How to Adjust Support SystemsTo Recognize the Needs of an Individual Franchisee vs. A Multi-Unit Franchisee

Please Consider Today. . .

There are substantial business reasons to adapt your support systems to

• Recognize the differing operational needs of a single versus multi unit franchisee......

• Seek input, listen, track your results, modify accordingly

• Change will continue.....learn to adapt!!

Your Panel

• Bruce Bloom, CFE – Moderator– Principal of Bloom & Associates, LLC – A Franchise Consulting Company

• Harvey Homsey, CFE – Panelist– Vice President, Franchise Systems – Express Services, Inc.

• Mark Watt - Panelist– Director of Training and Franchise Operations – Toppers Pizza, Inc.

• Barry Miller - Panelist– President – Sylvan Learning Center of Girard, Ohio

Why Be Concerned?

• 20% of franchisees are multi unit operators (MUF)

• MUF own 55% of the operating franchised units

• Top 200 MUF (restaurant) generate est. sales from $1.6B to $40m

– (FranData, IFA, Franchise Times)

Operational and Development Value

• Strong operational capabilities

• Financial capability

• Development experience

• Local market knowledge

• For these and a number of other reasons, MUF have become the primary focus as potential franchisees. They have significant options to consider!!!

What Are The Business Disciplines That May Need To Be Addressed?

• Development Strategy• Organizational Requirements• Training/Operational Systems• Supply Chain Management• Long term capital requirements • Succession and Estate PlanningWhy? To enhance the opportunity for your franchisees success and protect your valuable asset; territory!

• What does your system “Bring To The Table” for these experienced franchisees?

Express Employment Professionals

• International Staffing Franchise

• Since 1983

• Nearly 800 Offices

• 100% Franchised

What is a Franchise Program

• Brand Name

• System

• Support

Concerns About Different Support Single Unit Franchisee vs. A Multi Unit Franchisee

• Listen to all owners; determine what their need is

• Be opened to listening to find out “is a better way”

• Markets ARE different!

• One-offs may be needed

• AND…One-offs may derail focus

When/Why Should One-Offs Be Done?

• Market driven

• Niche driven

• Client driven

Types of One-Offs

• Initial Opening

• New Brand/Niche

• Test Market

• Etc.

Financial Impact Consideration

• Sales/Training Materials

• Support

• Loss of Revenue from Core Business

Measuring One-Offs

• Tracking

• ROI

• Profit vs. PR

Why Focus on Multi Unit Franchisees?

• Easier to support a group

• System works

• Processes are easier to train and change for a group

Structural Support

• Performance Benchmarking

– Weekly Key Indicators

– Periodly P&L Performance

– Mirus Data Analytics

• Toppers-U (Online Training)

• Business Reviews & Financial Tools

New Franchisee/Store Support

• Lease, Site, Project Management

• Countdown to Open

• New Zee/GM Training (First Store)

• Intense On-Site New Store Training/Support

(First Three)

Multi-Unit Operator Requirements

• Area Supervisor Training

• People Pipeline Development

• Develop their GMs internally

• Lead their own New Store Training (after third)

Evolving Field Support

Pre-2013 Operations-Focused Visits

6 week visit cycle

Quarterly Operations Audits

2013-2016 As Zees Grew, shifted focus to Time w/Franchisee

Variable Visit Cycle, with Quarterly as the minimum

Quarterly Third-Party Audits

2017 Operations-Focused Visits

6 week visit cycle

8+ Operations Audit Per Year

Quarterly FAC Meetings

Quarterly MAB Meetings

All Franchisee Meetings Twice per Year

Barry E. MillerSylvan Learning Center – Franchisee 31 years

Multi-Unit Franchisee: Ohio, New York, Pennsylvania

Multiple Terms: Sylvan FOA President

Board of Directors: eSylvan Inc.

Sylvan National Advertising Inc.

IFA Board of Directors Member

Franchisee Forum Chair

• Life cycle of the franchise business

• Understand your stage and needs

• The Owner - Franchisee relationship

• Single, to Multi, to Mega Unit Owners

• Individual needs at each level

• Your Organization and Life Cycle Stage

• Single, Multi, Mega Unit Support Systems

• How to integrate each level into your support system as you grow

• Franchisee talent & learning as a key to an affordable support system

• Use the knowledge you have paid to develop

Back to the Life Cycle Thing!

• Franchises Grow and Franchisors Change

• Develop your own team experts

• Understand the strengths and weaknesses of the business and your franchisees

• Hire support personnel who know the Operations and like to be with the Operators

Separate New Franchisee Support From Experienced Multi-Unit

• New franchisees need the basics and hand holding as they get started

• Multi-Unit support people learn from the Operators, share what makes others more successful and thank them for sharing!

Profile Of A Successful Support Team and Strategy

• Support is not a place to trim the Budget

• Only, experienced, educated, trained (like CFE’s) personnel can support franchisees. Without the respect of franchisees you are wasting your time and money!

Please Give These Two Items Some Serious Thought

• Be dedicated to providing the Best Support in the Franchise Industry

• Grow and Prosper!

As You Leave Today. . .

There are substantial business reasons to adapt your support systems to

• Recognize the differing operational needs of a single versus multi unit franchisee......

• Seek input, listen, track your results, modify accordingly

• Change will continue.....learn to adapt!!

THANK YOU!