Brian Miller President and COO The Entrepreneur’s Source and Zor Source.

Getting Your First 10 Units:

Top 10 Ways to Grow Your New Franchise

Moderator

The objectives of the session are:

Structuring your Franchise Model for Rapid Growth-

Marketing Messages that work in this New Career Economy®-

Validating in a New Franchise System-

Getting clients to the finish line

On Boarding Strategies which build successful franchise units and promote franchise growth-

Moderator Brian Miller

Getting Your First 10 Units: Top 10 Ways to Grow Your

New Franchise

STRUCTURING YOUR FRANCHISE MODEL FOR RAPID GROWTH

John Rotche

Founder, DUCTZ International and HOODZ International

President, Belfor Franchise Group

FOUNDATION

Proven Model

Profitable Replicable Sustainable

foun-da-tion: an underlying base or support; especially: the whole masonry substructure of a building

STAFFING St

affin

g

Proven Model

Profitable Replicable Sustainable

• Staff to where you plan to be within 1 year • Hire for Expertise • Hire for Fit

SYSTEMS St

affin

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Proven Model

Syst

ems

Profitable Replicable Sustainable

• Franchise

– Ops Manuals – Training Manuals – Intranet – Web Site

• Franchisor

– FDD – Royalty Processing – Compliance Programs

SUPPLIERS St

affin

g

Proven Model

Syst

ems

Supp

liers

Profitable Replicable Sustainable

• Prepared • Capitalized • Service Oriented • Flexible

SALES St

affin

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Proven Model

Syst

ems

Supp

liers

Sale

s

Profitable Replicable Sustainable

• Item 19 • Value Proposition • Differentiators • Experience

PIONEERS

Proven Model

Pion

eers

Profitable Replicable Sustainable

Staf

fing

Syst

ems

Supp

liers

Sale

s

PIONEERS: YOUR FIRST 10

• Validators • Enthusiastic • Problem Solvers • Right Fit • Successful

Pion

eers

CULTURE & ALIGNMENT

Franchisee Purpose Vision Values

Franchisor Purpose Vision Values

Frantegrity

Proven Model

Frantegrity

Profitable Replicable Sustainable

STRUCTURING YOUR FRANCHISE MODEL FOR RAPID GROWTH

Pion

eers

Staf

fing

Syst

ems

Supp

liers

Sale

s

GETTING OVER THE FINISH LINE

Richard Simtob

Partner, Zoup! Fresh Soup Company

WHERE TO FIND THE LEADS DO’s - Network in the community - Market to Customers - Invest in your FRANCHISE web site - Google adwords to franchise site - Franchise & Business brokers

GENERAL BRAND SITE

FRANCHISE FOCUS SITE

WHERE TO FIND LEADS Don’t - Overspend on lead sites too early - Accept the first person who is interested

with money - Offer initial franchisees farther than you

can support

GETTING TO THE FINISH LINE - Recognize the first franchisee to sign can be the hardest - Offer Brokers up to 100% commission of your first Fee - Offer significant discont to a warm contact - Be ready for legal review being time consuming

GETTING TO THE FINISH LINE • Be prepared to offer Pioneers:

– Larger Territory – Additional support – Payment terms * Must add to disclosure document

GETTING TO THE FINISH LINE • Take Extra time with Pioneers

– To meet the spouse – Meet for dinner/lunch – Have your support team also meet

candidate

GETTING TO THE FINISH LINE Avoid • Rushing to close • Putting preasure on candidate • Entering into agreement if not ready for

support and training

GETTING TO THE FINISH LINE Set expectations up front - New Brand, New System - Will deliver extra support - Not everything figured out • Will expect candidates to help validate

with many more

GETTING TO THE FINISH LINE FEAR – False Evidence Appearing Real - Find the concerns - Acknolodge candidate taking bigger risk with bigger reward with new Brand - Build trust and strong relationship with your whole team

GETTING TO THE FINISH LINE Item #19 – Financial Performance Work with Lawyer to show: - Historical & Factual - Financials & Metrics

GETTING TO THE FINISH LINE How to deal with limited Validation: Have one Franchisee willing to share numbers Let candidate spend time in business

GETTING TO THE FINISH LINE Remember the FUTURE of your system is dependant on the first few Zees being successful All the marketing and sales in Development does not make up for Poor Franchise Performance

THANK YOU!

• VALIDATING & MARKETING IN A NEW FRANCHISE SYSTEM

• Keith Gerson, COO of Sopra Brands

VALIDATING IN A NEW FRANCHISE SYSTEM

• “Can’t Sing, Can’t Dance. What Can You Do”? - Adam Ant – It’s challenging to validate when you have:

• No (or limited) proven history • No brand awareness • Limited press • No validators

VALIDATING IN A NEW FRANCHISE SYSTEM

• “One is the Loneliest Number” - Three Dog Night – Choose wisely – As no one wants to be the first, be clear on

advantages of early adoption – Law of reciprocity

• Exchange perks & benefits for “promoter” commitment

• Arrange hosted weekly calls with your limited few initial adopters (but don’t attend…)

VALIDATING IN A NEW FRANCHISE SYSTEM

• “Nothing but Blue Skies Do I See” – Irving Berlin – There may not be positive results to share,

but nor are there negative ones – At this point you’re selling the invisible – Narrow the Differences

YOUR MARKETING MESSAGE NEEDS TO SPEAK TO CLEAR BRAND DIFFERENTIATION!

