WELCOME  

TO    

 

    

IPG Franchise Operations Manual

     

 THIS MANUAL IS ON LOAN TO THE FRANCHISEE FOR THE DURATION OF THEIR FRANCHISE TERM. THE INFORMATION CONTAINED HEREIN COVERS EVERY ASPECT OF THE IPG FRANCHISING INC. BUSINESS METHOD AND AS SUCH MUST BE KEPT CONFIDENTIAL AT ALL TIMES.

    

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1.1. PURPOSE ................................... 1 6.5. 1.2. RESTRICTIONS TO USAGE.... 2 6.6.

8.2. LICENSING 33 8.3. UTILITIES 33

CONTENTS  

1. INTRODUCTION 1   

 1.3. MANUAL UPDATE .................. 2 1.4. FINDING INFORMATION ....... 2 1.5 THE ICON LEGEND 3

 

2. IPG 4  

2.1. HISTORY & BACKGROUND .. 4 2.2. IPG COMPANY GROWTH....... 5 2.3. DEMAND FOR MANAGEMENT SERVICES.............................................. 5 2.4. PHILOSOPHY ............................ 6 2.5. OBJECTIVES ............................. 6

 

3. HISTORY & BACKGROUND BENEFITS OF FRANCHISING 7

 

3.1 BENEFITS OF FRANCHISING FOR THE FRANCHISEE 8

3.2. BENEFITS FOR IPG FRANCHISING, INC. 9

3.3. FOR THE CUSTOMER 9  

4. FRANCHISEE COMMUNICATIONS 10

 

4.1. HEAD OFFICE CONTACT ..... 10 4.2. VISITS & LIAISON 11 4.3. MEETINGS .............................. 12 4.4. NEWS LETTERS ..................... 12 4.5. TRAINING SEMINARS .......... 12 4.6. ADDITIONAL TRAINING 13

  

6.3. BUILDING YOUR BUSINESS21 6.4. FUNCTION AS FRANCHISEE22

SERVICE PROVIDED BY IPG22 YOUR OBJECTIVES 24

 

7. SALES & MARKETING 25  

7.1. ATTRACTING CLIENTS........ 25 7.2. INITIAL LAUNCH .................. 26 7.3. MARKETING FUND............... 26 7.4. MARKETING METHODS ...... 26 7.5. MARKETING ITEMS.............. 28 7.6. MARKET POTENTIAL & COMPETITION ................................... 28

 

8. OPERATIONS PROCEDURES 32  

8.1. NEW HOME SET UP .............. 32  

  

8.4. EXISTING HOMES ................. 34 8.5. CLIENT LIAISON ................... 35

 

9. BUSINESS ADMINISTRATION 38  

9.1. COMPUTER SYSTEMS 39 9.2. INVOICING 40 9.3. MANAGEMENT FINANCIAL INFORMATION................................... 40 9.4. AUDITED ACCOUNTS 40 9.5. SALES TAX 40 9.6. BUSINESS INSURANCE........ 40 9.7. MONTHLY MARKETING FEE41 9.8. PAYROLL ................................ 41

4.7. HEAD OFFICE SUPPORT ...... 13 10. STAFF ADMINISTRATION 42  

5. FRANCHISEE RESPONSIBILITIES 15

 

5.1. MAINTAINING STANDARDS15 5.2. ADHERENCE TO METHODS 15 5.3. CORPORATE IMAGE ............. 16 5.4. USE OF THE IPG NAME & LOGO 16

 

6. THE BUSINESS 18  

6.1. STARTING YOUR BUSINESS18 6.2. PREMISES 18

10.1. STAFF STRUCTURE .............. 42 10.2. SELECTION & RECRUITM’ T 42 10.3. DRESS & APPEARANCE....... 47 10.4. CLOTHING & UNIFORM....... 47 10.5. TERMS & CONDITIONS........ 49 10.6. INDUCTION & TRAINING ... 49 10.7. RECOGNIT’N & MOTIVAT’N49 10.8. HEALTH & SAFETY 51

 

11. TIME MANAGEMENT 52  

11.1. ATTITUDES TOWARDS TIME52 11.2. TIME FOR PAPER WORK ..... 53

 

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11.3. DELEGATION................ 54 11.4. SCHEDULING ACTIVITIES. 55

 

APPENDIX 56 SUPPLIES & SERVICES 57

 

                                                          

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W e l c o m e t o y o u r I P G F r a n c h i s e

Section

1  

On a regular basisthisoperatingManual will be updated as and when newpolicies or operating procedures are implemented. Itis your responsibility to maintain thisManual and update it when requestedto doso.

  

1. Operations Manual Introduction  

1.1. Purpose his Manual has been designed to be used both during your initial training period and then in the day to day operation of your business. At any time you can obtain guidance or refresh your memory on any aspect of your

business. IPG Franchising Inc. and our affiliates have spent a considerable amount of time and effort in developing a system for marketing, promoting, advertising, operating and conducting residential home management businesses. IPG Florida Vacation Home Businesses operate under business formats, methods, procedures, reservations systems, designs, layouts, signs, equipment, trade dress, standards and specifications, all of which we may improve, develop or modify as and when needed.

 

This Manual is an essential part of that system whereby IPG Franchising Inc. will transfer to each of its Franchisees the know-how relating to the running of the business.

 

With your IPG Florida Vacation Home Business you will be working in a large and growing market. You will be operating twenty to twenty-five or more properties in the selected area.

 

This Manual will take you through the majority of information that you will need to run your franchise. We will loan to you or make available on-line or via other electronic format, during your Franchise term, one copy of our Manual which may consist of various items including, audiotapes, videotapes, magnetic media, computer software and written materials that we generally supply to Franchisees for use in operating an IPG Florida Vacation Home Business. This Manual contains mandatory and suggested specifications, standards, operating procedures and rules that we stipulate for the operation of an IPG Florida Vacation Home Business. You agree to follow the standards, specifications and operating procedures we establish periodically for the business and must comply with all updates and amendments to the systems and procedures as described in newsletters or notices we distribute, including via computer systems.

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1.2. Restrictions to Usage Any form of the Manual accessible to you is classified as confidential information so you must uphold this confidentiality and maintain the information in the Manual as secret and confidential. It is important to keep your printed copy of the Manual current and in a secure location at the Business. In the event of a dispute relating to the contents of any printed copy of the Manual, the master copy of the Manual we maintain at our head office will be controlling. However, in the event we utilize an on-line Manual, the most recent on-line Manual will control any disputes between the on-line version and printed copies of the Manuals. You should not at any time copy, duplicate, record or otherwise reproduce any part of the Manual. If your copy of the Manual is lost, destroyed or significantly damaged, you must obtain a replacement copy at the current charge listed in the Supplies and Services price list in the appendices.

 1.3. Manual Update

The Manual may be modified or updated and revised periodically to reflect changes in operating procedures. Franchisee is responsible for routinely monitoring any on-line version (or electronic format) of the Manual or changes to it. In the event that we make the Manual accessible to you on-line (or electronic format), we will not send to you printed copies of any changes to it.

 

  

1.4. Finding Information In the printed version of the manual sections are clearly differentiated through the use of divider cards. Each divider card has a number, which refers directly to the section number it contains. In an electronic format accessing the Document Map or the contents page will give you easy access to any information you require.

 

1.4.1. Contents Page To locate information on a particular subject you can refer to the contents page at the front of the Manual. References are listed in section numbers and main section headings.

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Section

2 H i s t o r y a n d B a c k g r o u n d

o f I P G  

 An in-depthlookintothe history and background of IPGFranchisingInc. andour philosophy andoutlook for the business

  

2. IPG  

2.1. History & Background The International Property Group was formed in 1990 in the United Kingdom by Graham Greene. It began with the marketing of properties for sale in Florida and soon expanded its activities to include properties for sale in Spain, Cyprus, Tenerife and South Africa.

 Due partly to a personal affinity for Florida and partly to the demands of the market, the Florida division of The International Property Group (or IPG as it soon became known) expanded rapidly and became the most active division within the IPG Group of companies.

 The philosophy of the enterprise has always been that of high ethics and professional standards, honesty and integrity. Whilst such ideals were strictly followed by the company’s personnel in the UK, operating in association with several real estate and management companies in Florida meant that there was little control over the adherence of such associates to the high standards that had been set. With a view therefore of providing IPG clients with a more superior service, the decision was made to establish the group’s own companies in Florida. As a result in September 1996, IPG Realty, Inc. and IPG Professional Management, Inc. were formed.

 IPG Realty, Inc.(now IPG Realty, LLC) is a real estate brokerage that is licensed by the Department of Business and Professional Regulation to Broker real estate sales anywhere in the State of Florida. The company is also engaged in the Long Term rental of homes in the Central Florida area. IPG Professional Management, Inc. is a full service property management company specializing in the management and short-term rental of absentee owned homes.

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At the present time, the IPG Group of companies has offices in Clermont (Florida), Atlanta (Georgia) and Bath (UK).

 2.2. IPG Company Growth

 In just under 20 years, IPG Professional Management, Inc. has grown to the extent that it now manages over 400 homes in the Orlando area of Florida. Whilst this represents tremendous growth for a company that began business with just a handful of homeowner clients, the number still represents a fraction of the total number of short-term rental homes within the Central Florida area. Indeed, it is estimated that there are presently over 25,000 such homes with the number growing on a monthly basis.

 2.3. Demand for Management Services

 The attraction of Central Florida as a place to own a second home that can generate a stream of rental income is clear. Disney World is of course the best- known draw that entices over 40 million people a year to visit the area. Since the beginning with the park now known as The Magic Kingdom, the ever-popular parks of Epcot, Hollywood Studios and Animal Kingdom have been added and within each park there exists an ongoing expansion program ensuring that seldom has any returning visitor seen it all. Yet Universal Studios with its Islands of Adventure is arguably a close contender in the theme park popularity stakes. Add to these, attractions such as Wet & Wild, Busch Gardens, Legoland and Sea World (to name just a few) and it is not surprising that the Orlando area is known as the Vacation Capital of the World.

 The many attractions, along with an enviable climate virtually year round, bring a seemingly ever-increasing flow of vacationers literally from around the globe. For many years the concept of self-catering holidays has been popular with the UK market. Yet the concept is becoming increasingly sought after by other Europeans and, since relatively recently, from the huge US market. For families as well as groups of friends too, the idea of spending one’s vacation in maybe 2 or 3 cramped hotel or motel bedrooms just does not compare with the space, privacy and flexibility of staying in a home. And when the prices are compared, most marvel at the fact that it is normally less expensive to rent an entire house than one or two hotel bedrooms.

 Hence the demand for vacation rental homes is huge and the demand appears to be expanding to an ever-increasing worldwide audience. This in turn encourages yet more homeowners to purchase properties for holiday homes and rentals.

 IPG Franchising, Inc. offers to establish suitably qualified teams as franchisees of the IPG system. As such, each franchisee acts very much along the lines of a

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small to medium sized management company providing a personal and high quality service to the homeowner clients. As part of the IPG organization however, each franchisee enjoys the support and other advantages that comes from a larger organization.

  

2.4. IPG Philosophy At IPG Florida Vacation Homes we constantly strive to improve our program of services to our Homeowners and Franchisees

 

IPG Florida Vacation Homes is committed to developing the business opportunities in property management, vacation rental and property maintenance, by creating a network of franchise agents: -

∗ Promoting 100% IPG Florida Vacation Homes services

∗ In IPG Florida Vacation Homes liveried vehicles

∗ Operating to IPG’s consistent and high standards

∗ Offering a uniformly presented portfolio of vacation homes to vacationers from around the globe

 

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2.5. IPG Florida Vacation Homes Objectives We are one of the top rated Vacation home management companies in the Orlando area.

 

In 2001 we changed our strategy primarily because market volume had grown in the preceding 10 years. As an innovative leader it is our responsibility to expand the market and this can only be achieved by developing the total property management business. As a Franchisee you will be rewarded for helping with this growth by meeting specified targets.

 

In brief our main strategy is:

∗ To maintain our performance in Florida with a commitment to vitalizing and expanding the property management market.

∗ To support and reward all professional Franchisees.

∗ To create growth in the market through real innovation in service concepts and improved efficiency in delivery.

