sparkle minds franchise development proposal for some local company

Franchise

Development

Proposal

Sparkleminds™ The Document summarizes a step by step plan to

expand your business through franchising and

make you franchise ready. Sparkleminds is a

Reputed Experienced Franchise Consulting Firm

having worked with 400+ Clients in 17+ Years. We

have been there & done that for several clients

and can help you achieve your desired business

expansion goals in a time bound manner.

Director – Business : Ajay Gupta Akarui Green Energy Solutions # 429/1 , 1st floor 1st c Cross , 7th Block , Koramangala Bengaluru - 560095 +91 9663366901

[email protected]

PRIVATE & CONFIDENTIAL Sparkleminds Proprietary Document For anything on franchising visit: www.sparkleminds.com T: 080-415 12345 T/F: 222 67017 E: [email protected] Document Ref No: Franchisor/Consulting/10117972 26 May 2016 Page 1 of 9

Subject: Franchising Akarui Green Energy Solutions Dear Mr Ajay Gupta , Further to our discussion we are pleased to introduce our-selves as a specialized franchise consulting company. We have helped various businesses to expand strategically, through custom made franchising models. We herewith present a roadmap to expedite your franchising requirements in a systematic and cost effective manner, which we trust will increase your market share. Our Understanding,

Akarui offers international quality LED lighting products for diverse applications .

There is a potential for a chain of such franchisees that you plan to offer across country in the initial stage and internationally thereafter

The Company is looking for a professional company to refine, build & execute its franchise structuring and expansion program.

Sparkleminds offers a bouquet of services that are complementary in marketing your franchise expansion program, as we make the franchise recruitment process all-encompassing for you. The program involves facilitating seamless communication between Investors and entrepreneurs seeking new business opportunities and the ones that match your needs specifically.

We use the world’s finest franchise development tools and business systems following global best practices. Our service offerings are customized to the requirements of our clients along with market driven approach to offer products or services very effectively through your franchises.

Sparkleminds strategy moves in stages and at every stage we review your requirements and advise you best business practice suitable for success of this franchise program.

Meeting 1

(In Person)

• Visit of SM Officials to meet with key Stakeholders and understand the franchise objectives of the organization and the initial answers given via SM questionaire.

Meeting 2,

(Via Skype)

• Follow up meeting to arrive at the main franchise model to be followed along with the key assumptions, acceptance of the roles and responsibilities of the franchisor and macro financials.

Meeting 3

(Via Skype)

• Discuss and finalize the draft contents of the franchise marketing brochure, Franchisee FAQ's, Do's & Dont's, Financial model and operational preparedness to start franchise marketing for the initial franchises

Meeting 4

(Via Skype)

• Legal franchise framework discussion and approvals to move ahead with the preparation of the Franchise Agreement based on the entire franchise model finalized.


Meeting 1: Visit of SM Officials to meet with key members and understand the franchise objectives of the organization and understand its backend. All the Key members of the company to be present compulsorily including the CEO/COO/CFO and other departmental heads who are directly involved in the company’s business expansion.

Mode of Communication: Face to Face Discussion at the Business Partner Premises

Time Lines: We will need 3 clear working days upon receipt of responses to the Sparkleminds Franchise Questionnaire, which will be sent to the company within 2 Working days of sign up of the franchise development agreement. Companies typically take 7-10 days to respond to the questionnaire. Meeting will be for one full working day typically stretching 6-7 hours with the normal breaks in between for lunch/beverages.

Stage I: BUSINESS ANALYSIS

Our team analyses your existing business and organizational preparedness from a franchising perspective.

•Key Milestones

•Founders Profile

•Mission Statement

•Proof of Concept

•Prototype Analysis

•Brand Image

•Goals

•Organisational Process

•Q C Mechanism

•Team Skill Set

•Standard Practices

•Training & Development

•Transferability

•Backend Expertise

•CFROI

•Pre Start Up

•Financial Projections

•Risk Management

•Product Range

•Track Record

•Legal

•Brand Identity

•Domain Registration

•Social Media Visibility

•Business Structure

•Product Service Potential

•Competition

•Marketing Strategies

Business Financial

Organization Operational


From the above analysis Sparkleminds will then recommend,

The above exercise Involves visits and continuous interaction with your company key representatives, research and collection of required information to determine the franchise objectives and franchisability of Akarui Green Energy Solutions. The company officials shall travel and meet you at your office and meet up with the key decision makers in your organization & assess your entire back end preparedness for franchising.

Meeting 2: This will be follow up meeting post our visit and meeting with your company representatives. The meeting shall be scheduled within 7 days from our initial meeting.

