14 04, 2022

The Franchise Manual Podcast – Episode #33 – Maximizing the Franchise Expo

By |April 14th, 2022|Franchise Development, Franchise Recruitment, Podcast|Comments Off on The Franchise Manual Podcast – Episode #33 – Maximizing the Franchise Expo

My Podner in this episode is Tom Portesy and he’s going to talk with us today about how to maximize the return on your investment at a franchise expo, how to avoid the pitfalls, and best practices that will help you represent your brand in the best light.

Time Stamps

Tom Portesy Intro 00:00:27
Segment 1 00:03:41
Get to know Tom Portesy
Segment 2 00:18:22
Topic Segment: Maximizing the Franchise Expo
Segment 3 01:03:42
Topic Segment: Quick Draw Questions

TOPICS DISCUSSED IN THIS EPISODE:

  • What is a franchise expo
  • Short history of the expo
  • How to manage realistic expectations of an expo
  • Know your objective
  • DOs and DON’Ts at an expo
  • Take advantage of the free training offered by MFV
  • Spend time developing your opening line
  • Know the value of a lead
  • Control how much time you spend with each person
  • Which industries do better at an expo
  1.  

Tom Portesy
MFV Expositions
tom.portesy@comexposium.com
www.franchiseexpo.com

Kit Vinson
www.franman.net
kit.vinson@franman.net
214-736-3939 x 101

Books Mentioned in the Episode

Good to Great
The Fog of Life

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5 04, 2021

The Franchise Manual Podcast – Episode #32 – Marketing to Prospective Franchisees

By |April 5th, 2021|Franchise Operating Manual, Podcast|Comments Off on The Franchise Manual Podcast – Episode #32 – Marketing to Prospective Franchisees

My Podner in this episode is Jackie Hoegger and she’s going to talk with us today about how to market to prospective franchisees. This conversation spans topics such as website design, digital marketing, even down to how you treat your existing franchisees. This is our first episode on the topic of marketing and we came out of the chute  with a GREAT one.

Time Stamps

Jackie Hoegger Intro 00:00:33
Segment 1 00:05:26
Get to know Ms. Jackie
Segment 2 00:16:50
Topic Segment: Marketing to Prospective Franchisees
Segment 3 01:00:57
Topic Segment: Quick Draw Questions

TOPICS DISCUSSED IN THIS EPISODE:

  1. Brand on Fire (00:21:49) – Elevate your brand as the key authority in the franchise world – Go beyond simple brand awareness and stand out….provide MORE value than your competitors.
    • Know your “story”
    • Know your passion and learn to convey your passion to the prospective franchisee
    • This is a marathon, not a sprint
    • Hone in on your God given skills
    • What is it that makes your concept special
    • Most franchisors will need help developing this point
  2. Social All The Way (00:29:12) – Tell your story as a Franchisor on social media – your new franchisees are watching. Get them to trust you as a leader before they ever make the call or the link online to talk.
    • Social media is the best ROI on delivering your message
    • Know the target profile of the perfect franchisee, then dial in your social media advertising
    • Social media not only allows people to see you from the outside, it also allows people to be able to trust you
  3. The Power of the Existing Franchisees (00:32:16) – Let them sing your praises! Let them garner the attention of YOU!
    • Your franchisees are your #1 asset. Nobody can credibly sing your praises better than your current franchisees
    • Prospective franchisees are most interested in what your existing franchisees say about you, and the WILL ask.
    • Coach your prospective franchisees before they make the validation calls so that they know how and when to ask follow up questions. If they talk to an existing franchisee who does not sing your praises, then teach them how to ask questions such as “How much do you spend on marketing?”
    • Marketing isn’t just advertising, it is much more. It also includes soft skills such as how you treat your franchisees. Existing franchisees are a DIRECT arm of your marketing
    • Communication is king
  4. Web oh Web (00:37:02) – Your website needs to simply rock – It’s the front door to your business and future franchisees will go there FIRST! Make it EASY PEASY to find out how to gee a Franchisee.
    • Spend money on your website – it IS marketing
    • Spend money on a good CRM software that will allow you to grab a lead and not lose it
    • Calculate the value of a prospective franchisee over the life of the contract to help you stay motivated NOT to lose a lead
    • It may take several touches with a prospect before they decide to move to the next step. Use the CRM to maintain communication with a prospect.
  5. Keep is Simple in a Complicated Process (00:46:00) – Give them a simple process from the first bite.  As you discover if they can fit into your culture ad family – make them feel welcomed!  Of course – Discovery Day is your wow factor!
    • They should look back and thing, “This was the easiest thing I’ve ever done.”
    • Make it fun, energetic, and educational
    • Assign the prospect to one person and that person “owns” them. This makes the prospect feel special and prevents them from falling between the cracks
  6. Eyeballs and Attention (00:49:04) – Optimize your Appeal and let them see the way you treat your current franchisees as true partners…..support programs – rapport with each other – and mostly – the dream to have multiple units.
    • Treat franchisees as true partners
    • Franchisees are watching EVERYTHING you do, as if you were on a first date
    • They pick up on kindness, humility, and compassion, and this is the best marketing you can do
    • The power of corporate culture is under-appreciated
    • You can do all the marketing you want, but at the end of the day, if your guest experience isn’t there, you are fighting a losing battle.
  7. Hire an Agency (00:55:21) – They can develop a 3 pillar strategy to drive conversions to your website which leads the first touch.
    • Do what you do well, and hire done what you cannot do
    • It’s OK if marketing is not your “gig”, but if it isn’t, you should hire it out.
    • Have a marketing budget before you begin. Your marketing “war chest” should have $50K+. However, every marketing campaign is different.