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T h e B e n e f i t s o f F r a n c h i s i n g

Section

3  

The history and background of Franchisingis discussedinthis sectionand a brief overviewof thefranchise worldis highlighted withthe benefits toyou to be part of such an organization

  

3. History & Background Benefits of Franchising  

he origins of franchising can be traced back hundreds of years, but it is generally recognized that the mid 1800’s saw the first real Business Format Franchise. This was developed by the Singer Sewing Machine

Company in the United States, who set up a service and maintenance system for their machines. General Motors were also involved in franchising in the early 1900’s, laying the foundations for a franchised Motor Dealership network, a system, which still prevails in motor vehicle retailing to this day.

 

Since those early days the Franchise industry has rapidly developed. Possibly the most important environmental factor in recent years is the growth in service industries. Many service related industries are labor-intensive and geographically distributed across large boundaries. The franchise industry is particularly suitable for these especially as it offers considerable advantages with increased staff motivation and fewer concerns in managing remote sites.

 

Changing lifestyles, such as the increasing number of women, who now work, and the greater free time and affluence enjoyed by the West, have meant that there has been growing demand for services such as fast food, home cleaning, and maintenance services etc. In short the social and economic environments have become favorable to the appearance of a great variety of franchises.

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 Benefits to Franchisee:

  Established business

  No experience

  Available finance

  More competitive

  Proven concept

  Lower start up

  Ongoing support

  Expansion

3.1. The Benefits of Franchising For the Franchisee Franchising offers the franchisee many benefits in comparison to setting up an independent business; some of the major ones are listed below:  

3.1.1. Established Business The Franchisee starts his business with the use of the IPG Florida Vacation Homes trade name and use of its corporate image and proven range of services.  

3.1.2. No Previous Experience is Required Each franchisee will receive full training and continual management assistance. A positive, outgoing attitude is the most important factor and experience in the

industry is not needed although sales experience is a great advantage.

3.1.3. Finance Is More Readily Available As a result of the reduced risk of failure, you may find it is far easier to raise finance and usually at a lower rate than would be the case for an individual starting an independent business. Many banks have specialized franchising departments who give preferential deals to Franchisees.

3.1.4. More Competitive In comparison to starting an independent business your business is automatically more competitive with the support of an established organization behind you.

 

3.1.5. A Proven Concept You will benefit from IPG Franchising Inc.’s, proven and respected track record that is tried and tested in the field of property management and other related services.

 

3.1.6. Lower Start Up Costs Building on the experience of IPG Franchising Inc., mistakes should be few and far between and expenses can be deployed more effectively.

 

3.1.7. A Developing Brand We constantly seek new ways of improving our systems and services, which you the franchisee will benefit from. A branded image has a greater appeal to the public, as it is part of a larger entity.

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3.1.8. Ongoing Support is Available At any time Franchisees may request the help of staff at head office on any aspect of the business. Your first contact should be Jamie Greene who will provide ongoing support and guidance or will direct you to the person best able to assist you.

3.1.9. Expansion After the initial start up phase Franchisees can expand at their own pace taking in more properties as they feel able to do so up to a maximum of 100 properties, which gives great scope for development of the business and income for the franchisee. Provided we are satisfied with the performance of the franchisee, IPG may permit further expansion beyond the 100 properties.

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Benefit to IPG Franchising Inc.  

Competitiveness  

Motivated people  

Standards  

Market Awareness  

Local knowledge                                

Benefit to the Customer  

Quality  

Value  

Diversification

3.2. Benefits for IPG Franchising Inc. The decision to franchise IPG was based on some of the following:  

3.2.1. Increased Competitiveness The Franchisees will give IPG an extended network, which can provide a local service to clients on an ongoing basis. This will give IPG a stronger competitive edge.  

3.2.2. Motivation of Franchisees The business is in the hands of self-motivated and committed individuals, who are dedicated to make it succeed. Each franchisee invests in the business both financially and in time and effort to a far greater degree than in a managed outlet.  

3.2.3. Consistent standards and quality A business format franchise promotes consistent standards and quality. The franchisee is working to a clearly defined benchmark with the contractual incentive to maintain the standard of service to customers through the Operations Manual.  

3.2.4. Increased market awareness Increased market awareness due to a greater number of media campaigns. A marketing fund has been created with contributions of 1% of each franchisee’s gross sales allowing us to promote the brand utilizing a variety of mediums.  

3.2.5. Local Knowledge Better local knowledge can be very important and getting to know the customers in the area results in greater market awareness and greater turnover and ultimately profit.  

  

3.3. For The Customer The customer also gains from a franchise company with some of the following:  

3.3.1. Quality The customer receives the finest quality service and can rely on the fact that we will be pro-active on behalf of our clients.  

3.3.2. Value for money We have a method for success that is second to none and our ability to manage properties for our homeowners is a winning formula.  

3.3.3. Diversification As we develop we can diversify into other areas bringing a portfolio of services direct to the client.

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F r a n c h i s e e c o m m u n i c a t i o n s

Section

4  

A lookintothe communications aspect ofIPGFranchising Inc.and whereyoucan look for support in your newbusiness

  

4. Franchisee Communications  

4.1. Head Office Contact ou have now become part of the IPG Florida Vacation Home Business Team. You are actually the most important part of that team as the franchise owner you are the one who directly communicates our quality

service and value to the customers. To support you in that role are: -  

Graham Greene President

Jamie Greene Vice President

James Johnson Controller

Nilka Rubio Lead Accountant

Evelyn Figueroa Operations Manager

Janese Mendez Reservations Manager

Stephanie Cannon Asst Reservation Manager

Tammy Hayden Front Desk Manager  

 

The working hours of the Head Office are 09.00 to 17.00 Monday through Friday and any queries or questions you may have can be directed either by fax, e mail or phone. Out of normal working hours a message can be left or we can be contacted by e-mail. The welcome and registration center is open 10 am (1 pm on Sundays) to 6 pm, 7 days a week.

 

N.B. Any messages other than urgent ones will be responded to the following working day.

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4.2. Visits & Liaison Good communications are essential with any organization so it is important to keep in regular contact with your clients.

 

All Franchisees must notify all of their homeowners of their telephone number to maintain good customer service. At a later date we may establish and you should participate in a centralized customer service telephone number. We will notify you if this becomes available. Customer responses and complaints will be monitored and we will inform you based on the notification standards in an effort to provide prompt and responsive customer service. In order to promote full compliance with all of our operational procedures, we reserve the right to charge each Franchisee a fee in relation to customer services to the amount listed in the Supplies and Services section in the appendices of this manual.

  

4.2.1. Liaison with the Office Management will be available subject to work commitments to visit and assist when necessary or appropriate. In addition to this we will support Franchisees with ongoing training and regular reviews and analysis of the business, with the objective of improving the performance.

 

4.2.2. Liaison with Guests When liaising with guests it is essential that all franchisees and staff are prompt, professional and polite at all times. There may be occasions when complaints arise and these should be dealt with correctly. See section 8.5. It is essential to ensure good customer service and that everything is to the guests’ satisfaction. Developing a good rapport with them can counteract any problems later. If the guest does have problems or concerns with the property then the visits you need to make may be more frequent and will be based on the action you need to take.

 

If a guest has been procured by the franchisee then it would be your responsibility to ensure the guest collects the keys from our office.

 

All guests procured by IPG will be greeted and registered at the registration office as standard unless a pre arrival registration facility has been arranged when the guests may be permitted to travel direct to their vacation home using a provided combination lock or lock box code.

 

4.2.3. Liaison with Contractors As the business develops, frequent and regular contact will be necessary with contractors/vendors for such areas as pool maintenance, lawn maintenance, pest control and cleaning although initially your own team may maintain some of these areas. If any of these jobs are sub-contracted then each franchisee will be responsible for payments direct to contractors.

 

When dealing with contractors it is important that expectations of both parties are fully explored and a schedule should be drawn up so both the contractor and Franchisee are fully aware of what is expected. This can alleviate any

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breakdowns in communications if everything is agreed in advance including prices, duties, timings and contingency measures. It is also essential that you check that all contractors have valid licenses and necessary liability insurance etc. Each contractor must maintain liability insurance of at least $1M. Both the franchisee and IPG Professional Management, Inc must be named on all such policies as additional insureds. Further only Contractors who are included on our approved contractors and vendors list may be used. If you have a contractor or vendor whose approval you wish you seek, you should notify Jamie in writing and provide all pertinent information. IPG reserves the right to approve or disapprove depending upon a host of factors that are considered in each assessment. Franchisee may not use any contractor or vendor that is not included on our approved contractors and vendors list except if a written exception is provided by Jamie Greene or Graham Greene prior to any such usage.

 

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4.2.4. Liaison with Homeowners Liaison with Homeowners should be conducted monthly or more frequently if required. It is important to establish a preferred method of communication with each individual Homeowner but written communications are often better to avoid any future discrepancies (fax, email or post). Keep Homeowners up-to-date with any events that may be of interest to them or repairs that may need undertaking. If repairs are over $250 or $300, depending on the management agreement signed, you need homeowners’ permission to undertake any repairs unless it is an emergency situation. Don’t forget as the Franchisee you may be fully aware of what is going on and have everything under control, but the Homeowner could be thousands of miles away and unaware, so keep in touch.

 

When the Homeowner is visiting their own property it is crucial to make contact with them when they are in residence.

 

  

4.3. Meetings As the franchise network develops we may establish bi-monthly meetings to which all Franchisees will be invited. Once dates for these are finalized they will be sent to you and will allow you to meet all the other Franchisees and share ideas. We anticipate these meetings could be used to share our best practices and it will give Franchisees the opportunity to learn from others.

 

This would be the forum to discuss new ideas and also to gain valuable information on new services and new marketing ideas plus any changes in legislation coming into the portfolio in the future.

 

  

4.4. Newsletters To add to the support of Franchisees, a newsletter may occasionally be issued to keep the team in touch with any new developments and to keep you up-to-date on any relevant legislative development.

 

A news update may be sent out periodically to the homeowners and you will receive a copy of this as well.

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4.5. Training Seminars Before the Business opens, we will provide initial training on the operation of your IPG Florida Vacation Home Business. Either you or your Manager must complete our initial training to our satisfaction. The timing of the training currently ranges from 1 to 2 consecutive weeks and will be delivered at our designated training facilities and/or an operating IPG Florida Vacation Home Business. Successful completion of the initial training program by you and your Manager is a condition to the opening of the IPG Florida Vacation Home Business. Although we will furnish initial training at no additional fee or other charge, you will be responsible for all travel and living expenses, which may be incurred in connection with the training. Training will be performed by a variety of personnel associated with IPG, which could include general managers, vice presidents, managers, administrative personnel and certified trainers/instructors.

 4.6. Additional Training.

We may require you or your Manager and/or previously trained and experienced employees to attend periodic refresher training courses at such times and locations that we designate if it is deemed necessary and at an additional cost.

 

Alternatively if at any time you feel that you need additional training in a particular area refresher training is available and you may request this in writing at an additional cost.

 

If you require further information on available courses please contact Head Office

  

4.7. Head Office Support As an IPG Florida Vacation Home Business, you will receive on-going support for your business, which is designed to help you grow. This is a daily process and a support team is available during business hours. This will include:

 

Maintaining keen market awareness. This will include staying knowledgeable about developments in the property management market place, competitor initiatives and keeping abreast of all relevant legislative developments.

 

Availability of marketing materials – This will include verbal testimonials from satisfied clients and promotional items and materials.

 

Maintenance of good communications with other Franchisees – This includes regular telephone calls and personal contact. We will actively encourage the exchange of information between Franchisees, newsletters, seminars and group meetings.

 

Regular reviews of the Franchisee business – This includes not only a financial review, but we will also look at Key Performance Indicators. Initially such reviews may take place as and when required.

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Introduction of new services – As and when new services are negotiated or launched, Franchisees will be made aware of these developments which will ensure an ongoing expansion of our current portfolio.

 

Maintenance – support and advice on what course of action to take is available. Head office may deal with problems but there will be a charge.

