Franchise Consultant Debrief

Ventures Team

Tuesday, December 21

Everyone on the same page?

Ventures is in the process of researching a franchise to purchase at the beginning of 2006.

Current timeline Research the purpose of a franchise consultant- Dec.

15 Research and evaluate 6 potential franchises- Jan. 15 Continue further research and interviews of 2 selected

franchises Businesses for research: Zaxby’s, Bruster’s Ice

Cream, a mortgage brokerage, storage units, banquet facilities, tax franchise

What is a Franchise Consultant?

Franchise Consultant- an agent that matches potential franchisees with franchisors works with a selected, pre-screened group of

franchisors uses models to suggest potential franchises paid by the franchisor when contract to

franchise signed came about as a method of screening for

serious potential franchisees

Process

Prescreen In depth consultation Use of model to determine 3-6 potential franchises Franchisee researches to narrow options (UFOC’s) Introduction to franchisor Franchisor evaluation process

interviews with franchisor interviews with existing franchisees Discovery Day sign agreement

Pros and Cons

Pros Experienced in the industry Ability to raise issue of which we may be unaware Have access to may franchises Research done for us Free for the potential franchisee

Cons Have interest in selling their clients; can exert pressure Limited number of franchises Preferred short turnaround Typically work with individuals or small groups

Interview Results

Do not match investors with operators Suggestion is to use networking, place ad for owner

with equity Will not work with potential franchisees whose

timeline to purchase is more than 6 mos. All consulting is done via phone, placement done

across the country Experience-

about 10 years in the franchise system on the franchisor side

own a franchise unit

Options

Continue to research ourselves

Benefits Do things with our own

interests first We control the timeline

Concerns Potential for missed ideal

opportunity Lack of access to

franchising expert Opportunity cost of our

time

Utilize the services of a consultant

Benefits Access to more

franchises Use of a model to narrow

choices Saves time for the

Ventures team Concerns

Sitting idle until the time window

Consultant pushing for certain company

Recommendation

Utilize the franchise consultant beginning in June 2005.

Use the next 5 months for the following: Further educate the Ventures team and GRIG

on franchising Survey the organization for owner/operators Determine the structure for ownership

Questions

If you are unable to attend the conference call and have questions, please contact Dorian Lee at 404.849.4776.