The Franchise Essentials Development Program


Companies that are seeking experienced franchise consultants and attorneys to advise and assist them with the franchise development process often wonder if the “cost versus benefit” of engaging a “full service” franchise consulting firm makes sense. We understand this concern as many of our clients over the past 25+ years were existing franchisors that originally hired a franchise consulting firm that “promised the world” but ultimately fell short.

From the beginning, our founders were committed to going above and beyond to provide comprehensive franchise development assistance and support that truly help ensure our clients’ success. Our founders were also committed to making the franchise development process affordable for successful businesses that have the potential to expand nationwide. So at FranSource, we offer a robust and affordable franchise development solution for companies that have the ability and industry-related expertise to successfully franchise their business.

It’s called the Franchise Essentials Development Program.

The Franchise Essentials Development Program is specifically designed for companies that desire comprehensive advisement and support with every aspect of the franchise development process. Under this program, we also provide hands-on assistance with the initial franchise sales process to help ensure the successful launch of your franchise opportunity. For companies that qualify, the Essentials Program also enables clients to defer a large portion of our development fee until franchise sales commence, which helps reduce the amount of capital that is required to successfully franchise a business.
Below is an outline of the key services we provide as part of our comprehensive Franchise Essentials Development Program. We also provide our franchise services individual so please contact us if you would like to discuss the specific services you require.

Franchise Disclosure Document (FDD)

Franchise Operations & Policies Manual

Franchise Training Manuals

Franchise Bookkeeping & Reporting

Initial Franchise Training & Support

Franchise Sales Development System

Franchise Advertising & Marketing

Franchise Operations & Support

Business & Industry Research / Franchise Development Plan

We begin the development project by completing a comprehensive review of your business and industry relative to the franchise operation and structure. A competitive analysis is prepared of similar type franchise companies, which provides a detailed overview of each company’s Franchisor-Franchisee relationship including the initial investment, various fees, territory provisions, and other key terms and provisions.

The Franchise Disclosure Document & Franchise Agreement

The FTC requires 23 “items” to be disclosed in the Franchise Disclosure Document concerning the franchise company and provisions contained in the Franchise Agreement. We fully assist you in establishing the terms of the franchise relationship and completing our proprietary questionnaires to help ensure that all aspects of the franchise business are fully identified and properly disclosed. The FDD, Franchise Agreement and Exhibits are prepared by Counsel in conformance with the FTC Franchise Rule. This enables your company to begin granting franchises in 36* “non-registration” states upon completion of the documents. Fourteen states have individual franchise registration requirements that must be completed prior to soliciting and selling franchises in these states.

* Five of the 36 “non-registration” states require the filing of a simple “exemption form.” Six states (CT, GA, LA, ME, NC and SC) have requirements that must be met if a franchisor does not have a federally protected trademark (a state registered trademark is accepted by GA, LA and SC). The requirements may include filing under each state’s Business Opportunity Laws if you do not have a federally protected trademark (which is common with new franchise companies), please contact us for additional information.

Exhibits to the Disclosure Document & Franchise Agreement

The following Exhibits to the Franchise Disclosure Document and Agreement are prepared by Counsel:
  • Deposit Agreement
  • Confidentiality & Non-Competition Agreement
  • Development Agreement (see “Developer Program” below)
  • Site Selection Addendum (if required)
  • Agreement With Landlord (if required)
  • Telephone Number & Directory Advertising Assignment Agreement
  • Operations Manual Table of Contents
  • Franchisee Closing Questionnaire
  • List of State Administrators
  • List of State Agents for Service of Process
  • State Specific Addenda to the Disclosure Document
  • State Specific Addenda to the Franchise Agreement
The State Specific Addenda to the FDD and Franchise Agreement are prepared by Counsel to ensure compliance with individual state franchise laws when registering in the 14 Registration States. The State Specific Addenda address individual state franchise laws and regulations that vary from the FTC Franchise Rule relative to specific provisions of the Franchise Agreement and/or FDD disclosure requirements. These documents help expedite the registration process.

Area Developer Program

An Area Developer Program permits a franchise company to sell multiple franchises to a single franchisee for development over a prescribed time period. A percentage of the franchise fee for each franchise to be opened is typically paid in the form of an Area Development Fee upon execution of the Area Development Agreement. As part of the preparation of the Franchise Disclosure Document, we advise you concerning the structure and requirements for the Area Developer Program. Counsel then prepares an Area Development Agreement as an Exhibit to the Franchise Disclosure Document. This ensures that disclosure requirements are met and multi-unit opportunities are immediately available when you launch your franchise opportunity.

Trademarks, Service Marks & Copyrights

As part of the franchise legal document preparation, counsel will advise you concerning trademarks, service marks and copyrights that your company may license to Franchisees. If required, we will assist you in coordinating trademark filings with trademark counsel.

Franchise Reporting Requirements & Performance Standards

Franchisees are typically required to report information to the Franchisor regarding sales, financial data, income and sales tax returns, and other information specified by the Franchisor. We advise you concerning appropriate reporting requirements for the franchise business. In addition, we provide recommendations regarding minimum performance standards, revenues and/or inventory purchasing requirements when appropriate.

Exclusive Territories

Franchisors may grant an “Exclusive Protected Trade Territory” in which to operate the franchise. We advise you concerning the criteria and system to be used to establish exclusive territories.

The Franchise Fee, Continuing Royalty Fee & Other Sources of Franchise Revenue

Using established criteria as well as statistics compiled from similar type companies, we determine the franchise fee, royalty fee, advertising and marketing fees and other fees appropriate to the franchise operation. We also provide recommendations and considerations related to other possible sources of franchise revenue, including promotional fees, administrative fees, sales of products, training fees and field support fees.