 

4.7.1. General Guidance. We will contact you from time to time regarding the operation of the Business based on reports you submit to us or inspections we make. In addition, we will provide guidance to you with respect to:

 

standards, specifications and operating procedures and methods utilized by IPG Florida Vacation Homes Businesses;

 

purchasing required fixtures, equipment, signs, products, materials and supplies;

 

use of approved suppliers, approved products, volume buying;  

advertising and marketing programs, including e-commerce programs;  

employee training; and  

administrative procedures including our designating the equipment, computer hardware, stationery, forms and accounting, reporting, record keeping or business management software that we request for your use.

 

Most of this guidance will be supplied in this Manual or through bulletins or other written materials or during telephone or e-commerce consultations. If additional guidance is necessary or appropriate we will provide it. We do reserve the right to charge you a fee to cover expenses that we incur in connection with this training or guidance, if your requests are, in our opinion, excessive. This will be determined in advance and would include per diem charges and travel and living expenses for our personnel.

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Section

5 R e s p o n s i b i l i t i e s o f t h e F r a n c h i s e e

 

 Details ofthe facilities needed tooperate your IPG Franchise and a more in depthlook at your responsibilities as a Franchisee.

  

5. Franchisee Responsibilities  

5.1. Maintaining Standards he procedures in this manual are of a strictly confidential nature and accordingly you must not, either during the term of the franchise, or at any time thereafter, divulge or use, whether for your own benefit or for any

other person, any part of the procedures except as may have fallen into the public domain.

 

You must not use any of the procedures or any other confidential information supplied by or on behalf of IPG Franchising Inc. or any of its’ affiliates for any purpose other than the operation of your IPG Florida Vacation Home business.

 

You must also ensure that your employees understand and sign a confidentiality agreement that they must not use any of the know-how or any other confidential information supplied for any purpose other than for the operation of your IPG Florida Vacation Home business. All employees must sign an undertaking not to disclose to any third party any confidential information or knowledge concerning the business.

 

A professional attitude is expected at all times in conduct, dress, personal hygiene, ethics and in all communications between any person you or your team come into contact with in relation to your IPG Florida Vacation Homes business.

 

You may only provide the services as described in this manual.  

  Adhere to the methods laid

down at all times

Maintain Confidentiality

Understand and practice

5.2. Adherence to Methods You must conduct your business to the highest possible standards in all respects and must notify IPG Florida Vacation Homes of any customer complaint as soon as practically possible.

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You must do all in your power to promote and develop your business in your territory and must comply in all respects with the detailed operational methods described in the contents of this manual.

 

You must not do anything that may bring your business into disrepute or which may in any way damage the interests of IPG Florida Vacation Homes or any of its other Franchisees or affiliate partners.

 

You must not be engaged or be concerned, directly or indirectly, in your territory in any other franchise arrangement, which competes or affects the performance with the IPG Florida Vacation Homes business.

 

You must comply with all Laws, Orders and Regulations from time to time in force and obtain all necessary licenses both State and Federal affecting your business.

 

You must not give any form of guarantee to anyone with regard to expectations or financial performance.

 

       

 Corporate Image

 1. Smart

 2. Clean

 3. Friendly

5.3. Corporate Image You should not deviate from the agreed uniform as described in section 10.  

It is a fact we are all influenced by first impressions even though our views and opinions may alter through further acquaintance; it is the first impression, which will often determine our responses and reactions.  

IPG Florida Vacation Homes prides itself in providing the very best care for it’s homeowners and this is reflected in our image. A customer will make a judgment about IPG Florida Vacation Homes on the basis of the person that represents the company. A favorable reaction will help to overcome doubt and to create the receptive atmosphere, which is so important to making more recommendations.  

Appearance is crucial not only because it identifies the wearer of the company they represent, but it also creates a positive image in determining a person’s level of success and this is also applicable for any staff employed by the business.  

  

5.4. Use of the IPG Name & Logo Each franchisee starts their business with the use of the IPG Florida Vacation Homes trade name, its corporate image and a proven service range. You are only allowed to operate your business under the name of IPG Florida Vacation Homes. It must also state that each IPG office is independently owned and operated.  

5.4.1. Livery on Vehicle All vehicles must be white and all franchises will be required to have signage applied to IPG's specification. You may also require a trailer to transport necessary equipment. Any vehicle that displays the IPG livery must be

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maintained at all times and any associated equipment should be in good working order and repair, and in clean condition

 

  

The recommended livery should be displayed on the sides and rear of any vehicles. Both front doors should display the IPG logo along with your telephone number. The rear of the vehicle may display the franchisees’ company name and telephone number, which should be the same telephone number provided in each of that franchisee’s managed homes/. The specification for the livery will be supplied by Jamie Greene. For those Franchisees that are not allowed by their Homeowners’ Association to display the signage and livery within their community when parked in their driveway, magnetic blanks will also be required to cover the signage and livery, but only on occasions your vehicle(s) is/are parked on the driveway or outside your home and/or if applicable your business premises. All signage, livery and where applicable magnetic blanks will be at the Franchisee’s expense unless otherwise advised and prices are available on request.

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W

         

T h e B u s i n e s s

Section

6  

An in-depthlook at the standardsthat needtobe adheredto, maintaining the quality image ofIPGFlorida Vacation Homes.

  

6. The Business  

6.1. Starting Your Business e offer you the right to service and you agree to service, in accordance with our operating procedures, an initial portfolio of 20 to 30 properties, which are referred to as Management Accounts. You may

pursue additional Management Accounts but we need to be satisfied that you have the capacity to maintain the total number to our agreed standards.

 

Prior to the launch of your business a letter is sent out to notify Homeowners of the transfer of responsibility for management of homes from either IPG HQ or the franchisee temporarily “borrowing” each home to the Franchisee. Each Franchisee would be expected to send a letter out to each homeowner in their new portfolio to welcome them. All correspondence must be checked with and approved by Graham Greene prior to dispatch to any Homeowners. A sample letter can be found in the Appendix.

 

6.1.1. Property Manager License Each franchisee will be required to obtain occupational/local tax licenses for each of the activities they plan to undertake and for each of the counties in which their managed homes are located. Typically licenses will be for property management, pool maintenance, handyman services, yard maintenance etc. These are obtainable from the tax collector of the county in which your business is based. Specific addresses will be issued on request from IPG’s accounts department.

 

6.2. Premises In the early stages of your business you may be working from home, which can have many advantages in keeping costs lower, but it also has its disadvantages. When working from home it is important to set aside an area, which is purely for the use of the business. Ideally a spare room with a desk and filing cabinet or if this is not possible an area of the house that is just for administering the business.

 

Ring binders or files will be required as the business starts to develop for filing of

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paperwork and books as it is important to start in the correct manner rather than be weighed down with filing in a few months’ time

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It is important if you do decide to work from home that you gain permission from the homeowners association, from the counties and from any other authority as necessary.

 

  

This is essential as guests may collect keys from or meet with you at your house if permission is granted, but check as certain areas may restrict such activities.

 

All members of the family should be made aware that if they do take messages these should be handled in a professional manner.

 

  

6.2.1. Office Equipment Required Ring binders or files will be required for each homeowner and within this file you should keep:

 

A copy of the management agreement with IPG  

A copy of the agreement between IPG and Franchisee to manage the home  

All paid utility bills  

Monthly statements for the homeowner  

Licences for the homeowner  

Insurance policy/ies of the homeowner  

Copies of all correspondence with homeowner

Completed and signed form W-8ECI or W-9

 

  

As the business starts to develop and there becomes a need for filing of paperwork it is important to start in the correct manner rather than be weighed down with filing later.

 

General equipment that will be required;  

A business telephone line - Each franchisee must provide a customer service number which must be answered 24/7.Ideally there should be a toll free number that forwards to the main business number.

A second line with a fax machine is entirely optional.  

A DSL or cable connection for computer.  

Filing cabinet.  

Desk and other miscellaneous office items.  

Computer and Printer.

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A cell phone is an essential way of keeping in contact with the office and provides additional security should you have emergency call outs.

 

Your main customer service phone number must be forwarded to your cellphone when you are not in your office. Further, you must provide IPG with a telephone number at which you may be reached 24/7 in the event of an emergency.

 

6.2.2. Computer system As part of the IPG Florida Vacation Homes franchise package, you are required to purchase a desktop personal computer, color printer and various software programs. A full list of this equipment is provided below.

 As a minimum the PC should have: Intel i3 2.9 ghz processor or faster 500GB hard disk 4 Gb RAM 1 communications modem 256 Mb Video Memory.

 The software should comprise of a minimum of Microsoft Windows XP or later, and Microsoft Office 2015 or later. A color printer will also be required.

 

 

6.2.3. On-site Equipment From the launch of the business, Franchisees should be able to store a vehicle and equipment in the double garage of their home. Some communities do not permit commercial vehicles and in such cases or where there is not a suitable garage, a lock up storage unit should be sought. The Franchise Agreement includes all elements that will be supplied directly to you; however, to get you up and running there are other items, which you should purchase directly. These include:

 

Lawn mower Cleaning equipment Pool Equipment (only if licensed to do so) Pool Testing equipment (only if licensed to do so) Vacuum Cleaner

 The required equipment will depend upon which services you decide to carry out yourself and which you will sub-contract. Most Franchisees may initially choose to carry out their own lawn maintenance and the equipment recommended will be required.

 No specific equipment is stated for cleaning purposes. However, a commercial vacuum cleaner, set of brushes, dusters etc will be needed. Polishes and other cleaning consumables should be checked with Jamie Greene prior to

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purchasing to ensure that no unsafe chemicals etc are used.  

Franchisees will not be able to maintain pools unless they are duly licensed to do so. So in most cases it will be necessary to sub-contract this work and depending on your designated area, a list of approved vendors will be available. A list of approved vendors may be found in the Appendix.

  

6.2.4. Stationery As yet there is no set stationery list. Graham Greene of IPG must approve all printed stationery including letterheads; business cards, promotional material etc. prior to ordering.

 IPG maintains a stock of IPG logo’d plain business cards, ready for overprinting with your details. These can be ordered through Sabrina Krebs. Whilst letter headings may be printed, a computer generated template will usually suffice. Please liaise with Graham Greene to create a template that complies with the content and layout standards.

  

6.3. Building Your Business It is essential that your business doesn’t become reactive, only responding to business when the phone rings. Each Franchisee will be given a maximum of 20 to 25 Management Accounts and an invaluable opportunity once you are established to build your business up to a maximum number of accounts as you can demonstrate you are able to serve. Net gains of 20-40% per year in growth is not unachievable as a target to aim for.

 

Each franchisee will be encouraged to expand their business beyond the existing 15-25 homes up to whatever size they can manage to attain provided only that the highest of standards are maintained. Confidence in the IPG systems will relieve the Franchisees of some of the administrative burdens that often impede businesses from effectively and efficiently providing the very services that they seek to provide. It is envisaged that a management company being operated under the IPG Franchise program has considerably more scope to expand, succeed and flourish than any of the numerous competitors who are struggling to provide the comprehensive service that IPG Franchisees will be well able to provide. There exists a unique opportunity for suitably qualified prospects to build successful businesses by utilizing a combination of their own efforts, skills and resources with IPG’s invaluable and extensive experience.

  

Look for new opportunities to make more sales e.g. advertising, word of mouth recommendations.

 

Have business cards ready at every opportunity to hand out to people who ask for them.

 

Take advantage of the environment you are in. Get to know other homeowners in the area as they may not all be happy with their current property management

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company.

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 6.3.1. Additional Management Accounts

You are responsible for acquiring any additional rental Management Accounts, from customers, in addition to the 15 to 25 Management Accounts from your initial business.

 You will generally provide the advertising promotional materials to gain accounts for this purpose, but you should liaise with us so that we can coordinate marketing efforts with you. All additional accounts must participate in the centralized billing system and monies or other remuneration you receive from them will be included in the definition of gross sales.

 Registration of all Additional Accounts is essential and you must obtain contracts using our standard forms of agreement copies of which can be requested from IPG HO. We may prohibit you from accepting any additional account if we deem that either the account is not suitable for your business or your accepting the additional account would overload your capacity to run your business in terms of quality of services offered, or your ability to perform your obligations to us and to the management accounts. You may set your own fee structure and modify the agreement accordingly. However, verbiage as well as rental commission percentages cannot be changed. If you would like a form of the contract modified to incorporate the fees that you wish to charge and/or have agreed with new homeowners, let Evelyn Figueroa know and she will be happy to create a suitable modified form of contract accordingly.

