OLD MUTUAL MASS AND FOUNDATION CLUSTER...MFC Franchise contracts to Franchise Service Providers...
Transcript of OLD MUTUAL MASS AND FOUNDATION CLUSTER...MFC Franchise contracts to Franchise Service Providers...
OLD MUTUAL
MASS AND
FOUNDATION
CLUSTER
Franchise
Distribution
Channel
PRESENTATION TITLE
CONFIDENTIALITY CLAUSE
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This presentation contains
confidential proprietary
information intended solely for the
information of the attendees of
this session. All information shared
during this presentation remains
Old Mutual's property and may
not, without Old Mutual's express
written consent, be used for the
attendees’ own benefit or gain
and may not be divulged to any
other party.
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MFC Franchise
PRESENTATION TITLE
TABLE OF CONTENTS
Introduction
Are you ready for an exciting journey
MFC Franchise Vision
The Concept
The benefits of partnering with Old Mutual
Target market definition
Our Product Offering
Support provided by Old Mutual
Marketing and Branding
Compliance
The Franchise Structure
Responsibilities of a Franchise Service Provider
The Profile of a Franchise Principal
FSP Remuneration Structure
FSP Value Proposition
The Profile of a Franchise Agent
FA Remuneration Structure
FA Value Proposition
Differences between AFD and MFC Franchise
Value Proposition Summary
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MFC Franchise
PRESENTATION TITLE
WHY SHOULD I INVEST IN STARTING MY OWN MFC FRANCHISE?
What is a MFC Franchise?
A MFC franchise is a company that trades under the OM License and recruits, manages and supports suitable qualified people who can provide financial advice to customers in the Retail Mass market.
Why should a MFC franchise do this?
Old Mutual’s vision is to be the leading provider of primary financial services solution in South Africa by:■ Offering our clients access to value for money financial services advice,
products and ongoing service that meet their needs.■ We want to do this by running a cost-effective, highly productive and
sustainable business.
And that’s why we want to work with entrepreneurially minded individuals who have a passion for providing clients with good financial services advice!
We believe that by partnering with the right individuals we can add value to our clients’ lives by bridging the gap between their resources and their financial needs.
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MFC Franchise
PRESENTATION TITLE
MFC FRANCHISE VISION
To facilitate economic
transformation through the
promotion of entrepreneurship
and broad-based access to the
financial services sector. To be
the employer of choice and
most profitable and sustainable
channel within the Old Mutual
Mass & Foundation cluster.
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MFC Franchise
PRESENTATION TITLE
THE CONCEPT
The Franchise business unit (MFC Franchise) is a sales distribution channel within
the Old Mutual (OM) Mass and Foundation Cluster (MFC).
MFC Franchise contracts to Franchise Service Providers (FSP) to sell a range of risk, retirement, and savings products under the OM license.
The FSP is managed by a Franchise Principal (FP) who may or may not have equity in the FSP (i.e. the FSP may be owned by a 3rd party).
The FSP recruits Franchise Agents (FA) who are trained and accredited to sell prescribed OM products. The FA contracts directly with and is paid by OM but
managed by the FP.
The FSP is responsible for meeting FA recruitment and sales targets, compliance,
practice management, finance and administration.
The MFC Franchise ‘Hub’ is an operational centre from which business
development managers and operations staff manage and support FSPs.
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MFC Franchise
PRESENTATION TITLE
THE BENEFITS OF PARTNERING WITH MFC FRANCHISE
We understand that choosing between working for one of the big financial
services companies or braving it alone is an agonising risk vs. reward decision. Its
no secret that start-ups face many difficulties. Starting your own MFC franchise has
many benefits:
Entrepreneurial independence.
Operate under the Old Mutual Financial Services Provider license.
Being associated with South Africa’s most trusted financial services brand
Working with a company that has been providing customers with financial services for more that 160
years
Excellent financial returns linked to sales productivity, including:
Management fee structure
Earn % of agents’ commission
OM pays your Franchise Agents directly
Marketing support
Compliance support
Processes and systems support
Ongoing product training and support
Procedure and operations manual
A competitive product range than meets all our customers’ needs
Financial support for existing business looking to switch to Old Mutual MFC
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MFC Franchise
PRESENTATION TITLE
TARGET MARKET DEFINITION
Private Sector Focus
2.8 million individuals (R6 000 – R19 500 monthly personal income earners)
Living Standards Measure (LSM)’s 6 to 8, aged 18-64
18 to 64 year olds age distribution:
18 – 24 (15% Young); 25 – 29 (15% Starters); 30-44 (36% Builders); 45-59 (22%
Pre-Retired); 60+ (12% Retired)
51% Female, 49% Male
Skewed towards private sector employment
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MFC Franchise
PRESENTATION TITLE
OUR PRODUCT OFFERING
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Product Product
SAVINGS RERERRALS
Retirement Plan IWyze
Education Plan OMF
Investment Plan
Single Premium Investment Plan
GREENLIGHT(Underwritten) Limited-Medically Underwritten
Comprehensive Disability Benefit Standard Funeral Plan
Accidental Disability/Death Benefit Value + Funeral Plan
Comprehensive Physical Impairment Benefit Accidental Death and Disability Plan
Greenlight Death Benefit Life and Disability Plan
Greenlight Accidental Death Benefit Pure Life Plan
Severe Illness Plus (Core) Benefit
Severe Illness (Core) Benefit
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MFC Franchise
PRESENTATION TITLE
SUPPORT PROVIDED BY OLD MUTUAL
Access to world class products
Above the line marketing
Product training & accreditation
Brochures & sales tools
Fast, effective systems & process support
Procedure and operations manual
Onboarding of new FSP’s
Branding support
Old Mutual Financial Services Provider
licence
Compliance services
Assist in managing your business plan
Each Franchise has a dedicated regional
manager
Support recruitment and selection process
