My Podner in this episode is Robert Bilotti and he’s going to talk to us about franchisee onboarding and training. We will dive deep into “training theory” and then wrap it all up with a step-by-step discussion on how a new franchisor needs to set up a training program for franchisees.
Time Stamps | |
Rob Bilotti Intro | 00:00:40 |
Segment 1 | 00:02:31 |
Get to know Rob Bilotti | |
Segment 2 | 00:18:55 |
Topic Segment – Franchisee Training and Onboarding | |
Segment 3 | 01:14:03 |
Quickdraw Questions |
Topics discussed in this episode:
The difference between a franchise system and a collection of mom and pops is “Training”
What is the difference between onboarding and training?
When do I need to hire a full-time trainer?
What to train versus how to train
Can a start-up franchisor use the operations manual as the training program at first?
Your first franchisees will be some of the most important validators of the concept, and if you skimp on training up front, it will come back to bite you.
Your most important franchisee is the first one after the former employee, friends, and family franchisees. That is the one that will really be the proof of concept. Be sure that you have a solid training program BEFORE that franchisee starts.
Invest in a learning management system (LMS) early
What is an LMS?
How does training change when you are in growth mode?
How to select an LMS right for your system
Moodle is a free, open source LMS
Look for a user-friendly system (from the administrative perspective) and a nimble system. Learn this by doing lots of demos and talking to other companies that use an LMS. Google is a great resource.
LMS support is probably one of the most important features. Usually, the more you pay, the more support you get.
What are the different modes of training (modality)?
If you set up a mentoring program to help train new franchisees, be sure to invest in a training program for the mentors so they can be trained in how to train.
There is a difference between lecturing and facilitation when it comes to training.
There is not one modality that is best for everybody. There is not a “one size fits all” when it comes to training.
Survey your franchisees, and do it often, how you are doing with training. Don’t just capture “smile sheets”, rather actionable information. This should happen every 3 to 6 months.
You CAN measure return on investment in training, especially in a franchise system.
Use gust satisfaction surveys to draw training topics.
What are the steps that a start-up franchisor needs to follow to develop a training program?
Step1:
Document – document – document. What makes your business a success.
Step 2:
What can you expand on from that? Create actionable content from that documentation? This is the “what”.
Step 3:
Determine how you will take that information and disseminate it to the people who need it? This would be the franchisee and their employees. This is the “how”.
Step 4:
Determine how you will support your franchisees in their training efforts to their employees.
Step 5:
Establish a mechanism for measuring the results of the training.
Allow plenty of time to develop your training program. If you start developing your training program after you have signed your first franchisee then you have waited far too long.
Rob Bilotti
info@novitatraining.com
Kit Vinson
FranMan Inc
kit.vinson@franman.net
214-736-3939 x1
My Podner in this episode is Ms. Lori Kiser and she’s going to talk to us about how to best utilize a franchise broker consultant company. Everybody wants to know how to find the path to granting more franchises, and in this episode we definitely talk a lot about that.
Time Stamp
Lori Kiser Intro 00:00:40
Segment 1 00:04:30
Get to know Lori Kiser
Segment 2 00:24:19
Topic Segment – How to work with Franchise Broker Consultants
Segment 3 00:57:15
Quickdraw Questions
Topics discussed in this episode:
Franchise Broker Consultants are not business consultants in the traditional sense of the word. They specialize in producing qualified, vetted leads for franchisors.
A franchise broker consultant is not part of the sales team of the franchisor. They will not take the prospect through the franchisor’s sales process, though they will stay involved as the candidate passes through the process.
In order to be successful with a franchise broker consultant, a franchisor must have the following already in place and running within their concept:
A typical start-up franchisor is usually not a good candidate for a franchise broker consultant group because the broker consultant is paid based on successfully bringing a prospect that eventually signs a contract with the franchisor. Because start-up franchisors typically don’t have the infrastructure in place to handle the lead volume, broker consultant groups are less likely to accept them as a client.
How to take your startup system and get it ready to be accepted by a broker consultant group:
A typical franchisor broker consultant will sift through over 100 candidates before they find one that is worthy of passing on to the franchisor clients.
The Franchise Rule does apply to a franchise broker consultant, although the broker consultant shouldn’t be doing any selling of the specific system.
Once a franchisor is able to join forces with a franchise broker consultant group, what is the best way to manage that relationship?
