Restoration Rewind

Delta Development Group Monthly Newsletter

April 2015

Convention Wrap Up

All the planning and scheduling and it’s over before you know it. The 3rd Annual Franchise Convention is now in the books, and it was definitely the best convention yet.

We had speakers, demonstrations, dogs, explosions, awards, tons of food and most

importantly we all got to spend great networking time together as a franchise group.

The beautiful Golden Hotel was the setting of this year’s event. Backing up against the

beautiful city of Golden, it was a great place to hold our meetings

We quickly jumped right in and got down to business, opening the convention up with the “State of Delta” address from President Michael Mastous and V.P. of Operations, Dixie Feld. They gave us a great breakdown of what the franchise system has accomplished over the last year, what the franchisor is doing to increase units into the system and improve franchisee support. Dixie also broke down how royalties are spent

and what we are investing in for the future. Finally the group was given a highlight of the plans for 2015. Our franchisor business plan runs from April to March and we are looking forward to jumping in to that.

After business it was time for some fun. We were fortunate to be joined by some excellent, nationally known speakers and first up was Mr. Mark Campbell and his arson dog Bandit. She is a beautiful dog and is brought on scene for fires in the city of Wheat Ridge. We learned a lot about how she is trained and how that very specific training is put to work in the field. And then we got to see her in ACTION!

Bandit definitely stole the show. She is very well trained and

always on the job. She carries a piece of fire hose with her

everywhere she goes and will let anyone who wants to be the

throwing end of fetch, give it a try.

After our time with Bandit, we moved outside. Again under the knowledge of Mark Campbell, we participated in live burn scenarios. We watched as scaled living rooms were burned, replicating a house fire. In one fire cell, the room was completely burned which is called “Flashover”, the second was only partially burned. As restoration contractors we arrive on fire scenes typically right behind the fire department. This demonstration gave us great insight into what a fire does inside a home and how we can assist their duties and hopefully make our jobs easier as well.

The afternoon was kicked off with Mr. Robert Toth, an internationally known Fire Investigator. He reviewed one of his top cases with us, an arson fire involving multiple fatalities. We were able to see a fire from his perspective and were given great insight into the items and timelines that he follows in order to try and determine the cause and origin of the fire. He also gave great details into questions for us to ask and different items to pay attention so that we aren’t disturbing his active scene.

The afternoon was also filled with explosions. Mark Campbell, showed us some great demonstrations on how the mixing of harmless chemicals in your home can cause much larger explosions and dangerous gases.

And finally the day was brought to a close with Peter Marxhausen, a structural engineer who spoke about the rebuild portion of our restoration world. He delivered great information on the structural items that have to be taken into consideration when a home burns. How much of the structure was burned, how hot it was in the home, and the coding issues that could arise throughout the course of the rebuild.

Our three speakers were gracious enough to take part in our convention at no charge. To repay them for their generosity, Delta Development Group made a donation to a charity of each speaker’s choice. Donations were given to K9Fire.org, The Gary Sinise Foundation and Saddle Rock Elementary Schools. We were very happy and grateful to have these gentlemen be a part of our annual convention. We see a great working relationship with each of them in the future.

Day 2 was equally packed with equipment and product demonstrations from Interlink. We were also fortunate to have two representatives for Xactimate join us and speak about their mobile application and contents software. All was very informative. Saturday also marked the end of the convention and the awards banquet. Each franchisee was given a great plaque to mark their attendance at the conference and 2 special awards were given to select franchisees. Delta Disaster Services of Western Colorado was given the Rookie of the Year Award and Delta Disaster Services of Palm Beach was given the Urie Award.

All in all the convention was a great success. It was fantastic to have most of our offices in the same place at the same time. We are already planning and looking forward to next year!

SEE YOU THERE!!

Cash in the Door

Based on February Royalties…

Delta Disaster Services of Southern Colorado does it again! Congratulations to Emmis, Rosey, Tiffany and Crew on some great collection efforts that exceeded $130,000 cash in the door!

Franchise Awards

We all set goals, and we all try to achieve them in business as well as in our personal lives. Within our franchise family we want to recognize those franchisees that stand out. We have three points of recognition that may or may not be awarded on an annual basis. Let’s review the three awards in their criteria area

ROOKIE OF THE YEAR - This is an important first year award. Not only does the new franchisee into the system have to be compliant, but they also need to be meeting their financial objectives.