 6.3.2 Finder’s Fees

Periodically we may offer you the opportunity to service additional business or new types of Management Accounts. This new business may result from the expansion of service for existing customers at the same or other locations or completely new business accounts. Ordinarily we will allow you to “borrow” that contract. In such a case you will generate income and pay royalties, billing system fees etc in the same way as you do from all other contracts in your portfolio. However “borrowed homes” do not belong to you and upon any sale of your business such contracts would be excluded and would revert to IPG. During a period of 90 days from the date you first service a “borrowed” home you will have the option to purchase that contract from IPG. At the present time contracts may be purchased at the following prices: Single Family Pool Home with lawn service $5250 Single Family Pool Home without lawn service $4750 Townhomes with splash pools $3750 Townhomes without splash pools and condominiums $3000 Payment terms are 50% upon exercise of the option and 50% payable 6 months later provided the property is under management at that time. It is the franchisee’s obligation to exercise an option should they wish to do so by e mailing Graham Greene. Any option not exercised within the 90 day period will be lost.

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As an alternative to borrowing the property with the option to purchase a franchisee may elect to purchase the contract straight away. Should they do so, a discount of 25% off the normal price will be given. Full payment would be due straight away. No guarantees are offered with the purchase of any contracts under any of the scenarios described above. A borrowed home may be required to be returned to IPG at any time and for any reason. However wherever practicable, IPG will try to provide at least 60 days notice. The franchisee shall be entitled to claim for servicing the contract (in accordance with the terms set out in the contract concerned) upto the time that it is taken back by IPG.

 

 

6.3.3. Rental Revenues All homes are visible in IPG’s reservation system. IPG will use its best efforts to generate rental income for all homes from its tour operator contracts, other rental generating programs and direct marketing initiatives. Rental commissions are credited to IPG in all cases. Franchisees are encouraged to solicit for rentals for the homes in their portfolio. In such cases, the relevant commission is for the credit of the franchisee concerned, less a deduction for the reservation service fee (ordinarily 7 ½ % to 10% of the rental amount). Franchisees may place bookings only where there is suitable availability and any IPG booking already placed may not be displaced except with the prior written agreement of IPG. Franchisees should discourage their homeowners from attempting to place owner generated bookings where IPG or franchisee generated booking are already in place. All rentals generated by franchisees must be input into the Ciirus system under the franchisee’s name as tour operator. Any booking may be treated by IPG as a franchisee generated booking if the franchisee solicits the booking, places an advertisement from which the booking was derived or pays for such advertisement. Precisely the same rules apply where the property is listed with any rental or other listing site. A booking shall also be treated as franchisee generated where the franchisee collects funds for the booking. All franchisee generated bookings are subject to a Reservation fee. Rentals must be paid in full to IPG within 3 days of the receipt of rental monies by the franchisee or 14 days prior to the date of guest arrival; whichever shall occur first. Franchisees must ensure that the payment terms they provide to clients enables the franchisee to comply with IPG’s payment terms. Time shall be of the essence. Where full payment is not received by IPG by the due date, IPG shall deduct said amount from any funds otherwise payable to the franchisee by IPG.

 

 

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6.3.4. Real Estate Sales Brokerage Services. We may permit you to offer real estate sales brokerage services through the Business, and may permit other IPG Florida Vacation Homes Businesses to offer such services, without offering you the opportunity to do so. If you meet our specifications and standards for doing so, to the extent and in the manner that we agree, we may allow you to offer these services. This would not take place until you are duly licensed and we have given you written permission. When & if approved you would be required to hang your license with our affiliate IPG Realty, LLC and the real estate activity would be governed predominantly by the IPG Realty, LLC procedural manual.

 

 

                             6.3.5. Real Estate Referrals Where a homeowner is seeking a realtor either to sell their property or to possibly purchase a new one, the client should be referred in the first instance to Wendy Karaffa, Broker of Record for IPG Realty, LLC  

 

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6.4. Your Function As Franchisee Your time is precious as owner/manager and very demanding. Not only are you involved in the day-to-day sales, but also you will need to consider the rest of your business.

 

It is essential to set aside time to do the things that we don’t like and not postpone them until later, like accounting, finance, administration etc.

 

  

6.5. Services Provided by IPG Each franchisee is required to do their own book-keeping and is likely to require a tax accountant to prepare the annual corporate returns. The billing system requires that all rentals and other income generated must be paid to IPG Head Office. The franchisee will need to raise invoices each month for the services you provide to each homeowner i.e. management fee, cleaning, pool maintenance (even if sub-contracted out by the franchisee) maintenance items etc. After the end of each month, IPG HO will produce statements for each homeowner and will arrange for balances due to homeowners to be paid subject to your written instructions as appropriate. The franchisee will be paid the total of their invoices less the fees required due under the terms of the franchise agreement subject to IPG being in possession of sufficient funds in the Homeowners’ ledger accounts. If a net deficit exists on the total of your homeowners’ ledger accounts, such deficit may be deducted from the amount otherwise payable to you.

  

6.5.1. Liaison customer / tour operator Each franchisee is encouraged to establish their own rental sources. Suggested rates will be provided, but the Franchisees are able to set their own rates. Franchisees may not accept reservations from any rental source with which IPG already has a business relationship. Consequently before beginning to work with a tour operator or other rental provider, the franchisee should first seek permission from Graham Greene. Permission will usually be granted unless IPG has an existing business relationship with the tour operator/rental provider concerned. Ordinarily, a franchisee is permitted to enter reservations only into the homes that they manage. If a franchisee wishes to endeavor to place bookings into homes that they do not manage, the franchisee should obtain from Jamie Greene a wholesale Rental Agreement. Such agreement, once signed by both parties, will provide the rates at which reservations may be placed into homes managed by other franchisees. All such booking requests must be made through IPG’s Reservations department. Payment will in all cases be made to IPG HO at least 2 weeks prior to the arrival of each guest party. Guest problems will ordinarily be dealt with by the franchisee. However, where the problem is reservations related and IPG HO placed the reservation, then the franchisee will need to liaise with IPG HO who will then be in contact with the tour operator as necessary. No correspondence should be sent by the franchisee to any guest or tour operator (other than to a tour operator with whom the franchisee has directly contracted) without first obtaining the approval

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of such correspondence from Graham Greene. Franchisees placing bookings by utilizing the wholesaqle rental agreement may add a profit margin of their choosing to the ultimate gurest. Please be aware however that such an activity has sales and resort tax implications and any franchisee operating in such a fashion should seek appropriate advice from their own tax accountant and arrange to pay taxes to the appropriate Authorities on a monthly basis.

  

6.5.2. Liaison Homeowner and Franchisee It will be the franchisee's role to liaise with the homeowners. However, homeowners who have a grievance that they feel is not being addressed satisfactorily by the franchisee will be afforded the opportunity of meeting/discussing with Jamie Greene or Graham Greene who will endeavor to resolve the problem as seen fit.

  

6.5.3. Customer Satisfaction Fund We do not currently operate such a fund. However where we have to install, repair or replace deficiencies in vacation or residential rental management services or residential or vacation rental real estate sales brokerage services provided by IPG Florida Vacation Homes Businesses if: customer warranties or customer service policies are not honored; or we deem it necessary to correct any deficiencies in services required to be provided by an IPG Florida Vacation Homes Business under a Management Account and which are not completed for any reason whatsoever, we will bill you for the costs so incurred along with the time expended by IPG staff in dealing with the issue concerned.

  

6.5.4. Your Objectives As an IPG Florida Vacation Homes franchisee, your business objectives are simple: -

 

1. To develop your area to its maximum potential.  

2. To maximize the profitability in your area.  

3. To maintain the good reputation of IPG Florida Vacation Homes Management.

 

Achieving these main three objectives will ensure success in your chosen territory. Relevant IPG departmental managers will give you advice and support as appropriate to help you achieve your objectives.

  

 6.5.5 Out of Area Homes

 We do not encourage you to manage homes that are located outside your area and you may not solicit for the management of homes outside your defined territory.

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However you may be approached to manage a home that is outside your territory. In such a case you must first make a written request to Graham Greene for permission to manage such property. Permission will generally not be granted where the property is located in an existing franchised territory. Where permission is granted it should be regarded as a concession and a temporary approval. You will have to transfer the management contract back to IPG if IPG grants a new territory in which the property is located or if you sell or transfer your franchise. Out of area homes may not be included in any sale of a franchise business. Any attempt to sell a contract that is outside your area will be treated as null and void and will automatically belong to IPG who may then deal with that contract as IPG sees fit. No compensation will be payable to you upon any such transfer.

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S a l e s &

M a r k e t i n g

Section

7  

Marketingis a key component tothe success of your franchise and everything from yourinitiallaunchtoyour ongoingpromotional support is highlightedinthis section.

  

7. Sales & Marketing  

7.1. Attracting Clients Holidaymakers play an essential part in the development of your franchise. Vacant properties do not generate revenue so it is important to look for further opportunities to ensure properties are occupied. Talking to holiday makers in adjoining properties can alert them to the possibilities of returning on their next vacation to one of the IPG managed properties.

 

It can be important to offer to show the potential client around other houses for future visits in a relaxed non-pressurized way.

 

Note however that it is strictly prohibited to solicit guests placed in any IPG home by IPG or by tour operators or other rental providers with whom we have contracted. Such guests seeking to rebook for another future date must be referred back to the tour operator concerned or to IPG as appropriate.

 

Where guests simply wish to extend their existing stay, they should be referred to IPG’s reservations department.

 

  

7.1.1. Welcome Folder To maximize the sales potential of each property and ensure clients return again and again it is worthwhile to ensure that each visit the client has to an IPG Florida vacation home is as enjoyable as possible. To ensure a relaxed holiday each property should have an up-to-date welcome folder comprising of local attractions and maps to local attractions. It is also advisable to include local restaurants and places of interest.

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7.1.2. Pricing Policy Prices are recommended for different size houses, locations and any changes in recommended prices will be notified as, and when they take place.

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7.2. Initial Launch We will assist you in designing a comprehensive launch program to help you become more profitable in your territory. The primary objective of the Launch Program is to ensure that as many prospective clients as possible are aware that the property management opportunity is available in their local area.

 

  

7.3. Marketing Fund Recognizing the value of advertising and marketing to the goodwill and public image of IPG Florida Vacation Homes Businesses, we have established a system- wide marketing fund for such advertising, marketing and public relations programs and materials we deem necessary or appropriate. You agree to contribute 1% of your gross sales, payable in the same manner as the royalty.

 

 

7.3.1. Use of the Marketing Funds. We will direct all programs financed by the marketing fund, over the creative concepts, materials and endorsements, and the geographic, market and media placement and allocation. The marketing fund may be used to pay the costs of: preparing and producing video, audio, e-commerce and written advertising

materials; administering regional and multi-regional advertising programs, purchasing direct mail, e-commerce, and other media advertising and

employing advertising, promotion and marketing agencies; and supporting public relations,

market research and other advertising, promotion and marketing activities including the development, hosting and maintenance of web sites.

Providing marketing consultancy services to assist franchisees to build their businesses.

                       The marketing fund is intended to maximize recognition of the marks and patronage of IPG Florida Vacation Homes Businesses. Although we will endeavor to utilize the marketing fund to develop advertising and marketing materials and programs and to place advertising that will benefit all IPG Florida Vacation Homes Businesses, we cannot guarantee that all expenditures by the marketing fund are spent proportionately across each franchise area.

 

 

7.4. Marketing Methods As a Franchisee any advertising, promotion and marketing you conduct must be completely clear and factual and not misleading and conform to the highest standards of ethical marketing and the promotion policies which we prescribe from time to time.

 Samples of all advertising, promotional and marketing materials including solicitation letters, flyers etc, which we have not prepared or previously accepted, must be submitted to us for approval before you use them. If you do not receive

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written disapproval within 30 days after our receipt of these materials, we will be deemed to have given the required approval. You may not use any advertising or promotional materials that we have disapproved.

 

In addition to your required Marketing Contributions, it is recommended that you spend annually for advertising and promotion of the Business approximately 3% of your annual Gross Sales.

 If we determine that you have not spent the recommended amounts, we may require you to pay the unexpended amounts into the Marketing Fund.

