcasts
Addressing all aspects of franchising - marketing, sales, international franchising, financing, operations, management, planning and many others