VALIDATING IN A NEW FRANCHISE SYSTEM

• “Ain’t that good news man? Ain’t that news”? – Sam Cooke – Advertising you pay for. Public Relations you

pray for • Power of third party validations • Public relations • Customer testimonials • News segments (you can buy them) • Social Media (Facebook, Linked-in, Twitter, YELP) • Word Press & Microsites

VALIDATING IN A NEW FRANCHISE SYSTEM

• “Money, it’s a gas. Grab that cash with both hands and make a stash” – Pink Floyd – So How Much Money Can I Make?

• Leveraging the “other guys” Item 19 (i.e. FranData, Franchise Help)

– FREE REPORTS AVAILABLE OPENFRAN.ORG – FREE REPORTS AVAILABLE ALSO ON CALEASI

• Get your Item 19 out there ASAP • Industry reports (i.e. FranData, Franchise Help; Technomics;) • Intelligence gathered by early adopters • Sell Evolution not Revolution

– Can leverage due diligence of earliest adopters, even if not operational!

MARKETING MESSAGES THAT WORK IN THIS NEW CAREER ECONOMY

• More than ever the Hedgehog Model is resonating – from Jim Collins “Good to Great”

YOUR STORY MUST BE ATTRACTIVE TO THOSE LOOKING TO MAKE A DIFFERENCE

Expressing the Connection

Serving Others

Authentic

The principles behind our actions

The way we go about our business

Our area of business

The environment we will create Sense of

Community Abundance Our basis for making

decisions

Walking the Talk

The status we want to achieve

Making a Difference

What we want to be known for

Frozen & Healthful Desserts

THE POWER OF SURROGATE BEHAVIORS

What is A Surrogate Behavior? “One that takes the place of another. A substitute”. From the American Heritage Dictionary

(First documented use of term by

Jan Carlzon, SAS Airlines)

THE POWER OF SURROGATE BEHAVIORS

• A Moment of Truth definition: – “Anytime a customer comes

into contact with any aspect of a business, however remote, is an opportunity to form an impression."

How many brands have we created without knowing it?

WHAT YOU DO SPEAKS SO LOUD I CAN’T HERE WHAT YOU SAY • Accessibility to Executive & Leadership Team • Must demonstrate that you are open to

feedback while maintaining leadership • Beware of the smartest man in the room

syndrome… • Must believe that you are 100% focused on

their success (vs. growth of the system) • Would they want to hang around with you as

friends or associates for the next 10 to 20 years?

SO HOW’S IT WORKING?

• “Blue Skies, smiling at me. Nothing but blue skies do I see”. – Irving Berlin – EarthFruits Yogurt opened one corporate location

in August 2010. – We began franchising in 2011

• We have sold over thirty locations in the last 12 months in the USA

• International development is going like gangbusters with negotiations underway UAE, Saudi Arabia, Qatar, Russia, Spain, Poland, Ireland, Mexico, etc.

ON BOARDING STRATEGIES THAT BUILD SUCCESSFUL FRANCHISE UNITS AND

PROMOTE FRANCHISE GROWTH

Nancy Bigley, CFE CEO/Co-Owner, Bottle & Bottega, Inc.

ON BOARDING STRATEGIES- TARGETS

Greater Profits

Strong Validators

Expansion Candidates

Successful Business Practices

Greater Revenue

ON BOARDING STRATEGIES-HOW TO BUILD IT

Start with the end in mind:

Creating solid measurement & follow-up tools/programs

Increasing readiness upon arrival to HQ

Keeping time at HQ focused on day to day ops

Keeping time in HQ low to save franchisees money

Getting the business “open”

ON BOARDING STRATEGIES- TECHNOLOGY

Create systems that allow for:

Ability to gauge retention and progress

Easy modifications as you continue to learn, grow and evolve

Delivering content in text, audio, video, real time

Delivering information in digestible stages

ON BOARDING STRATEGIES-EXECUTION

Set up the business entity

Set up business & vendor accounts

Set up technology tools and sites

Finalize business plan

Order

Product

Pre-arrival to HQ…shift the model:

ON BOARDING STRATEGIES-EXECUTION

Arrival at HQ…let them run it!

Flip the switch on “open for business”

Validation to ensure key learnings

Finalize KPI targets

Finalize & begin to implement marketing plans

Hands on-run company ops

ON BOARDING STRATEGIES- EXECUTION

KPI targets

Weekly/ Monthly Progress

Calls

Make adjustments

Keep excitement level high

Implementation Plans

1st Year Follow-Up

ON BOARDING STRATEGIES- TAKE AWAYS

1 • Set clear targets & objectives for all stages of launch

2 • Have the right technology and tools in place

3 • Understand your first pass is not your last, be flexible and continue to refine

4 • Monitor progress to keep you and franchisees on track

5 • Keep excitement and support levels high after initial onboarding

Top 5 Take Aways:

Lets wrap it up

Moderator Brian Miller