Post on 12-Jul-2020
AMIT PAMECHA, CFECEO and Co‐Founder/ FranConnect and Captivate
Introducing the ABC’s of Franchising
ART COLEY, CFEVice President Global Development / AlphaGraphics
BOB GAPPA, CFECEO & President | MANAGEMENT 2000
CHUCK JONES, CFEVP, FRANCHISE DEVELOPMENT | SOPRA BRANDS
HOUSEKEEPING
• Please put your cell phone ringer on “Silence”
• For any questions for the Presenters to beFor any questions for the Presenters to be discussed during the session, please SMS/ Text them to 703‐328‐1546them to 703 328 1546
The New Normal
Fewer Qualified but Motivated Leads
h ll i i f i iChallenging Environment for Financing
Too Many Franchise Concepts
Franchise Performance Matters!
A Different Approach to Recruitment is NeededA Different Approach to Recruitment is Needed
The State of Franchise Recruitment
Recruitment Budgets are Declining ‐ $40K
Top Categories ‐ Internet, Referrals, Brokers, Print Ads, Trade shows, ,
Internet Focus – Enhanced Website, SEO, Social Media, Internet Portal
SIMPLE MATH
d l• Leads to sales – 1%
• Qualification Application to Sales – 12%
• Average Cost per Lead ‐ $60
• Average Cost per Sales ‐ $8000Average Cost per Sales $8000
• A system looking to close 50 deals on average needs $300K $400K in recruitment budgetneeds ‐ $300K ‐ $400K in recruitment budget
The New Normal Requires you to Discard the Traditional Approach of Throwing Money at the
Problem and Hope that it will Magically get Solved!
Some Ideas for 2011 and dBeyond
CREATIVE LEAD GENERATION
• Exhibiting at Career Fairs• Marketing to Professional Players• Marketing to Professional Players• Military and Veteran Recruiting• Co‐Location• Signs in Empty Store‐Fronts• Travelling/ Business Opportunity Seminars• Local TV and XM radio • Leveraging Dead Leads
ENHANCING YOUR FRANCHISE DEVELOPMENT WEBSITE
• 100% of your prospects will do their due• 100% of your prospects will do their due diligence on the Internet
• Attractive Franchise Development Site thatAttractive Franchise Development Site that Generates Emotional Attachment
• Make the messaging easy to understandg g y• SEO• Google AnalyticsGoogle Analytics• Weekly/ Monthly Reports
FINANCING
• Have a Clear RoadmapWh i i– Who are you recruiting
– How much money will they need
– What will be credit score, net worth requirements
– Create a Bank Credit Report
• Financing is as much your responsibility as the candidate’s
ART COLEY, CFEVice President Global Development / AlphaGraphics
ALPHAGRAPHICS ANDALPHAGRAPHICS AND“THE NEW NORMAL”
THE NEW NORMAL
• Recruitment ProcessM i f i h f d– More information on the front end
• Item 19
• Strategic Documents• Strategic Documents
• Zee Surveys
THE NEW NORMAL
• Recruitment ProcessDi D– Discovery Day
• Expanded from 1 ½ to 2 ½ Days
• Reimburse up to $1K• Reimburse up to $1K
• Step 4 in 6 step process
– Recruit peak performing franchisees– Recruit peak performing franchisees• A franchise agreement is worth $1million in royalty
– Know your numbers
THE NEW NORMAL
• TeamI d k l d / b i i 1st– Industry knowledge / business experience 1st
– Increase recruiting time:d d i i i ffi i k ( i• Reduce administrative, efficiency work (CRM, mapping,
appointment setting) so recruiters spend more time sellingg
– Decentralize
THE NEW NORMAL
• OperationsD fi i f O i– Define triggers for move to Operations
• Hand‐off Call– Complete file to Operations Team:– Complete file to Operations Team:
» 90 minute call
– This provides clarity to new Franchisee and Operations Team
– Signed Franchise Agreement, fees paid, bank letter, profiles, history, etc.
MARKETING
• No more “Silver Bullet”
l h l / d• Multi‐channel / cross media recruitment strategy
– Utilization • Social media • Webinars
E h d b it• Press release• Internet• Broker network
• Enhanced website• Group calls• Tele‐appointment ProgramBroker network
• Referrals• Print media
pp g• Franchise Shows• Mini Discovery Days
PROFIT / FINANCIALS
• Re‐sale program
• Conversions
• Financing relations with lenders
• Mergers / Acquisitions
• Exit strategy planningExit strategy planning
• Understanding the cost of a closure
d fl• Red flag center saves
Before enlightenmentf gchop wood, carry water.
After enlightenmentf gchop wood, carry water.
TOP 10 DO’S & DON’T1. Decentralize
2. Focus on right metrics with owners / management team
3. No more “Silver Bullet” / Sophisticated multi‐channel cross‐media / pintegrated lead generation plan
4. The right Development team
5 Financing department / solutions5. Financing department / solutions
6. Unit economics / franchisee validation
7. Don’t be reactive be proactive with finding candidates
8 R li ti b d t R li ti l8. Realistic budgets. Realistic goals
9. It’s all about how they buy not how you want to sell
10. You have got to know what your opportunity really can deliver. Value Proposition
11. Get involved / have mentors / have advisors / don’t be a lone ranger
12. Invest in training / skill developmentg p
BOB GAPPA, CFECEO & President | MANAGEMENT 2000
HOWMANAGEMENT 2000 HASHOW MANAGEMENT 2000 HAS ADAPTED TO
“THE NEW NORMAL”THE NEW NORMAL
TECHNOLOGY
k h k• Makes the Decision Making Process more personal, relevant and more immediate– Websites
– Virtual Brochures
– IT Platform
GETTING THE PROCESS CORRECT
h d h h ?• Who does what…when?
