Franchise Manual

Volume 2 of the Franchise Manuals is dedicated to Business Development. Included in this are recommendations for setting up your business, setting up your financial accounts, the minimum insurance requirements you must have as a BHRC Franchise, how to research and evaluate your local competition in the medspa market, selecting what services you want to offer, what technology you will need to run your BHRC Franchise, merchant account recommendations, resources to help you learn more about running a BHRC Franchise, and the key milestones in the design, build, set-up, and operations of a BHRC Franchise.

Suggested opening checklist for the business and other information to further help develop your franchise:

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Business Setup Checklist

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Your basic financial accounts will consist of an operating account and a savings account. Setting up these accounts with a local financial institution is highly recommended and relatively easy. Below are the guidelines and recommendations for using each account.

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Checking (Operating) Account

Use this account for all operating expenses of the franchise including:

• Payroll
• Credit Cards

You may want to keep a separate account for payroll and another account for credit cards. Consult your accountant.

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Savings Account

Use this account for saving money for unexpected expenses, and from which to pay taxes.

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Your business bank accounts should have the following minimal features/options:

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Transfer between accounts: The bank/financial institution you use should provide the ability to transfer money between the franchise checking and savings accounts online. EFT (Electronic Funds Transfer):

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Supporting Documents

Typically, banks will require that you provide “Articles of Incorporation” or management agreements. If they require something that we have not provided, contact the franchise office and we will immediately provide any needed support materials.

There is minimum coverage required by BHRC Franchising, LLC. The franchisee is encouraged to discuss higher coverage levels with their own risk management advisor. Recommended minimums are found in your franchise agreement, but the insurance standards are set forth in this manual. Please check these amounts before embarking on any new center. You must have insurance on the new center during its development and construction stage.

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The coverage in this manual represents the absolute minimum in insurance necessary for your center location. You may not reduce the policy limits, restrict coverage, cancel, or otherwise alter the insurance policies required without our advance written consent. Additional insurance may be required by the landlord or location in the signed lease.

Recommended minimums are:

• Malpractice Min: $1,000,000 per occurrence, $3,000,000 aggregate
• Commercial General Liability: each occurrence - $200,000
• General Aggregate Limit: $600,000
• Products/Completed Operations Aggregate Limit: $2M
• Personal and Advertising Injury Limit: $1M
• Fire Damage Legal Liability Limit any one fire: $1M
• Business Personal Property: value
• Tenant Improvements: value
• Business Income Coverage: 50% of annual gross sales
• Cyber Coverage: $1M/$1M
• Automobile Liability: $1M/$1M
• Worker’s Compensation: Statutory
• Employers Liability Bodily Injury: $500,000/$500,000/$500,000
• Employment Practices: $500,000/$500,000
• Professional Liability: $1M/$2M
• Abuse and Molestation: $1M/$2M
• Umbrella Liability: $2M/$2M

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The coverage listed above represents the absolute minimum insurance necessary for your center. You may not reduce the policy limits, restrict coverage, cancel, or otherwise alter the insurance policies required without our advance written consent.

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When selecting a location for your BHRC, investigate locations of other Medical Spas. Learn where there are other locations that offer any and all of our services:

• Hormone Replacement Therapy
• Hair Restoration
• Ultherapy (non-surgical skin tightening)
• Laser Treatments
• Injectables
• Weight Loss
• Body Contouring
• Facials
• Medical Grade Peels
• Medical grade skin care products
• Supplements and nutraceutical products
• CVAC Hyperbaric Chamber
• Novothor PMB Light Pod
• Hair Restoration
• Stem Cell

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Your proximity to competitive services may or may not be an issue since under some circumstances, similar businesses in one area signal to the consumer that it is the “go to” neighborhood or building for Medical Spa services. Call us to discuss this if you find a location of interest which has competing services nearby.

NOTE: Save your competitive research from your site selection analysis: it will be the basis for important pricing research once your site is selected.

We offer a wide range of services. To help you learn more about our services, we are providing you with a table of all of our services below along with a summary of what that service does and a link to our website page where you can learn more about each particular service.

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There are a variety of programs we use to run a Beverly Hills Rejuvenation Center clinic. We refer to those programs as our "Tech Stack" and include programs that handle accounting, patient services/sales, lead management, marketing, lab testing, and much more.

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Our preferred Patient Management system, PatientNow offers it's own merchant services called RX Payments. Their services have been designed to drive revenue, reduce operational costs, and accelerate innovation. Features of their services include:

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Competitive Pricing

• Exclusive wholesale pricing of Interchange Plus 40% for all card types
• NO transaction fees
• NO monthly platform fees
• NO PCI fees
• Unlimited free usage of newest features
• Secure Pay for cards on file & membership programs
• Cherry Patient Financing integration with 80%+ approval rates to increase consultation conversion
• Membership Module to increase per-patient spend by 2-6x
• Loyalty & Award Points to increase treatment activity & reward loyal patients

Payment Terminal

• Pax A920 Pro Payment Terminal features the flexibility of Wifi enabled wireless functionality
• Smart Technology including card capture even when Wifi isn't available

Additional Features

• Single Source Solution - only one number to call for all your needs & support
• Card Present & Card on File - accept payments on-site via credit card or via card on file
• Pay-in-Room - increase revenue & patient volume by accepting payments in the treatment room
• Text-to-Pay & Email-to-Pay - simplify the check-out process & enhance the overall patient experience in your practice

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PatientNow/RX Payments Contact

Todd Lococo

Integrated Payments Lead

(636) 728-8411

tlococo@patientnow.com

Suggested Reading

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General Business

Inc. Magazine

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Small Business

Small Business Administration

Forbes/Small Business

National Small Business Association

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Suggested Reading

“The 100 Best Business Books of All Time” by Jack Covert (On Amazon)

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HR Resources

Equal Employment Opportunity Commission (EEOC)

National Labor Relations Board (NLRB)

Society for HR Management (SHRM)

OSHA

Department of Labor

When it comes to successful opening of a Beverly Hills Rejuvenation Center, having a clear plan is essential. Taking the steps and breaking them into Milestones will help the process move along in an organized fashion. Creating a timeline is also recommended so that tasks can be tracked and monitored for progress. Additionally, it’s important to research the competition — their services, market trends and other relevant information — which will assist you in forming an effective strategy for your own business. Taking these steps into account will help ensure that when it comes time to open the clinic, everything is ready to go and you have a solid foundation to build on.

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Sample Milestones

1. Create Business & Financial Plan
2. Franchise Application Complete & Approved
3. Facility Design & Contractors Approved
4. Construction Starts
5. Services Selected
6. FFE Ordered
7. Operational Documents Produced
8. Begin Advertising Employment Opportunities
9. PatientNow Set Up
10. backstage Tracker Set Up
11. Staff Interviews Begin
12. Marketing Collateral Developed
13. Pre-sales Begin
14. Launch Party Pre-planning
15. Construction Complete / BHRC Corporate Inspection
16. Launch Party
17. Regular Operations Begin