Mode of Communication: Skype Group Call for about 2 hours.

Goals

Legal

Aspects

Franchise Facts Operations

Marketing Support Functions T&D Reco

Site Selection Parameters Financial Projections

Digital Marketing FEF Business Format Restructuring

Standard Business Practices Typical Pitfalls Back End Vision Refinement


Stage II: RECOMMENDATIONS, INTEGRATION AND PREPARATION OF FRANCHISE KITS

Further to our discussions and recommendations we shall seek your approval on moving ahead with this program. This shall pave way for creation of the following,

Sprakleminds will also prepare,

Franchise Appraisal

Form

Franchise Kit

Marketing Strategy

Franchise FAQs

•Franchise Establishment Fee

•Royalty Percentage Benchmarking

•Ongoing Payment Collections

•Franchise Renewal Fees

Revenue

•Capital Expenditure Computation

•Operating Expenditure Derivation

•Location Security Deposit

•Marketing Expenditure T&D Expenses

Expense

•Return on Invested Capital

•Accelerated Expansion

•Higher Brand Visibility

•Return on time CFROI

Return


A Franchise Marketing Brochure having apt disclosure details would be presented as the standard franchise offering document which any prospective franchisee could study, analyze and respond. Above documents are prepared by us only after detailed discussion and in-depth analysis of what works best for you in current scenario and from a point of leveraging the best possible solutions for you, keeping in mind your strengths, weakness, and time you will require to build your franchise support systems as new franchises join you. The brochure is prepared keeping in mind the most initial questions that any prospective franchisee would expect before taking up your franchise. The clear understanding of your role as a franchisor and expected contributions from franchisee in augmenting your business plans is clearly documented in your franchise kit. We also understand the typical mistakes most franchisors commit at various stages and we shall caution you and build the right elements of a successful franchise foundation. We shall ensure that your franchise strategy moves in right direction, enabling you to save time and resources and thereby assisting you to expand at the right pace. Our support will help you explore other markets that are opportune today and will be ready in the future.

Meeting 3: This meeting will be scheduled within 7 – 14 days of our second meeting. The objective will be to discuss and finalize the companies’ key point of contact, contents of the franchise marketing brochure and complete franchise model.


Stage III: CREATION OF DRAFT FRANCHISE AGREEMENT

A Standard Draft Franchise Agreement would be created that encompasses all that has been discussed and clearly defines your roles, responsibilities and duties as a franchisor and what you could expect the franchisee to adhere to. This is done with the help of third party legal consultants/experts with whom Sparkleminds interact on a regular basis on behalf of their clients. Once the franchise agreement is ready we will be ready to launch the franchise marketing activities for your business. For those clients who already have the franchise agreement in place we work on the entire draft once again and give you suggestions on the changes that needs to be done, based on the work that has been done in stage I & II.

Meeting 4: Within 14 days of approval of the franchise kit, a draft letter of intent is submitted which is further discussed and finalized to shape into a more detailed franchise agreement. The key legal issues & the legal franchise framework are discussed and approved to move ahead with the preparation of the franchise agreement.



Stage IV: EXECUTION, LEAD GENERATION, LOCATION AND FEASIBILITY STUDY

Exclusively represent you for all franchise enquiries that your company receives and ensure that all calls and leads are worked upon effectively from a one point source at Sparkleminds.

Define Numbers to be achieved nationally within time-spans & draw clear road maps to achieve the above numbers at various district levels.

Draw up a complete marketing plan to achieve desired numbers at various locations. Also integrate the company’s existing marketing & advertising efforts with the franchise objectives of the company. We would work closely with you in identifying the most effective means of reaching out to franchisees across the various markets of our country with our experience of what works where and thereby helping you reduce costs on expansion drastically by focusing on getting results from what could work best for you.

Our in-house modules on recruiting franchisees using other marketing activities such as Franchise Expos, PR activities, and Exclusive event participation program in various geographic zones to attract the desired investors, will enable you to get the best results out of investing in participation of such events and will ensure that you get the desired franchise sign ups happen from such participations ensuring return on investments of every program that is planned. We shall inform the itinerary and details of these meets whenever they are scheduled and shall guide you if the same is ideal for you, negotiate the best prices and stall locations and ensure that you get the best out of every activity.

Discovery Days

Industry Wise Engagement

Google Ad Words

Social Media

Franchise Portal

Franchise Exhibition

Email Blast

Database Usage

Print Media

Alternative Module

Franchise Assessment

Fran

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ling

Internet Marketing

Enga

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g En

trep

ren

eurs


Stage V: SELECTION AND SIGNING UP PROSPECTS

Screening / qualifying inquiries and applications from all the efforts drawn in the media plan across geographies throughout the year.