Jackie Hoegger
Hoegger Communications
Jackie@TeamHoegger.com
www.teamHoegger.com
940-631-7999

Kit Vinson
www.franman.net
kit.vinson@franman.net
214-736-3939 x 101

Books Mentioned in the Episode

Crush It
By Gary Vanerchuck

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5 12, 2020

The Franchise Manual Podcast – Episode #31 – The Franchise Operating Manual

By |December 5th, 2020|Franchise Operating Manual, Podcast|Comments Off on The Franchise Manual Podcast – Episode #31 – The Franchise Operating Manual

My Podner in this episode is me, Kit Vinson (finally!), and I’m going to talk to you about what franchisors should know about their franchise operating manual. The guest host for this episode is Mr. Jack Monson from Social Geek Radio.

Time Stamps

Kit Vinson Intro 00:00:29
Segment 1 00:02:15
Get to know Kit Vinson
Segment 2 00:13:30
Topic Segment ?The franchise operating manual

TOPICS DISCUSSED IN THIS EPISODE:

What?s Included in a franchise operating manual?

Every manual is customized to the industry of the company, but there are elements of a franchise operating manual that are common to all manuals.

  • Introductory chapters
  • Pre-Opening chapter
  • Human Resource chapter
  • Daily Operating Procedures chapters
  • Marketing chapter
  • Sales Chapter

What is the process for producing a franchise operating manual?

  • Creation of the custom outline for the manual
  • Legacy documentation review
  • Identification of the content experts
  • Information gathering phase
  • Production phase
  • Revision phase

Make the manual creation process fun so that you can start the flow of your team?s creativity juices.

How often does the typical franchise manual need updating?

Manual updates should be completed on a regular basis. Younger franchise systems will need to update their operating manual more frequently because their systems seem to evolve at a much faster pace than that of a mature franchise system.

If you do not keep your franchise operating manual updated regularly, you increase the probability of you having to explain to a judge why your manual isn?t up-to-date.

How are franchise operating manuals typically distributed to the franchisees?

  • Hard copy (paper)
  • PDF
  • Web based platform (Wiki-style)

Hard copy manuals have extreme limitations. They are not secure. They are only a snapshot of your system on that day. Media limitations.

PDF manuals are searchable, but they are not secure. They are also a snapshot of your company?s system on that day.? They are relatively easily to update but you run the risk of having multiple versions of your manual floating around your system.

Web based, online operating manuals are secure, they are extremely easy to update, you can track your franchisees activity in the manual, and you can include multimedia content such as videos.

What are the functions of a franchise operations manual?

First, the Franchise Operations Manual is the authority document of the franchise System Standards. The System Standards are the standard procedures that a franchisor requires of all franchisees in order to duplicate the customer experience in every location. The customer experience is the driving force behind profitability. If you can duplicate a favorable customer experience, then you may have a business that you can franchise. If you have a well prepared Franchise Agreement, it will refer to the Franchise Operations Manual as the System Standard. This way, as your system grows and your System Standards change, you only have to update the manual instead of updating the Franchise Agreement.

Second, the Franchise Operations Manual is the most effective tool for protecting your Brand. A company?s Brand is one of its most valuable assets. The Brand is also the asset that is at most risk when a company decides to franchise. When you franchise a concept, you are putting your Brand in the hands of other people, all of whom likely have different ideas about the best direction for the company. A properly prepared Franchise Operations Manual, with well-defined and organized System Standards, will be one of the few tools you have to manage the Brand and control the franchisees when they try to act on their vision for what is best for your Brand.