• Outstanding new franchise. • Follow’s the “System” • Financial Goals all met

URIE AWARD - All our franchisees are entrepreneurs! Many of them bring great ideas to the table that are often implemented into the franchise system. We look for that one significant idea or addition that stands head and shoulders above the rest. It is not always easy to determine

which idea had the most significance within the overall system. Because many great ideas are offered throughout the year.

• Thinking outside the box and Entrepreneurialism

MVP – MOST VALUABLE PLAYER AWARD - The MVP award is the most valuable award that a franchisor can present to franchisee. It encompasses, at a minimum, the noted items below. This franchise owner represents everything that the Delta Disaster Services brand represents. When we recognize the MVP, we say this is the leader that you need to follow in every facet! It’s not an easy award to give out, and it is not an easy award to live up to. For 2014 we did not have one specific owner that met all the criteria. We look for that award to be given in 2015. This is a challenge to all franchise owners.

• Follows the System • Support to other Franchises • Meeting Sales Objectives • Owner’s Involvement in Marketing

Marketing for the Future

Are you in the construction industry? Do you know someone who is? Delta Disaster Services is an excellent franchise opportunity for those that are looking to expand their current construction business and reap the benefits of being a part of a great franchise system. Why Delta Disaster Services, we can help you:

BUILD YOUR FUTURE…

Years are spent building a construction business. Your business is successful and profitable. Yet, there are two questions you may not have asked yourself:

1) When you’re ready to retire, will your business be marketable?

2) Are you maximizing your current situation (personnel, assets, and relationships)?

By adding a Delta Disaster Services franchise to the mix, you’ll answer ‘yes’ to both questions.

Advantages of owning a Delta Disaster Services insurance restoration franchise:

• Recession-resistant industry • Outstanding, continuous support at every level • A proven system to succeed in insurance restoration • You’re building a national brand while diversifying your assets • Excellent profit margins in both emergency services and reconstruction

Inc. Magazine and Qualified Remodeler Magazine have consistently recognized our success story. Learn why others in the construction trades—owners just like you—have chosen to add a Delta Disaster Services franchise.

Delta Disaster Services is a unique franchise that allows builders to bridge success in construction with the recession-resistant world of insurance restoration. We offer a one-stop source to property owners for all of their insurance claims needs–from initial emergency services to complete reconstruction. Successful contractors use our system to maximize revenue potential while building a nationally-recognized brand as part of an eventual exit strategy.

DIVERSIFY YOUR PRESENT

You’ve heard the saying, ‘Don’t put all of your eggs in one basket’. But, are you doing just that with your construction business? You have relationships, personnel, and assets that probably could be working harder for you. A Delta Disaster Services franchise allows you to add a new revenue source to an already solid business. Plus, you’ll be entering a $200 billion, recession-resistant industry.

If you are reading this and you are interested or know someone who might be interested in finding

out why a Delta Disaster Services franchise is a great business decision for a general contractor or licensed tradesperson visit our website at www.delta-us.com there is plenty of information available there and you can join our mailing list to receive this newsletter, franchise literature and much more. You can also call us at 1-(866) 746-0638 and speak directly to someone who can answer all of your questions.

Finances, Finances, Finances…

Have you had a chance to digest the financial information provided to each franchisee at the convention? This would be the one page of data given to you at the Saturday morning owners meeting. The information, again, was taken from your provided financial information and compared to the system as a whole, plus where your targets need to be. This document is your road map. We have told you where you are and where you need to be. Now you need to know how to get there!

In order for us to guide you, you need to make a thorough assessment of your business:

• What’s working and what’s not. • Why does it work? • Why does it not work? • What is missing? • How do you fill the empty slots? • Why is your labor too high and how do you fix it? • Why is your subcontractor costs too high or too low and how do you fix it? • What are you doing to control your overhead?

Look at these questions as well as your finances and where you currently stand, and you will begin to understand what is needed to get you where you want your business to be.

Please don’t forget that we are here for one on one meetings and to discuss and coach you in any way we can. Ultimately this is your business and you will need and want to make the final decisions. Begin with the road map you have

been given and examine it closely, honestly and make the business decisions needed to get you to where you want to be.

