This document provides an overview of franchising as a business strategy. It discusses common reasons for business ownership and how franchising can help address those reasons by reducing risk and leveraging existing systems. The key elements of a franchise like the brand, operating system, and support system are outlined. The document also reviews the franchise evaluation process, disclosure requirements, exit strategies, and how a franchise consultant can help guide prospective franchisees to the right opportunity.

1. Franchising – Is It a Strategy That Fits You? Presented By Bob Bowers Franchise Systems Consultants Ltd. www.fransysonline.com fransys@xplornet.com 70% of all people have thought seriously about owning their own business. Is it The Right Dream For You?

2. Common Reasons for Business Ownership Control your own financial freedom Build an asset for future sale Create more control and freedom for your time Fair reward - make money for yourself instead of the company Emotional fulfillment of building your own dream

4. Build an asset to pass on to family members

5. Create an opportunity to work with family

6. Remove threat of job loss

7. Replace lost income stream

9. Leverage growth through resources of stakeholders knowledge, experience, effort, purchasing power, financial Similar goals & unified thinking among participants Strategic-Partnership

10. Elements of a Franchise Brand - the Franchise name associated with the products or services delivered in a memorable and satisfying experience Operating System – institutionalizes an excellent service delivered in a memorable experience so it can be done over and over again from unit to unit in a consistent manner Support System – helps the Franchisee get better and better at delivering the service in a memorable experience – helps a Franchisee improve their performance Franchisee – the individual motivations or reasons for being a part of a vibrant system

11. Value of Systems in a Franchise Reduced Risk – Proof of success is in place Operating System – Success Formula has been established for you You don’t have to re-create the wheel – or many wheels Other Franchisees with their ‘feet on the street’ – emulate the best advice and support from the Franchisor – position of experience Collaboration – Share best and worst practices with similar people

12. Systems continually adjusted, changed, & improved Training systems Sales & marketing strategies and systems Manuals & other documentation Letters, contracts, agreements, documents – all in place Development costs – shared resources Purchasing power Many others…

14. Entry fee to the point of the completion of the initial training programs

18. Franchisor Disclosure - Get All of the Pertinent Information Exchange information on a fair and equitable basis Formal Disclosure Documents No decisions – documents for 14 days Cooling off period – final documents for 7 days Full disclosure of all Franchisees Earnings Claims – most don’t, some do Financial performance data will be obtained from Franchisees

19. Important Consideration – Exit Strategy How will the business be valued at time of exit? Do the customers/clients carry an ongoing future cash flow value? How will the value be affected by changing demographic conditions? How will the value be affected by changing competitive environment? Franchisor should be willing to discuss

22. Market Conditions

23. Demographics

24. Advisors

26. Franchise Broker/Consultant Value – continued Provide education about Franchising Interview/Profile/Discuss/Follow up Identify characteristics most important to you Help identify best options for you Match your qualifications to appropriate systems

27. Help with selection of systems to learn about Introduction to appropriate personnel at those Franchisors Act as a buffer between you and Franchisor Help with information exchange process

28. Changed Results Will Only Happen if You Change Activities! Is It Your Time?