 If a local advertising cooperative is established serving your Market Area, then you will contribute to it an amount determined by the local advertising cooperative. Any such contributions count towards advertising expenditure obligations described in this Section.

  

7.4.1. Websites. We will control your use of e-commerce, including the use of any Website or requiring your Business to participate in e-commerce solely via a Website we designate. Any Website or other use of e-commerce constitutes "advertising” and any Website you develop or utilize must meet all our terms and conditions for advertising described.

 

If you wish to establish any Website then it is important that you ask for prior written approval of its form, content and information presented due to our substantial interest in protecting the Marks, the System and the Confidential Information. Participation in our centralized Website is important and gives one unified message to our customers.

 

  

Prior to establishing any new website please consider the following:  

Submit to us a sample of the Website format and information in the form and manner that we may require. Failure to do this and to obtain our written approval may result in termination of use and disablement of any Website without compensation to you.

 

Comply with our standards and specification for any Website as prescribed by us from time to time in the Manuals or otherwise.

 

Establish electronic links to our Website and to other franchise owners’ Websites as part of your Website. We also may require your Website to be part of our Website.

 

Other franchise associates may require electronic links to your Website from their Websites without any compensation to you. We may prohibit you from linking any Website to your Website for any reason without compensation to you.

 

If you want to change any material aspect of your Website at any time, or any of the information contained in your Website, you should submit

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revisions to us in advance. Do not make any such revisions or modifications until you have obtained our approval.

Do not use any Mark as part of any e-name, or any other identification of you in any electronic medium or with any prefix, suffix or other modifying words, terms, designs, or symbols, or in any modified form, without written consent.

 

If your Franchise expires or terminates for any reason, you must immediately stop using any Website that utilizes any of the Marks or the System, or that are linked to any of our Websites or the Website of any of our franchise associates. You must also then remove and change any Website, domain names, Internet or intranet addresses, or other identification that utilize any of the Marks.

 

  

7.5. Marketing Items The Marketing Fund may periodically provide you with samples of advertising, marketing and promotional formats and materials at no cost. If so, multiple copies of such materials will be supplied to you at your request and charged to you at our direct cost of producing them, plus any related shipping, handling and storage charges.

 

  

7.6. Market Potential & Competition Whilst the demand for homes in the Orlando area is strong, it is inevitable that in such an active marketplace, competition will be strong. There are a large number of property management companies ranging from small husband and wife teams who manage a handful of homes to well-established companies that manage 100, 200 or more homes. Some of the smaller enterprises may provide a management and maintenance service alone whilst some, and especially the larger companies, will provide a comprehensive service that includes a rental service too. Many homeowners seek to generate their own rental business by advertising their homes to rent in the national press in a number of specialist vacation rental magazines and on-line.

  

7.6.1. Competitive Advantages The ideal situation for a large number of homeowners is for them to appoint a company that will provide a comprehensive service. This enables the homeowner to relax in the knowledge that their investment is being well maintained, that the house is well presented and ready for the owner’s use when required and that the financial performance of the property is maximized.

 A small management company with a limited number of homes is considered best placed to provide the optimum management and maintenance service along with the personal attention that is so much appreciated. Such a small company however rarely is able to attract the attention of the major tour operators that is crucial if a steady stream of rental income is to be assured.

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Several large management companies are of sufficient substance to attract the major tour operators whilst being able to expend substantial sums on marketing the homes for rental. Yet for such companies, the “personal attention” that many homeowners expect and indeed merit is just not possible. The maintenance and other support services needed cannot be provided in as effective a way as a small locally based company can provide them, when there are a large number of homes spread over a wide geographical area to service. The marked variations in quality of rental homes within the area are a direct result of the inability of many management companies, in particular the larger ones, to achieve satisfactory standards of maintenance and service.

 It is as a result of the above that IPG decided upon and developed the franchise opportunity through its company IPG Franchising, Inc. The concept succeeds in combining the benefits that come from being a small to medium size operation providing a localized personal service with the benefits of portraying a substantial organization to the outside world. Equally important is the ability to avoid the pitfalls that have engulfed many management companies in the past by their being unable to properly control an expanding enterprise spread over an extended geographical area, with the additional problems of achieving effective line management with increasing staff numbers.

 Advantages include the ability of IPG to offer a large inventory to, and consequently to attract, major tour operators and rental listing services as well as the ability for IPG to engage in substantial marketing campaigns with the costs spread over a number of Franchisees. Another material benefit is that which comes from utilizing the skills, experience, connections, systems and branding that have been compiled over a period of considerable time at not insubstantial expense. The relatively low number of homeowners who leave the management of IPG compared with the large number who are seeking to have their homes managed by an organization whose reputation for quality service is renowned speaks volumes. IPG’s tried and tested systems for maintaining the very highest standards are uniquely successful.

  

7.6.2. Market Research  

With our written approval you may look for additional opportunities for further management accounts.

 The potential of your area is vast; the key to exploiting it to the fullest extent is

knowing IT!! Area knowledge is essential to the success of your sale. But most essential of all is you being there.

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7.6.3. Research the area  

  

A local street map  

Ask friends and families for contacts  

Ask other people running their own business for contacts  

Speak to the Bank manager he could put you in touch with other Homeowners

 

Keep an eye on new short-term rental developments and establish contact with the sales offices of these developments.

 

   

7.6.4. What Do You Need To Research

The Short-term rental population –  

Where are they,  

What type of accommodation do they live in?

The Geographies of the area – to be exploited

Build up your own pictures of your area  

Remember: - Broaden your thinking - Grasp all potential.  

Have a well researched insight into HOW YOUR AREA TICKS

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7.6.5. Customer Profile

So what does a typical IPG customer look like? In a Management Account we are looking for the following:

 

A Homeowner  

To whom the house is a vacation property.  

Some developments may comprise of solely vacation or short-term rental homes whilst others may have a mix of short-term rental homeowners and residential. If a development is not short-term rental approved it would not be of interest to you.

 

Homes that are full-time owner occupied will frequently be apparent from:  

Exceptionally landscaped/personalized yard  

Name plaques  

Children’s bicycles or other large toys  

Homes that are short-term rentals will frequently be apparent from:  

Pool warning signs  

Vehicles parked in driveways  

Frequent arrival and departure of occupants  

Remember that identifying short-term rental homes is just the beginning. It is the homeowner whom you need to become acquainted with and talking to guests, neighbors etc. may provide you with an indication of when the owner will be in residence. Befriend the homeowner by introducing yourself and build up trust. Trust and a professional image along with obvious expertise in home maintenance are the ingredients essential to producing new business by way of management contracts.

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O p e r a t i o n s P r o c e d u r e s

Section

8  

An overview of howtosecure ongoingbusiness and ensure customers keep coming backto you, whichis an essentialpart of every business.

  

8. Operations Procedures  

8.1. New Home Set Up When a new property closes and all the paperwork is completed, the title company should confirm it has closed. The franchisee would need to confirm this, as quite often the homeowner may not know if closing has actually taken place. Hence it is essential to confirm.

 

It is important at this stage to get the property re-keyed to ensure the locks work with a master key. The keys will need to be numbered – the homeowner’s name and a key number. Do not write property details on the keys in case they are lost.

 When the property is confirmed closed, all utilities will need to start and a commencement date agreed with the homeowner.

 

It is the homeowner’s responsibility to provide set up fees, signed management agreement and the power of attorney. Full details of the procedures to be followed and the documents to be completed are available from Evelyn.

 

  

8.1.1. Furnishings & White Goods The approved furniture company will normally be in contact direct with the homeowner to arrange furnishing requirements. It is also important for the Franchisee to keep in contact with the approved supplier to ensure the set up takes place. To assist the homeowner the franchisee should arrange the key collection. Once the furniture company has been instructed to act the property can be furnished within 2-3 days but ensure a block of 3-4 weeks is placed in the Reservations system to give sufficient time for the furniture company to set this up. Once all furniture has been delivered then an inventory list should be supplied either direct from the homeowner or furniture company to the Franchisee for monitoring purposes.

 

The next stage will be for the Franchisee to go in, erect all necessary signs (including where relevant a pool warning sign and depth markers) and place a

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Welcome Manual in the property.

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 8.1.2. Insurance

The Mortgage Company that the homeowner has chosen normally arranges this but it is worth double-checking that it also covers short-term rentals. The homeowners are responsible for this but you will need to keep a copy of the policy in the homeowners file. In particular you should ensure that the policies cover liabilities up to $1 million and includes IPG Professional Management, Inc as an additional insured. Frequently an owner will have two insurance policies covering liability. The primary policy may have such coverage of typically $300,000 and an umbrella policy for $1M. For a homeowner to be in full compliance with the management agreement the minimum coverage of $1M is required and IPG Professional Management, Inc must be named as additional insured on all underlying policies..

 

  

8.2. Licensing A new home needs to be licensed for short-term rentals. All licenses are renewable every year and IPG HO will send renewals, which will be copied into the franchisees.

 

  

8.2.1. Hotel & Restaurant license Any short-term rental will require a Hotel & Restaurant license and the inspector will contact you and arrange to visit and ensure the property is ready for rental. A Floor plan will be required and maximum occupancy levels and fire exits marked.

 

  

8.2.2. Occupational Tax License Counties may be different but the Occupational (or Tax) License is necessary as the homeowner is recognized as an operating business.

 

  

8.2.3. Tourist Development Tax The Tourist Development Tax will also need to be set up prior to the home being available for rental.

 

  

8.2.4. State Sales Tax The State Sales Tax can be organized through the Florida Department of Revenue and must also commence prior to the home being available for rental.

 

  

8.3. Utilities Gas, electricity and water supplies will all need to be planned in agreement with the Homeowner. Suppliers have differing requirements as to how to implement

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this and IPG can give guidance on the best suppliers in your area. Deposits will be required for most Utility companies.

 

  

8.3.1. Telephone & Cable Installation fees for Telephone & Cable are requisite and generally a telephone call can guarantee this is set up. Upon written confirmation the company will issue an order number for the work required.

 

  

8.3.2. Vendors Consideration will need to given as to other vendors required although some of these services you may undertake yourself:

 

Lawn maintenance  

Pool maintenance  

Pest Control  

Cleaning  

Garbage  

Only approved vendors may be used. A current list of those vendors will be found in the Appendix.

 

8.3.3. Check Lists Inventory lists need to be checked for completeness and you also need to check that there are no damages. If anything is missing or damaged the relevant suppliers should be contacted.

 

A week after set up you should contact all the utility companies to ensure all mailing addresses are sent direct to the Franchisees Office address and not to the property.

 

 

8.4. Existing Homes   

8.4.1. Daily Cleaning schedules On a daily basis you should print out the cleaning schedule, which is listed on the Ciirus maintenance screen. This section will also show you the expected arrivals for each day. Please refer to the Ciirus Computer manual for further instructions.

 

8.4.2. Maintenance Schedules It is important that all properties are kept in a good state of repair and standards are maintained.

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8.4.3. Exterior Every six months a pressure wash needs to take place on all homes to keep the appearance up to standard and at the same time the outside needs to be checked for any damage or wear that requires repairs.

 

8.4.4. Air conditioning This schedule varies depending on the usage of the home and the size of the air conditioning unit. Bi-monthly the filter should be replaced and the coils cleaned but this would be based on average occupancy every 2-½ months and an appropriate quality filter. Filters that require replacing less (or more) frequently are available.

 

8.4.5. 24 hour Emergency Services As this can vary a full list is available from IPG on request.

 

  

8.4.6. Pool Maintenance and Pool Enclosure Pool maintenance is usually contracted out and a list of approved pool maintenance companies may be found in the Appendix.

 

If a Franchisee is licensed and has received the appropriate training then they may carry out this maintenance themselves.

 

  

8.4.7. Lawn Maintenance This can be contracted out or Franchisees can take on this responsibility themselves. In winter the lawns need to be maintained on average twice a month but in summer this can be up to six times a month.

 

8.4.8. Utilities All bills should be sent direct to the Franchisees office address. When received the franchisee must post the details on the Ciirus Computer system. The bills must be checked for accuracy and any errors or anomalies should be followed up immediately. The payment slip provided should be passed to IPG for the check to be raised in due course.

