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RANGE OF SERVICES
The three basic but essential elements required to begin franchising your business are:
1. UNIFORM FRANCHISE OFFERING CIRCULAR
In the Rule Overview established by the Federal Trade Commission it
states;
A. Basic Requirement: Franchisors must furnish potential franchisees
with written disclosures providing important information about the franchisor,
the franchised business and the franchise relationship, and give them at
least ten business days to review it before investing.
B. Disclosure Option: Franchisors may make the required disclosures
by the following either the Rule's disclosure format or the Uniform Franchise
Offering Circular Guidelines prepared by state franchise law officials.
C. Coverage: The Rule primarily covers business-format franchises,
product franchises, and vending machine or display rack business opportunity
ventures.
D. No Filing: The Rule requires disclosure only. Unlike state disclosure
laws, no registration filing, review or approval of any disclosures, advertising
or agreements by the FTC is required.
E. Remedies: The Rule is a trade regulation rule with the full force
and effect of federal law. The courts have held it may only be enforced by
the FTC, not private parties. The FTC may seek injunctions, civil penalties
and consumer redress for violations.
F. Purpose: The Rule is designed to enable potential franchisees to
protect themselves before investing by providing them with information essential
to an assessment of the potential risk and benefits, to meaningful comparisons
with other investments, and to further investigation of the franchise
opportunity.
G. Effective Date: The Rule, formally titled "Disclosure Requirements
and Prohibitions Concerning Franchising and Business Opportunity Ventures",
took effect on October 21, 1979, and appears at 16 C.F.R. Part 436
2. OPERATING MANUALS
The following is a typical table of contents from one of our Operations Manuals, Marketing Manuals, and an excerpt from a Site/Real Estate Selection Manual (from some actual clients), detailing the myriad of topics to be covered in the various manuals. However, each manual is developed and written to incorporate the policies, systems and procedures of each client.
INTRODUCTION SECTION I
TABLE OF CONTENTS
| I. INTRODUCTION SECTION | Page 1 |
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MARKETING MANUAL
TABLE OF CONTENTS
| A. OVERVIEW | Page 1 |
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| B. MARKETING STAGES | Page 17 |
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| C. MEDIA ADVERTISING | Page 27 |
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| D. PROMOTIONAL TACTICS | Page 44 |
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| E. PUBLIC RELATIONS | Page 56 |
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| F. PUBLICITY Page 58 | |
| G. INNOVATIVE MARKETING STRATEGIES | Page 69 |
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| H. GUEST RELATIONS MARKETING | Page 72 |
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| I. OTHER MARKETING IDEAS | Page 77 |
| J. MARKETING MATERIALS | Page 79 |
Site Selection Manual
The purpose of this manual is to assist you, as a franchisee of Stockyard Steaks(R), Inc., in selecting the proper site(s) for construction of your Stockyard Steakhouse(R) within the time table as specified in your franchise agreement. Proper site selection is of the utmost importance. All sites must be approved by Stockyard Steaks(R), Inc..
The first step in selecting a site is to obtain a map of the city and indicate on the map the location of all restaurants. This is a time consuming process, but it is a critical tool in determining:
| 1) | What are the major areas of concentration of restaurants? |
| 2) | How many sites do each of your major competitors have in the area? |
| 3) | How many sites for Stockyard Steakhouse(R) would be feasible for the area? |
| 4) | Are there any common factors that other chains have used in selecting sites such as proximity to regional shopping centers, office concentrations, industrial areas, recreational areas, new residential developments, schools, etc.? |
In addition to spotting locations of all restaurants, the map should also show the areas of new residential development, both single and multi-family; locations of all regional shopping centers complexes, locations of all major universities; location of all major suburban office building complexes; location of all industrial and warehouse areas; and the location of all major hospitals and medical centers. Pick areas which are growing and have a good mix of residential, office, and light industrial.
After mapping has been thoroughly evaluated, then you can begin the individual site selection process within each specific market area of the city. Once you have identified the areas you feel have the greatest potential, select a reputable real estate firm to help you in your selection. Their business is to know the properties that is or might be available. Work closely with the realtor in finding and evaluating sites. The criteria to be followed in looking for specific sites is as follows:
| 1) | Due to considerable cost savings, you should concentrate your efforts on looking for available space in shopping centers (power centers, super centers and neighborhood centers). Your first choice within the center should be an "end cap" location. The end cap location generally has the greatest visibility from the street. However, other locations within the center may be acceptable depending on visibility, access, parking, etc. Other sites that may be considered are existing, free standing locations that can be converted to a Stockyard Steakhouse(R) and meet the same criteria, can make excellent locations. |
3. FRANCHISE SALES BROCHURE
It may sound to simplistic but, the main reason your getting into the franchise business is to sell franchises. To do this you must have a "sales tool" that details what it is you have to offer as a franchisor to a potential investor in terms of your background and knowledge, any training you offer, site selection assistance (when applicable), ongoing operational assistance, your fees, and explanation of the investment and so on.
There should also be color pictures and/or graphics incorporated showing one of your locations and any positive trends for your industry whenever possible.
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