In this episode, Doug Groves and I talk about insurance, specifically, what types of business insurance are out there, the importance of finding a rep that knows your industry, and what role does insurance play in the relationship between franchisor and franchisee.
Time Stamp
Doug Groves Intro 00:00:40
Segment 1 00:02:41
Get to know Get to know Doug
Segment 2 00:16:17
Topic Segment – Insurance 101 for Franchisors
Segment 3 00:38:19
Quickdraw Questions
Topics discussed in this episode:
Basic coverage that all business owners should have:
Every insurance policy has a purpose.
Umbrella policies are a cheap way to purchase vast amounts of insurance for a much lower price
When you are deciding on limits for each type of insurance:
Best Practice: Select an insurance broker who has experience in providing insurance for companies in your same industry. They will know which questions to ask in order to recommend the right options for you.
The question is answered, why does this line appear in all franchise agreements and franchise operating manuals: ““All liability insurance policies must name us (the franchisor) and any subsidiaries that we designate as additional insured.”
We answer the question, why do franchisors require franchisees to carry certain levels of insurance.
What is the EZCert program and how does it help franchisors manage all of the insurance certificates from all of their franchisees – for FREE.
Doug Groves
Program Insurance Group
doug@pigbcs.com
512-848-7210
Kit Vinson
FranMan Inc. (Franchise Manuals)
Kit.vinson@franman.net
214-736-3939 x1
Notable mentions in this episode:
Book: Killing the Sacred Cow
By Garrett B. Gunderson
Our culture is riddled with destructive myths about money and prosperity that are severely limiting the power, creativity, and financial potential of individuals. In Killing Sacred Cows, Garrett B. Gunderson boldly exposes ingrained fallacies and misguided traditions in the world of personal finance. He presents a revolutionary perspective that can create unprecedented opportunity and wealth for thoughtful, mission-driven individuals.
In this episode, Brian Schnell and I talk about Three Party Franchising – that’s using master franchisees and area developers to grow your franchise system. Many people misuse these two terms, or use them interchangeably – Brian’s going to clear it all up for us.
Time Stamp
Brian Schnell Intro 00:00:40
Segment 1 00:02:28
Get to know Brian Schnell
Segment 2 00:23:53
Topic Segment - Is Three Party Franchising Right for Your System?
Segment 3 01:00:51
Quickdraw Questions
Topics discussed in this episode:
What is the difference between a Master Franchisee and an Area Developer
What is the Three-Party Franchise model?
Three Party Franchise model works very well internationally
Avoid the temptation of "0-100 franchisees quick" through three party franchising without a full understanding of what is involved. Don't try to sprint before you know how to walk.
The conversation about Three Party Franchising shouldn't take place without a full understanding of risks and benefits to all parties.
What is the necessary infrastructure before diving into a three-party franchising model? A full understanding of:
The infrastructure must exist somewhere; either on the franchisor side or the area developer side.
The functions of managing a franchise system are usually carried out by a team of corporate employees. It is not realistic to expect an area developer to fulfill the same functions plus operate a unit without the proper infrastructure.
Finding an area developer that is good at EVERYTHING is not likely. Try focusing on an area developer's core competencies and supporting the area developer in the areas where he/she is weaker.
Don't offload functions of managing a system to an area developer that can be more efficiently executed by corporate office.
After you sign a master franchisee or an area developer, the system DOES NOT go into autopilot. The franchisor must stay involved and active.
Trying to fix problems in the three-party franchise relationship are much easier to correct early on, so stay connected and involved.
Educate yourself before trying to utilize a three-party model by talking to attorneys and consultants who have experience.