 

  

8.5. Client Liaison  

 

8.5.1. Checking In Guests checking in to the property should register after 4pm on the date of arrival as shown on the booking confirmation. Any guests arriving to collect keys before that time may be refused at IPG Florida Vacation Homes' discretion. It is essential that the property is serviced and available as soon as possible to allow for early check-ins where possible.

 

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8.5.2. Checking Out Guests should check out of the property at the time shown on the booking confirmation. Generally guests must be out by 10am and keys handed in by

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12pm. All keys must be returned to either IPG or the Franchisee depending on what has been arranged, by the agreed time. If the guest has negotiated a late check out time with IPG, the franchisee will be notified and generally the guests may then stay in the home until 4pm.

 

  

8.5.3. Inspections Once the guest has departed the home must be inspected between 10am and 4pm that day. If damage or losses are detected, these must be notified immediately to Sabrina Krebs.

  

8.5.3.1. Damage / Stolen Reports Each home should have an original inventory list, which the Franchisee should keep and use to report any damages or missing items when the guest has departed. Damaged or missing items may be charged to the guests or claimed under IPG’s damage waiver plan (where appropriate). A claim under the damage waiver plan should be submitted to IPG in writing within 24 hours of the guests’ departure (where possible) but in any event within 7 days of the date of the guests’ departure. Claims submitted more than 7 days after guests’ departure will not be processed.

 

It is the Franchisee’s responsibility to replace these items ASAP and to initiate the appropriate recharge of the costs concerned.

 

8.5.3.2. Objects Left behind All items left behind should be retained by the Franchisee until the guest calls back to claim them and details should be reported to IPG. The item can be kept for 2-3 weeks at the most. If the guest does make contact then in order to meet the cost of the postage or shipping they must supply their credit card details to return the item back to them. The Franchisee should input the details on the comments section of the Ciirus reservation system.

 

8.5.3.3. Garbage If the guest checks out between garbage collection days, the franchisee should arrange for the garbage to be removed and taken to a suitable land-fill site or to IPG’s dumpsters (for which IPG imposes a separate charge).

 

  

8.5.4. Complaint handling Failure to comply with the time frames allotted for initial response or corrective action to service a customer complaint may result in the use of IPG personnel to do so. If this occurs we may charge you a customer service fee for this service. The amount of the customer service fee may change periodically by notice to you. Servicing or responding to a complaint means our communicating with the customer to determine the nature of the complaint and what needs to be done to resolve the situation, as well as providing the customer relations necessary to try to protect the account. It does not mean providing residential management or

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rectification services, to solve the problem. We charge separately for doing so.  

Every complaint must be documented in the computer system with details of the complaint and the date. If the complaint escalates later then we can see the history of the complaint. Instructions can be found in the computer system manual.

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8.5.4.1. Rectification Services. If, after providing telephone or e-mail or other forms of customer service relations, we find it necessary to provide residential management services or any ancillary services related to the management accounts or any new business to resolve the complaint, we reserve the right to charge you a service fee in the amount we determine periodically. This amount may vary effective on notice to you.

 We may charge an hourly rate for our personnel, plus expenses (i.e., labor, materials, supplies, equipment, etc.). The hourly charge will be for our personnel spending time performing residential management services required to correct the complaint or satisfy the unhappy client or customer.

 These fees may be charged to you if at any time, whether through a complaint or inspection, we discover a deficiency in performance on any management account or new business after we have tried to reach you for 4 hours (calling a minimum of once each hour) or if we deem the situation to be an emergency complaint situation, to report the deficiency to you. We will then charge the appropriate fee to you if we cannot locate you during that time and we must respond to the complaint or we notify you of the complaint and 10 hours after our notification to you, you have not corrected the deficiency to the customer's satisfaction or to our satisfaction.

 8.5.4.2. Emergency Complaints

Because certain problems with residential or vacation rental properties need to be addressed on an immediate or emergency basis, we refer to these complaints as emergency complaints. These emergency complaints will be subject to such differing standards as shorter response times and special rules regarding how to respond to them. If you fail to follow the specifications and standards we designate in this Manual for responding to emergency complaints, or fail to respond to them in the time periods we specify from time to time, we may charge you our then current emergency complaint service fees. We will charge the applicable emergency complaint or non-emergency complaint service fee even if the account must be transferred to preserve it.

 If the account terminates for non-performance, the rectification service fees, plus expenses, may also be charged. You must pay these fees immediately on receipt of invoice and we may set off from any amounts we owe you the amount for complaint and service fees. Collectively, the emergency complaint and non- emergency complaint service fees you must pay to us in accordance with this Section are referred to as the rectification service fees. We may collect the rectification service fees from you via the billing system.

 8.5.4.3. Adjustments

No adjustments or changes of any nature may be made to any reservations without the express prior permission of the Reservations Manager.

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8.5.4.4. Home Owner or Friends’ Visits Upon receipt of a request from a Homeowner for a Homeowner, close relative or friend/guest, the Franchisee should check the reservation system for availability. The reservation may be placed in the system if it is not in conflict with an existing reservation. If a conflict emerges the Franchisee should discuss the request with the IPG Reservations Manager who will generally endeavor to move the conflicting booking. Requests from Homeowners should only be confirmed when there is availability.

  

 8.5.4.5. Receivables

Cash flow is an important aspect of every business. Statements are issued monthly by IPG’s Accounts departments as one of the services provided to you under the mandatory participation in the billing system. However, it is considered essential that you assume primary responsibility for determining when and how funds should be released to homeowners (when their statements show a surplus due to them) and for collecting funds when their monthly statement indicates an amount due from the homeowner. The manner in which you collect funds will vary from homeowner to homeowner but you should ensure that every homeowner responds and reacts promptly by remitting funds directly to IPG’s accounts department. In cases where you are experiencing difficulties in collecting funds you may ask for Nilka Rubio to contact the homeowner for you. IPG personnel may be more forceful than you might be and this route since it can obviously adversely affect the relationship with the homeowner may be pursued only in exceptional cases. If you feel that the homeowner is unlikely to pay what is due you should consider asking Nilka to pass the account to IPG’s attorneys for collection action, including the filing of a lawsuit if necessary. You will be solely responsible for all legal and other collection charges incurred.

    

8.6.4.6 Homeowner deficits Each month IPG ascertains the net balances of all active accounts under your management. Where there is a net deficit this will be deducted from the next payment otherwise due to you by IPG. This deduction of net deficits, where applied, is a concession that may be withdrawn at any time, IPG may deduct each deficit from the monthly payment due and reserves the right to do so. Effective September 2016, any deficit in excess of $5000 as at September 30 2016 will have such excess deducted from the payment otherwise due to the franchisee on October 25th 2016. That ceiling shall be reduced to $4000 in October, $3000 in November and $2000 in December and each subsequent month. For this purpose “deficit” shall include the working capital float. Consequently if a homeowner owes IPG say $3000 and the working capital float is $1000, the total deficit is $4000. Any sums received from the homeowner since the end of the month concerned and the 20th of the following month (ie 5 days before payment is due to be made to the franchisee) may be used to reduce

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the deficit for this purpose. The deficit deduction to be made shall be the greater of the “net deficit” calculated as per the first paragraph above and the total of all “Excess deficits” calculated as per the second paragraph.  IPG encourages you to obtain appropriate authorizations from homeowners so that a monthly deficit may be collected each month either by charging their credit card or by automatic transfer from their US bank account. An addendum to the management agreement is available upon request from Nilka Rubio.

 8.6.4.7 Cancelled Homes

Where a homeowner cancels management IPG shall deduct any deficit on that homeowner’s ledger account from the next payment due to the franchisee. However IPG may by concession defer such deduction until 3 months have elapsed from the date of cancellation to afford you the opportunity of collecting the underlying deficit.

 8.6.4.8 Avoiding Deficits

It is important that you be and remain aware of the state of each homeowner’s ledger account. Before approving bills such as utility bills for payment and before ordering items, replacements, repairs etc for each home you should ensure that there are adequate funds to the homeowner’s credit. In appropriate cases, you should contact the homeowner and require immediate payment by credit card or bank wire transfer to enable funds to be expended on the homeowner’s behalf. Remember that each and every homeowner deficit will ultimately be borne by you to the extent that it proves to be irrecoverable.

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B u s i n e s s A d m i n i s t r a t i o n

Section

9

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 This sectionsets outthe accountingsystemto be usedto operate your IPGfranchise. It gives guidance onthefinancial aspectsof your business and the importance of the differenttypes offees applicable.

  

9. BusinessAdministration  

As part of your Franchise you have agreed to participate in our centralized billing and revenue collection system for IPG Florida Vacation Homes Businesses. Through the billing system, at our option, we will provide certain billing and revenue collection for each Management Account on your behalf. During the term of the Franchise we will handle the billing and invoicing for the management fees, pool and yard maintenance and pest control services you provide through the business and rental fees generated either by you or by us.

 

We will exercise all reasonable efforts, as we consider appropriate to collect amounts due for the services you performed in conducting the business. You recognize that amounts due to you by Homeowners may only be settled by us where there are sufficient funds deposited to cover these costs.

 

We may utilize our experience and policies developed for IPG Florida Vacation Homes Businesses, compromise, settle, discount, factor, write-off, assign to collection agencies or pursue through legal action, all amounts due for services provided by you. We may seek your assistance in carrying out some of these duties. You understand that in fulfilling this obligation, at your expense, we may use other firms and supervise their performance. Unless we give you prior written permission to the contrary, all gross sales must be paid to and be deposited directly with us.

 

In general, IPG will enter into an agreement with each management account under which you will agree to provide property management services on behalf of IPG, and such other services as you and the management account property owner mutually agree. You or we and the management account property owner or its agent will mutually agree on the fees paid to you for the business providing such services. We may require that management account property owners or their designees (like tour operators and other third parties who coordinate or are responsible for payment of rental and other fees paid by vacation rental customers) pay such fees directly to us.

 

In these instances, we will remit appropriate amounts to the property owner in accordance with applicable rental or property management agreements. In instances where we permit third parties to make payments directly to you, all gross sales paid to you or which you receive in connection with the business must be paid to us via electronic funds transfer.

 

We will not keep gross sales from your management business separate from those of other IPG Florida Vacation Homes Businesses; however, we will provide you an accounting of gross sales paid to us in accordance with our policies and procedures for the operation of the billing system.

On or before the 25th day of each month, we will pay to you an amount equal to

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the management profit of the preceding month by electronic funds transfer or such other method as we may decide. The term “Management Profit” means the gross sales we have collected for your management business less:

 

(i) Marketing Fund Contribution;

(ii) Property owners payments;

(iii) Fees (if any) for additional assistance fees;

(iv) Royalties;

(v) The total of all excess deficits

(vi) Reservation fees;

(vii) Amounts due by your Management Account property Homeowners to us in so far as such sums exceed the working capital float held by us;

 

(viii) All other fees or obligations due us under the Franchise Agreement.

 

However, we may choose to receive payment of any fees from, or make payment of any fees to, you in such a way that our doing so would require that we calculate management profit in a different manner, provided that the result is that amounts actually owed to us are paid to, or retained by us, and amounts actually owed to you are paid to, or retained by, you.

 

  

9.1. Computer Systems A separate manual and training session will support the computer system that is utilized for your business. Each Franchisee is responsible for checking and inputting all homeowner bills into the Ciirus computer system.

 

All queries need to be investigated for anomalies and when approved for payment sent to IPG payment slips so they can arrange payment.

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9.2. Invoicing At the close of business each month, invoices need to be raised to IPG for operating fees, cleaning charges and for maintenance work performed. These bills are settled by IPG to the Franchisee on the 25th day of the following month subject to a deduction of all royalties, fees, costs and other expenses due to be paid by the franchisee to IPG and any other off sets that may be appropriate under the franchise agreement

 

IPG will settle approved homeowners bills provided homeowners concerned have sufficient funds deposited with IPG.

 

You may require assistance with this and employ the services of an independent accountant.

 

All sales revenue must go through IPG.  

  

9.3. Management Financial Information IPG will issue a statement each month to each Homeowner and a copy of each statement will be sent to each Franchisee. Where a statement indicates that the Homeowners owe funds to IPG the franchisee will be expected to assist in the collection of these fees.

 

  

9.4. Accounts A statement of receipts, payments and your financial position as at the end of each calendar quarter should be prepared by a suitably competent accountant within 4 weeks of the end of each quarter and submitted to IPG.

