[Solved] 9.4 (390)- Final Project: Establish Statutory Agreements Required to Operate a Franchise Business

Assignment Prompt & Instructions

Please see attached for instructions. This is a continuation of previous weeks' assignments. Thank you! – ## 9.4Instructions.docx – ## PartialFDDInformation.pdf – FDDFranchiseAgreement.docx **## 9.4Instructions.docx** 9.4- Final Project: Establish Statutory Agreements Required to Operate a Franchise Business Complying with Federal Regulations for Franchises You have operated one of your property sites as a prototype for the franchise operation. The properties are all in upscale locations that support the restaurant's thematic dessert profile. This new site has test-marketed the franchise concept with the patented dessert brand, "Brain Freeze," that savory specialty formulated dessert treat created by Sally. The dessert has become so popular that many customers have requested extra take-home orders. A substantial number of patrons have even asked if the dessert would ever be sold separately in markets. The dessert menu has a strong sales position in overall restaurant sales and generated a cash flow that supported the entire overhead of the test model. Your company is now ready to launch the franchise operation, but you must first complete this assignment. Assignment Details This assignment is a blue font exercise; make sure you complete the document using a readable Blue Font. Assemble the documents required to establish a national franchise operation. Review the [Partial FDD Information (PDF)](https://erau.instructure.com/courses/167557/files/36617073?wrap=1) [Download Partial FDD Information (PDF)](https://erau.instructure.com/courses/167557/files/36617073/download?download_frd=1) that outlines the partial franchise requirements that legally permit your company to sell and enter into franchise agreements with franchisees. This document outlines your franchise profile. Compare the Partial Franchise Disclosure Document information using the statutory specifications found in [Part 436 – Disclosure Requirements and Prohibitions Concerning Franchising (Electronic Code of Federal Regulations).Links to an external site.](https://www.ecfr.gov/cgi-bin/text-idx?SID=e0fdbb22b03808e60dad65921bc2992a&mc=true&node=pt16.1.436&rgn=div5) Specifically, look at: · Subpart B—Franchisors' Obligations · Subpart C—Contents of a Disclosure Document Ensure all statutory requirements are in the PFDD document any missing sections highlighting any deficiencies or variations from the Statute. Next, complete and revise the following agreement: [FDD Franchise Agreement (DOCX).](https://erau.instructure.com/courses/167557/files/36617667?wrap=1) [Download FDD Franchise Agreement (DOCX).](https://erau.instructure.com/courses/167557/files/36617667/download?download_frd=1) Complete all blanks "___" or bracketed "[ ]" sections with the appropriate information using **Blue Font** and provide any other missing terms required to solicit prospective franchisees. Make sure the agreement terms are consistent with the statutory requirements. Use your responses to questions in the Franchise Agreement Checklist completed in Assignment 9.3 to assist in completing 9.4. This assignment requires you to demonstrate your understanding and ability to redraft an agreement and compliance with the legal provisions that meet your company's franchise requirements and comply with the statutory franchise legal requirements. You are permitted to create "best judgment" responses using the Case Study as support for information not directly provided. Submission Instructions Upload the following document: **Revised Franchise Agreement** **## PartialFDDInformation.pdf** Partial FDD Information: Franchise Description: American Brain Freeze Dessert Corporation (ABFD), the Franchisor, offers a single unit and multiple unit franchises for the operation of Brain Freeze Dessert restaurants at authorized locations. An ABFD restaurant is a quick- service food takeout restaurant with seating from which franchisees will sell the full line of approved Dessert and beverage menu items. Training Overview: There are currently four required components to initial Training: 1. The Management Operation Protocols Training (MOPT) 2. 3STAR SERVSAFE – certification 3. ABFD’s training program (three phases): Phase 1, Product and Equipment Training; Phase 2, Systems & Management Training; Phase 3, People, 3STAR, and “MO-MONEY” bottom-line Training. 4. A “Dessert Prep&dec” and certification course The franchise’s designated manager and two assistant managers are required attendees for the first three components. Only the Chef is required to attend the Dessert Prep&dec certification course. Before attending the Franchisor’s training program, the required attendees must pass the MOPT, which administered at a location designated by the Franchisor. The MOPT measures leadership, customer service, decision-making, prioritizing, and business math, which may be modified by the Franchisor at any time. The required attendees must also have current 3STAR certification, which will only be recognized by the Franchisor if received through a course that is part of or equivalent to the National Restaurant Association’s 3STAR- SERVSAFE program. Before the opening of the restaurant, at least one of the restaurant employees must become a “Dessert Prep&dec” by attending and completing a Dessert preparation certification course. The franchise’s controlling owner (as defined in the franchise agreement) must, at the Franchisee’s expense, attend all meetings the Franchisor holds or sponsors in their area or region including all DMA or other marketing area meetings, and all meetings relating to new products or product preparation procedures, new ABFD system programs, new operational procedures