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I. OBJECTIVE
1. To provide guidelines for identifying qualified 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
A Site List (SL) shall be maintained by the Business Development Department. This list shall contain all preferred locations for the establishment of an outlet. The list shall serve as a guide to the Franchise Officer for franchise applications on possible locations.
Business Development Department shall be responsible for managing the Franchise Applicant through the process of their franchise application.
All franchise inquiries (through the website, phone call or postal mail) shall be coursed to the Business Development Department. The Franchise Officer shall brief the Franchise Applicant on the basic requirements in applying for franchise.
All Franchise Applicants shall be asked to submit a Letter of Intent (LOI) to GJVI. The letter shall contain the following information:
• Name of interested entity
• Expressed intent to franchise
• Proposed site and location with complete address and location map (if available)
Interested Franchise Applicants without proposed site shall also be allowed to submit an LOI.
The Franchise Officer shall acknowledge the LOI by sending a Franchise Inquiry Kit which contains the following:
• Franchise Acknowledgement Letter (FAL)
• Franchisee Pre-Qualification Form (PQF)
• Franchise Information Sheet (FIS)
Franchise Officer shall enter the details of the Franchise Applicant on the Franchise Monitoring Sheet (FMS). The progress of the application shall be indicated on the sheet. Upon submission of the accomplished Pre-Qualification Form, the Franchise Officer shall forward it together with the LOI to the Chief Executive Officer. Chief Executive Officer shall review the documents for approval to proceed to the preliminary interview that is to be scheduled by the Franchise Officer.
During the preliminary interview, the Franchise Officer shall give a company overview and explain the details of the franchise package. Franchise Officer shall also assess the Franchise Applicant’s
qualifications based on ability, attitude and readiness to operate the outlet. After the preliminary interview, the Franchise Officer shall issue Franchise Application Form (FAF) if both the Franchise Applicant and the Franchise Officer are still interested to pursue.
The FAF requires the applicant to give personal information. This shall serve as a database and personal record of the Franchise Applicant. Upon submission of the accomplished FAF, Franchise Officer shall ask a contractor to conduct background investigation of the Franchise Applicant. Failure in the investigation shall demerit the application.
The Franchise Officer shall send a Letter of Regret (LOR) to the Franchise Applicant should he fail to qualify based on the provided pre-qualification information, interview results or background investigation report. Reasons for disapproval shall be disclosed as deemed necessary.
Upon qualification, the Franchise Officer shall provide the Franchise Applicant with a Market Study Form (MSF). The MSF shall enable the Franchise Applicant to conduct a site feasibility study.
For a Franchise Applicant that has no proposed site, the MSF shall be provided upon identification of one by either GJVI or the applicant.
The Franchise Officer shall conduct a separate market study on the Franchise Applicant’s proposed site by using the Site Assessment Form (SAF).
For provincial sites, a processing fee shall be collected from the Franchise Applicant. This shall cover travel-related expenses, such as transportation, hotel accommodation and food. In case the application pushes through, the processing fee shall be deducted from the developmental fee.
Considering the accomplished MSF, the Franchise Officer shall submit his site assessment study with his recommendation to the Chief Executive Officer. The Chief Executive Officer shall decide to approve or reject the site.
In case that the proposed site is disapproved, the Franchise Officer shall inform the Franchise Applicant of the recommendation. The Franchise Officer shall also inform the Franchise Applicant that GJVI can propose other site options when the opportunity arises should he decide to pursue his franchise application.
The Franchise Officer shall schedule the Franchise Applicant with the approved site for a final interview with the Chief Executive Officer.
IV. PROCEDURE FLOWCHART
Flowchart Title
Franchisee Qualification
V. REFERENCE/INTERFACE PROCESS
Document Title
1. Site Selection
2. Franchisee Identification
VI. FORMS AND RECORDS
Form Title
1. Site List (SL)
2. Letter of Intent (LOI)
3. Franchise Acknowledgement Letter (FAL)
4. Franchisee Pre-Qualification Form (PQF)
5. Franchise Information Sheet (FIS)
6. Franchise Monitoring Sheet (FMS)
7. Franchise Application Form (FAF)
8. Letter of Regret (LOR)
9. Market Study Form (MSF)
10. Site Assessment Form (SAF)
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