using a predictive model to grow your franchise system...“by profiling our existing franchisees...

Because franchising is all about people doing business with people

Using a Predictive Model to Grow Your Franchise System

Craig SlavinPresident/Founder

Franchise Navigator by Franchise Architects

Profiling. Strategy. Results.®

Since 1980

Profiling. Strategy. Results. ®

A Special Thank You To Our Guest Speakers

Lauren Johnson, Director ofFranchise DevelopmentNavis Logistics, Inc. 64 Franchisees

Joan Trinka, Director ofFranchise DevelopmentBark Busters 246 Franchisees

Monty Smith, Vice PresidentFranchise DevelopmentPuroClean Systems 187 Franchisees



There are a lot of questions . . .

1.1. Do you know the best profile for your franchise?Do you know the best profile for your franchise?2.2. What specific skills do you require of your What specific skills do you require of your

franchisees?franchisees?3.3. Do you really know how to reach the right profile?Do you really know how to reach the right profile?4.4. Do you ever hope you reach the right profile?Do you ever hope you reach the right profile?5.5. Do you ever hope you are using the right media to Do you ever hope you are using the right media to

reach this profile?reach this profile?6.6. Do you ever hope brokers send you the right Do you ever hope brokers send you the right

profile?profile?7.7. Do you even care?Do you even care?


Thank you for attending. We are going to answer the

following five questions:


We are going to answer these five questions:

1.1. Can a franchise company use a generic personality Can a franchise company use a generic personality profiling tool or does it need to be specific to profiling tool or does it need to be specific to business and franchise ownership?business and franchise ownership?

2.2. Is it beneficial to benchmark existing franchisees?Is it beneficial to benchmark existing franchisees?3.3. Does using this type of predictive tool enable Does using this type of predictive tool enable

more specific and better target marketing?more specific and better target marketing?4.4. How can a predictive tool be used to recruit new How can a predictive tool be used to recruit new

franchisee candidates?franchisee candidates?5.5. Is a predictive tool useful for training, Is a predictive tool useful for training,

support and relationship purposes?support and relationship purposes?


What information will help you to grow your franchise network?

What do you need to know to be more productive? What do you need to know to be more productive? What information will be useful to you as you recruit, What information will be useful to you as you recruit, select and support franchisees?select and support franchisees?What information helps you to build shareholder What information helps you to build shareholder value?value?How can you increase franchisee performance?How can you increase franchisee performance?Can you be predictive in searching for the right Can you be predictive in searching for the right franchisee?franchisee?


Assumption 1: Your Business Is Like An Eight Cylinder Engine

OPERATIONS

MARKETING MARKETING and and ADVERTISINGADVERTISING

LEGALLEGAL

SALES andSALES andCUSTOMER SERVICECUSTOMER SERVICE

FINANCIALFINANCIAL

ORGANIZATIONALORGANIZATIONAL/HUMAN /HUMAN

RESOURCESRESOURCES

IT/INFORMATIONIT/INFORMATIONTECHNOLOGYTECHNOLOGY

IMAGE, IDENTITY IMAGE, IDENTITY andandBRANDINGBRANDING

Franchise Architects Eight Cylinders


Assumption 2: Your Business Requires Three Distinct Skills

Sales and Marketing Sales and Marketing Customer Service Customer Service

SkillsSkills

Business Business Administration Administration

and Management and Management SkillsSkills

Product/Technical Product/Technical SkillsSkills

1 2 3

Question: Which skill and core competency is the most important Which skill and core competency is the most important for a franchisee to possess for operating your franchise?for a franchisee to possess for operating your franchise?Answer:

A franchisee should not be expected to be proficient A franchisee should not be expected to be proficient at all three. In fact, people who are good at all three at all three. In fact, people who are good at all three do not buy franchises. You have to pick one.do not buy franchises. You have to pick one.


What is a predictive model?

As an adjective predictive means:“relating to the forecasting of a likely result or outcome.”

1.1. Can a franchise company use a generic personality Can a franchise company use a generic personality model or tool or does it need to be more specific to model or tool or does it need to be more specific to business and franchise ownership?business and franchise ownership?


We believe a franchisor can forecast and predict a franchisee’s skills, values and

behavior before granting a franchise. This can be accomplished by using a franchise-

specific tool and process.


Generic or Specific?

Our research, during the past 30 years with Our research, during the past 30 years with thousands of prospective and existing franchisees, thousands of prospective and existing franchisees, corporate employees and consumers, demonstrates corporate employees and consumers, demonstrates that in order to be effective the tool must be specific that in order to be effective the tool must be specific

to business and franchise ownership.to business and franchise ownership.We used and tested many of the existing We used and tested many of the existing

personality profiling tools. They are all very strong personality profiling tools. They are all very strong tools at the employer/employee level but weak when tools at the employer/employee level but weak when it comes to profiling prospective franchise owners. it comes to profiling prospective franchise owners.

Our findings showed:Our findings showed:


Generic or Specific?

Most, if not all, existing “tools” are designed for the employer/employee relationship and employee screening.

Franchisees are not employees. They make decisions and live their lives differently than employees do. Owning a business or a franchise is completely different than working on a job.

Interpretations of the results, from these generic, employee-oriented tools, is very subjective for business ownership purposes.

We knew, from 30 years of experience, we needed a tool more specific to business and franchise ownership.



2.2. Is it beneficial to benchmark existing franchisees Is it beneficial to benchmark existing franchisees using a franchiseusing a franchise--specific tool?specific tool?

