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This is a guide to the steps to be taken in evaluating and purchasing a franchise. The dates will be agreed between us to ensure that the timeframes are sensible and allow sufficient time to complete all tasks without undue pressure. Do not rush any of these steps; take the time to do things properly. |
STEPS TO BECOMING YOUR OWN BOSS!
1. INITIAL CONTACT, FROM ADVERTISEMENT OR OTHER MEANS. POSSIBLY A STORE TOUR FOLLOWING THE INFORMATION BROCHURE MAIL OUT.
NOTE: You will be required to sign a simple Confidentiality Agreement at this stage so that the Franchisor can ensure the confidentiality of their information.
This meeting may allow an opportunity to look at an actual Finest Alterations business in operation and to imagine you operating a Finest Alterations franchise. Take the time to ask questions and make sure you understand the way things work. Take particular notice of the professional and friendly image that is projected.
If this business interests you and is within your budget then you will need to seek more detailed information. We will also want to know things about you, even at this early stage. Be prepared to provide your own detailed story in the form of a Franchise Application Form.
2. COMPLETE ‘FRANCHISEE APPLICATION AND INFORMATION FORM’
A summary of your personal career and financial background is required to enable an assessment of your suitability as a future Franchisee with Finest Alterations.
Note: you must return the completed form to the Franchisor prior to step 3.0
3. FRANCHISOR INTERVIEW
This is an open and frank “get to know you” session in which both parties are assessing their comfort with each other and gathering more information (more than one meeting is usual.
Prepare for the meetings before you attend. We will expect you to ask detailed questions and seek information on the present and future prospects for the group. The discussion must be two sided as both parties have a role to play in a Franchise relationship, so prepare well. Being in business for oneself can be quite demanding at times, so some aspects of your personal or family life may be discussed too.
4. INITIAL DEPOSIT
We will ask for an initial deposit of $5,000 as an illustration of your commitment to us. The deposit will be fully refundable until 14 days after your acknowledgement of receipt of the final Franchise Agreement, Disclosure Document and ancillary documentation. If you change your mind within 7 days of entering into the Franchise Agreement, we will refund the deposit to you, less our reasonable costs as outlined in the Disclosure Document and the Franchise Agreement.
Ask for this to be explained to you if you are uncertain of the amounts. Franchisor will conduct relevant background checks, including Reference, Credit and Police checks.
5. “1st DISCLOSURE” – provision of blank FINEST ALTERATIONS documents
We provide you with a copy of the blank Finest Alterations Disclosure Document (including a copy of the Franchising Code of Conduct) and Franchise Agreement so that you can study the facts about the business and the people involved. You will need to give these documents to your lawyer, accountant and other business advisors for their consideration, so that you can move forward with comfort and security.
* Please note that the provision of a blank copy of the Disclosure Document and Franchise Agreement in no way constitutes disclosure pursuant to the Franchising Code of Conduct.
6. INVESTIGATION OF FRANCHISE
You will now have 10 days to investigate the Franchise in greater detail. This will involve processing several things concurrently so that you do not waste your valuable time and money.
Property leases and finance will be the main issues to tidy up. The Franchisor may agree to an extension of this period.
7. FINANCE APPLICATION
You may need to lodge a finance application for any borrowings anticipated as well as applying for any leasing or HP finance that might be appropriate in your overall funding package.
8. FINANCIAL STUDY
You and your accountant and business advisor should assess the opportunity in relation to your own personal circumstances, and with regard to your own financial structure. This is a specific recommendation of the Franchising Code of Conduct.
We will require a certificate from you to the effect that you have had independent business and accounting advice, or that you have been advised to obtain such advice and have decided not to do so.
9. FRANCHISE AGREEMENT
We strongly recommend that you seek independent legal advice prior to signing any franchise documents from a lawyer who understands Franchising. There are issues that require experience in providing the correct advice on your franchise future. This step will help you better understand both your rights and obligations within the franchise.
This is a specific recommendation of the Franchising Code of Conduct. By Step 13, we will require a certificate from your legal advisor to the effect that you have had independent legal advice.
10. PLANT AND EQUIPMENT
If the opportunity that you are considering is already an established business you may wish to inspect the equipment, etc, to confirm that you are familiar with its condition.
11. LIFTING THE CONDITIONS
As each step in this process is taken, you will be required to lift or release any conditions that have arisen. Once you are satisfied with all the conditions that you applied then, subject to that, you will be ready to proceed toward settlement and full payment for your franchise.
NOTE: If you are unable to reasonably satisfy yourself regarding any of the conditions and wish to withdraw, or if your time for investigation expires, your deposit will be refunded in full and other interested parties may be introduced to the Franchise. It may be possible, however, for an extension of time to be granted to you.
12. “2nd DISCLOSURE” – final copies of documentation
If you are approved as an Finest Alterations Franchisee, and if you decide to proceed with the business opportunity, we will require details of your Franchisee entity e.g. the name of your Company, its A.C.N. and A.B.N. and a copy of any relevant trust deed.
Finest Alterations will now instruct their lawyers to prepare the final set of documents and we will require written acknowledgement from you of the receipt of these documents and you will be advised that your deposit will no longer be fully refundable after 14 days of that acknowledgement.
A 2nd Finest Alterations Disclosure Document (including a copy of the Franchising Code of Conduct) will be provided to you, attached to which will be final signing copies of the Franchise Agreement and all ancillary documentation (e.g. Code Certificate and business name forms).
The Franchising Code of Conduct stipulates that you must wait for 14 days after receiving this suite of documents before you sign the Franchise Agreement.
13. SIGNING OF DOCUMENTS
This involves the signing of the Franchisee Agreement and payment of the Initial Franchise Fee and any initial contributions to the Marketing Fund, less the deposit paid. As stated above, this cannot take place until at least 14 days after Stage 12 has been completed. At this point all lease, insurance or HP arrangements must be in place and written confirmation of that provided to us.
You must be prepared for organising the many details involved in the opening of your Franchise. We will assist you with this process. We will also require a certificate from your legal advisor to the effect that you have had independent legal advice. We would also like you to provide us with certifcates signed by your Accountant and Business Adviser to the effect that you have had independent business and accounting advice, or that you have been advised to obtain such advice and have decided not to do so.
14. TRAINING
Over the next 4 weeks and beyond we will show you how to operate a Finest Alterations franchise and prepare you for your own opening day. Training will not commence for at least 7 days after the completion of Stage 13.
15. TIME FOR WORK
You have got the “key to the door” and now you will be enthusiastically embracing all the training and hard work that is involved in getting into your own business. Don’t forget, you’re in business for yourself, but not by yourself. We are with you all the way. You will have joined a team with who you can look forward to many years of excitement and reward – all part of Franchising in Australia today.
