2.  We are a team of Professionals who understand Franchising. We assist people who are looking to buy a franchise, those who are looking to franchise their business & existing Franchisors who want specialist advice.

3. Core Hospitality India …specialist franchise work includes: o Concept advice o Franchise Development strategies o Businesses looking to Franchise – including conversion of Contractor and Distributor models. o Franchisors - existing. o Prospective Franchisees – Evaluation, Business Valuations, Structures Finance - assistance in sourcing.

4.  Advantages and Disadvantages of Franchising  Evaluating a Franchise  Key Accounting & Management Issues  Tax Considerations – Franchisee & Franchisor  Can the Business be Franchised?  The process of Franchising a business.

5.  Because franchising offers solutions to:-  Capital  People  Time

6.  Reduced risk.  Enhances cost savings and purchasing power.  Improves Quality control / best purchasing.  Increases brand exposure and market penetration.  Provides a platform for asset growth.  Is a solution to Contractors, Agent or Dealership issues.  Exit Strategy.

7.  Potential goal conflict.  Share potential customer base.  Corporate policies.  Potential restrictions on sales/assignment.

8.  Initial Enquiry  Initial Meeting  Start Work  Decision Meeting  Finance Approval  Legal Advice  Ready to Buy

9.  Actual Trading Key Performance Indicators (KPI’s)  Greenfield v Resale  The Learning Curve  Sales / Income levels  Cost of Goods Sold & Labour  Franchisor Ongoing Costs  Contribution Margin  Rent  Equipment expenses  Other expenses  Owners Draw (living & financing expenses)  Cash Flow Items – Initial Costs (Franchisor & other), Working Capital  Borrowing – Serviceability & Security

10.  Business Structure  Initial Franchisor Costs – capital v expense  Marketing / other Funds – how to treat?

11. The Five Essentials o Proven Business System – USP. o Profitable with strong margins. o Relatively easy to learn. o Passion & long term Commitment. o Investment Capital

12. Franchising Model

13. Feasibility System Design Legal Brief Franchise Documentation Ongoing Coaching / Consulting Project Completion Franchisor Training Legal Documentation

14. The Feasibility takes many hours studying the business including time with the management and staff. The subsequent report advises on issues such as; o U.S.P.’s (Unique Selling Propositions) o Intellectual property o Examining the Current Distribution Model o The ability to replicate the business unit o Ongoing support requirements o Splitting the Pie o Equitable returns for all parties

15. o To understand the business to be franchised. o To determine if the business can be franchised. o To determine the key structural elements of the business under a franchise system. o To assess the financial feasibility of franchising

16. o The Feasibility may, or may not, give the green light to franchising as the preferred development method. o If a red light is revealed, an alternative development may be proposed. e.g. Licensing o If a green light emerges, the process commences and we proceed to the Stage 2.

17. Key Structural Components; o Franchisee and Franchisor obligations o Franchise model o Franchise Support Structure o Franchisor and Franchisee structures o Income Streams o Territorial delineations and protocols o Franchise terms and renewals o Systems and documentation

18. FRANCHISOR FRANCHISEE Single Unit Model

19. FRANCHISOR MASTER FRANCHISEE FRANCHISEE Master Franchising Model

20. Licensor XYZ Trust Franchisor Trading Entity XYZ Pty Ltd atf XYZ Franchising Trust FRANCHISEE License Agreement Should not hold assets or build equity in its balance sheet Holds IP

21. o Market size o Dispersion of demand for the business o Complexity of the product/service offering o Managerial implications of running the system under franchise o Financial and managerial resources o Personal and business objectives of the Principals

22. We will examine the following:- o Discover the key business drivers o Determine the environment for success o Carry out a future value test o Match or better the market on ROI for the franchisee o Unit potentials o Franchisee then Franchisor o Capital requirements o Income streams & operating costs o Realistic G.P.’s, sales and costs for SUSTAINABLE net profit. o Strike equity in profitability o Growth rate

23. o Franchise terms and renewal o Site selection procedures and supporting manual o Territorial structures o Communication and reporting structures o Induction and ongoing training o etc etc

24. o Stage Three is the production of all the documents necessary under the Franchising Code of Conduct (Trade Practices Act). o Legal Documents o Confidentiality Agreement o Disclosure Document, o Franchise Agreement, License Agreement, o Franchisee Advice Statement, We work directly with the lawyers - our experience assists to significantly shorten this process. We suggest a choice of experienced franchise lawyers and review all documents before the prospective franchisor sees them.

25. Stage Three also provides the necessary documents and systems for a Franchisor and Franchisee to work effectively under a strictly defined system. Further systems documentation is developed according to your specific requirements. We organize the production of the Operations Manual/s which involves specialists working closely with client management and project mgt from Core Hospitality India. This stage of the project is intrusive and can sometimes impose upon daily business activities.

26. The following documents are normally required to enable the business to reach the point of readiness to recruit Franchisees:- o Franchise Compliance Manual o Operations Manual o Site Selection Guide (if applicable) o Franchisee Recruitment Manual o Franchisee Selection Criteria o Recruitment Brochure draft Note: If other Manuals are required, such as technical manuals, these are quoted separately.

27. Stage Four involves the creation of a recruitment process and conducting training with management to ensure compliance with procedures. o We also to develop a Franchisee selection criteria based upon :- Background and experience Personal attributes Financial stability Personal factors Technical requirements

28. o Stage Five is our Project Completion where everything is reviewed to ensure a complete understanding of all aspects of the new franchised business by key management. o The Franchisor is fully trained in all aspects of the business including The Operations Manual.

29. o Be prepared for this exercise to an investment in both time and money. o Invest in professional help from Franchise Consultant (franchise structure and system) Specialist Lawyer (franchising experience and legal structure) Specialist Accountant (Business structure and tax advice) Franchise Division of a major Bank o Be prepared that despite all the best planning, preparation and investment that the market may not automatically accept the concept. o Conversely, be prepared to be hugely successful. This brings its own problems to the table – are you prepared?

30. Is that it allows people from all walks of life fulfill their dream of successfully owning and operating a small to medium business with little to no business management skills or experience!