DDG Stuff in the Works

• Our annual financial audit is complete. • The F.D.D. renewal is complete! Currently in review with the states of

Washington, California and the S.B.A. • 2015 Convention is over. Now we are working on 2016! • DMS training is on-going. Ragan will be going to Southern Utah next week. She

also worked with Southern Colorado this past week. • Wednesday Webinars are planned, speakers engaged and scheduled through

June. • We are in the final stages of the new Xactimate Contracting. Everything will be in place very soon. • New Franchisor marketing program is in the final stages. Steve is working with the graphic designer to finalize all new printed materials. Ragan has been editing all the videos from convention. Steve and Ragan are making the videos available via our website. Steve has been directing our web site changes and they are almost finished. • Franchisee websites. We are continue to work on maximizing SEO for all

franchisees. Please get with Charles and ask him what has been done and what needs to be done on your part to help maximize your SEO.

We are working hard for you every day. If you have any ideas, topics to be discussed, or really anything that can help the network, please share that information with us. We are always looking for new ways to get out our information and to help you succeed as business owners.

Franchising 101 By the International Franchise Association (IFA)

Franchising is About Brands

A franchisor’s brand is its most valuable asset and consumers decide which business to shop at and how often to frequent that business based on what they know, or think they know, about the brand. To a certain extent consumers really don’t care who owns the business so long as their brand expectations are met. If you become a franchisee, you will certainly be developing a relationship with your customers to maintain their loyalty, and most certainly customers will choose to purchase from you because of the quality of your services and the personal relationship you establish with them. But first and foremost, they have trust in the brand to meet their expectations, and the franchisor and the other franchisees in the system rely upon you to meet those expectations.

Franchising is About Systems and Support

Great franchisors provide systems, tools and support so that their franchisees have the ability to live up to the system’s brand standards and ensure customer satisfaction. And, franchisors and all of the other franchisees expect that you will independently manage the day-to-day operation of your businesses so that you will enhance the reputation of the company in your market area.

1You want to select a franchisor that routinely and effectively enforces system standards. This is important to you as enforcement of brand standards by the franchisor is meant to protect franchisees from the possible bad acts of other franchisees that share the brand with them. Since customers see franchise systems as a branded chain of operations, great products and services delivered by one franchisee benefits the entire system. The opposite is also true.

Franchising is also a Contractual Relationship

While from the public’s vantage point, franchises look like any other chain of branded businesses, they are very different. In a franchise system, the owner of the brand does

not manage and operate the locations that serve consumers their products and services on a day-to-day basis. Serving the consumer is the role and responsibility of the franchisee.

Franchising is a contractual relationship between a licensor (franchisor) and a licensee (franchisee) that allows the business owner to use the licensor’s brand and method of doing business to distribute products or services to consumers. While every franchise is a license, not every license is a franchise under the law. Sometimes that can be very confusing.

In the United States, a franchise is a specific type of licensing arrangement defined by the Federal Trade Commission and also by several states. In the United States a franchise generally exists when:

The franchisor licenses a franchisee the right to use its trade or service mark;

To identify the franchisee’s business in marketing a product or service using the franchisor’s operating methods;

The franchisor provides the franchisee with support and exercises certain controls; and,

The franchisee pays the franchisor a fee.

The definition of a franchise is not uniform in every state. Some states for example, may also include a marketing plan or community of interest provision in the definition. The definition of what is a franchise can vary significantly under the laws in some states and it is important that you don’t simply rely on the federal definition of a franchise in understanding any particular state’s requirements.

Put another way, in a franchise a business (the franchisor) licenses its trade name (the brand, such as BrightStar or Sport Clips) and its operating methods (its system of doing business) to a person or group operating within a specific territory or location (the franchisee), which agrees to operate its business according to the terms of a contract (the franchising agreement). The franchisor provides the franchisee with franchising

leadership and support, and exercises some controls to ensure the franchisee’s adherence to brand guidelines.

In exchange, the franchisee usually pays the franchisor a one-time initial fee (the franchise fee) and a continuing fee (known as a royalty) for the use of the franchisor’s trade name and operating methods. The franchisee is responsible for the day-to-day management of its independently owned business and benefits or risks loss based on his own performance and capabilities.

Investing in a franchise or becoming a franchisor can be a great opportunity.

And we will leave you with this…

"Leadership is not magnetic personality, that can just as well be a glib tongue. It is not "making friends and influencing people", that is flattery. Leadership is lifting a person's vision to higher sights, the raising of a person's performance to a higher standard, the building of a personality beyond its normal limitations."

– Peter F. Drucker