Franchise Your Business with Other People’s Money Copyright 2012 Franchise Innovators International LLC

We are not lawyers that use consultants Who are we? We are not lawyers that use consultants We are consultants that utilize lawyers Copyright 2012 Franchise Innovators International LLC

Options When a healthy company is ready to expand or A new company has a unique idea and wants to expand Options Borrow money from a bank Take money from your spouse or relatives Have others buy into your expansion. Copyright 2012 Franchise Innovators International LLC

How others may buy into your expansion Buy stock in your company and wait for dividends (SEC requirements needed) Offer them a business opportunity, but will have limited control Offer them a protected franchise Copyright 2012 Franchise Innovators International LLC

A Franchise Company has Identified, protected territory A designated list of products and/or services A required number of available vendors The enforcement of quality control Copyright 2012 Franchise Innovators International LLC

Types of franchises Single location franchise Master or area franchise International franchise (license) Copyright 2012 Franchise Innovators International LLC

Franchise laws are governed Nationally – Federal Trade Commission Internationally – Hague Accords Copyright 2012 Franchise Innovators International LLC

Federal Trade Commission (FTC) Franchise Laws in the US require Franchise Disclosure Document Good for 33 states without additional applications Other states require separate filings Copyright 2012 Franchise Innovators International LLC

Franchise Disclosure Document contains Information about the company including its owners, lawsuits and locations Details about the franchise offering Financial statements of the company Operations manual for the franchises Training presentation for the franchises Franchise agreement Copyright 2012 Franchise Innovators International LLC

Three decisions to go forward with franchising Is the present company or will the new company be successful? Does the business owner have the will and desire to rapidly expand across the country? Is the company replicable? Copyright 2012 Franchise Innovators International LLC

7 Step Turnkey Solution Copyright 2012 Franchise Innovators International LLC

Determine if the business is replicable and profitable. Copyright 2012 Franchise Innovators International LLC

Trademarks are required and a national franchise Business Plan is essential Copyright 2012 Franchise Innovators International LLC

The FTC disclosure requires a carefully planned training program and operations manual. Copyright 2012 Franchise Innovators International LLC

To legally begin franchising the FDD covers the requirements for about 33 states. The SBA approval is critical in order to attain most bank loans and is a process that takes about 2-3 months. Copyright 2012 Franchise Innovators International LLC

This 5th step is performed simultaneously with the 3rd and 4th steps and is included in the FDD. However, this process can also be expanded to handle building construction and site location/preparation. Copyright 2012 Franchise Innovators International LLC

Two separate initiatives create both a franchise sales website and a social media/marketing plan for the franchisee’s sales. Both are linked to the franchisor’s primary website. Copyright 2012 Franchise Innovators International LLC

Franchise Innovators, unlike almost all franchise brokers that receive 50-100% of the franchise fee, will help sell your franchises across the country on its “HOT FRANCHISE” Compatibility App for only 10% of the Franchise Fee. Hot Franchise is on Apple and Android phones free of charge. Copyright 2012 Franchise Innovators International LLC

Become National or International Exit Strategy: Don’t exit IPO Be acquired Copyright 2012 Franchise Innovators International LLC

Fund the process of franchising with Franchise Innovators International by: Offering an exclusive franchise territory to one or more of your customers in exchange for the loan amount required Upon the creation of the franchise documents, issue the franchise, in accordance with FTC requirements and void the loan Copyright 2012 Franchise Innovators International LLC