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      How to prepare for Franchise Signing Day?

      Once a franchisee prospect has been accepted for signing they will be invited in to sign documents. This is a big day and should be treated like any celebration. Follow the process to ensure a consistent experience.

      Woohoo lets celebrate! If a franchise prospect has been invited to sign an agreement they have been fully vetted per the Qualification Criteria and are ready to start their journey. Below will explain the steps we must take to ensure a consistent experience with all franchisees. 

      The Invitation 

      The criteria has been passed and Matthew has given his blessing. Now you are ready to invite the franchise prospect in for signing. The actual signing process is very simple and only takes 15 minutes. The time we want to take is in the experience. Welcoming the franchisee in is EVERYTHING. We want them to know they have made the right choice. The first step is the invitation.

      1. Place a phone call to schedule the appointment with the franchise seller. Explain to them that they will be receiving a "Franchise Signing Prep List" email explaining the process and asking for some information that we will need to prepare the documents. 
      2. Send a calendar invitation to the prospect with date, time, person they are meeting with and address information. 
      3. Send "Franchise Signing Prep List" email. If you want to edit the template to make it more personalized please do. In fact, we recommend that you do this with all templated emails.
      4. Schedule a follow up call to get any information from the  Prep List and to confirm the appointment. When you send the email template you can add a task reminder in Hubspot by clicking on the box at the bottom of the email window. Customize the date and time to align with your desired confirmation (24 hours ahead of the signing time). 

      Preparing the Documents and the Welcome Goodies

      We want the signing experience to be easy and seamless for the new franchisee. It is important that the documents are properly executed by both the franchisee and the franchisor seller. The "experience" is also very important. The process must be followed the same way each time with no deviations. Be sure to add signature sticky tabs to each area that the franchisee will be required to sign or print the name, dates etc. 

      The Documents

      The most current UFOC and Franchise Agreement must be used. You have collected all of the necessary information from the New Unit Franchise Owner "NUFO" to fill in the documents. 

      • Exhibit A of the Franchise Agreement:
        • Entity Name: The NUFO is required to have a corporation to begin operations. It is not common that they will have corporation formed at signing. The Training Department works with the NUFO during initial training to set one up. This information will be added to the documents following training completion. 
        • Franchise Manager: This is the individual that will be the CEO/President of the corporation. It is a requirement that this is the same person that acknowledged the "Receipt" at the presentation. If it not that person must go through the presentation and wait the 14 day period. 
        •  Street Address, City, County, State and Zip code: If the NUFO has a NUFO has a corporation filing completed this will be the address that they used in that filing. If they have not this will be the address they will use. If you do not know the County use a web search to determine. 
        • Telephone: Use the NUFO's primary phone number. Be sure that it is the same in Hubspot. 
        • Email Address: Use the NUFO's personal email address. They will receive an octoclean.com email address in training that will become their primary email for business.
        • Doing Business As: You have two choices to checkmark. Again, the NUFO will likely NOT have their corporate filing completed. If they do have corporation filling completed you will mark Corporation if it is a S or C corp. If it is an LLC mark the LLC box. Otherwise, we will fill this out when they receive their filing paperwork. 
        • Federal Tax ID#: As stated above if they do not have their corporate filing completed we will fill this in when they receive their filing information. If they do have a corporation filing add the Federal Tax ID# here. 
      • Franchise Summary:
        • Effective Date: This is the date of signing. If that date changes this MUST change as well. 
        • Renewal: Two options here "yes" or "no". If this is a NUFO it is "no". The Renewal Agreements process is similar. If you are renewing an agreement please see your Manager for more information. 
        • Term of Agreement: All of our terms are (5) years.
        • Franchise Fee:  Based on what the NUFO has been approved for and their desired package level you will add the total fee here. Refer to Item 10 in the FDD for the most current packages and fees. 
        • Paid in Full: Two options here "yes" or "no". If the NUFO is not paying in full mark "no". If they are mark "yes". 
        • Initial Business: Refer to Item 10 in the FDD to reference the amount of business is included in the package they have selected. Add that total here. 
        • Days to Offer: Refer to Item 10 in the FDD to reference the "Initial Package Offering Period". Add that number here. 
      • Signature Page (Following Section 21):
        • Date: Enter the date of the signing. Spell out the month ie. June not the number "6" reflecting the month.
        • OCTOCLEAN: The "Seller" is to sign at the "By" line. Print your name and and Title next to your signature. 
        • FRANCHISEE: The "owner" or primary Franchise Manager is to sign on the first line. Prior to the meeting add the Printed Name, Title of "Franchise Manager" and SS# if it had been retrieved during the initial call following acceptance. Federal Tax ID Number will be added once the LLC has been filed and returned by the State registered in. 
      • FRANCHISE AGREEMENT SCHEDULE ONE- PROMISSORY NOTE- This document is used to verify the amount the franchisee is financing through OctoClean. Refer to Item 10 in the FDD to determine the current Amount Financed total, years of repayment and monthly payment. You will need all of this information to complete Schedule One. 
        • $- Add the total amount the franchisee will be financing in numerical total (ex: $10,000). You will also notice that there is a date on this line. After the number has been added include a date following. This date is the date of signing. 
        • First Line- Add the full name of the Franchise Manager and the Corporation name if available. 
        • Second Line- Fill out as follows: ("OctoClean"), or order, at 1695 Spruce Street, Suite 100, Riverside, CA 92507, on or before [All loans will be paid in full (4) months and "the Term of repayment" out from the signing date. For example if the franchisee signs their agreement on February 5, 2023 and they signed a $3000.00 package their repayment date would be 3 years and 4 months out at the nearest 25th of the month. All payments are received on the 25th of each month hence the the 25th is final payment date. In this example the date would be June 25, 2026] the principal sum of [This is the principal amount financed. In the example above this is $10,000]. 
        • Third Line- Fill out as follows: Payment of this Note shall be no slower than in [The "Years of Repayment" can be found in Item 10 of the FDD. As the example continues this would 36 months. Write out the words thirty six then the number (36)] consecutive fully amortizing installments of [ Write out the "Monthly Payment Amount" as reflected in Item 10. You will then add it in numerical form] per month commencing on [The date written here will be four month from the signing date on the nearest 25th of the that month. As stated above it would be June 25, 2023]. 
        • Executed this [Add day, month and year on this line]
        • "Maker"- All owners of the franchise will fill in this section. Include signature first, then Print Name and finally include SS#.
      • FRANCHISE AGREEMENT SCHEDULE TWO- This page is designed to list all of the "Principals" of the company. The term Principal refers to the owners on the corporation that may or may not be formed at this point. If the Franchise Manager has not finalized the decision for ownership just add the Franchise Manager information here. Again as referenced earlier if they do not have the corporation filed the Taxpayer ID will be filled in later. The address needs to be the same the franchisee will use when filing the corporation. 
      • FRANCHISE AGREEMENT SCHEDULE THREE- GUARANTY OF PRINCIPALS- Waiting on response from attorney.

