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On-Boarding New Franchisees

- Bob Fish, CEO, Biggby Coffee

DRIVING GROWTH in CHALLENGING TIMES


February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
On Boarding Issue

Most franchisors do a very good job of training


people on the operational aspects of what it
takes to run their business, however, few train
franchisees on the basic business building
skills that it takes to effectively ramp-up and
operate a successful franchise.

DRIVING GROWTH in CHALLENGING TIMES


February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
Solution
“the attributes that contribute to successful
business building skills”
• Define
• Teach the attributes
• Measure the attributes
• Coach
• Develop metrics
• Teach the metrics
DRIVING GROWTH in CHALLENGING TIMES
February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
Define
• Basic building skills are typically a combination
of ‘Small Business’ and ‘Entrepreneurial” skills.
• We developed our list of ‘musts’ at the cusp of
franchising to help us identify partner
candidates.
• These became the ‘Core Values’ of our
organization.

DRIVING GROWTH in CHALLENGING TIMES


February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
7 CORE VALUES
STEAMED
S Simplicity through systems
T Top line driven… revenue solves all problems
E Energy, excitement, enthusiasm!
A Always have faith, confidence and courage
M Maintain long term sustainability through
profitability
E Engaging the community… giving is getting
D Dedication, dependability and desire
DRIVING GROWTH in CHALLENGING TIMES
February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
Teach
• Teach as early as Discovery Day
– Core Values must align
• Repeat, repeat, repeat….
– Repetition is essential
• Embed into coaching language
– Walk the talk

DRIVING GROWTH in CHALLENGING TIMES


February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
Measure
• First measurement is during the interview
process (Franchise Sales)
• Second is during training at Home Office (Ops-
Training)
• Third is during opening week on site (Ops-
Training)
• Fourth is ongoing for the life of the operator
(Ops)
DRIVING GROWTH in CHALLENGING TIMES
February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
Coach
• Rarely does a Franchisee have all 7 of our Core
Values.
• Once weakness and strengths are identified
we begin coaching to both.
• Coaching is done ‘one on one’ during monthly
site visits and by integrating it in all training
language and meeting language.

DRIVING GROWTH in CHALLENGING TIMES


February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
Metrics
• Roll up the data
• Same Store Sales Growth by operators that
have all 7 Core Values are 3%age points better
than those that have only 4 or 5 Core Values
• And those that have 3 or less Core Values are
3%age points below those at 4 or 5.

DRIVING GROWTH in CHALLENGING TIMES


February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
Metrics

• Classifying high performance


– Highest System Sales are T,M,S,D
– Highest Growth are M,T,D,S
– Highest ABC are S,T,M,D
• These classifications become the basis for
Goal Setting.

DRIVING GROWTH in CHALLENGING TIMES


February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
Teach the Metric

• These ‘4 letter’ classifications become the


basis for personal goal setting.
• Aid in developing the individual franchisee
skill set with both internal and external
recommendations.

DRIVING GROWTH in CHALLENGING TIMES


February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
THANK YOU!
QUESTIONS?

DRIVING GROWTH in CHALLENGING TIMES


February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
On-Boarding New Franchisees

-Rosemarie Hartnett, CFE, President, Abrakadoodle

DRIVING GROWTH in CHALLENGING TIMES


February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
On-Boarding New Franchisees

Pre-Training Program:
Be Clear On Expectations & Culture
• Commit to measurable growth from the beginning
• Commit to participating in HQ programs that help
develop owners as business professionals
• Commit to a franchise culture built on collaboration
& accountability with HQ & among peers
• Embrace a franchise culture that inspires fun and
inspiration!

DRIVING GROWTH in CHALLENGING TIMES


February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
On-Boarding New Franchisees

Pre-Training Program:
Pre-Training Exercises

• Conduct research on our “Why?”