 

Within 8 weeks of the end of each calendar year, each Franchisee shall provide IPG with a copy of their Federal income tax return as submitted to the IRS.

 

  

9.5. Sales Tax IPG arranges sales tax return preparation for the homeowners, but reserves the right to charge the franchisee for the time involved in computing and accounting for sales tax for revenue generated by them.

 

The Franchisees need to seek advice from their tax accountant as to their responsibility to register for sales tax and how to account for it.

 

  

9.6. Business Insurance You must insure yourself, your vehicle or vehicles, and all other equipment required in the operation of the IPG Florida Vacation Homes business with an approved insurance company. The level of insurance cover must meet with the minimum standards specified below: -

 

(a) comprehensive insurance in respect of the vehicle or vehicles

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(b) errors and omissions insurance  

(c) liability insurance for risks arising both on your own premises as well as each of the homes that you manage

 

(d) on each policy covering liability IPG Professional Management, Inc. and IPG Franchising, Inc. should be added as an additional insured and a copy provided to Graham Greene on an annual basis

 

(e) workman’s compensation insurance (where appropriate)

(f) office equipment insurance

Check with your accountant as to the value required.  

Each insurance policy must ensure that the interests of IPG Florida Vacation Homes Businesses are noted and that the policy contains a provision that it cannot be cancelled or terminated without IPG Florida Vacation Homes Businesses being given seven days prior written notice of the same and an opportunity to renew or reinstate such cover. Failure to comply with this shall entitle IPG Florida Vacation Homes Businesses to effect such insurance at the expense of the Franchisee.

 9.7. Monthly Marketing Fee

The current monthly marketing fee is 1%  

  

9.8. Payroll Seek advice from your accountant and consider using an independent payroll service such as ADP or Intuit.

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S t a f f A d m i n i s t r a t i o n

Section

10  

Recruitingthe right personnel will ensure smoother running anddevelopment of your businessthefollowingsection will help youto makethe right decisions.

  

10.StaffAdministration  

10.1.Staff Structure The number of staff a Franchisee employs will depend on the extent of which they wish to carry out services themselves or contract work out. With 25 homes it is anticipated that:

• 2 full time people should cope with the services provided (could be Franchisee and spouse)

• A contractor for pool maintenance • A contractor for pest control

 

 10.2.Selection & Recruitment

  

10.2.1. Job descriptions If you do decide to recruit staff then detailed job descriptions are important for any vacancy you may have.

 

Each job description should outline the role and responsibilities of the individual employee and confirm in detail what will be expected.

 

When you are selecting staff, you should discuss the appropriate job description with each applicant to ensure they are fully aware of the role to be fulfilled. At the same time, before offering an individual a position in your business, you must evaluate the applicant’s abilities against the requirements of the job description. You must be certain that the applicant has the skills and experience required to undertake all tasks outlined in the job description.

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10.2.2. Advertising the vacancies When advertising for staff, online websites rather than tabloid newspapers such as the Osceola Sentinel are becoming the choice for many companies. IPG recommends the likes of ewww.monster.com or www.Indeed.com and when considering placing an advertisement you will need to consider: -

♦ The content and size of the advertisement ♦ The timing and duration of the advertising

 

 

Advertisements will need to contain the following: -

♦ A description of the job ♦ The work location ♦ The remuneration package ♦ Qualifications or experience required ♦ The logo ♦ An outline of the business and its unique aspects ♦ Details of who to contact and where, when and how to apply

 

All advertising should be featured in the company style.  

When placing advertisements, issue the publication concerned with a photocopy of the standard format, a bromide of your logo, and the specific text required.

 

  

10.2.3. Handling the applications Depending on time scales involved, it is recommended that you request that all applications are submitted in writing with an accompanying résumé. Alternatively ask the applicants to telephone in for an application form. This way you can assess the immediate quality and number of responses.

 

When you receive the letters, there are a number of fundamental rules for handling applications: -

 

1. They should be dealt with swiftly and efficiently as the right type of applicant may be in the market for a very short time.

 2. All reply letters, whether they are rejections or invitations to interviews,

should be individually prepared on the word processor. Duplicated or photocopied standard letters should never be used.

 3. Letters offering an interview should incorporate a fixed time and date that

can be changed should the applicant be unable to attend.  

4. Enclosed with the letter offering an interview should be a copy of an application form (to be completed by the applicant and returned to you prior to the interview) and a map showing the location of your offices, or the interview location if different.

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10.2.4. The application form If you decide to use this it should be sent to all applicants that you invite to an interview for them to complete and return to you by post or e mail prior to the interview date. With these application forms you will have a standard format for information when conducting the interviews.

 

10.2.5. Conducting the interviews Prior to meeting the applicant, you should study the information contained in the application form or resume. This will form the basis of your questioning. Study the application form to identify areas, which require closer investigation and remember that application forms often contain fiction as well as fact. First interviews should take no more than 45 minutes.

 

Prepare an interview question list. Your questions should enable you to identify:

♦ Career development ♦ Previous responsibilities ♦ Formal business training ♦ Why the applicant left previous employment ♦ The full terms of the applicant’s previous employment ♦ Motives for applying to your company ♦ Reasons for seeking a career change ♦ Success in previous positions ♦ Failures in previous positions ♦ Assessment of his/her strengths and weaknesses ♦ Aptitude for the key responsibilities of the job ♦ Degree of self-motivation ♦ Career goals ♦ Nature of social commitments ♦ Health record ♦ Attitude towards management supervision ♦ Aspects of previous employment enjoyed most & least

 

Interviews should always be undertaken on time and should never be interrupted. You should seat the applicant in a comfortable chair and, where possible, avoid interviewing across a desk. Explain to the applicant the time you have allowed and explain that you wish this to be an open, friendly and informal session. You must put the applicant at ease before beginning the questioning.

 

Commence the interview with a brief outline of the company and the market together with an explanation of the role the position plays in the business. Do not enter into discussions at this stage, if the applicant wishes to ask questions, explain that there will be ample opportunity at the end of the interview.

 

Using open questions, who, what, where, when, why, which and how, move on to the applicant’s career, leaving the matter of school and academic qualifications until later.

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Aim to review the applicant’s work record, successes, failures, strengths and weaknesses for around half the interview time. When asking pre-planned questions, do not rush the applicant. Ask questions in a calm and natural manner and adopt a passive questioning technique. Aim to ask questions, which allow you to sit back, listen and evaluate.

 

Following a review of the applicant’s work record, proceed to describe the job in more detail. Explain where the successful applicant will work, what will be expected from him/her, what training and support will be provided and what start date is required. Ask further questions to explore the applicant’s understanding and aptitude for the role you are describing.

 

The applicant should now be allowed to ask questions, but retain control of the discussion and do not prolong the interview. If any question about remuneration should arise, explain that the package has been featured in the advertisement and that it is your policy not to discuss remuneration during a first interview.

 

Further useful guidelines for conducting an interview are as follows: -

♦ Be an empathetic listener at all times ♦ Do not talk too much - allow around 80% of the available time for your

applicant to speak. ♦ If your applicant is below the standard required, do not prolong the interview.

Explain in friendly terms, why you believe further discussion would not be in your mutual interest, thank the applicant for their time and end the interview.

♦ Remember that the key to what a person will do in the future is almost certainly what has happened in the past. Basic habits and personalities rarely change!

♦ Prior to closing an interview with an applicant you feel will merit further consideration, ensure that: - ♦ Your applicant has no further questions ♦ You explain that you will be considering their application further and will

be in contact in due course (advise a deadline by which you will be in contact)

♦ You inform the candidate of the likely date of a second interview, if offered.

  

10.2.6. Short listing the applicants When you have undertaken all first interviews, you should write to all applicants within 7 days either: -

 

1. thanking them for their time and advising that they have been unsuccessful, or

 2. inviting them to a second interview.

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10.2.7. The second interviews Although the format of this interview is similar to the first, the atmosphere should be considerably more relaxed. Points to remember for second interviews are: -

♦ Applicants should be advised, if this is the final interview, the length of time they will have to wait before learning of the decision on their application.

♦ Prior to the interview, the applicant should be allowed to pose questions that have arisen in their minds since the first interview.

♦ The major part of this interview is to assess the applicant’s aptitude for the job. Questions can be quite controversial, but should all have the same objective - to bring out the real personality and qualities of the applicant. At no time, however, should pressure be applied in the questioning. The interview should be a low key, thought provoking session, which needs careful control.

♦ If this is the final interview, salary and remuneration should be discussed and confirmed.

♦ Confirm that the applicant has no objection to your taking up his references if you were to make a formal offer.

  

10.2.8. Making decisions It is vital that lengthy delay is avoided in reaching a decision on applicants, for two reasons: -

 

1. The candidate, having attended two interviews at least, is anxious to know the result. The applicant’s enthusiasm for the job will wane if a decision takes too long.

 2. The longer you take to make a decision, the more subjective the decision

becomes.

 10.2.9. Letter of appointment

Once you have reached a decision, you should send a letter of appointment. This should contain: -

 

1. Full details of the job offer to include confirmation of salary and/or commission, holidays, etc.

 2. An outline of the proposed induction training

 3. Information about where the applicant should report on his/her first day

 4. The name of the person the applicant will report to

 Plus the qualification:

 

“This offer is made subject to satisfactory business references”

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10.2.10. Verifying the references Few written business references from an applicant’s previous employers will provide you with adequate details about your prospective employee’s attitudes, capabilities and personality. It is more satisfactory, therefore, to make direct telephone contact with the applicant’s present/or most recent immediate line manager.

 

Prior to speaking to your applicant’s previous employer, prepare a telephone checklist. This should include the following questions: -

 

1. What was (name)‘s job status within your company?  

2. What was (name)’s final salary?  

3. To what extent was this salary complemented by other financial payments (Bonus, commission. etc.)?

 4. What do you consider to have been (name)’s major success during his

time with your company?  

5. In which aspects was (name) least successful?  

6. How do you feel about losing (name) from your company?  

7. If the opportunity arose, would you re-employ (name) at or above his present salary?

  

          

Corporate Image  

4. Smart  

5. Clean  

6. Friendly

If you are able to receive clarification on these questions listed above, ask your applicant’s referee if he would confirm these in writing, or acknowledge a letter from you stating these points.  

If your applicant’s business references are satisfactory, write to them to confirm this and to welcome them to the company.  

The recruitment process has now been completed and your new employee is now ready for training.  

  

10.3.Dress & Appearance You must ensure you and any of your employees are always clean, neat and tidy in appearance as stipulated in 11.4 and treat customers with courtesy at all times. You must provide to customers the best possible standard of service so as to enhance the goodwill associated with the IPG Florida Vacation Homes business.  

  

10.4.Clothing & Uniform You must not deviate from the agreed uniform as described in this chapter.

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It is true to say that we are all influenced by first impressions. For however much our views and opinions may alter or moderate through further acquaintance, it is the first impression, which will often determine our responses and reactions.

 

A prospective customer will make a judgment about IPG Florida Vacation Homes on the basis of the person that represents the company

 

The following points should be adhered to: -  

1. Be proud in your teams’ appearance  

2. Clothes should be clean and well pressed  

3. Smile  

4. Give equal attention to the following aspects of your appearance:  

• Clothes • Hair

• Shoes • Teeth

• Hands/Nails • Breath

5. Recognize the importance of good posture

6. Give the impression of confidence

7. Tone of voice should be friendly

The overall personal image should be in keeping with the quality of the IPG Florida Vacation Homes service.

First impressions take only a few minutes to create, but very often many weeks, months or even years to undo, if they have had a negative effect.

 

Hence why our corporate image is so important and must be worn at all times when dealing with customers.

 

The recommended uniform is as follows:  

1. Blue Polo shirt purchased from our designated supplier.  

2. Smart shorts or pants in khaki, which can be purchased directly.  

3. The IPG Florida Vacation Homes t-shirt or sweatshirt should be clean and well kept.

 

The image will identify you as part of the IPG Florida Vacation Homes team and distinguish you from your competition, which is why it is essential it is worn at all times.

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10.5.Employment Terms & Conditions As soon as a new employee commences work, and before he/she attends training, you must get him/her to sign a copy of the confidentiality agreement. This policy is designed to protect you against the misuse of any confidential information or methods by an employee who may subsequently leave your employment. Keep this signed contract in a safe place. A copy of this document is enclosed in the Appendix of this manual.

