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I. OBJECTIVE
1. To establish a set of guidelines on qualifying Franchise Applicants
II. DEFINITION OF TERMS
1. Franchise Applicant – an entity who expressed intention to be granted authorization to franchise a company-owned brand
III. GENERAL POLICIES
Procedures for Franchise Selection shall only apply if Franchise Applicant has gone through the process of Franchise Qualification.
The Chief Executive Officer shall conduct the final interview of the Franchise Applicant. Copy of the Franchise Application Form (FAF) shall be forwarded to the Chief Executive Officer prior to the interview.
The final interview shall have the objective of evaluating the capability of the Franchise Applicant in terms of the following:
• Financial credibility
• Dedication and commitment
• Working relationship
The final interview shall also have the objective of acquainting the Franchise Applicant with the people behind the operation of GJVI. After qualifying and upon consultation with the CEO, the Franchise Officer shall assign a site for the Franchise Applicant. The Franchise Applicant shall then be scheduled for signing of a Memorandum of Agreement (MOA).
The MOA shall act as the initial agreement between the Franchise Applicant and GJVI. It shall also serve as a reservation of the Franchise Applicant for the site.
The MOA shall contain the following information:
• Effective Date
• Signing Date
• Place of Signing
• Outlet Location
• Provisions preparatory to the execution of the Franchise Agreement (FA)
• Signature of the Chief Executive Officer
• Signature of the qualified Franchise Applicant
• Acknowledgement
The MOA shall be issued by the Franchise Officer and prepared in five copies. This shall be signed by the Franchise Applicant and the Chief Executive Officer. Upon signing of the MOA, the Franchise Applicant shall pay 50% of the franchise fee.
All accomplished MOAs shall be notarized. The MOA shall be kept and filed by the Franchise Officer until the Franchise Agreement (FA) has been signed and notarized. After signing the MOA, the Franchise Officer shall issue an initial copy of the FA to the Franchise Applicant for his review.
If the Franchise Applicant has any questions or clarifications on the FA, a meeting shall be set between the Franchise Applicant and the Franchise Officer to discuss and settle all matters and issues regarding the FA.
If necessary, the Franchise Applicant shall also be scheduled to visit a Franchisee-owned outlet where he may observe the outlet’s operation. During the visit, the Franchise Applicant may also interview the Franchisee who owns the outlet. The Franchise Applicant shall be endorsed to the Franchisee by the Franchise Officer. Schedule of the outlet visit shall depend on the availability of both entities.
After the review of the FA and the outlet visit, the Franchise Applicant shall be scheduled for the signing of the Franchise Agreement.
IV. PROCEDURE FLOWCHART
Flowchart Title
Franchise Identification
V. REFERENCE/INTERFACE PROCESS
Document Title
1. Franchise Qualification
2. Franchise Contract
VI. FORMS AND RECORDS
Form Title
1. Franchise Application Form (FAF)
2. Memorandum of Agreement (MOA)
3. Franchise Agreement (FA)
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