How Can I Sign Hawaii Banking Business Plan Template

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if you're a restaurant owner and you're considering franchising your restaurant today we're going to talk about should you franchise and the steps involved to franchising I'd be remiss if I didn't start off by discussing current circumstances as I'm doing this video it's April 2020 and naturally not only our nation but restaurants across the country are being impacted by Co vid 19 and we've seen the impact on many of our clients some who've had to completely shut down operations and others who are delivery driven takeout driven restaurant models potentially doing well in this crisis for sure it's a crisis for our nation it's a challenge for restaurants and so I hope your restaurant is doing well and I hope the reason you're watching this video is because you're ready to recover and grow and there's opportunity ahead and certainly over the next couple of years with crisis will come opportunity we're gonna sing opportunity in terms of financing availability as to restaurant space rent and labor so there are some positives we're discussing a lot of this in our mastermind community so if you visit Facebook you could visit our Facebook mastermind community but now getting into the heart should you franchise your restaurant well there's a three typical methods for expansion one is organic self-funded expansion two is a hybrid it's self-funded expansion but will capital from investors or private equity groups and there's plenty of restaurants have done well with that model and the third and most popular for multi-unit expansion is franchising the benefit with franchising being you achieve multi-unit expansion you qualify franchisees who invest their startup capital and then run their operations and in an ideal world you have well capitalized multi-unit franchisees so if franchising is the vehicle you're looking at well I mean it's been the most popular model for multi-unit expansion in the restaurant industry and it's going to remain that way so when you decide if you should franchise really comes down to as a founder and leader is that part of your goals do you want to achieve multi-unit expansion over a period of one to three five years are you ready to build an organization that's built around supporting franchisees selling franchises and creating added value of relationships with vendors right so it's really a mindset and a goal so those are some of the factors you need to evaluate if you should franchise others include whether or not your business model your restaurant can be replicated I get that almost every restaurant sort of can be replicated but is there some efficiency in your systems in your supply chain in the products and services that you offer and is there an ability to teach franchisees so you maintain quality those are critical factors so mindset as a founder and management team replication of your brand training supply chain consistency of product so those are factors you should be considering about if you should franchise and we have a whole guide on this and some other videos we'll link to at the end of this video let's assume that you are interested you should franchise what are the steps involved well the steps involved in franchising a restaurant are the same involved for franchising any business and we have our ultimate guide but here I'm going to talk about the steps and maybe some of the nuances going through those steps step one is preparing your franchise disclosure document to preparing your franchise operations manual three protecting your intellectual property for establishing a new franchising company five issuing and registering your franchise offering six is developing a franchise sales strategy and seven is developing a franchise plan and budget and we're going to briefly discuss each of these when people talk about the franchising their business the main step involved is preparing a franchise disclosure document it's called an FDD it's a legal prospectus and it's required by federal law in state law basically before you can offer a sell at restaurant franchise to a prospective franchisee you need to give them this prospectus that discloses information about your franchise offering who you are what the estimated investment is legal relationship the franchise these obligations your supply chain financial statements of your new franchise company something we'll discuss in a couple of steps the whole underpinnings of what its gonna mean to be a franchisor and franchisee so that's your FDD it needs to be issued it needs to be prepared when we're working with brands development of the FDD takes about 90 days we start with a brand assessment of your restaurant what your business is all about your brand we then prepare a competitive evaluation what competitors in different space of the restaurant industry what do their territories look like what are their royalty structures look like what's the opportunity for multi-unit expansion all things they'll be discussed in the FDD development process which involves on our end a combination of legal representation plus franchise development know-how because what you want is when you're ready to sell franchises you want to make sure it's competitively positioned receive well by the broker community and it's built to win over time so step one is preparing your franchise disclosure document step 2 again this all happens simultaneously so while we're preparing your franchise disclosure document we need to prepare your franchise operations manual half our clients prepare their own the other half ask us to bring in a team that works with us to develop your manual and what is it well once someone signs a franchise agreement and they become your franchisee you're gonna provide them what your a manual years ago it used to be a printed manual today most likely it's going to be an online manual with videos it's going to discuss a host of things development of your restaurant standards and specifications for equipment furniture and fixtures development your pre training process your menu recipes and standards who your approved suppliers and vendors are marketing and operations front of the house back of the house point-of-sale systems all these things are going to be in your operations manual which is your how-to guide for your franchisees one key to remember here is this your operations manual is going to evolve over time what it looks like on when you launch your franchise and in year one it's going to be different in year two and in year three it's gonna evolve over time of your standards and specifications change your training changes but just keep in mind it's gonna be a fluid document it's gonna be something that you're gonna modify over time if it's done the right way it should be a real part of your organization it should be training modules and videos all these great things that are gonna help your franchisees succeed it's a big task but just know it's not done overnight you'll have your initial operations manual and then over time you're going to keep improving it step 3 is we're working through the process we need to make sure your intellectual property is protected which this really means is the name of your business the trademark of your business how you identify your restaurant that that trademark and that logo is registered with the United States Patent and Trademark Office and maybe even some menu items unique menu items have unique names they may be registered as trademarks why well when we franchise one of the biggest assets we're conveying to franchisees is a license to use our trademarks so we want to make sure they're protected certainly we want to make sure they don't open up in a new state and have a claim that someone else says that they own the mark or that there is a conflict so as we're developing your FDD as we're developing your franchise operations manual we're gonna