Lori Kiser
Kit Vinson
FranMan Inc
kit.vinson@franman.net
214-736-3939 x1
My Podner on this episode is Tom Spadea. Tom and I will discuss the benefits of properly managing the FDD and the Franchise Agreement, from the beginning, making sure to keep the end in mind. The "end" he speaks of is a possible acquisition by an investment company. What will they expect to see when they look at your franchisees contracts in your files?
Time Stamp
Tom Spadea Intro 00:00:40
Segment 1 00:03:22
Get to know Tom Spadea
Segment 2 00:24:40
Topic Segment – Managing Your Franchise Agreements with the End in Mind
Bonus Segment 00:57:15
Managing Franchisee Growth
Segment 3 01:02:50
Quickdraw Questions
Topics discussed in this episode:
Where do most franchisors get it wrong? Many franchisors and franchise attorneys focus mostly on the substantive issues of the and forget about procedural issues related to the process - managing latent defects
You can have the best FDD and franchise agreement in the world, but if you don’t manage the process properly, it can cost you a lot of money in the short term with an unenforceable contract, and in the long run, upon exit.
It’s important to understand who the real audience of the Franchise Agreement is. It is the franchisee, but it is also a prospective private equity investment firm who may want to purchase your system in the future.
What is the process?
Step 1: Make sure that the franchise agreement is up-to-date
Step 2: Geographical Analysis - Ensure that the franchisor is registered in every registration state where the concept will be offered. That includes where the prospect is currently located as well as where they want to open a location. Both states must be registered if required by that state. Deliver the correct FDD for the state.
Step 3: Ensure that 14 days pass between delivery and signing of the Franchise Agreement, not including delivery day and signing day
Step 4: Spend the time to ensure that names are all spelled correctly, along with middle intials. Check the address, LLC name etc
Step 5: Prepare a custom franchise agreement based on the specific agreements made between franchisor and franchisee – do not use the sample franchise agreement that is included in the FDD. Deliver the document to all required recipients and ensure proper signatures
Step 6: Ensure that the lease includes all of the required language as per the franchise agreement
There are many different software packages that can help you with each aspect of the transaction, but Spadea Law has the platform that hits every element. Compliance Map helps franchisors ensure that they are only offering the franchise in the proper states. The link to the Compliance Map software demonstration is below:
If you haven’t managed the steps of the process well, then it is not too late. Review your documents and get the documents in line now, before you are approached by an investor.
Books:
By by Salim Ismail and Michael S. Malone
Seven Habits of Highly Effective People
By Stephen Covey
By Michael Gerber
Conn Iggulden
Podcasts:
Dan Carlin’s Hardcore History
Tom Spadea
Spadea Lignana
610-662-0192 (cell)
Kit Vinson
FranMan Inc.
www.franman.net
214-257-7685 x1
Kit Vinson
My Podner on today’s show is Mike Pollock and he’s going to give us tips on how to build a franchise development system for your franchise. But it was more than just that because we also talked about how to take a warm lead through the process to close the deal.
Time Stamp
Mike Pollock Intro 00:00:40
Segment 1 00:03:15
Get to know Get to know Mike
Segment 2 00:22:10
Topic Segment – Franchise Development 101 (Sales)
Segment 3 01:18:40
Quickdraw Questions
Topics discussed in this episode:
How to set up an efficient process for franchise development
· Brand Overview Presentation (45 minutes to 1 hour long)
· Develop a solid franchise prospect application that focuses on:
o Background
o Financial situation
· Have the Unit Economics Call
o FDD introduction call (15 minutes)
o Unit Economics (45 minutes)
o Receive signed Item 23 (Proof of receipt of FDD)
o Password
o Validation instructions
· Validation Debriefing Call
· Discovery Day
o Brand Overview Review
o Meet the Team
o Lunch and dinner are the best opportunity to visit with prospects
o Field Visits
· Voting Process
It is best to have multiple prospects attend a discovery day (between 4 and 5)
If you are going to hire a company such as FranLift to manage the franchise development process, then it is best to get them involved earlier rather than later.
Have a marketing budget set aside in advance. It typically costs between 8K and 15K to bring 1 franchisee in the door.
Mike Pollock
FranLift Franchise Experts
mikep@franlift.com
214-551-0261
Kit Vinson
FranMan Inc. (Franchise Manuals)
Kit.vinson@franman.net
214-736-3939 x1