Plan 1: Equity
This is a 50/50 equity split of the franchisor between the founders and Franchising Concepts. We will invest equally and receive distributions equally in this plan. Franchising Concepts’ compensation would be based on 50% of the operating profits of the franchisor.
Plan 2: Consulting Fee + Flat Percentage ($40K/30%)
This plan’s compensation is based on a $40,000 fee for consulting for the first year, with a flat fee of 30% of gross revenues of the franchisor and no initial investment by Franchising Concepts.
Plan 3: Consulting Fee + Flat Percentage ($75K/20%)
This plan calls for a consulting fee for development work in the 1st year. There is a $75,000 fee payable to Franchising Concepts over the initial 90-day period. In addition to this fee, there is a fee of 20% of the gross revenues of the franchisor.
Plan 4: Advisory Only
Franchising Concepts will develop the initial franchising program for the franchisor. After the initial development, we act only as an advisor. There is a $100,000 fee payable to Franchising Concepts over the initial 90-day period. In addition to the fee, there is a fee of 3% of the revenues of the franchisor for a 10-year period.
Franchising Concepts and its partners perform different roles in the management of the franchisor depending on which plan is chosen for the partnership. The roles are explained in the chart below:
Franchising Concepts will manage the franchisor. We will be responsible for the initial development of the franchisor as well as the development of the business model, legal paperwork (UFOC), franchise marketing and franchise advertising.
Once the initial development is complete, we will be responsible for managing the franchisor in areas such as legal, accounting, marketing, advertising and franchise sales.
We will identify and deliver qualified franchise prospects for our Partners to review. Upon approval of the franchise candidates, we will finalize the legal process for franchisees. We will also act as an ongoing consultant for the Founders to franchise-related issues.
Franchising Concepts will be responsible for the initial development of the franchisor, including the completion of everything from business modeling and legal work (including the UFOC) to franchise marketing and advertising.
After the initial development, we will become more of an active "Advisor". We will help you through all aspects of franchising in an advisory capacity. We will be available for email, conference call support and face-to-face support through a monthly advisory board meeting. We will also be available for a quarterly "Full Day" Advisory Board Meeting.
In the initial development stage, you will review the development of the franchise program (legal, marketing, etc.). You will be responsible for developing the Operations Manual and Training Programs. You also will need to fill out some required information for the UFOC.
After the initial development program, you will focus on concept development, maintaining the Operations manuals, reviewing franchise prospects and supporting the franchisees through various training and support programs.
In the initial development stage, you will review the development of the franchising program (legal, marketing, etc.). You will also be responsible for developing the Operations Manual and Training Programs. You also will need to fill out some required legal information for the UFOC.
After the initial development program, you will be running all aspects of the franchise company with the advice and support of Franchising Concepts.
Learn more >>
