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What

you

need

to

build

the

future.


The franchise boom began in the 1950’s and 60’s, a time when fax machines, digital phones and communication via computer were the stuff of science fiction. And the franchise relationship was built on a one-sided model that often did not account for long-term growth…

THINGS

HAVE CHANGED.

Strong franchisee-franchisor relations and a “win-win” structure are paramount to success. Yet many companies today build their franchise strategies based on that 40-year-old model. Those who build and run franchise companies as if the rules of the past apply today will be sadly left behind. The i Franchise Group works with companies that wish to grow by looking ahead, not behind. Whether you’re an experienced franchisor interested in refining or improving your established company or an entrepreneur looking to expand through franchising for the first time, the iFranchise Group can provide the real-world guidance and hands-on assistance you need to reach your full growth potential.


Understanding

Vision Opportunity

Drive Planning

Courage

“ … T he b e s t f ra nc h i s e c a nd ida t e s w a nt t o b e p a r t of t he b e s t f ra nc h i s e s y s t e ms … t ho s e i n s t e p w i t h t o da y ’s t i me s a nd t e c h no l o g y. Wo r k i ng w i t h t he i F ra nc h i s e G ro u p w i l l g i v e y o u t he c o m p e t i t i v e e dge y o u ne e d t o s uc c e e d. ” M ic h a e l Me s s e r, Ma r ke t i ng Ma na ge r, B r idge s t o ne / F i re s t o ne


Why franchise? The rules of franchising have changed. However, franchising’s ability to provide accelerated growth has only increased.

FRANCHISING P ROVIDES CAPITAL FOR GROWTH.

THE

Franchising allows companies to expand without the risk of debt or the cost of equity. Since the franchisee provides the initial investment at the unit level, franchising allows for expansion with minimal capital.

FRANCHISING REDUCES

THE

RISK.

Since it is generally the franchisee, not the franchisor, who signs leases and commits to various service contracts, franchising allows for expansion with virtually no contingent liability.

F RANCHISING P ROVIDES MOTIVATED MANAGEMENT. Finding and retaining good unit management is one of the greatest challenges facing expanding companies

today. Many business owners know the frustration of training good managers, only to have them one day become competitors. Having on-site franchise owners, who are motivated by the investment of their own money, enables franchisors to eliminate or minimize the reliance on finding and retaining managers. In fact, franchisee-managed stores routinely outperform company-owned stores.

F RANCHISING ENABLES RAPID MARKET SATURATION. To bring a new concept to market, businesses need to be fast enough to outpace the copycat concepts their success is sure to create. Franchising is generally a company’s fastest growth vehicle since it enables franchisors to leverage off the time and efforts of their franchisees.

F RANCHISING P ROVIDES THE LAUNCHING PAD FOR GLOBAL EXPANSION. Many franchisors find that the process of developing and refining their domestic franchise program later provides them with a strong foundation for international expansion. As the global market becomes increasingly important, so does the ability to expand through franchising.


Strategy

Leverage

Growth

Time

Capital People “ … I p e r s o na l l y b e l ie v e t h a t t he i F ra nc h i s e G ro u p h a s a s s e m b l e d t he s i ng l e mo s t k no w l e dge a b l e a nd ex p e r ie nc e d t e a m i n f ra nc h i s e c o ns u l t i ng t o da y. ” S c o t C ra i n , V ic e P re s ide nt , Au nt ie A n ne ’ s Ha nd - R o l l e d S of t P re t z e l s


The iFranchise Group is a coalition of top professionals in franchise strategic planning, franchise law, operations training and documentation, franchise marketing and sales, brand development, consumer marketing, and development of Internet-based applications for franchise companies. Our focus goes beyond documentation—to the actual implementation of franchise programs.