Third, the Franchise Operations Manual will likely be the principal tool for training new franchisees. It is the ?Your Company for Dummies? book. You have to assume that most of your franchisees will not have experience in your industry. They may not have any business experience at all. It is very common for a retired schoolteacher or a retired military person to invest in a franchise. This is not to suggest that schoolteachers or military personnel don?t have any business savvy, it is only to say that they were not formally trained in business and have not practiced it during their career. Your manual needs to be a document that not only trains them on your system of providing a favorable customer experience, but also one that brings them up to speed on how to manage a business.

Fourth, a well prepared documentation of the procedures that has helped make your company a success will help you sell your concept to potential franchisees. Put yourself in the shoes of a potential franchisee. If you received a Franchise Disclosure Document (FDD) that showed you that the company had a 50 page document describing all of its operating procedures, you might be a little concerned.

You will also take your Franchise Operations Manual with you when you meet with potential franchisees for the first time. In that meeting, you will attempt to sell the concept to the prospect. Like all good sales people, you will likely have a few sales tools to assist you. You will probably present a PowerPoint presentation of the concept, you will review the company?s performance in the FDD, and you will present the Franchise Operations Manual as your proof that you have a well documents system for success.

Fifth, you don?t get very many opportunities to convey your corporate culture to your franchisees. Initial training lasts a week or so. Annual conferences last a few days per year. Ultimately, it is the franchise operating manual that will have the most contact with your franchisees, so what better place to show them who you are.

Kit Vinson

www.franman.net

kit.vinson@franman.net

214-736-3939 x 101

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4 02, 2020

The Franchise Manual Podcast – Episode #30 – Site Selection, Real Estate, and Buildout

By |February 4th, 2020|Podcast, Real Estate and Construction|Comments Off on The Franchise Manual Podcast – Episode #30 – Site Selection, Real Estate, and Buildout

Brendan Charles talks about what franchisors should be teaching their franchisees about site selection, real estate negotiations, and build-out. Bad decisions in these areas can be detrimental to the success of the location. Everybody has some skin in the game here. This discussion will benefit both new and seasoned franchisors.

Time Stamps

Brendan Charles Intro 00:00:28
Segment 1 00:02:44
Get to know Brendan
Segment 2 00:15:38
Topic Segment ?Site Selection, Real Estate, and Buildout
Segment 3 01:25:10
Quickdraw Questions

TOPICS DISCUSSED IN THIS EPISODE:

  • You only get one chance to get the real estate right.
  • Real estate is one of the three main controllable in a franchise business model but real estate is only a ?controllable? until you sign the lease.
  • If you don?t know what your break even is BEFORE you start looking for real estate, then your real estate decision could break you.
  • #1 rule in site selection ? Never fall in love with a space.
  • The real estate brokers? incentives are not necessarily aligned with yours ? the more you pay in rent, the more the broker gets paid on commissions
  • Know exactly what your site selection criteria are BEFORE you start your search
  • How do you develop site selection criteria when you only have one location to go by?
  • Utilize the free services of your real estate broker to provide the demographic reporting
  • Once you have multiple locations in operation (data points), then you can compare performance with location attributes and fine tune your site criteria
  • Onboard your broker about the brand ? make sure they share the enthusiasm of the brand?s potential as they will be your #1 sales person when presenting the concept to potential landlords
  • Spend a full day viewing all available locations in the ?Market Tour?. Take copious notes on the good as well as the bad locations
  • Boil your options down to 3-5 locations
  • Time kills all deals. You have to move FAST after your market tour and get the letters of intent out quickly.
  • The franchisor should be very involved in the site selection process ? don?t sit on the sidelines
  • Submitting a good letter of intent is the most important step in the whole landlord negotiation process ? rent, term, tenant improvements, etc.
  • If you don?t get the Letter of Intent right, there is no way you will get the build out right, and if you don?t get the build out right, you?ll be behind schedule and way out of budget
  • Once the letter of intent is delivered, the landlord is on notice to respond, however, that doesn?t mean that you can stop looking.
  • Always have backup sites in your pocket
  • Use two LOIs to leverage the deals against each other.
  • Once you reach the lease stage, the due diligence of the space continues ? make sure that the space is exactly what the landlord advertised it to be. This is done with a site survey
  • The drawings from the landlord aren?t always accurate so don?t rely on them
  • It is best to utilize a national architect for every franchised location rather than local architects
  • Floor plan design in a restaurant ? the dining room is your money maker and should be maximized
  • Familiarize yourself with the design review process ? go down to the city offices and meet the people who will be doing the plan review
  • Identify general contractor bid pool ? qualify them ? Have they built in the market you are in? ? Do they have the relationships with the city officials, etc. Avoid too many GCs in the bid pool
  • At the time of the build-out, the interests of the landlord are in line with yours because they get rent money once you open your doors for business, so they can be a good source of referrals of general contractors.
  • Poorly planned design submitted to the city will stall the process
  • Be aware of a TAP Fee ? a fee by the city in order to tap into the utilities. This can be very expensive
  • Ensure you have a plan to get your FF&E paid for and delivered on time according to the contractors timeline
  • Qualify the bids by ensuring that everything in the bid is supposed to be there and nothing is there that isn?t supposed to be there. Be sure to clarify who will be responsible for what activities and purchases. Make sure there is a clear matrix of responsibility.
  • No hammer can swing until the building permit is issued
  • There is no return on investment for the franchisee to be on site every day once hammers start swinging, rather, they should be focused on the bigger picture of doing the activities in preparation for the opening day such as hiring staff and marketing for the grand opening
Brendan Charles
Red C Business Advocacy
brendan@redcadvocacy.com
303-333-3420
Kit Vinson
214-736-3939 x 101