      Other Required Documents:

      • Background check verification form.
      • Credit check verification form.
      • Be prepared to provide a receipt for the downpayment. Accounting will assist with this. 

      The Goodie Bag/Box

      Every franchisee receives a goodie box or bag filled with OctoClean swag. In this video you will learn what is included. Items are subject to change but the essentials are listed below. Following the signing of the documents, receipt of the downpayment and completion of required documents. 

      • Polo shirt- get a size and gender preference prior to the meeting. 
      • Lanyard
      • Key chain 
      • Pen
      • Notebook
      • Water bottle/ travel mug
      • Eye glass cleaning cloth

      The Meeting 

      The day has come! You have all of the documents prepared and gift bag/box ready. Now it is time to prepare the room and invite all of the necessary parties to the meeting. 

      Preparing the Room 

      Start by ensuring that room is completely clean and orderly. There should be no clutter in or around the signing area. All tables wiped clean, chairs positioned correctly and carpets or flooring clean. Below are the items you will need in the room to sign a franchise successfully:

      1. All prepared franchise signing documents.
      2. Background check verification documents 
      3. Pen for signing
      4. Welcome bag/box
      5. Bottles of water
      6. OctoClean folder for copied documents after signing

      People to Invite to the Meeting

      Signing day presents many opportunities to introduce OctoClean staff that the franchisee will be working with in the future. The following people will have parts to play in the signing day activities. All the people below need to receive a calendar invitation so they are aware of their participation in the event. 

      • Controller- The downpayment will be provided by the NUFO by check, credit card or cash. The Controller will be responsible for collecting that downpayment and providing a receipt.
      • Training Manager- After the documents are signed and the down payment has been received it is time to have the Training Manager introduce themselves and give clear expectations of the next steps. The email NUFO - Welcome + Training Video "Here's What to Expect" email template will be sent to the NUFO by the trainer and they will set a date for the first call. 
      • Marketing Director- The Marketing Director has the pleasure of sitting with the NUFO following the Training Manager meeting. Their goal is to learn more about where they found out about OctoClean, what they enjoyed about the signing process and to get their personal story about why they chose OctoClean as a partner. The MD is also responsible for getting the signing day picture. The picture is of the NUFO(s) alone and with the Franchise Success Manager. 

      The Meeting 

      Upon the arrival of the NUFO greet them warmly and escort them to the conference room where the signing will be performed. Inform the team that the NUFO has arrived and let them know you will ping them when they are needed. Begin by asking if they need anything ie. water, coffee, use the facilities. If they are ready to go start by asking if they have any additional questions related to the franchise agreement or next steps. If they do not you may begin the signing process:

      1. The Agreement- Take the prepared documents and go tab by tab and sign, date or fill in required information as described above. 
      2. Background Verification Forms- Have the them fill in all areas including past addresses. It is a lot to sign, date and fill in. Show them all of the areas that are required. 
      3. Call in the Controller- Introduce the Controller to the franchise manager. The Controller will congratulate them and work on securing the down payment and provide the NUFO with a receipt. Stay in the room while this is happening. Move the next step once the Controller has left the room.
      4. Call in Marketing- The Marketing Team has a document describing what they do for the franchisees, a photo release form as well as some referral fliers. They will ask questions about how the NUFO found us and other necessary marketing related questions. 
      5. Copy the Franchise Agreement- While marketing is meeting with the NUFO make a copy of the Franchise Agreement. Place the copy in an OctoClean presentation folder along with a business card of the Training Manager that will be assigned to the NUFO. 
      6. Call in Training Manager- The Training Manager will introduce themselves and explain the next steps of training, schedule the first day of training and provide his/her contact information. While this is happening send the NUFO – Welcome + Training Video "Here's What to Expect" email and CC the Training Manager. This email will provide the information that they are receiving from the Training Manager now. 
      7. Give them their gifts- Provide the NUFO with their gifts and confirm that the shirt sizes are correct. 
      8. Introduce them to all Management and get a picture- Have them leave their documents and gifts in the conference room while you tour them around the office to introduce them to the team. Congratulations all around. Wrap up with a picture taken by the marketing team or by the seller. 

      That's a wrap! Signing should be an exciting day for the NUFO. Make it an event.