Services and Professional Consultancy Fees

Franchise Concepts have a basic fee structure relating to specific functions. The following should act as a guide - remember Franchise Concepts provide a tailor-made service for each franchise programme, therefore charges may vary. In some case Franchise concepts may be prepared to work on a pro bono or reduced fee basis. All fees are ex VAT and do not include negotiating expenses such as telephone, travel and entertaining costs. Approval rests with franchisor.

1. Initial Project Review.
An appraisal of the franchise potential. Consultation fees apply at an hourly rate but may be waived.

2. Submission Document for Directors and/or Professional advisors. An in-depth analysis of the franchise proposal including all fiscal areas, marketing strategy etc, and including groundwork for the origination of documentation listed in 3. This analysis is usually required only when dealing with high technology programmes. £8000-£9000

3. Creation of original text for the prospectus. Financial disclosure. Draft legal agreement. guidelines for:- franchisee critical launch list, recruitment advertising programme, recruitment aid and general guidance regarding implementation of the franchise programme £14,500- £16,000

4. Editorial management and preparation of entire Franchise Manual. £12,500 or £15,500 to include one years monthly updates

5. The initial preparation of protecting a corporate identity scheme (trade name, logo, colour schemes etc) and the origination of the franchise promotion programme including advertising, copy layout and schedules. PR guidelines, suitable promotion items quotation. £6,600- £9, 800

6. On completion of the franchise preparation Franchise Concepts may be retained to interview and negotiate with prospective franchisees. Charges may be by either of the following methods:
a. A daily rate £1,550 per day or £250 per hour .
b. 1) A fee upon satisfactory conclusion to contract negotiation. .£2500- £5000. The fee is determined by anticipated and actual conversion.
2) Individual report fees of 2.5% or £250 per contact meeting (whichever the greater) will be charged and credited against completion fees.
Approval rests with franchisor. Meetings can be held in any location in the U.K. and where appropriate with the franchisees Solicitor, accountant, banker, etc.

After completion of all the documentation and appointment of the 1st Franchisee Franchisors often find it beneficial to be able to call upon us for ongoing help, guidance and advice on a regular basis. A retainer of £24,000 per annum covers these areas. This allows for up to 15 hours of consultancy per Month for the updating of the franchise offer, supervision and preparations of figures for franchisor or franchisees or other documents as required including necessary submissions to Newspaper Publisher’s Association. British Franchise Association or other bodies and attending meetings including Franchisee group meetings.

Also provided are:
a Regular reports of Licence negotiations in progress.
b Analysis of media advertising response and amending of programme.
c Continuing updating of franchise market developments.
d Summaries of conferences attended by FOPS personnel from which fuller details will be supplied upon request.
e Inclusion in Franchise Concepts press releases and editorial submissions.
f Inclusion in mailing to Franchise Concepts franchisee register and various complimentary publications.

NETWORK COMMUNICATION SERVICES
During the term of the franchisee's licence the preparation and distribution for all franchisees of monthly newsletters incorporating useful tips on management, book-keeping, business development, maximisation of franchise opportunity, etc. network turnover comparisons, news of service or product developments (where appropriate for inclusion in operating manuals). Organisation of franchisee group meetings with franchisor, compiling minutes, etc. Fee …3% of franchisee network turnover.

OTHER SERVICES
In-house Seminars for companies who wish to expand their executives' knowledge of franchising or to examine franchising for the benefit of their staff who are preparing for retirement or redundancy. A typical fee for a four hour programme for 25 members including working papers....... £2500

INTERNATIONAL SERVICES
An appraisal of how an existing franchisor wishing to explore or proceed with franchise projects overseas will suit another country, identifying problems and benefits created by cultural differences, population spread, etc....£10,000
As above but for existing business not yet franchising in any country. Min fee....£15,000
Preparation of setting up costs, cash flow forecasts, projected return on investment, etc., in conjunction with clients accountant or finance department, advice on preparation of client’s solicitor. Translation of the above documents into language of target country (for reference only, no structural alteration will be made unless specified). Fee on application.

Recruitment Services for Master Licensee
Advertising for and interviewing of potential international Licence holders, financial qualification status report. Arrangements can be made for facilities to enable the franchisor to conduct interviews with a Franchise Concepts executive being present if this is preferred. Fee on application.

Network Development
Franchise Concepts will accept a 'watching brief' over the Master Franchisee to develop the network once the system is established.

NOTES
Executives travelling time is charged at half rate.
Secretarial time: £20.00 per hour.
Services are to be paid 50% in advance, 50% upon completion and presentation.
All other items (including client service fees) are for payment in advance upon presentation of invoice unless otherwise agreed.
Nominal volumes of telephone and photocopying costs etc., incurred on a client’s behalf will be Free of Charge and thereafter will be charged at cost. Photography, artwork and other design work commissioned on franchisor's behalf will be charged direct where possible subject to a 5% handling fee.

We recommend that a solicitor experienced in franchising be consulted in addition to your own legal advisor. Agreements are highly complex and require expert legal wording. We will gladly recommend a qualified solicitor.

National Press Association approval is usually necessary for all franchisee recruitment advertising.