Manage expectations up front through a well written agreement and ops manual
Brian Schnell
Faegre Baker Daniels
612-766-7699
Kit Vinson
FranMan Inc. (Franchise Manuals)
214-736-3939 x1
Notable mentions in this episode:
Faegre BD Franchise Summit
https://www.faegrebd.com/faegrebd-franchise-summit
Paul Rocchio - IFA
202-662-0790
Contact Paul for information about joining the International Franchise Association
Book: Dare to Serve
By Cheryl Bachelder
Servant leadership is sometimes derided as soft or ineffective, but this book shows that it's actually challenging and tough minded - a daring path. Bachelder takes you firsthand through the transformation of Popeyes and shows how a leader at any level can become a Dare-to-Serve leader.
In this episode, Nancy Friedman is going to share with us her experiences as a franchisor and what she believes were the reasons for its ultimate failure. This is going to be a really good episode because we always hear about people telling us how they succeeded, but rarely do we get to hear from the other side of that coin. The episode is filled with great “take-aways” and is a must-listen for any emerging franchisor.
Time Stamp
Segment 1 02:54
Get to know Nancy Friedman
BONUS: 27:21
Free gift for listeners
Segment 2 28:33
Topic Segment – “Franchising Failure” A Case Study
Segment 3 50:00
Quickdraw Questions
In this episode, Nancy discusses the five steps to ultimately fail in franchising.
Step 1:
Proper vetting of prospective franchisees is key. Do your due diligence. Trust but verify
Sept 2:
Make sure you have the proper infrastructure in place before you begin the journey down the road of franchising. You can’t do everything all by yourself.
Step 3:
As a training document, a reference document, a master document for the system standards, as a sales tool, have your franchise operations manual in place. As a successful Startup ‘we’ make it look easy. It’s not.
Steps 4 and 5:
Don’t be too hot for the deal. Speed is not success. Have a growth plan in place. When you grant a new franchise, ensure that it fits into your well thought-out plan. A shotgun approach may have worked for some companies, but it doesn’t mean that it’s the easiest, most efficient, or best method of expansion. Franchising isn’t for everyone.
Nancy Friedman
The Telephone Doctor
314-291-1012
Kit Vinson
FranMan Inc. (Franchise Manuals)
214-736-3939 x1
In this episode, Pete Baldine talks to us about how to build a solid, emerging franchise model. It is a very broad topic, but the episode is filled with great “take-aways” and is a must-listen for any emerging franchisor.
Time Stamp
Segment 1 03:01
Get to know Pete Baldine
Segment 2 33:58
Topic Segment – Building a solid emerging franchise model
Segment 3 01:12:32
Quick-Draw Questions
Topics discussed in this episode:
Pete Baldine
Moran Family of Brands
708-297-2240
Kit Vinson
FranMan Inc. (Franchise Manuals)
214-736-3939 x1
In this episode I speak with Paul Rocchio of the International Franchise Association, www.ifa.org , as he discusses how the IFA is poised to be one of the most useful tools to all franchisors as they work to grow their franchise systems.
Segment 1 Time Stamp
Get to know Paul Rocchio 02:25
Segment 2
Topic Segment – IFA 23:05
Segment 3
Quick Draw 57:00
Topics discussed in this episode:
Paul Rocchio
International Franchise Association
procchio@franchise.org
202-662-0790
Kit Vinson
FranMan Inc. (Franchise Manuals)
Kit.vinson@franman.net
214-736-3939 x1
Mike gave away most of the company secrets during this interview! I was blown away and you will be too.
In this episode, Mike Drumm of Drumm Law in Denver, Colorado tells us why your company’s FDD might suck. He points out issues in an FDD’s content and style that could make or break an FDD’s ability to help you sell your concept to prospective franchisees.
Time Stamps
00:00:42 Podner Introduction
00:02:45 Segment 1: Get to know Mike Drumm
00:26:30 Segment 2: Why Your FDD Sucks
00:55:10 Segment 3: Quick Draw
Mike Drumm Show Notes
Why your FDD might suck:
BONUS CONTENT
During my visit with Mike, we go off topic and discuss some really important topics that every franchisor needs to know.
Books mentioned in the episode:
Michael Drumm
Drumm Law
Kit Vinson
FranMan Inc.
217-736-3939 x 1