Welcome To ABC

We welcome you to ABC, a unique customer orientated business.

We believe our franchise system will provide you with an easy to operate and profitable business. By working together as a team we can expand your business by ensuring a high quality of customer service.

Our role and responsibility is to help you every step of the way and we encourage you to call for advice at any time or to share any ideas, which may help improve the franchise system.

It is however, important to realise that this franchise is your business, we have provided the tools and know-how, but you must provide the input. Franchising offers a head start to your business, but the responsibility for its ongoing success is yours.

Location Of ABC

Outlets

It is anticipated that franchises will be established and located throughout selected cities and provincial cities of DEF Country.

ABC has plans to expand into overseas markets. This will ensure that the group has strength in numbers.

The Franchise System and it’s History

The word FRANCHISE comes from an old French word meaning privilege or freedom. In current vernacular the term franchise refers to a right or privilege granted by a sovereign, a government, an organisation, business or individual. The history of franchising as a concept dates far back into time when the church or king would grant certain commercial privileges or franchises to individuals.

The ancient system of franchising can be found throughout history: William the Conqueror, mostly remembered by his “Doomsday Book”, used the system successfully in his farming policies, the royalties being men and materials required to maintain his army. In early days of history franchising was extensively used for the Government’s control of the rum industry, to offer one example.

In more recent times franchising evolved into an exclusive right to sell a certain company's products or services.

In the United States, shortly after the Civil War, Singer Sewing Machine Company franchised to peddlers who were using horse-drawn wagons to penetrate lucrative isolated markets.

Business format franchising which is franchising as we know it today came on the scene in the 1950s with the franchising of motels and fast food outlets. Business format franchising is essentially a natural extension of the previous forms of franchising. Modem franchising not only grants to the franchises the right to use the Franchisor’s name and sell it's products but it also transfers to the franchises all the operating systems, training programs, advertising programs and essentially all relevant information which will help the franchisee succeed.

Today the modern business world honours the system pouring out articles, statistics, success stories, and news of incredible franchising inroads in all areas of commerce. Even banks are doing it! The Financial Times referred to it as;

“ Franchising - A boom that just won’t quit”.

ABC Head Office Personnel

Managing Director

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Responsibilities

1. Franchise Liaison

2. Marketing and advertising

3. Development of New Franchisee Territory

OFFICE - HEAD OFFICE

PERSONNEL

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Responsibilities

1. Group Purchasing

2. Franchisee Training

3. Franchisee reporting & payment

4. Corporate Marketing

5. Development of New Franchisee Territory

6. Administration and Accounting

7. Corporate Advertising

ABC Philosophy For Conducting Business

Our primary aim over the next ten years will be to establish ABC as the leader .

It means being “The Best”, not necessarily “The Biggest”.

Being the Best will be measured by all those with a stake in the company: -

• By our customers - in terms of value, range and quality of the service we provide.

• By our franchisees - in terms of profit and on-going support.

• By our employees (direct and indirect) - in terms of remuneration, conditions of work, training and employment opportunities.

• By our suppliers - in terms of fair and mutually profitable dealings and their willingness to develop their business with ours.

• Our product philosophy is the maintenance of a healthy market share at individual locations.

• Our people philosophy – staff, customers and suppliers - maintenance of honesty and integrity in all our dealings at a consistently high standard of business conduct and ethics.

ABC Role And Responsibilities

Your Role and Responsibilities

In addition to the terms we agreed upon, which are recorded in our Franchise Agreement, it is important that you understand the roles and responsibilities of being a ABC franchisee.

It is vital to realise at the beginning that you are indeed an independent business person and as with other businesses, you can expect to succeed through your own efforts, acumen and time put into your business.

You should be prepared to accept this responsibility and the subsequent credit. Minor failures are inevitable and for these you should also accept the responsibility of instant remedial action.

As you read through our Manual you will realise that you do indeed have independence to run your ABC business and that your never-ending professional support is an integral part of our relationship.

We are relying on you to uphold our reputation for excellent customer service, efficiency and high standards of business ethics.

Specific Responsibilities

1. Maintain the Corporate Image of ABC in every detail on the Vehicle, Signs, Sales Invoices, Business Stationery and all Advertising must all bear ABC logo.

2. Maintain a full complement of staff necessary to protect the interest of your Business and of the Group.

3. Communicate relevant information weekly, and annually in accordance with this manual and with our agreement.

4. Pay Franchise Fees and all accounts on time to strengthen the Group and preserve ABC integrity in the marketplace.

5. Independently promote the Business within your Territory.

6. Monitor and strive to better the product knowledge and service provided by you and your staff.

7. Order your stock only from the suppliers recommended to you to ensure that your products comply with our image and standards.

8. Maintain your vehicle and stock in first class condition.

9. Provide ABC standard of service to your customers.

10. Inform Head Office of any problems occurring within your business.

11. Communicate freely with your Field Consultant.

Group loyalty

The long-term success of our group depends on individual loyalty and participation. Your own personal welfare is tied in with the group, therefore it is in your own interest to communicate freely and attend all meetings.

Develop a group attitude, run your business according to our Agreement and the Manual and don’t be tempted to alter our successful system. The philosophy is simple;

Your Field Consultant

Your Field Consultant will either be your Franchisor, Master Franchisee or a person employed by your Franchisor or Master Franchisee for this important role.

