TO SHOW YOUR FRANCHISE

YOU NEED ONLY THIS 10

SLIDES

FRANCHISING GROUP ARGENTINA

www.fgroupargentina.com

info@fgroupargentina.com

1- BRAND «CHEMISTRY»

Show here your brand, logo, concept and competitive advantage, what makesus unique, something nobody can copy or that it will take a long time to copy

2- INITIAL FEE

Show the entrepreneur that our brand has a great value, built over the last years

and, thus, he must pay for use it in a given territory and for a given period of

time, being this a part of the franchise investment

3- COMMERCIAL PREMISES LEASE

COSTS

It is difficult to set an a priori value for this item of the investment, as there is a widevariation in the rental marketplace, realtors commissions, government fees and otherexpenses for rent the premises in which the franchise will be installed. It is alsoimportant the current status of the premises and facilities when renting, because it willbe of great importance in the building structure work to be done

4- DECORATION AND EQUIPMENT

In this item we can give a very close-to-reality figure, once we have selected the premises and know its current status, the already existing equipment and the overall conditions of the investment

5- INITIAL PURCHASE OF GOODS

AND WORKING CAPITAL

Also in this item we can give a very accurate picture of the investment idea, as it is the

franchisor who sets the initial stock of goods and advises the entrepreneur in terms of

the cash he needs to reserve to deal with the first months of the franchise operation

6- STAFF

The entrepreneur must understand carefully which is the franchise personnel

structure, which is the job description of each person and which are the

responsibilities of the franchisee with respect to the staff. Should be displayed

also salaries, bonuses, holidays, special assignments, the corresponding unions

regulations, and how much money may the franchisee withdraw per month,

specially in the first year of operation

7-TRAINING PROGRAM

Detail which are the fees for attending the franchisee and staff’s training program,

covering production processes, storage, distribution, marketing, finance, new product

development, setting shared values, etc., considering also travel and lodging

8- TOTAL ESTIMATED INVESTMENT

As some of the above items are not accurate, then, the total investment, which is

obtained as the sum of all above items, should also be expressed as an estimation

with a certain tolerance, i.e., an up and down percentage that should not be

greater than 10%

9- ROYALTIES AND ON-GOING INVESTMENT

Royalties are the payment to the franchisor for using the system, brand name and trademarks in the territory, and on-going investment corresponds to periodic investments that the franchisee must perform in the territory in order to keep the competitive position. These investments include broadly marketing, training, maintenance of the premises, new equipment, etc.

10- P&L

Technically, what has to be measured is a 5-year contract profit-after-taxes-

discounted-cash-flow. So, the most significant metrics to show to the entrepreneur in

this very first contact with our franchise opportunity seem to be the average

revenues and the internal rate of return of the project, to be compared with other

business opportunities and draw a first conclusion

Adapt this presentation to your franchise opportunity,

upload it into your mobile device and take it always with

you

www.fgroupargentina.com

info@fgroupargentina.com