Site visits, due diligence and converting the approved profiles for signup.

Mediate the agreement on mutually beneficial terms. Sort and pre-qualify prospects as per the provided selection criteria.

Screen the chosen profiles for final approval & agreement signup.

Franchise Screening

Location Dynamics

Agreement Mediation

Legal Formalities

Franchise Approvals

Feasibility Study

Due Diligence

Fran

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itm

ent

and

Sig

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COMMERCIALS:

# Services Amount Remarks

1 Consulting Fee* Rs.2,00,000 Rs.1,50,000/- to be paid on sign up of Franchise Development Agreement and the Balance Rs.,50,000/- upon approval of the franchise kit

2 Franchise Agreement* Rs.50,000 At the start of Stage III

Total Rs.2,50,000*

*Service tax extra @ 14.5%

z

Commercial Terms:

a) A Consulting fee of Rs.2,00,000/- (Rupees Two Lakh Only) + Tax would be charged for Executing Stage I & II. You will need to pay Rs.1,50,000/- (Rupees One Lakh and Fifty thousand Only) + Tax on sign up of our Franchise Development Agreement and the Balance Rs.50,000/- (Rupees Fifty Thousand Only) + Tax upon approval of the franchise kit.

b) Thereafter Agreement fee Rs.50,000/- (Rupees Fifty Thousands Only) + Tax would be charged to start the execution of stage III. We will charge the above fee per franchise agreement template for only 2 (two) rounds of review & revision plus a 1 (one) hour telecom only and subject to finalization of agreement within 30 (thirty) days from the date of submission of the first draft for review. Clients are free to prepare their own agreements and do their revisions on their own, if they wish to skip this portion of the arrangement.

c) Franchise Recruitment fee for minimum of Rs.75,000/- (Rupees Seventy Five Thousands Only) + Tax or a Success Fee of 30% of (Franchise Fee + Training + License + any Other Non-Refundable Fees + Tax), whichever is higher shall be payable by the company for every franchisee that is recruited or franchise agreement signed thereafter.

d) Account Manager Fee of Rs.25,000 (Rupees Twenty Five Thousand Only) + Tax P.M. will be charged from 3 months from signing of franchise development agreement or beginning of your marketing exercise whichever earlier. The Account Manager will be responsible for generating and processing leads for your account. This service is optional and you could have an account manager internally who will be given access to your franchisebazar.com account and who can generate and process leads from there.

3 City Email Blasts Worth

Over Rs.150,000/- Complementary*

Platinum Franchise

Business Owner

Membership* worth

Rs.500,000/- on

www.franchisebazar.com


COMPLEMENTARY SERVICES* & OTHER TERMS

e) A Complimentary Platinum Franchise Business Owner Membership worth Rs.500,000/- (Rupees Five Lakhs Only) PA will be given to you upon activation of the marketing program, and will be valid for 1 year on franchisebazar.com. * This is only valid up to the subsistence of the exclusivity with us which is for 1 year or recruitment of first 5 franchises whichever happens earlier.

f) In addition a complimentary 3 city email blast worth Rs.50,000/- (Rupees Fifty Thousands Only) per city will be offered during the 1 year period (Rs.150,000/- would be the actual costs of these 3 E-Shots if done other-wise, but is provided free with this proposal), in which we will send out emails to our dedicated database of an average of 20,000 franchise seekers from each major city of India from www.franchisebazar.com. Our total database exceeds over 300,000 franchise seekers across India.

g) We will also feature your opportunity on www.indiafranchiseblog.com and do PR activities to launch and market your franchise opportunity.

h) All Marketing, Designing, Printing, Research, Advertising, Exhibition Participation, Promotions, Travel and Stay will be undertaken on request and charged as per actual and would be extra.

i) The above timelines are indicative only and not confirmed. Also the scheduled mentioned above are indicative and could stretch beyond the above time frames especially in situations beyond either party’s control. Since there is urgency from your end we will try and combine most information and get you franchise ready in the shortest possible times, internal resource planning from our end has already been allocated accordingly to accommodate your requirements.

j) All Service taxes and all statutory levies as applicable are extra.

k) The above commercials are applicable for 30 days from the date of this proposal.

Please feel free to clarify with us on any additional information you would want. I would be pleased to send you our Franchise Development Agreement, to help us get started with franchising Akarui Green Energy Solutions . Thank you, Best Regards, Rajni Senior Franchise Consultant. *Complementary Franchise Marketing Services is only applicable for clients who want to go ahead with the account manager and our exclusive marketing services and is at the complete discretion of FranchiseBazar.com