Due to your over regulation within the Franchising Industry and also the litigation it is very important keep impeccable records. From the first mobile call, email on the signing in the franchise agreement everything ought to be documented. Below can be a checklist we devised for our franchise company the other I wish you’d consider when designing your own. I recommend you copy this short article and then modify it to suit your business model.
You should be aware that without the right documentation you will probably find your company entangled in meaningless and wasteful litigation as an alternative to spending time on expanding your share of the market and name brand. Below is our sample checklist we use for the Car Wash Guys, you might have this and modify it as you desire, I dismiss any copyrights to your account. Now remember our Franchise is often a specialty type business, mobile car wash as well as the franchisee need to be in excellent wellbeing, where your structure may wish to screen for other pursuits.
1. Telephone Interview with Founder or Designated Person. (Minimum 30 min.) Friendly conversation; Lots of listening. Notes will likely be taken on “Pre-Screening Phone Worksheet”. This worksheet will likely be kept in information if prospective franchisee is qualified. A resume are going to be asked for now. It needs to be faxed or mailed to headquarters. If none is obtainable, one is going to be created from the telephone interview.
2. Resume Is Reviewed and in comparison to notes from phone interview for consistency. If it’s acceptable, you have to proceed. If it can be not, process ends here. If, during the unit interview we launched a resume for that prospective franchisee, it is going to be mailed for them so they can put it to use in their next interview. We will also send a duplicate to A Contract Employment Agency, an organization with whom we network. They will then send us qualified prospects.
3. Timed Run is conducted by prospective franchisee. Designated Person will time prospective franchisee on the running track. He or she must run one mile within just 7:half-hour. “Timed Run Form” will likely be signed and dated by both prospective franchisee and Designated Person. If , He or she fails test, they are going to be given a good work out schedule according to their actual time. They may try again by 50 percent weeks, or if they feel ready.
4. Ride Along which has a crew. Two crews will probably be assigned to an alternative prospective franchisee. After the run, on the same day, prospective franchisee will pay all day helping a crew.
Second Ride Along will occur in the morning with a different crew to guarantee that the prospective franchisee understands the amount work there may be.
5. File Is Created in prospective franchisee’s name. Included are: Pre-Screening Phone Worksheet, Resume, Timed Run Form, Ride Along with Summaries from Crews. This checklist are going to be paper clipped to front of file.
6. Letter Of Intent is requested from prospective franchisee. When received it’s put in file and “Request to Join Team” form is shipped out.
7. Request To Join Team Form is mailed to prospective franchisee. It have to be mailed back 15 days or prospective franchisee must rewind and work using a third crew first day. Hesitation brings about not quite sure yet or they falsified information.
8. Reviewing Of Request To Join Team Form are going to be screened by two Ride Along Crew managers and three other franchisees or independent contractors, a girl not linked to our company, a Quality Control consultant, an individual or the founder. All people Involved obtain one vote except Founder; he gets three. (Unless there is often a third Ride Along Crew, the real key gets only two). Prospective Franchisee have to have 2/3rds. (12 Total, 8 to win!)
9. Request To Join Team Form Is Faxed in our favorite leasing company if they will likely be borrowing to acquire the franchise or Wells Fargo Bank in which the credit card processing are going to be done. Leasing company will notify us if prospective franchisee is credit worthy and fax us a TRW print. Wells Fargo will work a background check to see if prospective franchisee qualifies for any merchant account.
10. Extensive Background Check is going to be done by a contracted private investigation firm. Check should include: FBI Report, Court Records, etc. He/she must pass or another arrangements have to be made.
11. Meet With Prospective Franchisee – This will likely be the first official private meeting. Present with this meeting will likely be prospective franchisee, and the advisors, spouse, parents, investors, etc. Also present: Founder or Designated Person and eight other associates, members on the Executive Committee and franchisees or independent contractors.
12. Vote On Prospective Franchisee to discover if prospective franchisee is a great one. All information will likely be on the table, literally. On the table are going to be: Credit Report, Wells Fargo Approval Application, Leasing Company Tentative Approval, FBI Report, Court Records, Letter of Intent, Etc. He/she will likely be able to defend themselves against hearsay or false info on collected documents. Other items on table are going to be Pre-Screening Phone Worksheet, Resume, Timed Run Form, Ride Along Summaries as well as, The Request To Join Our Team Document. All nine people vote; Anyone absent can have their vote replaced by Founder or Designated Person. (2/3rds to win)
13. Approval will initiate a distribution of agreements for that prospective franchisee to sign:
Franchise Offering Circular
Leasing Application for Equipment
Supply Ordering Agreement
Bank Account Forms & Merchant Account Agreement
Non-Competition Of Other Franchisees Promise
Fictious Name Statement
Document Receipt Form.
14. Returning of Forms – The prospective franchisee will return signed forms. No payment could be taken for 10 working days. We will use fifteen days harmless. He/she might be placed in training for the time being.