THE iFRANCHISE GROUP was formed to pro-

STRATEGIC FOCUS: To compete effectively,

vide the guidance and assistance today’s innovative companies need to compete in the Information Age. Our mission is to put the power of today’s technology and franchised expansion techniques to work for our clients’ success.

today’s franchisors need a clear vision of who they are and where they want to be. Each project component is designed to advance a clearly detailed strategic plan.

CLIENT SELECTIVITY: The iFranchise Group accepts a limited number of new clients in any given year. The iFranchise Group is dedicated to long-term relationships with high-potential clients.

INDIVIDUALIZED APPROACHES: The iFranchise Group doesn’t “package” your business for franchising. We provide customized strategies designed to maximize your unique strengths, to work within your available resources, to seize available opportunities and to achieve your specific objectives.

REAL-WORLD EXPERIENCE: The hands-on, no-nonsense approach of the iFranchise Group comes from the real-world experience of its team members. Our recommendations aren’t based on what we’ve learned from textbooks but from decades of experience building some of the world’s most successful franchise companies.


Legal Operations

Sales

Planning

Expertise

Training

Marketing “ ‌ I m p l e me nt a t io n i s v i t a l . T he i F ra nc h i s e G ro u p i m p ro v e d o u r f ra nc h i s e s a l e s e f f ic ie nc y b y o v e r 4 5 % i n t he f i r s t t w o mo nt hs, a nd t he i r he l p i n de v e l o p i ng a ne w f ra nc h i s e f i na nc e p ro g ra m h a s he l p e d u s c l o s e s a l e s mo re q u ic k l y a nd i m p ro v e d o u r c l o s e ra t e s dra ma t ic a l l y. â€? S c o t t Je w e t t , Ma na g i ng D i re c t o r, L i ne - X F ra nc h i s i ng


Reaching your goals. Whether you’re an entrepreneur considering franchising for the first time, a manufacturer considering alternate channels of distribution, or an experienced franchisor evaluating your current system, the iFranchise Group will help you determine the best way to drive your expansion—even if franchising isn’t the answer.

ASSESSMENT AND STRATEGY DEVELOPMENT: Each new engagement begins with an overall assessment of goals, resources, opportunities and obstacles. This assessment is the key to developing a winning franchise strategy. For some clients, this assessment can be relatively quick. For others, in-depth feasibility analysis is required. For every client, the iFranchise Group will outline strategic options, a recommended path of action, and estimated costs.

FRANCHISE DEVELOPMENT: If you decide to pursue franchise expansion of your business, the iFranchise Group will help you develop all of the necessary components—business planning, legal

documentation, operations manuals, and marketing and sales materials.

ONGOING SUPPORT

AND

TRAINING:

Once you have embarked on your franchise expansion, the iFranchise Group will be there, as a valuable resource in every functional area, to help guide your expansion. We will train you and your staff in all aspects of being a franchisor.

IMPLEMENTATION ASSISTANCE: Beyond support, the iFranchise Group can, in many instances, act as an outsourced department of your organization. For some franchisors, initial franchise sales efforts do not cost-justify the hiring of every needed professional

from day one. The iFranchise Group can place your franchise recruitment ads, manage your consumer ad fund and promotions, screen and follow-up on initial franchise sales inquiries, help you maintain legal compliance, generate publicity, organize annual conventions, and even visit units to maintain quality control.

INTERNATIONAL EXPANSION: If your goals stretch beyond the bounds of the United States, the iFranchise Group can help there too. With extensive international contacts and experience in over two dozen markets outside of the U.S., the iFranchise Group will assist with planning, brokering, and even the implementation of international expansion efforts.


Outsourcing

Development

Implementation

Guidance Assessment

International

“ … I nt e r na t io na l ex p a ns io n i s of t re me ndo u s i m p o r t a nc e t o u s. T he i F ra nc h i s e G ro u p he l p e d u s ne go t ia t e a l ic e ns e i n Ja p a n w o r t h m i l l io ns, a nd t he i r i n p u t h a s b e e n v i t a l o n s t r uc t u ra l a nd p l a n n i ng i s s u e s. ” D a n O l s e n , V ic e P re s ide nt , I nt e r na t io na l , Ac e Ha rdw a re


A bold new future. The franchising success stories of the 21st century will be written by those who are willing to embrace the future of franchising.