• What is done and how?
• Where, when and why it is done?
• What does everyone need to know and do toWhat does everyone need to know and do to make their decision?
WELL TRAINED AND COMMITTED PEOPLE
h d f h• Without deviation from the process
• Measuring success against benchmarks
• Evaluating results
• Making changes to improve resultsMaking changes to improve results.
IT’S ABOUT THE CANDIDATE
l l l• Personal Goals Drive Business Goals
• Short and Long term personal goals
• It’s about relationships
• Determining the profile[s]Determining the profile[s]
3 PHASES OF DECISION MAKING PROCESS
• EMOTION over Intellect
• INTELLECT over Emotion
• EMOTION over IntellectEMOTION over Intellect
EFFECTIVE TOOLS & TECHNIQUES
l f l• Qualification Specialist
• Recording “Value Building” Process
• Decision Making Checklist
• ILWEDILWED
• Structured Due Diligence
Public Web
The KEY is to find a business where I can achieve my ILWED™ Personal Goals
Site
Convert
The KEY is to grant a franchise to a person or entity who will help us b ild th BRAND
Step 1Qualification Step 2 Step 3 Step 4 Step 5 Step 6
Convert
The Discovery & Qualification Process [VB]The Candidate
The Grant of the Franchise
build the BRAND
Qualification Specialist
Step 2 Step 3 Step 4 Step 5 Step 6
The Management 2000 system, processes, designed experiences, email campaigns videos “Go To Meeting Face To Face Meetings
The CandidateGoes throughthe Discovery& QualificationProcess
a c se
email campaigns, videos, Go To Meeting, Face‐To‐Face Meetings, Tool, & Techniques, Forms, Email Interactions, etc.
The Captivate© FranConnect IT Integrated Platform
January 5, 2011
CHUCK JONES, CFEVICE PRESIDENT DEVELOPMENT | SOPRA BRANDS
WHAT IS FRANCHISING?
Being in business for yourself, but not by yourself
– RAY KROC, Founder of McDonalds
FRANCHISING IS RELATIONSHIPS
• With your franchiseesMaximize Your Relationships• With your franchisees
• Within your own organization
• With peers and other franchise professionals
• With vendors
• With our customers
• With the IFA• With the IFA“Isn’t it great WE aren’t in business by ourselves!”
ENGAGE YOUR FRANCHISEES• Need satisfied franchisees to develop
• Get them excited about growing the system• Get them excited about growing the system– Increases brand awareness– Increases value of their business– Referral programs– Thank & recognize them for their efforts
• Involve franchisees in your discovery process• Involve franchisees in your discovery process– Weekly hosted franchisee calls– Due diligence calls– Discovery Day– Testimonials from brand ambassadors
“ALL HANDS ON DECK”
• Everyone in your organization must be committed to growth and understand the truecommitted to growth and understand the true value of their contribution
• Everyone must be excited to do whatever it takes• Everyone must be excited to do whatever it takes to bring in a new franchisee
• Big differentiator for prospects• Big differentiator for prospects– See the importance of your franchise network
R i f th i ifi f l ti hi– Reinforces the significance of relationships
• It will increase your closing ratios
IDEAS ARE ALL AROUND US!
• Network and share best practices– Leave here with at least 3 great new ideasLeave here with at least 3 great new ideas
• Try new things and track results• Have an open mindHave an open mind• Market has changed – we must evolve too• What worked before may not be enough today• What worked before may not be enough today• What didn’t work before may work now• Create and implement a new development strategy• Create and implement a new development strategy• Be positive – 2011 could be your best year!
SOLID FUNDAMENTALS
• Be responsive and show you care
E t Di P i• Ensure a great Discovery Process experience
• Expand your lead generation portfolio– Broker relationships – Virtual brochures
– Website – Print
– Portals – Lists
– Job fairs – Open house events
d h l d– Trade shows – Social media
– PR strategy – Referral programs
NOW IS THE TIME TO GROW!• Take your game to the next level• Implement a new development strategyp p gy• Others may not be as focused and may have cut back on their development efforts and spending
• Involve your franchisees• Involve your franchisees • Involve your entire organization• Network with fellow franchise professionals and pvendors
• Share “best practices”• Try new things• Try new things• No excuses – just get it done!
TOP 10 LIST1. Be responsive2. Ensure a great Discovery Process experience3. Network, build relationships and share best practices with
franchisors, vendors, suppliers and IFA members4. Be open minded and try new things5. Revise your lead generation strategy6. Involve your entire organization in your Discovery Process7. Involve your franchisees in your Discovery Process7. Involve your franchisees in your Discovery Process8. Track results and make decisions accordingly9. Utilize technology10 St iti i t ti t h f b t10. Stay positive – now is a great time to have one of your best
franchise development years!