TP0001 – Onboarding a new Franchisee Process

Key Stages

Step 1: Online EnquiryPotential Franchisee will send us an enquiry
Step 2: Pre QualificationThe Area Franchise Manager gets in touch to have a brief chat. If they sound like a good fit, they will send:
– Franchise Brochure (OF0056)
Non-Disclosure Agreement (OF0047)

A Meeting with the head Franchisor is available to discuss finer details.

Please note: before any finer details can be discussed the Non Disclosure Agreement needs to be signed and returned

If the new Franchisee is looking to finance the initial costs, this is where we do an introduction to our recommended finance broker
Step 3: Initial Documentation sentOnce they’re serious about becoming a franchisee and have completed the above, at this point you want to ask for a non refundable documentation fee of $3,200 + GST to cover the legal and Documentation Fees.

This is when the Head Franchisor along with the legal team will issue them the generic template documents which will be filled out by the Area General Franchise Manager
Cover Letter (OF0055)
Franchise Agreement (OF0048)
Disclosure Document (OF0049)
Information Statement (OF0051)
Key Facts Sheet (OF0052)
Independent Auditors Report (OF0053)
Franchise Code of Conduct (OF0050)
Deed of Prior Representations (OF0054)
Franchise Agreement Signing Guide (OF0057)

All Documents to be saved in franchisees folder on DropBox

Note – it’s a good idea to make sure they confirm in writing once they receive the documents!
Step 4:  14-day periodAfter you give them the documents, there is a 14-day cooling off period where they have the chance to read and understand the documents while you wait for them to make a decision. The only changes you can make to the documents during this time are filling in their details or making any negotiated changes in their favour. During these 14 days, the initial Documentation Fee is not refundable, it’s also really important to encourage them to get legal, accounting or business advice (Annexure L-K of OF0048 – Franchise Agreement) on the documents within these 14 days. They’ll need to sign a form to certify that they did in fact receive professional advice (or, if they chose not to get advice, they need to put that down in writing too).
Step 5:  Finalising DocumentsAfter the 14 days, if they’re happy to move ahead and there is required to be major changes, we will let our Legal Team know as soon as we can. The Legal Team then finalise all the documents for us (any negotiated changes for them), include a cover letter and signing page, so they understand all the documents involved and how to sign.
Step 6: SigningOur Legal Team then will send us a copy of all the documents in their final form for you to provide to the potential franchisee to sign. Once the franchisee has returned the original signed documents to us and we have checked to make sure they are signed correctly, we can then sign the documents.   
Note – there is also a 14 day cooling off period after they signed the documents.

All Executed documents to be saved in franchisees folder on DropBox
Step 7: Deposit PayableA 30% Deposit is payable at this stage
Step 8: 14 Day Cooling Off periodIf the franchisee terminates the agreement within the 14-day cooling off period, we must fully refund all payments made by the franchisee under the agreement within 14 days. However, we will keep the retainable Documentation fee.   After we sign, we can either send our new franchisee a soft copy or hard copy version of the fully executed documents.
Step 9: Full Payment of all Initial Franchise feesAll initial Franchise fees are payable at this stage
Note: Once this stage is completed fees are non-refundable
Step 10: Equipment SetupOrdering and setup of new franchisee equipment is completed according to relevant order forms and Safe Operation Procedures
Step 11: Software SetupArea General Franchise Manager completes Software onboarding according to relevant Standard operating procedure
Step 12: Franchisee training completedArea Franchise Manager completes franchisee training according to relevant Training Package
Step 13: Go Live marketing CompletedArea Franchise Manager completes franchisee training according to relevant Standard Operating Procedure
Step 14: Move to 0-3 Months Franchisee Training PackageMove to 0-3 Months Franchisee Training Package

Forms and Registers

Document NumberDocument Name
OF0047Non Disclosure Agreement
OF0048Template Franchise Agreement
OF0049Disclosure Document
OF0050Franchise Code of Conduct
OF0051Information Statement
OF0052Franchise Key Facts Sheet
OF0053Independent Auditors Report
OF0054Deed of Prior Representations
OF0055Cover Letter
OF0056Franchise Brochure
OF0057Franchise Agreement Signing Guide

Amendment Record

Issue#: 1 Issue Date: 13/7/2022

Rev#DateSection#Para.#Description of ChangePrepared ByApproved By
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Disclaimer: This documentcontains material to assist in meeting environmental management, Work Health and Safety and Quality obligations under the International Standard ISO AS/NZS ISO 9001:2016,14001:2016 and other legislative bodies. This document contains material sourced from Safe Work Australia. Any such material remains subject to copyright © Commonwealth of Australia. https://www.safeworkaustralia.gov.au/copyright. Although every effort has been made to ensure the accuracy of this information at the time of publication, it is provided as guidance only and does not provide legal advice on meeting your obligations. This document and its contents are © A2Z services 2018 and or the originating source authors and no permission is given for its duplication or copying, in part or in its entirety, for use outside its original purposes as stated within the company.

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