FRANCHISING

IN THE

INFORMATION AGE

enables business owners to grow innovative concepts into viable businesses, introduce new products and services with lightning speed, and transform dynamic, growth-oriented companies into regional, national and international powerhouses.

THE i FRANCHISE GROUP can help you determine the best strategies for growth in this new era and help you deploy emerging technologies for your competitive advantage. We can help you create a franchise relationship with your franchisees that will help you succeed, and continue to succeed, well into the future.

To learn how the iFranchise Group can help you build a bold new future for your company, we invite you to speak with an iFranchise Group consultant at 708-957-2300.


Success Growth

Results

Opportunity “… The days of cookie cutter, one-size-fits-all franchising are long past. The iFranchise Group t a ke s a n i nd i v idua l i z e d a p p ro a c h fo c u s e d o n l o ng - t e r m s uc c e s s.” Pa t Wa l l s, D i re c t o r of F ra nc h i s i ng , Mc A l i s t e r ’s D e l i ( na me d t o t he I n c. 5 0 0 fa s t e s t g ro w i ng c o m p a n ie s t w o y e a r s i n a ro w )


iFranchise Group Services •

Franchise feasibility assessments

Franchise audits

Strategic planning for franchise growth

Business plans

Franchise legal documents*

Franchise operations and training documentation

Marketing strategies and plans

Franchise sales brochures

Sales and training videos

Franchise sales and implementation assistance

Franchise executive recruiting

Franchise search assistance

Franchise brokerage

Retail and prototype development

Website optimization

International expansion assistance

Enhancement of dealer or distributor programs

*Provided by independent counsel

SM

The i Franchise Group, 905 W. 175th Street, Suite 2 North, Homewood, IL 60430 The i Franchise Group is a division of Siebert Hood Consulting, Inc.

© 2003

Phone: 708-957-2300, Fax: 708-957-2395

Siebert Hood Consulting, Inc.

SM

www.ifranchisegroup.com

i Franchise Group is a service mark of Siebert Hood Consulting, Inc.


Franchise Strategy Development

The iFranchise Group provides substantial depth in all of the key areas of franchising...

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Franchise Readiness Assessment

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Franchise Marketing Plans

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Franchise Feasibility

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Primary Research on Targeted Franchisees

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Competitive Benchmarking

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Franchise Brochures and Flyers

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Franchise Structure

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Franchise Promotional Videos

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Territory Analysis and Determination

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Franchise Ad Design

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Strategic Implementation Plans

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Website Development

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Financial Analysis and Fee Optimization

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Website Optimization

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Business Plans for Capital Formation

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Franchise Marketing Audits

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Franchisee Validation

Coordination with Franchise Legal Counsel on the Development of Required Legal Documents n

Quality Control, Documentation & Training n n n n n n n

Operations Manuals Systems and Forms Quality Control Procedures Training Programs and Training Aids Training Videos Intranet Training Applications Operational Audits and Best Practices

Learning Management Systems

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Franchise Marketing Assistance

Franchise Implementation Services n

Franchise Sales Training

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Implementation Consulting and Coaching

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Franchise Brokerage Services

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Management Recruiting

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Acquisition Due Diligence

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Expert Witness and Litigation Support

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Franchisee Council Development

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Compliance and Sales Force Audits

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International Expansion Assistance

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Franchise Organizational Audits, Competitive Positioning, and Best Practices Benchmarking

iFranchise University

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Franchise Consultants


Experience EDUCATIONAL

RETAIL

SERVICE (PERSONAL)

ATA Tae Kwon Do Berlitz Encyclopedia Britannica Goddard Schools Jacki’s Aerobic Dance Mad Science Primrose Schools