or programs, Training, restaurant management, financial management, sales or sales promotion, or similar topics. Territory Granted: Where a franchisee enters into a franchise agreement and Franchisor has granted and consented in writing, the Franchisee is permitted to operate a Store at that authorized location. Under the Agreement, there is no grant to Franchisees of any minimum area of territory. The Franchisor does not grant exclusive territories to any franchisee under the terms of a franchise agreement. Obligations and Restrictions: Franchisees are required to operate their ABFD location under their active and continuous supervision. If the Franchisee is a business entity, the Franchisee is required to have one owner who is responsible for overseeing the general management of the day-to-day operations of the location. The Franchisor requires franchisees to offer and sell only those goods and services that it has approved. Also, franchisees may offer and sell these approved goods and services only from their restaurant. Franchisees must carry the required menu items that the Franchisor designates for their business. Term of Agreement and Renewal: The length of the initial franchise term is ten years. Renewal is for one additional Term for the shorter of 10 years or the remaining Term of the lease, where Franchisee meets all requirements. Financial Assistance: The Franchisor and its affiliates do not offer financing arrangements or similar assistance to franchisees. The Franchisor periodically arranges with third-party finance companies or banks to make financing programs available to franchisees. These arrangements ordinarily involve no more than arranging to put franchisees in contact with sources of financing available. There is no assurance that financing will be available in any particular instance. The Franchisor nor any of its affiliates receive any payments in exchange for referrals or the placement of any funding. **FDDFranchiseAgreement.docx** This file is too large to display. [View in new window](https://www.sweetstudy.com/files/fddfranchiseagreement-docx) **FDDFranchiseAgreement.docx** This file is too large to display. [View in new window](https://www.sweetstudy.com/files/fddfranchiseagreement-docx) **## 9.4Instructions.docx** 9.4- Final Project: Establish Statutory Agreements Required to Operate a Franchise Business Complying with Federal Regulations for Franchises You have operated one of your property sites as a prototype for the franchise operation. The properties are all in upscale locations that support the restaurant's thematic dessert profile. This new site has test-marketed the franchise concept with the patented dessert brand, "Brain Freeze," that savory specialty formulated dessert treat created by Sally. The dessert has become so popular that many customers have requested extra take-home orders. A substantial number of patrons have even asked if the dessert would ever be sold separately in markets. The dessert menu has a strong sales position in overall restaurant sales and generated a cash flow that supported the entire overhead of the test model. Your company is now ready to launch the franchise operation, but you must first complete this assignment. Assignment Details This assignment is a blue font exercise; make sure you complete the document using a readable Blue Font. Assemble the documents required to establish a national franchise operation. Review the [Partial FDD Information (PDF)](https://erau.instructure.com/courses/167557/files/36617073?wrap=1) [Download Partial FDD Information (PDF)](https://erau.instructure.com/courses/167557/files/36617073/download?download_frd=1) that outlines the partial franchise requirements that legally permit your company to sell and enter into franchise agreements with franchisees. This document outlines your franchise profile. Compare the Partial Franchise Disclosure Document information using the statutory specifications found in [Part 436 – Disclosure Requirements and Prohibitions Concerning Franchising (Electronic Code of Federal Regulations).Links to an external site.](https://www.ecfr.gov/cgi-bin/text-idx?SID=e0fdbb22b03808e60dad65921bc2992a&mc=true&node=pt16.1.436&rgn=div5) Specifically, look at: · Subpart B—Franchisors' Obligations · Subpart C—Contents of a Disclosure Document Ensure all statutory requirements are in the PFDD document any missing sections highlighting any deficiencies or variations from the Statute. Next, complete and revise the following agreement: [FDD Franchise Agreement (DOCX).](https://erau.instructure.com/courses/167557/files/36617667?wrap=1) [Download FDD Franchise Agreement (DOCX).](https://erau.instructure.com/courses/167557/files/36617667/download?download_frd=1) Complete all blanks "___" or bracketed "[ ]" sections with the appropriate information using **Blue Font** and provide any other missing terms required to solicit prospective franchisees. Make sure the agreement terms are consistent with the statutory requirements. Use your responses to questions in the Franchise Agreement Checklist completed in Assignment 9.3 to assist in completing 9.4. This assignment requires you to demonstrate your understanding and ability to redraft an agreement and compliance with the legal provisions that meet your company's franchise requirements and comply with the statutory franchise legal requirements. You are permitted to create "best judgment" responses using the Case Study as support for information not directly provided. Submission Instructions Upload the following document: **Revised Franchise Agreement** **## PartialFDDInformation.pdf** Partial FDD Information: Franchise Description: American Brain Freeze Dessert Corporation (ABFD), the Franchisor, offers a single unit and multiple unit franchises for the operation of Brain Freeze Dessert restaurants at authorized locations. An ABFD restaurant is a quick- service food takeout restaurant with seating from which franchisees will sell the full line of approved Dessert and beverage menu items. Training Overview: There are currently four required components to initial Training: 1. The Management Operation Protocols Training (MOPT) 2. 