From time to time your Field Consultant will visit you in your ABC territory. In the majority of cases the visit has been made to help you with the operation of your business and provide on the spot advice to any problem which you may have.

Your Field Consultant will also introduce and assist you with changes to any systems and procedures, new products, new technology, new stationery and forms, new equipment etc.

The Field Consultant will also discuss any problem areas with you to ensure that you are complying with the theme and image of ABC, its systems and procedures and the standard of service and range of products provided to your customers.

Remember that if you need help your Field Consultant is only a telephone call away.

Franchise Meetings

Franchise meetings will be held on a regular basis in order to provide information on the latest products, marketing techniques, suppliers, systems changes etc. Franchisees will be notified in advance of each meeting and it is a requirement of your franchise that you attend.

In addition to these meetings each franchisee will hold their own individual meetings with their staff to:-

• disseminate information from Head Office

• discuss new advertising & marketing strategies

• share ideas

• solve problems

• advertising fund budget

The Franchise Agreement

The Franchise Agreement is a signed legal contract, which is the basis of your business. It provides the rules for a long and mutually rewarding co-operation between the Franchisor and Franchisee and establishes the obligations of both parties to maintain a continuing business relationship.

Be aware of the terms and conditions, which are included as a protection for both parties.

Failure to comply with the terms of the Agreement could lead to termination, particularly in relation to the following:-

1. Failure to pay outstanding invoices and fees.

2. Failure to actively carry on the business.

3. Selling unauthorised products.

4. Violating State or Commonwealth regulations concerning the business.

5. Disclosure of trade secrets, improper use of signs and logos or violation of the business practices set out in this manual.

Termination of Franchise

On termination of the Franchise Agreement for any reason, the following procedures are to be adhered to:-

1. Return the Operations Manual and all other printed material provided to you.

2. Return all ABC company documents and stationery.

3. Remove all notices bearing your name as a Franchisee of ABC

4. Cancel from any register your name as a Franchisee of ABC.

5. Settle all outstanding accounts for products, franchise fees and costs.

6. Conclude all leases for any vehicle or equipment supplied by ABC or by any of its associates or affiliates.

7. Transfer any telephone or facsimile numbers or directory entries to ABC.

Following termination, under the terms of our Franchise Agreement, you are not permitted to engage in the operation of a business in a similar industry for a period of the remainder of the term of the Franchise Agreement.

Your Operations Manual

How To Use your

Operations Manual

We have gone to some lengths to compile, step-by-step, the procedures that work well for us.

If you adhere to this manual, it will remove the anxiety usually associated with a new business.

YOU ARE STRONGLY ADVISED NOT TO MAKE ANY CHANGES IN THE PROCEDURES AS SET OUT IN THIS MANUAL AS THIS IS THE CRUX OF FRANCHISING: WHAT HAS MADE US SUCCESSFUL, WE PASS ON TO YOU.

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Purpose

The purpose of this manual is to assist you in operating your ABC business smoothly and efficiently, after your initial training.

It is the end result of considerable experience in this type of business. Obviously it is plain commonsense to use the benefits of this experience.

We believe we have removed the guesswork and anxiety from the crucial areas of your operation; the general supply systems, along with business procedures and administration are fully documented.

Use of this manual will lead you through a set of complete and organised operational instructions to a profitable undertaking.

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Secrecy And Confidentiality

You have acquired confidential business information through your training with us. Your knowledge is derived from disclosures made in ABC training program and from this manual. This was offered to you in good faith, following our Agreement.

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Secrecy

This manual contains the essence of our successful business operations resulting from long experience. It contains the structure and methods for running a profitable, financially planned business. You are honour bound to keep secret all the contents of the manual and knowledge acquired through your training, both during your franchise period and following the termination of your franchise.

The information contained in this manual is not to be divulged to your employees except to the extent necessary for the successful operation of the Business.

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Confidentiality

All information is and must remain proprietary, confidential and a trade secret of the original ABC. Do not leave it lying around for prying eyes to see. Keep it in a safe place.

No copy of this manual in full or in part is to be made or distributed without the written consent of ABC.

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Return

In accordance with our agreement, it is incumbent upon you to return all copies of operations manuals to:

ABC Company

Address 1

Address 2

Address 3

Within one week of expiry or termination of your franchise.

This copy is on loan to you for the duration of your franchise and there is no obligation on the part of ABC for payment of a refund of the purchase price of any

manual.

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Revisions

The Manual may be updated from time to time, following changes in Corporate policies, stationery, stock and associated products and services, advertising or beneficial feedback from franchisees on successful marketing and procedural methods.

Upon receipt of any revisions or updating be sure to enter the new pages in your Manual as soon as possible and file the replaced pages.

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Suggestions

Franchisees are encouraged to provide suggestions to improve operational procedures and efficiency in all areas of our organisation. Research will be made into these suggestions to determine their merit, before any changes are made.

Approved changes will be advised in writing.

Keep this Manual in a safe place. Keep it on the vehicle at all times and available for inspection by an authorised representative.

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Loss Of Manual

Keep this manual in a safe place. Report any loss immediately to Head Office. The cost to you of replacement of the manual is £ 5000.00. It is anticipated that a loss will never occur.

We are all duty bound to secure our system and realise the value of the Manual to our competitors.