Landscape & Irrigation

August 2014

Landscape and Irrigation is read by decision makers throughout the landscape and irrigation markets — including contractors, landscape architects, professional grounds managers, and irrigation and water mgmt companies and reaches the entire spetrum.

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The process is always driven by the prospective franchise candidate, who takes the initiative to inquire about starting a new business as a franchise, or converting and expanding an existing one to a franchise. Inquiries can always be made by phone to an interested company, and many times can be made by perusing a company's website and submitting an online form. There is also a good deal of information available from independent franchis- ing groups on the Internet, such as the International Franchise Association (www.franchise.org), Franchise Direct (www.franchise direct.com) and Franchising.com. A member of a franchise recruiting team will then contact the candidate to determine the potential for a "good fit" for both the candidate and the franchising company. During this initial phone conversation, the recruiter provides a general overview of the franchise system, outlines start-up costs, and asks the candidate questions about how they plan to operate, or how they currently operate if they are already in business, and what, in particular, interests them about the particular company. The candidate is then typically asked to complete an online questionnaire, which asks for detailed information about work history, income, and other key financial information, and poses several "questions to consider" before becoming a franchise owner to ensure the candidate is aware of the financial requirements for owning and operating a franchise. Oftentimes, a franchisor also presents a set of expectations for franchise owners regarding environmental stewardship of operations, or involvement in the community in which the franchise operates. Many companies are also interested in a candidate's personal- ity, temperament and interpersonal style. Candidates are asked to complete a personality survey so a recruiter can better understand how a prospective franchisee is likely to respond to the most common opportunities and challenges of owning a franchise. The survey results also give a recruiter key insights into how a candidate prefers to communicate and how the owner can be best supported based on an individual's business and people manage- ment style. The Franchise Disclosure Document A recruiter then guides a candidate through a discovery process that is a review of the Franchise Disclosure Document (FDD). The FDD provides extensive information about the franchisor and the franchise organization so the potential franchisee has enough information to make an educated decision about a franchise investment and its risks and expected costs. The FDD includes information regarding: • The franchisor and any parent companies, predecessors and affiliates. • Identity and business experience of key persons. • Litigation history of franchisor or its executive officers. • Bankruptcy information. • Initial franchise fee, which often includes costs for initial inventory, signs, equipment, leases, or rentals, and estimated total initial investment. • Restrictions on sources of products and services from suppliers. • List of franchise outlets. The home stretch At this point, if both parties are still interested in moving for- ward in the recruiting process, the candidate is usually invited to attend an "open house" at the franchisor's home office. The open house provides candidates with a chance to meet the franchising company's executive team, and to take a closer look at its systems and support network. The candidate then returns home, and a decision about whether or not to offer a franchise to a candidate is typically made within one week. 38 Landscape and Irrigation August 2014 www.landscapeirrigation.com Business Management

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