Info

The Franchise Manual Podcast

The Franchise Manual Podcast is about all things "Franchise" and the people that make it look easy.
RSS Feed Subscribe in Apple Podcasts
The Franchise Manual Podcast
2022
April


2021
April


2020
December
February


2019
October
August
July
June
May
March
February


2018
December
October
September
August


2017
October
August
June
April
March
February


2016
December
October
August
June
April
February
January


2015
August
July


All Episodes
Archives
Now displaying: 2017
Oct 26, 2017

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:

  • Property (property, fixtures, furnishings, and equipment)
  • General liability (slips and falls)
  • Workers’ Comp (employees injuries and lost wages)
  • Auto (company owned vehicles)
  • Employment Practices (HR related risks)
  • Umbrella (covers over and above the above mentioned)

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:

  • Property: The property limits should be equal to the replacement cost of the property it is covering
  • All other: The rule of thumb is that you make the value of the insurance policy to be more attractive to a would-be plaintiff than your personal assets.

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.

Aug 4, 2017

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:

  • Site selection
  • Field support
  • Unit economics

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

brian.schnell@FaegreBD.com

612-766-7699

 

Kit Vinson

FranMan Inc. (Franchise Manuals)

Kit.vinson@franman.net

214-736-3939 x1

 

Notable mentions in this episode:

 

Faegre BD Franchise Summit

https://www.faegrebd.com/faegrebd-franchise-summit

 

Paul Rocchio - IFA

Procchio@Franchise.org

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.

Jun 9, 2017

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

www.nancyfriedman.com

nancy@telephonedoctor.com

314-291-1012

 

Kit Vinson

FranMan Inc. (Franchise Manuals)

www.franman.net

Kit.vinson@franman.net

214-736-3939 x1

 

Apr 27, 2017

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:

  • Establish a solid, proven model
    • Running a business and being a franchisor are completely different
    • Prove the model by establishing good unit economics so you can develop a solid story of success
  • Be capitalized well enough to build proper infrastructure and support new franchisees
    • New franchisee training
    • FDD / FA
    • Ops manual
    • Ongoing training programs
  • Stage One franchise system growth – friends and family
    • Support friends and family franchisees and make them successful
    • Search your existing franchisee base for success stories and duplicate them
  • Stage Two franchise system growth – professional candidates
    • Successful franchise sales requires a solid process
  • What is a new franchisee worth – what are the costs
  • The importance of establishing trust
  • How to evaluate prospective franchisees candidates
  • Don’t bury your franchisees with validation calls
    • How to manage the franchise validation process
    • Validation conference calls
  • Listen to franchisees and build support program around that
    • Supporting single-unit operators versus multi-unit operators and area developers
  • Don’t grow faster than you can support your system
  • Tracking Validation
    • Communicating / Coaching franchisees before the validation call
    • “Download” meeting with prospect after the validation call
    • Evaluate how well candidate assesses information from validation call

 

Pete Baldine

Moran Family of Brands

pbaldine@moranbrands.com

708-297-2240

 

Kit Vinson

FranMan Inc. (Franchise Manuals)

Kit.vinson@franman.net

214-736-3939 x1

Mar 28, 2017

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:

  • “I wish I had joined IFA MUCH sooner than I did”
  • FranShip Mentor Program
  • FranSocial – Social media platform that only includes IFA members
  • Franchise Business Network (FBN)
  • Certified Franchise Executive (CFE)
  • @ourfranhcise www.atourfranchise.org
  • Francise Action Network – grassroots network
  • FranPAC – Political Action Committee
  • The staff is the most underutilized resource at the IFA
  • How to make the most of the IFA convention

 

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

Feb 22, 2017

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:

  • It’s not written in plain English
  • You have “over disclosed”
  • You let your attorney or accountant write the first sentence that describes the concept
  • You didn’t brand the document
  • The FDD is not visually attractive and easy to read (pictures, charts, etc)
  • Item 19 doesn’t tell your story well
  • It doesn’t use a data sheet
  • Too many exhibits
  • Item 7 doesn’t include an average
  • It includes outdated technology references

 

BONUS CONTENT

During my visit with Mike, we go off topic and discuss some really important topics that every franchisor needs to know.

  • How to make the delivery of an FDD a memorable experience.
  • What is an FDD
  • Why is an FDD
  • What is the FTC Franchise Rule
  • Franchise Compliance Guide
  • Why do you need a franchise attorney

 

Books mentioned in the episode:

A Confederacy of Dunces

The E-Myth Revisited

 

Michael Drumm

Drumm Law

www.drummlaw.com

mike@drummlaw.com

 

Kit Vinson

FranMan Inc.

www.franman.net

kit.vinson@franman.net

217-736-3939 x 1

1