3STAR SERVSAFE – certification 3. ABFD’s training program (three phases): Phase 1, Product and Equipment Training; Phase 2, Systems & Management Training; Phase 3, People, 3STAR, and “MO-MONEY” bottom-line Training. 4. A “Dessert Prep&dec” and certification course The franchise’s designated manager and two assistant managers are required attendees for the first three components. Only the Chef is required to attend the Dessert Prep&dec certification course. Before attending the Franchisor’s training program, the required attendees must pass the MOPT, which administered at a location designated by the Franchisor. The MOPT measures leadership, customer service, decision-making, prioritizing, and business math, which may be modified by the Franchisor at any time. The required attendees must also have current 3STAR certification, which will only be recognized by the Franchisor if received through a course that is part of or equivalent to the National Restaurant Association’s 3STAR- SERVSAFE program. Before the opening of the restaurant, at least one of the restaurant employees must become a “Dessert Prep&dec” by attending and completing a Dessert preparation certification course. The franchise’s controlling owner (as defined in the franchise agreement) must, at the Franchisee’s expense, attend all meetings the Franchisor holds or sponsors in their area or region including all DMA or other marketing area meetings, and all meetings relating to new products or product preparation procedures, new ABFD system programs, new operational procedures or programs, Training, restaurant management, financial management, sales or sales promotion, or similar topics. Territory Granted: Where a franchisee enters into a franchise agreement and Franchisor has granted and consented in writing, the Franchisee is permitted to operate a Store at that authorized location. Under the Agreement, there is no grant to Franchisees of any minimum area of territory. The Franchisor does not grant exclusive territories to any franchisee under the terms of a franchise agreement. Obligations and Restrictions: Franchisees are required to operate their ABFD location under their active and continuous supervision. If the Franchisee is a business entity, the Franchisee is required to have one owner who is responsible for overseeing the general management of the day-to-day operations of the location. The Franchisor requires franchisees to offer and sell only those goods and services that it has approved. Also, franchisees may offer and sell these approved goods and services only from their restaurant. Franchisees must carry the required menu items that the Franchisor designates for their business. Term of Agreement and Renewal: The length of the initial franchise term is ten years. Renewal is for one additional Term for the shorter of 10 years or the remaining Term of the lease, where Franchisee meets all requirements. Financial Assistance: The Franchisor and its affiliates do not offer financing arrangements or similar assistance to franchisees. The Franchisor periodically arranges with third-party finance companies or banks to make financing programs available to franchisees. These arrangements ordinarily involve no more than arranging to put franchisees in contact with sources of financing available. There is no assurance that financing will be available in any particular instance. The Franchisor nor any of its affiliates receive any payments in exchange for referrals or the placement of any funding. **FDDFranchiseAgreement.docx** This file is too large to display. [View in new window](https://www.sweetstudy.com/files/fddfranchiseagreement-docx) **## 9.4Instructions.docx** 9.4- Final Project: Establish Statutory Agreements Required to Operate a Franchise Business Complying with Federal Regulations for Franchises You have operated one of your property sites as a prototype for the franchise operation. The properties are all in upscale locations that support the restaurant's thematic dessert profile. This new site has test-marketed the franchise concept with the patented dessert brand, "Brain Freeze," that savory specialty formulated dessert treat created by Sally. The dessert has become so popular that many customers have requested extra take-home orders. A substantial number of patrons have even asked if the dessert would ever be sold separately in markets. The dessert menu has a strong sales position in overall restaurant sales and generated a cash flow that supported the entire overhead of the test model. Your company is now ready to launch the franchise operation, but you must first complete this assignment. Assignment Details This assignment is a blue font exercise; make sure you complete the document using a readable Blue Font. Assemble the documents required to establish a national franchise operation. Review the [Partial FDD Information (PDF)](https://erau.instructure.com/courses/167557/files/36617073?wrap=1) [Download Partial FDD Information (PDF)](https://erau.instructure.com/courses/167557/files/36617073/download?download_frd=1) that outlines the partial franchise requirements that legally permit your company to sell and enter into franchise agreements with franchisees. This document outlines your franchise profile. Compare the Partial Franchise Disclosure Document information using the statutory specifications found in [Part 436 – Disclosure Requirements and Prohibitions Concerning Franchising (Electronic Code of Federal Regulations).Links to an external site.](https://www.ecfr.gov/cgi-bin/text-idx?SID=e0fdbb22b03808e60dad65921bc2992a&mc=true&node=pt16.1.436&rgn=div5) Specifically, look at: · Subpart B—Franchisors' Obligations · Subpart C—Contents of a Disclosure Document Ensure all statutory requirements are in the PFDD document any missing sections highlighting any deficiencies or variations from the Statute. Next, complete and revise the following agreement: [FDD Franchise Agreement (DOCX).](https://erau.instructure.com/courses/167557/files/36617667?wrap=1) [Download FDD Franchise Agreement (DOCX).](https://erau.instructure.com/courses/167557/files/36617667/download?download_frd=1) Complete all blanks "___" or bracketed "[ ]" sections with the appropriate information using **Blue Font** and provide any other missing terms required to solicit prospective franchisees. Make sure the agreement terms are consistent with the statutory requirements. Use your responses to questions in the Franchise Agreement Checklist completed in Assignment 9.3 to assist in completing 9.4. This assignment requires you to demonstrate your understanding and ability to redraft an agreement and compliance with the legal provisions that meet your company's franchise requirements and comply with the statutory franchise legal requirements. You are permitted to create "best judgment" responses using the Case Study as support for information not directly provided. Submission Instructions Upload the following document: **Revised Franchise Agreement** **## PartialFDDInformation.pdf** Partial FDD Information: Franchise Description: American Brain Freeze Dessert Corporation (ABFD), the Franchisor, offers a single unit and multiple unit franchises for the operation of Brain Freeze Dessert restaurants at authorized locations. An ABFD restaurant is a quick- service food takeout restaurant with seating from which franchisees will sell the full line of approved Dessert and beverage menu items. Training Overview: There are currently four required components to initial Training: 1. The Management Operation Protocols Training (MOPT) 2. 3STAR SERVSAFE – certification 3. ABFD’s training program (three phases): Phase 1, Product and Equipment Training; Phase 2, Systems & Management Training; Phase 3, People, 3STAR, and “MO-MONEY” bottom-line Training. 4. A “Dessert Prep&dec” and certification course The franchise’s designated manager and two assistant managers are required attendees for the first three components. Only the Chef is required to attend the Dessert Prep&dec certification course. Before attending the Franchisor’s training program, the required attendees must pass the MOPT, which administered at a location designated by the Franchisor. The MOPT measures leadership, customer service, decision-making, prioritizing, and business math, which may be modified by the Franchisor at any time. The required attendees must also have current 3STAR certification, which will only be recognized by the Franchisor if received through a course that is part of or equivalent to the National Restaurant Association’s 3STAR- SERVSAFE program. Before the opening of the restaurant, at least one of the restaurant employees must become a “Dessert Prep&dec” by attending and completing a Dessert preparation certification course. The franchise’s controlling owner (as defined in the franchise agreement) must, at the Franchisee’s expense, attend all meetings the Franchisor holds or sponsors in their area or region including all DMA or other marketing area meetings, and all meetings relating to new products or product preparation procedures, new ABFD system programs, new operational procedures or programs, Training, restaurant management, financial management, sales or sales promotion, or similar topics. Territory Granted: Where a franchisee enters into a franchise agreement and Franchisor has granted and consented in writing, the Franchisee is permitted to operate a Store at that authorized location. Under the Agreement, there is no grant to Franchisees of any minimum area of territory. The Franchisor does not grant exclusive territories to any franchisee under the terms of a franchise agreement. Obligations and Restrictions: Franchisees are required to operate their ABFD location under their active and continuous supervision. If the Franchisee is a business entity, the Franchisee is required to have one owner who is responsible for overseeing the general management of the day-to-day operations of the location. The Franchisor requires franchisees to offer and sell only those goods and services that it has approved. Also, franchisees may offer and sell these approved goods and services only from their restaurant. Franchisees must carry the required menu items that the Franchisor designates for their business. Term of Agreement and Renewal: The length of the initial franchise term is ten years. Renewal is for one additional Term for the shorter of 10 years or the remaining Term of the lease, where Franchisee meets all requirements. Financial Assistance: The Franchisor and its affiliates do not offer financing arrangements or similar assistance to franchisees. The Franchisor periodically arranges with third-party finance companies or banks to make financing programs available to franchisees. These arrangements ordinarily involve no more than arranging to put franchisees in contact with sources of financing available. There is no assurance that financing will be available in any particular instance. The Franchisor nor any of its affiliates receive any payments in exchange for referrals or the placement of any funding. **FDDFranchiseAgreement.docx** This file is too large to display. [View in new window](https://www.sweetstudy.com/files/fddfranchiseagreement-docx) – 1 – 2 – 3