 

  

10.6.Induction & Training You must not commence operation of your IPG Florida Vacation Homes business until you and your staff have successfully completed the initial training provided by IPG Franchising, Inc.

 

Upon taking on a further employee you must not allow the person to be involved in your IPG Florida Vacation Homes business until he/she has been trained.

 

You must join in and attend any meetings, conferences, training and retraining courses, which shall be deemed reasonably necessary by IPG Franchising, Inc. for the proper conduct of your business.

 

  

10.7.Recognition & Motivation As the principal of the business, it is your task to motivate your staff. There are mountains of books that have been written about motivation so the subject is not covered in depth in this manual. It is generally accepted, however, that there are ten basic needs people want from their job, which affect a person’s motivation.

 

To work for efficient managers To think for themselves To see the end result of their work To have interesting work To be kept informed To be listened to To be respected To get recognition To be challenged To have the opportunity to develop

 In your task of motivating your staff, you will first need to establish what it is that motivates each individual. Money is important to everyone, but it is not necessarily the thing that motivates the individual to achieve more. At the same time, if influencing factors such as working conditions and the general attitude of management are less than desirable, money ceases to have any importance whatsoever - in this situation, the negative factors must be completely removed before any form of motivation will work.

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If any of the following factors exist within a team, motivation will be compromised: -

 

Untruthfulness Absenteeism without genuine reason Laziness The non-attainment of objectives People missing deadlines Disregard for others in the team Casual attitudes Negative attitudes Insubordination

 Having considered the attitudes within the team, which can de-motivate an individual, do not forget your own role in the business. Consider the ways in which you may cause irritation or frustration: -

 

Not fulfilling promises Lack of planning Telling people what to do without explaining why Not giving recognition where it is due Ignoring complaints from staff Giving staff reprimands in front of other staff Unfairness Stealing credit for ideas Expecting a high standard, but setting a bad example Favoritism Being ‘two-faced’ Giving evasive answers to questions Managing through fear

 If any of these conditions are present in your business, problems will be sure to follow. All negative factors must be eliminated.

 

There are a number of practical ways of motivating your team: -  

a) Provide your team with both verbal and written recognition of their achievements

 

b) Design a personal training and development program for each member of your staff

 

c) Keep people informed - take your staff into your confidence on issues which affect them

 

d) Show pride in your team  

e) Take a genuine interest in matters outside your employee’s job, which interest them

 

f) Treat your staff as ‘people’ first and ‘employees’ second.

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Above all, ensure you set high standards yourself, and others will follow - lead from the front!

 10.8.Health & Safety

It is essential that you inform your team that no health and safety issue is trivial and that all concerns should be brought to your attention.

 

Employees have to be equally aware of health and safety such as ensuring pool fences, warning signs, door alarms are in place, and depth signs on pools.

 

Any concerns brought to the immediate attention of management on safety issues will be dealt with quickly. Should the homeowners not co-operate to rectify these issues, then IPG would consider ceasing to provide management services.

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M

         

T i m e M a n a g e m e n t

Section

11  

This sectionincludes details of the skills requiredin boththefranchiseeandthe personnelemployed. It alsohighlightstheimportance of personaltime management, whichis an important part of yourbusiness.

   

 

11.Time Management  

11.1.Attitudes Towards Time anaging your time is crucial and changing your time habits may take a long time, but you need to plan what you are going to do and work at it in order to make it second nature and be successful.

Attitudes are likely to be a ‘character trait’ or part of your personality, so are sometimes difficult to alter, as some are part of our nature. Extremes in the field of ‘attitudes’ mean that a person is suited to one kind of job better than another, but a high proportion of people are ‘Middle of the Road’ in their attitudes.

 In other words, once they are made aware of the importance of a particular attitude, they are perfectly capable of altering it for the better - leading to increased effectiveness in their job. Since attitudes constitute such a vital part in the total anatomy of professionalism, let us consider a few of them:

 Positive attitudes are healthy and negative attitudes unhealthy because:

  Positive attitudes are constructive. While negative attitudes are destructive.

 The positive-minded person thinks first how something difficult CAN be done, the negative-minded person thinks first of all the reasons why it should not or cannot be done. Nothing is so infectious as enthusiasm except the lack of it. Enthusiasm in a child often makes it difficult for a parent to say ‘No’. The same applies in the business relationship.

 Many people are good starters, but bad finishers because they lack the self-

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discipline needed to find a way through the difficulties, which almost always obstruct the achievement of the objectives.

 Without knowing it, a person is rated for acceptability within a few minutes of meeting a new person. First impressions are important and besides appearance; the compounded warmth of manner, ability to smile, carriage, alertness, to name just a few of the factors which contribute to a person’s rating in the eyes of a new person.

 Punctuality is an excellent example of attitude because unpunctual people mostly have this weakness because they regard punctuality as unimportant. It is therefore a typical example of having a good or bad attitude of mind.

 Of course the above ‘attitudes’ are by no means comprehensive - such things as integrity, confidence, sense of humor, all spring to mind.

 Having the right attitude in everything you do will clearly help you in your new Franchise business.

  

11.2.Time for paper work To manage your time effectively you need to:

 

Be aware of how you spend your time each day  

Set priorities so you know what’s important to you and what isn’t.  

Establish goals for your personal, work and family life.  

Plan to meet your goals.  

Develop habits that will help you get what you want in life.  

By knowing how to manage your time wisely, you can reduce pressure when you’re faced with deadlines or a heavy schedule, be more in control and feel better about yourself because you’re using your full potential. It will also allow you to:

 1. Be more professional. 2. Give you time to develop your area. 3. Help you target progress. 4. Speak to more people 5. Cut down on your non-productive time. 6. Have more productive selling time. 7. Make a better-planned business. 8. Acquire more revenue!

 Develop habits that will help you get what you want in life. Find out how you spend your time by keeping a log of everything you achieve in

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a week and evaluate the results, question yourself on:  

1. Did I use my time to its best advantage? 2. Did I arrive at my office at a reasonable time? 3. Did I leave home early enough? 4. Did I make that extra call? 5. Did I always speak to the right person? 6. Was I always prepared for a call? 7. Did I talk too much? 8. Did I plan my day in advance?

 Identify changes needed if you’re not satisfied with the way you used your time.

The trick to saving time is not to work harder, but to work smarter.

Paper work - don’t handle correspondence more than once whether it is internal memos or external, action it, throw it away or file it.

  Telephone calls - set aside special times for making phone calls and have

all the necessary information close to hand.  

Pre-booked appointments - be prepared, check you have all the necessary tools with you and make a list of things to be done when you come out of the appointment.

  Meetings - if managers i.e. Bank or Accountants do call meetings request

them last thing in the day or an early breakfast meeting. Know the purpose of the meeting and be prepared. Be on time.

  

11.3.Delegation Delay is a deadly enemy, but you can beat it:

 Break up work and complete it one or two steps at a time. Large projects can be broken down into small manageable parts.

  Set realistic deadlines for activities you want to see accomplished and stick

to them. Remove distractions if possible and create an environment where noise or

people won’t distract you. Don’t clutter your desk; work on one item at a time.

Ask for help if you run out of ideas, people love to help. Arrive at work on time, ready for work, ready to go. Reward yourself when you achieve the results you want. Delegate jobs that others can do that waste your valuable time

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Managing your time successfully is one of the keys to a successful business with increased productivity, greater personal happiness and more satisfaction at work. Time is precious and irreplaceable so if you can’t, DO delegate!

  

11.4.Scheduling Activities Managing your time is a lot easier once you have the right attitude and decide what you want to achieve. A simple formula for effective use is:

 

  

Schedule time Split day’s work into

Must do Want to do Make time

Every minute productive Waiting to call customers back. Evaluate after each day. Jot down facts and ideas. Allow time To do a thorough job Take time for an effective task. Allow time for delays Don’t over schedule your day Ration time

Divide duties into three groups Most important. Average. Least Important Spend most time completing activities with high potential. Take time

To prepare effectively. To complete the task. To make sales not just calls.

 Plan your time in a SMART way and be dedicated to it, disciplined and determined and you will reap the rewards.

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A p pe nd ix  

 

1. Guest Registration  

2. Work Schedules  

3. Inspection Reports  

4. Maintenance Schedules  

5. Complaints Form  

6. Damage Report  

7. In House Notices  

8. Contact List  

9. Employee Records  

10. Fax cover Sheet  

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S u p p l i e s & S e r v i c e s  

   

Code Item Cost (excl. Tax) $

  Customer Service Fee $50 per hour Minimum charge $25

  Finders Fees POA

  Microsoft Terminal Services POA

  Replacement Manual POA

  Rectification Service $50 per hour. Minimum charge $25

  Emergency complaint Service Fee $50 per hour. Minimum charge $25

     

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A p p r o v e d Ve n d o r s

       

 Pool Services 

 Bluescape Pool Services 

 Rusos Pools 

 Lawn care 

 Irrigation Tech inc 

 Glazing Company 

 Acorn Glass inc 

 Plumber 

 Pat the Plumber 

 R.J.Kielty inc 

 Electrician 

 Palmers Electric 

 Terry’s Electric inc 

 Pest Control 

 Pioneer Pest Control inc 

 Carpet Cleaning 

 Rite Choice Carpet cleaners 

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Blinds  

Blinds Express Repairs 

 Handyman/Painting 

 Noda Enterprises Corp 

 Air Condition repairs 

 Star Air Conditioner & Heating 

 All Star Appliance 

 Appliance repairs 

 Star Air Conditioner & Heating 

 All Star Appliance 

 

  

Business Cards  

Innovative Ink 

 Vehicle Signage 

 Extreme Graphics 

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I nd ex  

     

Additional Training ........................... 12 Adherence to Methods....................... 14 Attitudes Towards Time .................... 59 Attracting Clients............................... 27 Accounts ............................................ 41 Benefits For IPG Franchising Inc ........ 9 Benefits of Franchising For The

Franchisee ....................................... 8 Building Your Business..................... 21 Business Insurance ............................ 41 Client Liaison .................................... 35 Clothing & Uniform .......................... 49 Competitive Advantages ................... 28 Computer Systems ............................. 40 Confidentiality ..................... 1, 2, 15, 50 Corporate Image ................................ 16 Customer Profile................................ 31 Delegation.......................................... 55 Demand For Management Services..... 5 Department of Business and

Professional Regulation .................. 4 Dress & Appearance.......................... 48 Employment Terms & Conditions..... 50 Existing Homes ................................. 34 Glossary............................................. 57 Head Office Contact .......................... 10 Head Office Support.......................... 13 Health & Safety ................................. 52 History & Background ................ ii, 4, 7 History & Background Benefits of

Franchising...................................... 7 Induction & Training ......................... 50 information .......................................... 3 Initial Launch..................................... 26 initial training

training .......................See training Invoicing............................................ 41 IPG Company Growth ......................... 5 IPG Florida Vacation Homes

Objectives........................................ 6 IPG Group of companies ................. 4, 5 IPG Philosophy.................................... 6

Lawn Maintenance............................. 35 Liaison with Guests............................ 11 Liaison with the Office ...................... 11 Maintaining Standards ....................... 15 Management Financial Information... 41 Manual Update.....................................ii Market Potential & Competition........ 28 Market Research ................................ 29 Marketing Fund.................................. 26 Marketing Items ................................. 28 Marketing Methods ............................ 26 Meetings............................................. 12 Monthly Marketing Fee ..................... 42 New Home Set Up ............................. 32 News Letters ...................................... 12 Payroll ................................................ 42 Pool Maintenance and Pool Enclosure

....................................................... 35 Recognition & Motivation ................. 50 Research the area ............................... 30 Restrictions to Usage ...........................ii Sales Tax............................................ 41 Scheduling Activities ......................... 56 Selection & Recruitment .................... 43 Service Provided by IPG.................... 23 Staff Administration........................... 43 Staff Structure .................................... 43 Starting Your Business ...................... 18 Time for paper work .......................... 54 Training Seminars .............................. 12 Use of The IPG Name & Logo .......... 17 Visits & Liaison ................................. 10 Your Function As Franchisee ............ 22 Your Objectives ................................. 24

 

 

                                                                  

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