be going through your trademarks and your logos preparing United States Patent and Trademark Office applications for registration if you already have registrations then we're gonna be reviewing those so third step is protecting your intellectual property step 4 as we go through the process is we're going to set up a new franchise company so right now I'm sure you have a company or multiple companies that own your restaurants operate your restaurants those companies are going to remain we're gonna want to set up a brand new company let's call it XYZ restaurant franchising LLC why well because this new company is going to be the franchisor it's gonna be distinct from your restaurant operations over time it's gonna be completely different business it's gonna sell franchises support franchisees it's gonna receive income in the form of initial franchise fees and ongoing royalties that's gonna have expenses related to franchise sales franchisee support so as we go through your franchise development process we're gonna be speaking with your accountant to set up your corporate entity this will become your brand new franchise company now in the franchise world your franchise offerings your FDD needs to include financial statements of your franchise company so one question comes up often is do I have to give the financial statements of my existing restaurant and the answer is no we're gonna be saying of a brand new company so you're going to brand new fresh financial statements and in your one's not going to show much it's gonna show we set up a company you deposited money into a bank account to fund the company whether it's five thousand or 150 thousand whatever it is and that's going to be your initial assets for your new franchise company step 5 as we go through this three-month process of developing your FDD internally what we do is we have weekly development meetings with our clients we go through each phase of the process from brand positioning what your concepts all about what our fee structures would be your initial franchise fee your ongoing royalty fees how do we disclose your supply chain legal obligations single unit sales multi unit sales what type of territories would grant franchisees and really how to position the brand to succeed that's all incorporated into the FDD development process when we're done with that meaning we've prepared your franchise disclosure document your franchise offering it complies with the federal franchise laws and it complies with state specific laws so here you need to recognize there's multiple levels of law federal and state in certain states like New York California Illinois Washington Maryland Virginia Hawaii they are known as franchise registration states they have specific requirements we also need to comply with and so when we prepare your FDD it's done as a multi-state compliant FTD meaning we prepare to comply at the federal level and at the state level so step five is finalizing and issuing your FDD le assurance just means as your lawyers we certify that your FDD is ready to go complies with federal law state law now in those states I mentioned earlier New York California Illinois Hawaii Washington those states are called franchise registration states in those states before we could start offering or selling our franchises we need to file our FDD and obtain registration so step 5 we issue the FDD and we register it step 6 this is something people overlook all the time especially in the development stage you'll develop your franchise offering you'll have your FDD you'll speak with your lawyers your franchise lawyers but no one's giving thought to what the sales strategy is or if they do it becomes like an afterthought and what happens is you just waste money I've seen startup brands issue their FDD start wasting money on franchise portals or pay-per-click ads and the reality is is they're not ready for that marketing spend because you need your brand to season even if you had a million dollars to spend on marketing and year one I tell you don't spend him don't even come close to spending it you need to season your brand as we go through the process we have some really great webinars and we're gonna make some introductions my advice is let's focus on the positioning of your brand meaning what is the value proposition you're offering as a new franchise company to your future franchisees it's not just hey we give training or we have a cool logo or our foods really good but it's we offer our franchisees the opportunity to transfer their lives and here's how we do it so you need to focus on the position your brand in here one I would tell you focus on your organic leads people that know your brand people that know your restaurant focus on those organic leads and the reason why is you find qualified franchisees in the franchise world your first 10 franchisees are gonna be so critical to future of your business if your first group of franchisees do well and are profitable they're gonna serve as future validation for you meaning when prospective franchisees come there your existing franchisees will validate and help you sell if your initial group of franchisees do not do well you won't have validation you're gonna have a hard time selling franchises so this sales strategy my recommendation focus on your brand story focus on organic leads engage limited public relations that'll start your storytelling process what your team's about why your company was founded how you transform the lives of your customers and your future franchisees that limited PR is going to serve as a great form of validation and help you sell franchises those are key items step 7 develop a franchise plan and budget it may not work out perfectly it's probably going to have to change over time but let's focus on what does your franchise sales strategy and budget look like in year 1 2 3 & 4 what franchising it's a long term proposition you don't win on day one you need to be committed to it look at it as a 1 2 3 4 5 year plan you're one you launch your FDD you focus on your organic reach you focus on telling your brand story you're - you start ramping up relationships with brokers you start working different mediums whether it's a different digital media outlets or channels of communication attending broker conferences considering trade shows supporting your initial group of franchisees your three that's the year when you really want to focus on acceleration by now you should have had franchisees that are doing well they're going to validate they're gonna help you grow they're going to attract broker interest and they're gonna help you close deals your for your five those are years you really want to hit the goal said fifty units which is not easy but once you do you reach an inflection point where you can achieve some good growth so summarizing the steps to franchising your restaurant step one preparing your franchise disclosure document that's your FDD to preparing your operations manual 3 protecting your trademarks and your logo and your intellectual property for establishing your new franchise company 5 issuing and registering your FDD 6 developing your franchise sales strategy 7 developing a franchise plan and budget how do you get started well get information the keys to learn franchising we have some amazing resources on the learn franchising section of our website really good webinars keep in mind a lot of the webinars are based on year 2 and year 3 concepts and that's okay what they will help you do is understand next steps and provide you for the framework also attend franchise shows and if you reach out to our team we'll let you know what shows are happening we have a great franchise growth mastermind community so if you go to Facebook and you go to franchise growth mastermind join our free Facebook community if you have any questions feel free to reach out to our team and good luck as over the next couple of years as you grow your restaurant