Site & Location Specifications for the Franchise Business

Franchisors have the right to dictate the type, style, size, layout and other criteria for the franchise location. We consult with you to establish appropriate requirements and criteria for the site selection process. As part of this process, we produce a Site Evaluation Form to be completed by Franchisees. If the franchise business is home-based, we assist in determining specifications and requirements for a home office.

The Confidential Operations & Policies Manual

One of the keys to a successful franchise operation is a standardized system that Franchisees follow to ensure consistency throughout the organization. A Franchise Operations and Policies Manual is one of the most effective methods of conveying policies, procedures, and operating systems to new Franchisees. Existing Franchisees also benefit from a comprehensive Manual in the ongoing operation of the Franchise Business. When properly implemented, the Manual ensures greater consistency between the independently operated franchise locations. It also saves valuable resources at the corporate level by minimizing the time franchise personnel spend responding to Franchisees’ questions.
The Franchise Operations and Policies Manual produced by FranSource acts as both a training manual for new franchisees and a reference guide for established franchisees. The FTC permits the Manual to be a unilateral extension of the Franchise Agreement. This allows the Manual to serve as the vehicle through which your company may modify policies, processes, procedures and other “nonmaterial” aspects of the franchise business. Recognizing that successful systems change and evolve, the pagination of the Manual is specifically designed to allow for easy updating as modifications and enhancements to the system are made.
FranSource determines the content of the Manual through the use of questionnaires, interviews, and onsite visits to view your operation first-hand. The content of the Manual includes comprehensive information pertaining to the development and operation of the Franchise Business. Forms and other materials used in the operation of the franchise are also included.

Initial Franchise Training Program

We consult with you to establish the initial training program for Franchisees. A training itinerary is produced which outlines the training content, hours devoted to each topic and other related information. Initial Franchise Training may be conducted at the corporate office and/or the Franchise Business.

Franchise Communication & Support Programs

We provide recommendations and assistance in establishing appropriate communication and support programs for your Franchisees. These programs play a key role in maintaining a successful franchise organization. Examples include:
  • Franchise Intranet Systems
  • Franchise Advisory Committee
  • Franchisee Advertising Cooperatives
  • Franchise Owners Meetings
  • Newsletters
  • Franchisee Incentive Programs
We also advise you concerning support services that should be provided to Franchisees during the pre-opening period and franchise inspections that may be conducted by the Franchisor at the Franchise Business. In addition, we prepare a Franchise Inspection Form to be used by your representatives when conducting inspections.

Identification of the Ideal Franchisee

We assist you in determining the characteristics of the ideal franchisee for your business. This is an important first step in developing effective advertising, marketing and sales systems.

Franchise Sales Procedures / Franchise Sales Development Manual

We consult with you to establish appropriate franchise sales development processes and procedures. Once established, we produce a Franchise Sales Development Manual that outlines your entire franchise sales process. The Sales Manual is designed for use by franchise sales personnel as both a training manual and an ongoing reference guide. It includes the following topics:
  • Franchise Compliance Procedures
  • Franchise Sales Procedures
  • Contacting Candidates (procedures, scripts, Q&As)
  • Qualifying Prospective Franchisees
  • Franchisee Selection Process
  • Hosting Franchise Discovery Days
  • Disclosing Prospective Franchisees
  • Preparing the Franchise Agreement
  • Franchise Opening Requirements and Timeline

Franchise Sales Forms & Materials

In conjunction with the development of the Franchise Sales Development Manual, we produce various forms and materials for use during the franchise sales process, including:
  • Initial Franchise Inquiry Form
  • Preliminary Consideration Form
  • Franchise Disclosure Document Request Form
  • Franchise Application & Financial Information Form
  • Discovery Day Itinerary
  • Franchise Fast Facts
  • Prospective Franchisee Interview Form
  • Final Steps to Purchasing a Franchise
  • Key Steps to Opening Your Franchise
In addition to the above forms and materials, we produce a full-color franchise brochure to provide to prospective Franchisees.

Franchise Contact Management System (CMS)

We advise and assist you in establishing a Contact Management System using one of our preferred Internet providers (i.e.; The CMS simplifies the franchise sales process by using technology to manage the lead-flow process. Our assistance includes:
  • Reviewing features and costs of the preferred CMS providers with the client
  • Developing “action steps” for the franchise sales process to be incorporated into the CMS
  • Setting up the CMS database in conjunction with the CMS provider
  • Establishing appropriate drip-marketing email campaigns
  • Drafting campaign emails and attachments

Franchise Advertising & Marketing

Our franchise advertising and marketing assistance includes:
  • Establishing a franchise advertising and marketing budget based on your company’s expansion goals
  • Researching and analyzing franchise advertising and marketing opportunities and vehicles to promote your franchise opportunity
  • Providing introductions to franchise lead generation digital marketing and PR companies
  • Coordinating the development of your franchise advertising and marketing plan in conjunction with the selected third-party suppliers

Franchise News Release

As part of our franchise marketing support, we draft a keyword specific news release to promote the launch of your franchise.

Franchise Opportunity Section of the Web Site

To promote the franchise opportunity, we develop and prepare copy for the Franchise Opportunity section of your website. The Franchise Opportunity pages are sculpted with selected keywords for SEO and PPC purposes.

Franchise Sales Assistance

To help ensure the successful launch of your franchise, our team directly supports your franchise sales efforts, providing valuable consultation and input. As part of our support, we also conduct 3-way calls with your company’s franchise representative and prospective franchisees.

Ongoing Consulting

To support your new franchise operation, we provide 12 months of ongoing consultation in the areas of franchise operations, communication and support, advertising, marketing and sales.