of franchise agents
Reporting
Management Reporting
Commission Related Reports10
MFC Franchise
PRESENTATION TITLE
MARKETING AND BRANDING
BRANDING
Dual branding principle
FSP must adhere to the OM brand
guidelines
Annual brand audit
MARKETING
OM will provide marketing material
Above the line marketing support
(Advertising)
Franchisee can have their own
website – must be compliant with
OM branding requirements
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MFC Franchise
PRESENTATION TITLE
COMPLIANCE
The compliance services will
be outsourced to Masthead
Masthead fees are payable
by Old Mutual
Monthly audits will be
conducted by Masthead
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MFC Franchise
PRESENTATION TITLE
MFC FRANCHISE STRUCTURE
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Old Mutual MFC
FranchiseFranchise Service
Provider
Agreement
Franchise Agents
Franchise
Agent Mandate
Agreement
Franchise Services Provider
Franchise
Principal
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MFC Franchise
PRESENTATION TITLE
FRANCHISE SERVICE PROVIDER INFORMATION
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MFC Franchise
PRESENTATION TITLE
FRANCHISE SERVICE PROVIDER RESPONSIBILITIES
Develop annual business plans and achieve
the targets set in these annual plans
Recruit & supervise franchise agents
Ensure that the agents are computer literate
and can utilise a calculator (perform
calculations)
Provide acceptable working conditions
Office setup (IT and telecom hardware,
furniture, etc)
Marketing – website, business cards, etc
Promote Old Mutual brand
Satisfy ‘Fit & Proper’ requirements
Effective Practice Management
The FSP is responsible for its own company
secretarial, legal, tax and audit requirements.
Adhere to regulatory requirements (such as
occupational, health and safety)
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MFC Franchise
PRESENTATION TITLE
PROFILE OF A FRANCHISE PRINCIPAL
So, could I become a successful Franchise Principal?
If you are someone who is interested in having your own company that
provides financial services…
Someone who has experience in the life insurance industry and that has a
good client base…
Someone who is entrepreneurial…
If you are someone who would be good at running a business…
And will be able to recruit and motivate a sales force
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MFC Franchise
PRESENTATION TITLE
ENTRY CRITERIA OF A FRANCHISE PRINCIPAL
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Financial services industry sales experience
Experience in general management and
building business teams
Demonstrate ability to manage a
budget/financials
Demonstrate ability to recruit
Demonstrate ability to manage people
FAIS accredited and Fit & Proper
Must have relevant qualification (that
exempts the candidate from the FSB
qualification list) or 120 credits
Passed RE 5 exams
Honesty and integrity
FP must be able to supervise immediately
Passes credit checks
MFC Franchise
PRESENTATION TITLE
FINANCIAL VALUE PROPOSITION
As with any business, profit is generated by maximizing revenue and keeping
expenses in check.
As a MFC franchise principal you will be in the business of
recruiting franchise agents and
motivating and supporting them to
find prospective customers,
provide good financial advice and
sell Old Mutual products that meet these customers’ financial needs.
Franchise agents receive commission for providing these services. As the
business purpose of the Franchise Service Provider (FSP) is to develop and
manage successful agents, the service fee Old Mutual will pay the FSP will be
related to commission the agent receives.
In addition, the agent and FSP may agree to a commission sharing
arrangement in exchange for the infrastructure and other support the FSP
provides the agent.
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MFC Franchise
PRESENTATION TITLE
FRANCHISE AGENT INFORMATION
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MFC Franchise
PRESENTATION TITLE
PROFILE OF A FRANCHISE AGENT
Matric
Computer literate
FAIS accredited and Fit &
Proper
Must have relevant
qualification or 30 FAIS
credits. Preferably 60 credits
to enable the Agent to sell
the full suite of products
Appropriate RE 5
qualification - RE must be
obtained based on date of
appointment in industry
No RE exempt candidates
will be considered
Honesty and integrity
Pass credit & criminal checks
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MFC Franchise
PRESENTATION TITLE
FRANCHISE AGENT VALUE PROPOSITION
Remuneration Structure
Franchise Agent will be paid monthly directly by MFC Franchise.
Franchise Service Provider and Franchise Agent (FA) can sign an agreement
where a percentage of normal commission of the FA be paid to the Franchise
Service Provider in lieu of infrastructure and services made available by the
Franchise Service Provider
Percentage commission paid to Agent dependent on agreement between
Franchise Service Provider and FA
Franchise Service Provider provides the following –
Office space
Laptops and other sales tools (require laptops Greenlight)
Supervisory services
Management & advisory services
Surety
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MFC Franchise
PRESENTATION TITLE
VALUE PROPOSITION SUMMARY
■ Old Mutual MFC’s vision is to be the leading provider of primary financial services solution in South Africa. We believe that by working with entrepreneurially minded people who are passionate about financial services we can provide our customers with great value
■ If you are such a person we want to work with you and believe that our franchise offering provides you an ideal business opportunity:
The backing of South Africa most trusted financial services brand
Initial and ongoing training an support
Excellent service fee structure
Aligned to agent performance
Rewards for providing quality advice and service to customers
■ A compelling financial value proposition
A typical franchise should be able to generate over R1.5m in revenue p.a. (excl. bonuses) and over R500k in profits p.a. once its fully manned (illustrative projections)
Support for existing businesses looking to switch to Old Mutual
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MFC Franchise
PRESENTATION TITLE
INVEST IN THE RIGHT
PARTNER.
LET THE JOURNEY BEGIN
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MFC Franchise
THANK YOU
Old Mutual is a Licensed Financial Services Provider
THANK YOU
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