“ Using the Franchise Navigator we were able to find out that the people we were selling our franchises to were not the right profile of who would implement our business model.”Ms. Lauren Johnson, Vice President Franchise DevelopmentNavis Logistics Network, Inc.


Benchmarking Existing Franchisees

Understanding what we did in our past and how that affects our future.

• We have a strong business model and thought we knew who we should be looking for.

• We have top, middle, and bottom performers, but we did not know why each perform the way that they do.

• Imperative to find out the “why” now so that we could focus our efforts on making sure the remaining territories are awarded to the right candidates.


Benchmarking Existing Franchisees

Benchmarking showed a very clear distinction between our top, middle, and bottom performers and the “why” behind the profiles.If we had not completed the benchmarking we still would not have the “why” and most likely would be making arbitrary changes to support, training, and our marketing strategy.Now we can make decisions in marketing, support, and training based on solid data


This graph illustrates the average scores of all Navis Single Territory/Warehouse Franchisees.

The three bars indicate the Top, Mid and Poor Performing franchisees in the system.

Left Bar - Average Scores of Top Performers Center Bar - Average Scores of Mid PerformersRight Bar – Average Scores of Poor Performers

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

CONTRIBUTORASSOCIATORINFLUENCERACCOMPLISHER

74% 74% 70%72%

62% 63%

80% 74%

72%72%

68% 65%



3.3. Does using this type of predictive tool enable more Does using this type of predictive tool enable more specific and better target marketing?specific and better target marketing?

“ Once we knew who our target profile should be, we set out to refocus our franchise sales materials and presentations to communicate directly with this profile.”

Ms. Joan Trinka, Director of Franchise DevelopmentBark Busters


Target Marketing

Of the 191 franchisees who participated:

52 (27%) are considered Top Performers70 (37%) are considered Mid Performers69 (36%) are considered Poor Performers


Target Marketing

You reap what you sow when attracting candidates. • We wanted to attract more franchisees who were business savvy.

• Franchise marketing materials were heavy on green and personal/touchy-feely info.

• The old focus was: "Enhancing Peoples' Lives.“


Target Marketing

Clearing the field: How changing coloring and messaging changes the candidates drawn to you. • Now attracting Influencer - Accomplisher using the right

colors and messaging instead of Contributor-Associator being strongest.

• New messaging – “Leaders of the pack, top dogs.”

• Bold colors – brief sentences to attract right profile.


Target Marketing

Planting the right seed brings the best harvest. • Why the Top performer profile combination fits best as

single operator:

Influencer for making presentations, building referral network and booking lessons

Accomplisher because our business does have some multi-tasking needed to cover all the areas

Associator for building a network in the community

Contributor for the hands on training work



4.4. How can a predictive tool be used to recruit new How can a predictive tool be used to recruit new franchisee candidates?franchisee candidates?

“By profiling our existing franchisees and then creating a segmentation model that defines Top, Mid and Poor Performers, we were able to clearly see who our audience members are and how to better communicate with them.”

Monte Smith, CFE Vice President FranchisingPuroClean Systems


Recruiting Franchisees

Having the ability to be predictive in the selection process has enabled PuroClean to be more selective.

However, we sold more franchises last year than ever before!


How we use the tool

Discovery Process – “We know what it takes to be successful.”• Better understanding of our candidates personality traits• Tailor a step-by-step review of our systems, culture, vision

and market niche of our franchise offering

Selection Process - “It’s not a yes or no.”• We know what it takes to operate the business• We understand the personality, competencies and

compatibility factors of our Top Performing franchisees


How we use the tool

Training and Support Process - “We know who needs attention.”

• Identify the training and support required• Structure the right level of support to fit the

personality profile of the franchisee



5.5. Is a predictive tool useful for training, support Is a predictive tool useful for training, support and relationship purposes?and relationship purposes?

“Everyone at Handyman Matters feels like we finally understand the characteristics of our top performing franchisees and have a much better grasp of how to customize our marketing pieces to continue to entice more of these types of candidates into our system. Your additional follow-up with ideas and suggestions on how to help the mid performers was an added bonus to my support staff!”

Colette Bell, President Handyman Matters


Training, Support and Relationship Issues

Once you know the profile of the existing franchisees you have the ability and opportunity to design communications and training programs to better communicate with the franchisees.

Field support personnel need to be more “psychologists” than business model execution specialists. What works with one profile will not with others.



Thank you for attending.We trust we have opened

your eyes to using a predictive model in your franchising efforts.


Franchise Navigator

The Four Behavioral ProfilesThe Four Behavioral ProfilesACCOMPLISHER INFLUENCER ASSOCIATOR CONTRIBUTOR

Everyone has all four profiles. What the Franchise Navigator does is identifies, instantly, which are the dominant and subordinate profiles.


Franchise Navigator

ACCOMPLISHER

• Big Picture• Can multi task• Strong business skills• Strong drive for

accomplishment• Does not need

accolades

Single and Multi Unit Operators

INFLUENCER

• Narrow focus• Cannot multi task• Strong sales skills• Needs instant

gratification• Needs a lot of

accolades

Single Unit–Area Territorial

ASSOCIATOR

• Broad focus• Cannot multi task• Has a need to belong• Works with family and

close friends• Needs a lot of

attention• Wants routine

Single Unit–Small Staff

CONTRIBUTOR

• Caring focus• Can multi task• Has a need to

contribute• Wants a steady

business• Loves to enrich others

Single and Multi Unit –Larger Staff

using a predictive model to grow your franchise system...“by profiling our existing franchisees...

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