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30 10, 2019

The Franchise Manual Podcast – Episode #29 – Creating Customer Loyalty

By |October 30th, 2019|Customer Loyalty, Podcast|Comments Off on The Franchise Manual Podcast – Episode #29 – Creating Customer Loyalty

Andy Erskine and Bob Gappa of Management 2000 talk with us today about the importance of customer loyalty, what drives it, and how to manage it.

Time Stamps

Andy Erskine Intro 00:00:29
Segment 1 00:02:36
Get to know Andy
Segment 2 00:11:20
Topic Segment ?Creating Customer Loyalty
Segment 3 01:05:10
Quickdraw Questions

TOPICS DISCUSSED IN THIS EPISODE:

What is customer loyalty?

  • Transaction count is NOT the same as customer loyalty.
  • Another term for disloyalty (brand adultery)
  • Customer loyalty is tightly woven into Brand, which is made up of the emotion that you create with your customers

What makes customers loyal?

  • Loyalty is built around emotions and emotions come from the customer experience
  • The way that you interact with your customer (operating system) is what creates positive or negative emotions.
  • Repeat customers are a result of your team members creating an emotional bond with the customer through the delivery of your product or service.
  • Brand standards should focus on creating the emotions that make customers want to talk about their experience with their sphere of influence and go back.
  • The Operations Manual is in place to create customer loyalty.
  • To understand what creates positive or negative emotions in a customer, we need to understand the customer journey.
  • The customer journey is literally every interaction that a potential customer has with you before, during, and after doing business with you
  • Visible versus invisible standards – both affect the customer and loyalty. Invisible standards are those not customer facing, like ordering a sufficient amount of material to deliver the product.
  • The issue with system standards is that there isn’t enough forceful compliance when they aren’t being followed and there isn’t enough positive reinforcement when they are, and so they don’t seem important to either the franchisee or franchisor.
  • Brand icons are as important to customer loyalty as brand standards. Brand icons are the aspects of your business that you are absolutely known for.
  • Emptions are what create the brand rather than a well-known company.

How do you measure customer loyalty?

  • Technology is how to track customer loyalty through cell phones and credit card transactions
  • Knowledge is power. Know your customers behavior data and use that to create the emotional connection in them to make them loyal.
  • By understanding what customers value, we can create customer loyalty
  • Prism will segment your credit card transactions into demographics and behaviors

What do you do with customer loyalty data after you get it?

  • Data helps you refine your message to your real customers ? understanding what they value so you can deliver the value that they want, which in turn creates loyalty
  • Don’t confuse frequency due to convenience with loyalty.

What should I be doing today as it relates to customer loyalty?

  • Start enhancing what it is that the customer values by understanding who the customer is.
  • Stop thinking of yourself as a franchisor and start thinking about yourself as a steward of a brand.
  • Stop having a franchisee advisory council and start having a brand advisory council
  • Answer three critical questions. Know who your customers are. Know what they value. Know how to enhance what they value.
  • Know how to make their experience personal.
  • Help the customer make a connection to your brand
  • Select employees, don’t simply hire them.
  • Focus on how to create a great place to work
  • Team members should know that their job is to create an experience that makes the customer want to come back
  • Training a team member is usually only focused on the activity, which is simply skills, knowledge, and abilities. In addition to that, you should focus on developing people’s understanding and emotional commitment to the purpose of their job, which is to get the customer to want to come back.