Ace Hardware Computer Renaissance Disc Go Round Easyriders Field of Dreams Foot EFX Hallmark Cards Harris Teeter i9 Sports Lemon Tree Michael’s Crafts Payless Shoe Source Sharper Image Successories Van Heusen (Gant) Woodcraft

Atir Natural Nail Clinic Bathfitters Baird & Warner Chem-Dry Coldwell Banker Delta Dental Eastman Kodak GarageTek GE Financial Advisors Hair Club for Men LA Weight Loss Centers Mail Boxes Etc. Massage Envy Palm Beach Tan Sterling Optical

FOODSERVICE Consultants for the iFranchise Group have assisted companies of all sizes in a diversity of industries, including:

AUTOMOTIVE Amoco (Certicare) Avis Rent-A-Car Big O Tires Bridgestone/Firestone Creative Colors Line-X National Auto Truckstops Ryder Truck Rentals Texaco Express Lube Truckstops of America

CONVENIENCE STORES Amoco (Split Second) British Petroleum Circle K Dairy Barn Dairy Mart Fleming Foodini’s (Chevron) Mobil (On The Run) Shell Oil Texaco Star Mart White Hen Pantry

Auntie Anne’s Soft Pretzels Bagel Street Café (Clark Oil) Cosi D’Angelos Dippin’ Dots El Pollo Loco Famous Famiglia Haagen Dazs HoneyBaked Ham Know Fat Krispy Kreme La Salsa Le Croissant Marco’s Pizza McAlister’s Deli McDonald’s Oberweis Dairy Old Country Buffet Original Soup Man Papa Gino’s Pollo Tropical Quaker Steak & Lube Roy Rogers Tasti D-Lite The Grape Tin Star Uncle Louie G Waffle House Western Sizzlin’ Steakhouse

MANUFACTURING Armstrong Tile Fireside Hearth & Home (Hon Industries) Fruehauf Trailer Fleetwood Enterprises John Deere Ondeo Nalco Parker Hannifin Hose & Fittings Praxair Starmark Kitchens (MASCO) Superior Walls Of America

SERVICE (BUSINESS-TO-BUSINESS) Filterfresh K & N Electric Millicare Northern Telecom PIP Printing Southwestern Bell Today’s Temporary TNT Express Delivery U.S. Filter

INTERNATIONAL Academy of Learning (Canada) Ace Hardware (Numerous Markets) Albaik (Saudi Arabia) Australia Post Butler’s Chocolates (Ireland) Café Ceramiqua (U.A.E.) Crafter’s Marketplace (Canada) Farmacias Santa Fe (Mexico) Goldilocks (Philippines) Guinness Imports (Europe) IBM (Europe & Argentina) Kabab-Ji (Lebanon) Kudu (Saudi Arabia) Marti (Mexico) Max’s (Philippines) Mobil Oil (Australia) Pollo Campero (Guatemala) Texaco (Numerous Markets) VIPs (Mexico)

NON-PROFIT American Association of Franchisees & Dealers Connections for Community Ownership Easter Seal Society


Warning

YOU MAY ALREADY BE FRANCHISING! Some companies are franchising without even knowing it. Franchising is a legally defined term at both the state and federal level. If you are involved in a business relationship in which a third party uses your name, follows your system and, in return, compensates you either through fees or by purchasing products from you, you may be inadvertently triggering franchise laws. If you have triggered these laws and are not in compliance with applicable disclosure and filing requirements, you may be subject to stiff fines that have, in some instances, run into millions of dollars. What’s more, your franchisees may have rights to rescind their contracts and may even have grounds to take further legal action. In fact, in some states you may even be guilty of a felony. Remember: It does not matter whether you call it a franchise or not. If you meet the legal definition of a franchise, you must comply with applicable laws. If there is a chance that you have inadvertently triggered these laws, call the i Franchise Group today.


iFranchise Corporate Brochure