Companies seeking experienced franchise consultants to assist them with the start up franchise development process are often discouraged to discover that many franchise consulting and development companies charge $50,000 to $150,000 or even more to assist in franchising a business. The reality is that many of these companies add exorbitant front-end fees for services that you may or may not need. This greatly inflates the cost of launching your new franchise business. The Stanwood Group, LLC is different in that from the very beginning of the process, we chose to make the franchise development process affordable and accessible to those eligible companies whose business models have the track record, ability, potential and passion about their businesses to become franchisors. The Stanwood Group is unique in that the lionshare of our development and consulting fees are directly tied to our clients' success by deferring a large portion of those fees generally paid up front.
Rather, we focus on providing the services you need now to launch your new franchise. The Stanwood Jump Start Program is specifically designed for companies that desire the support of knowledgeable franchise consultants to oversee the franchise development process and provide assistance with the franchise sales process. For companies that qualify, the Jump Start Program enables clients to defer a large portion of our development fee until franchise sales commence, which substantially reduces the amount of initial capital required to successfully launch the new franchise business. If you are interested in learning more about the Stanwood Jump Start Program, please contact us at (610) 660-7773.
Franchise Disclosure Document (FDD)
The Federal Trade Commission, or FTC, is the governing body that regulates franchisors in the name of protecting consumers. The Federal Trade Commission (FTC) requires 23 “items” to be disclosed in the Franchise Disclosure Document concerning the franchise company and provisions contained in the Franchise Agreement. The FTC requires that franchisors provide factual information about their businesses to franchise candidates BEFORE they sign any contracts or pay any sum of money. The FDD lets the candidate know what to expect as a franchisee and summarizes the legal terms of the franchise agreement. The FTC Rule on Franchising states that Franchisors are required that the FDD (Franchise Disclosure Document) be presented to the prospective franchisee at least fourteen days prior to the signing of the franchise agreement or any related agreements to the franchise.
We assist you and your attorney in establishing the business terms of the franchise relationship to help ensure that aspects of the franchise business are identified and properly disclosed. As a franchisor, you are required by law to create and maintain this document for distribution to all franchise candidates. The FDD is a legal document, so the information contained in it must be accurate. The FDD, Franchise Agreement, Multi Unit Development Agreement (MUDA) and Exhibits are prepared by Outside 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. These Registration States are in the following alphabetical order: California, Hawaii, Illinois, Indiana, Maryland, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington State and Wisconsin. Business Opportunity States require the franchisor to register its franchise documents with state authorities under their business opportunity laws of Florida, Kentucky, Nebraska, Texas and Utah. Each business opportunity state has their own specific requirements which will be required upon registration. * 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. Should you do not have a federally protected trademark (which is common with new franchise companies), please contact us for additional information and a referral introduction to an outside Intellectual Property Attorney to assist you with your trademark application filing with the United States Patent and Trademark Office (USPTO).
Interested in viewing different Franchisors' Franchise Disclosure Documents in your industry? If you are an existing franchisor or about to franchise your business, reviewing and evaluating competitor FDD’s is an important step in competitively benchmarking your franchise offering.
What Goes into the Franchise Disclosure Document
For more information please visit our Attorney Resource Directory
Multi Unit Development Program
A Multi Unit 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 a Development Fee upon execution of the Development Agreement.
The Franchise Fee, Continuing Royalty Fee & Other Sources of Franchise Revenue
Using established criteria compiled from similar type companies, we assist in determining 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.
Confidential Systems Manuals
The Franchise Systems Manuals produced by the Stanwood Group acts as both a training guide for new franchisees and a reference guide for established franchisees. The FTC permits the Operations Manual to be a unilateral extension of the Franchise Agreement. This allows the manuals 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 manuals should allow for easy updating as modifications and enhancements to the system are made.
Franchise Sales Development Program
We assist you to establish appropriate franchise sales processes and procedures. Once established, we assist in the development of a Franchise Sales Development Program that outlines your franchise sales process. The sfranchise ales program is designed for use by your franchise sales personnel as both a training manual and an ongoing reference guide. It includes the following topics:
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Franchise Compliance Procedures
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Franchise Sales Procedures
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Contacting Candidates
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Qualifying Prospective Franchisees
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Franchisee Selection Process
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Hosting Franchise Discovery Days
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Disclosing Prospective Franchisees
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Franchise Opening Requirements and Timeline
Franchise Sales Forms & Materials
In conjunction with the development of the Franchise Sales Program, we produce various forms and materials for use during the franchise sales process, including:
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Initial Franchise Inquiry Form
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Preliminary Consideration Form
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Franchise Disclosure Document Request Form
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Franchise Application & Financial Information Form
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Discovery Day Itinerary
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Franchise Fast Facts
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Prospective Franchisee Interview Form
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Final Steps to Purchasing a Franchise
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Key Steps to Opening Your Franchise
Franchise Advertising & Marketing
Development of your Franchise Advertising & Marketing Plan.
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Establishing an appropriate initial franchise advertising and marketing plan
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Researching and recommendation of potential franchise advertising and marketing vehicles
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Recommending appropriate franchise advertising and marketing incentive programs
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Assistance in preparing franchise advertisements for the selected vehicles
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 Consultation
To support your new franchise operation, we provide ongoing consultation in the areas of franchise operations, communication and support, advertising, marketing and sales.