Books Mentioned
Love Marks
By Kevin Roberts

The Effective Executive
By Peter Drucker

Emotionomics
By Dan Hill

Retail is Theater

Andy Erskine
Management 2000
800-847-5763
Kit Vinson
214-736-3939 x 101

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29 08, 2019

The Franchise Manual Podcast – Episode #28 – Generating Franchisee Leads

By |August 29th, 2019|Brokers and Consultants, Franchise Lead Management, Franchise Recruitment, Podcast|Comments Off on The Franchise Manual Podcast – Episode #28 – Generating Franchisee Leads

Red Boswell talks with us about how to generate franchisee leads. This is one of the hottest topics with franchisors. This discussion will benefit both new and seasoned franchisors.

Red is a unique character, and I mean that in a good way. This guy has been driven to make money ever since he was a kid. Starting in grade school when he was selling NFL pencils for a profit, into hos twenties when he build up a pet services franchise system? all the way up to 148 units. He?s been operating in the world of franchising practically his entire adult life. He?ll give us more details in just a few minutes.

Red now gets to fuel his business building passion as President of the International Franchise Professionals Group (IFPG), The World?s Largest and Most Respected Franchise Consultant Organization.?.

Time Stamps

Red Boswell Intro 00:00:28
Segment 1 00:02:05
Get to know Red Boswell
Segment 2 00:29:45
Topic Segment ? Generating Franchisee Leads
Segment 3 01:01:50
Quickdraw Questions

TOPICS DISCUSSED IN THIS EPISODE:

The cost of a lead

  • The average cost of a lead in 2019 is $10,000
  • That number does not including commissions
  • That number includes large companies that don?t need to spend anything for leads because their brand is so well knows that they don?t need to advertise to get leads
  • Small companies usually pay a lot more to generate leads since their concepts usually don?t have any brand recognition

16 sources of leads

  • Direct mail
  • Print
  • Online
  • Brokers
  • Referrals
  • Consumer / Clients
  • PR
  • Industry / Conversions
  • Prospecting
  • Buying leads
  • Live events / Expos
  • Mobile / Roadside
  • Upgrade / Multi-unit Operators
  • Past leads
  • Guerilla marketing
  • TV Radio

The marketing mix is a moving target and is different for every concept. There is no silver bullet, one size fits all solution for the marketing spend mix.

Do a lot ? do it for a long time ? test and measure

Every option will involve one or all of these three

  • Time
  • Money
  • Resources

The trick is to utilize the options that require the resources you have the most of.

Red?s Favorite Five

Red says that every solution must be customized to the individual concept, but if he HAD to pick his favorite five, the would be:

Brokers

  • Best option for any size franchisor
  • You pay to be a member then pay a commission per close
  • Many broker groups won?t accept smaller start-up concepts
  • Big saver of time and resources

PR

  • Hire a PR firm
  • Find one who is familiar with the world of franchising
  • IFA members a plus
  • Validate with their past clients

Industry Conversions

  • Converting existing business people who are struggling
  • You never know who may be disenchanted with operating their own concept and who would love to convert
  • These are cold calls usually

Live Events / Expos

  • Usually between $5k and $10K per event
  • Use common sense and work it hard
  • Energy ? follow-up ? is key

Online

  • You could make online all five
  • PPC Pay per click / Banners
  • SEO of your own franchise site
  • Develop a GREAT portal that grabs and tracks leads and conveys the information well. Portals tend to generate? a lot of volume with lower quality, but still worth the spend
  • Social media posting
  • Big data targeting
  • Job boards ? make a job advertisement? with the tag ?some investment required? ? describes a dream job

Bonus Source: Guerilla Marketing

  • Example: flyers on every windshield at the local franchise expo

Common mistakes made by franchisors as it relates to lead sources:

  • Lack of infrastructure ? be able to walk away from your business for 6 months
  • Don?t try to run your business and franchise it all by yourself
    • Franchise Development person
    • Marketing person
    • Onboarding / Training person
    • Field support person
  • Lack of good ops manuals
  • Not charging enough for the franchisee fee in order to pay for the costs associated with lead generation and other expenses
  • Negotiate a broker commission too low ? nobody will show your system if the commission is too low
  • Seek wise counsel

Books Mentioned

  • Franchise Management for Dummies
  • Becoming a Strategic Business Owner
  • How to Win Friends and Influence People
Red Boswell
International Franchise Professional Group
888-977-4374 x 112
Kit Vinson
214-736-3939 x 101

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