• Begin development of a Marketing Plan for active use during
training

DRIVING GROWTH in CHALLENGING TIMES


February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
On-Boarding New Franchisees
On-Going Training – the Coaching Model:
Franchise Owner Growth Groups (FOGG)
• Franchise Owner Led
• Learns to Facilitate & Manage the Group
• Learns to Help Promote Sharing
• Learns to Keep the Group Focused on Agenda Topic
• Grouped By Level of Business Development
• Commitment to the Goal of Measureable Growth
• Embraces Peer-to-Peer Accountability
Abrakadoodle System-Wide Updates
• Abrakadoodle Network News
• System-Wide Revenue Sharing

DRIVING GROWTH in CHALLENGING TIMES


February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
On-Boarding New Franchisees
On-Going Training - the Coaching Model:
Targeted System-Wide Webinars
• Offer Series Format
• Strategically Placed Topics that Support Focus
• Recruit Outside System Experts
• Recruit Franchise Owner Experts
• Promote System-Wide Participation
• Highway to Sell
• Media Stars
• Coordinate Accountability Through Action Items Taken to
the FOGG

DRIVING GROWTH in CHALLENGING TIMES


February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
On-Boarding New Franchisees
On-Going Training – the Coaching Model:
Annual Business Reviews That Continue to
Move Operational Support to Self-Evaluation & Growth
• Program Overview – Part I - Questions!
• Program Summary
• Franchise Requirements – Part II – Questions!
• Staff
• Instructional Delivery
• Customer Service
• Business Management
• Revenue Summary – Part III – Questions!
• Pricing
• Program Revenue
• P & L & Benchmarking Review

DRIVING GROWTH in CHALLENGING TIMES


February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
On-Boarding New Franchisees

• On-Going Training – the Coaching Model:


An Effective Coach
• Listens!
• Asks questions
• Acts as a facilitator
• Keeps in touch with franchisee’s motivation
• Recognizes different styles of communication
• Cultivates professional relationships built on trust & respect
• Helps keep communications focused on priorities that reflect the
different stages of business growth

DRIVING GROWTH in CHALLENGING TIMES


February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
THANK YOU!
QUESTIONS?

DRIVING GROWTH in CHALLENGING TIMES


February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
On-Boarding New Franchisees

-Justin Brogan, Director of Operations, Two Men


and a Truck

DRIVING GROWTH in CHALLENGING TIMES


February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
Develop an Action Plan for Ramp up, before franchisees even
attending training; and get “informed consent” on the path
forward.

Concerns / considerations:
• Importance of discovery process / discovery day in level-setting
and forming franchisee expectations.
• Set training dates vs. flexible opening dates
• Purpose of training – mechanics vs. philosophy
• Onboarding process: playbook-driven vs. scripted

DRIVING GROWTH in CHALLENGING TIMES


February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
Develop an Action Plan for Ramp up, before franchisees even
attending training; and get “informed consent” on the path
forward.
Suggested approach:
• Use the discovery process to sell reality and set expectations early
• Set training dates vs. flexible opening dates – harness the
franchisee’s ambition and energy and put it to best use
• Purpose of training – help the franchisee find blind spots early, so
they know where to hone in during training.
• Onboarding process – defining / illustrating the path

DRIVING GROWTH in CHALLENGING TIMES


February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
Why the need for consent?

Concerns / considerations
• Unique demographics
• Unique competitive landscape
• Unique regulations
• Unique marketing area
• Unique franchisee

DRIVING GROWTH in CHALLENGING TIMES


February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
Why the need for consent?

Suggested approach
• Reviewing business plans and asking questions to ID areas of
need / support
• Discussing those blind spots during Discovery Day, talking about
the support / guidance your SME’s can lend
• Discussing ‘zors ability to take unique inputs (‘zee, marketing
area) and help create relatively consistent / uniform outputs
(ROI, customer satisfaction, etc.)

DRIVING GROWTH in CHALLENGING TIMES


February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
Correlate a “Vision” Plan to a Business and Tactical Marketing
Plan in easy to understand language.

• Power in visioning
• Helps attract those who feel the vision, helps maintain alignment
• Helps people ‘feel’ the success that will come
• Can help them make personally painful decisions for the betterment
of the brand
• ‘Zor vs. ‘zee visions

DRIVING GROWTH in CHALLENGING TIMES


February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
THANK YOU!
GENERAL QUESTIONS

DRIVING GROWTH in CHALLENGING TIMES


February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA
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DRIVING GROWTH in CHALLENGING TIMES


February 22-25, 2014 | New Orleans Convention
Center/Hilton Riverside & Towers | New Orleans, LA

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