"THE POINT OF THE SPEAR"
FRANCHISE DEVELOPMENT
 
There comes a time with many successful businesses that it is no longer practical to expand at their current location and multi-locations are not feasible from an operational perspective.  This is the time when franchising becomes a very viable options or perhaps the only option.  The process of this transition is extensive and costly, but it can also be very profitable in the end. But, the costly part can also be ruinous when done from the wrong approach.  Some have taken a piece meal approach by having the various aspects done by different sources.  These individual sources are only concerned about completing that one aspect of development.  They may have given you a good product, but does it fit and compliment the total development process.  Will all the individual pieces fit smoothly together in the end?  If the pieces do not fit properly there will be a disconnect and the whole process will be seriously flawed at best, or totally collapse.

Remember, the whole point of the process in franchising is to award franchises and expand your business.  Using the analogy of the spear, you need a strong shaft to make the point effective.  Likewise, the shaft must be one strong, continues rod and not several loosely connected pieces.  Many businesses have taken the piece meal approach.  While many have been successful, there have been costly setbacks and/or complete failures.  When building a large building, many individual experts are involved but one person coordinates the process just as an orchestra has a conductor to make beautiful music.  Therefore, is it only logical that the building of a business opportunity, that also requires many experts, also be coordinated and brought to a completion by one individual organization?

The fulfillment of the franchise process is not just the completion of legal requirements, various manuals and marketing materials.  However, this is the point at which many new franchisors are convinced that everything is done and the expansion can begin.  The new franchisors, convinced that they can do the sales process themselves, become discouraged after a year of trying to sell their franchises and getting nowhere.  They are faced with the question, who can help me out of this mess or can the business afford the costs of continuing? Again they have to seek expert advice, a consultant, to get them out of the mesh they got themselves into.

FRANMOGUL has met several of these new franchisors who were seeking advice.  They have come looking for help at a time when their resources have been depleted and they are not sure how to proceed, or if they can afford to continue.  Unfortunately, there are businesses that will take your money and complete exactly what they said they will do, but the finish product does not sell the franchise.  However, since their reputation is not on the line for the end results, the granting of franchises, they do not have a vested interest in the quality of their product.

The primary purpose of the Point of the Spear program is to take a new franchise from the beginning to the final competition of the product. Since the point of the process is to secure franchisees and expand the business, the point of the spear has been developed to create a strong shaft which is able to support the point, grant franchises. The shaft of the spear consists of all the legal requirements, the various manuals and the marketing material with the advertising.  All this is completed by different experts in their field under the guidance and supervisor of one coordinator, FRANMOGUL, who will ultimately be responsible for the final phase, the sale of the franchise – the point of the spear.  The whole process is completely outlined and reviewed with the franchisor which includes time frames and cost projections that will completely fulfill the requirements to start and sustain the business expansion.

THE PROCESS:
STEP 1.  FRANMOGUL will conduct a phone interview with the prospective business to explain the details and expectations of our program and to get a brief understanding of the business to be franchised and what makes it unique and appealing.  The discussion will include available financial resources of the business and the ability to sustain the expansion.  We decide to advance.
STEP 2.  Candidate is emailed a checklist of items for FRANMOGUL’s executive team to review  and make a determination of candidate’s viability.  If we believe the prospect meets our criteria then we inform them and get a commitment and a check for $2,500 to cover the cost of an on site visit.
STEP 3.  Members of our executive team will make an on site visit to meet in person the principles of the business and validate the information previously submitted.  The team will explain in detail what is expected of the prospect and get a clear understanding of the prospect’s expectations.  FRANMOGUL’s team will explain the different phases of the process followed to build the franchise.  The team will also explain the importance of making a distinction between running a successful business and creating and selling a successful franchise. 
STEP 4.  FRANMOGUL’s executive team will review all the information and determine if there is sufficient interest and resources to proceed in the development of a franchise.  If not, we will explain our reasons.  If yes, we will formulate our plan and explain each phase, including the costs, all the way through the sales process to the contract signing of each new franchisee.
STEP 5.  Prospect agrees to proceed, signs a contract and submits an initial payment. 
STEP 6.  Our different team members will be in constant contact with the new franchisor to explain the many options in the development of the different documents and their effect on the final outcome.  Part of this will take place on site to get a more thorough understanding of the business and its operations.  The results of this step will have the franchisor’s complete approval before proceeding to the last step, sales.
STEP 7.  With all the documentation completed, the marketing and sales will begin.  The leads will be contact by our Lead Qualifiers and qualified prospects will be forwarded to the sales department.  Before any contract is signed, the franchisor will have the final approval of any deal.
NOTE:  ONE IMPORTANT DISTINCTION TO THIS PROGRAM WHEN COMPARED TO SEVERAL OTHER OPTIONS. 
The entire process is completed by one coordinator.  (Think of the orchestra conductor analogy.)  The successful completion is directly related to the quality of the individual parts and FRANMOGUL’s success if only achieved when new franchisees have become part of the new franchise.  Therefore, FRANMOGUL has a vested interest to guarantee quality material through each phase of the process.