T.G.I. Friday’s International Franchising Process

Pre-Qualification (1-3 weeks)

1. Prospect completes and submits application request via email or online.
2. Friday's reviews the application request based upon several factors: availability of territory, applicant's restaurant and franchise experience and applicant's local market knowledge.
3. Based upon Friday's review, the applicant will be notified of Friday's determination whether the applicant is a viable franchise Candidate.

Formal Franchise Application & Qualification (4 weeks)

1. Upon successful Pre-Qualification a formal application and an in-depth evaluation of the Candidate’s qualifications to become a T.G.I. Friday’s franchisee is completed.
2. Friday’s coordinates an introductory interview with the Candidate.
3. Candidate signs a Non-Disclosure Agreement, and is given Friday’s International Franchise Franchise Disclosure Document that outlines key factors in the franchise relationship.
4. Candidate completes and submits Friday’s Formal Franchise Application, together with all requested supporting documentation.
5. Candidate completes and submits a business plan, based upon the Friday’s business plan template. Friday’s will provide assistance to Candidate as needed to complete the business plan template.

Application Review & Approval (2 to 4 weeks)

1. Friday’s reviews Formal Franchise Application, including financial analysis and reference checks.
2. Friday’s review of Candidate’s submitted business plan.
3. Formal Franchise Application, including financial analysis and reference checks.
4. Depending upon successful review of the Formal Franchise Application and business plan, Friday’s will coordinate Candidate’s visit to Friday’s headquarters to acquaint itself with the Friday’s International Franchising Leadership Team, Candidate’s questions and an in-depth discussion of market opportunities.

LOI (Letter of Intent), Development & Franchise Agreements (3 to 5 weeks)

1. Upon successful Formal Qualification and Approval, the next step in the process is the conditional commitment to proceed with negotiation of development terms for the territory, to be documented by an LOI between the Candidate and T.G.I. Friday's. Among other things, the LOI will address the following:
   1. Number of units to be developed per year
   2. Royalty rate terms
   3. Concept and Franchise fees
   4. Marketing commitments
2. Once the LOI is signed, the Candidate will provide Friday's with documentation needed to finalize Friday's due diligence to enter into the formal franchise relationship. This documentation will include:
   1. Confirmation of the legal existence and ownership structure(s) of the proposed development/franchise entities
   2. Completion of background check and authorization forms for the ultimate owners of these entities (if it is not completed as part of the application process).
3. While the final diligence is being performed by Friday's, the Candidate will have the opportunity to:
   1. Review the Development Agreement provided by Friday's
   2. Develop a market development plan, to be implemented after the Development Agreement is signed with the assistance of the Friday’s Development Team.
4. Upon successful completion of Friday's diligence and signing of the Development Agreement, the Franchisee initiates a site search in priority trade areas based upon the market development plan and begins organizational staffing in preparation for restaurant development and operations.