30 episodes

The Franchise Manual Podcast is about all things "Franchise" and the people that make it look easy.

The Franchise Manual Podcast Kit Vinson

    • Business

The Franchise Manual Podcast is about all things "Franchise" and the people that make it look easy.

    Episode #30 - Site Selection, Real Estate, and Build-Out

    Episode #30 - Site Selection, Real Estate, and Build-Out

    My Podner in this episode is Brendan Charles and he’s going to talk with us today about what franchisors should be teaching their franchisees about site selection, real estate negotiations, and build-out. Bad decisions in these areas can be detrimental to the success of the location. Everybody has some skin in the game here. This discussion will benefit both new and seasoned franchisors.
    Time Stamps
    Brendan Charles Intro
    00:00:28
    Segment 1
    00:02:44
    Get to know Brendan
    Segment 2
    00:15:38
    Topic Segment – Site Selection, Real Estate, and Buildout
    Segment 3
    01:25:10
    Quickdraw Questions
     
    Topics Discussed in this Episode
    You only get one chance to get the real estate right. Real estate is one of the three main controllable in a franchise business model but real estate is only a “controllable” until you sign the lease. If you don’t know what your break even is BEFORE you start looking for real estate, then your real estate decision could break you. #1 rule in site selection – Never fall in love with a space. The real estate brokers’ incentives are not necessarily aligned with yours – the more you pay in rent, the more the broker gets paid on commissions Know exactly what your site selection criteria are BEFORE you start your search How do you develop site selection criteria when you only have one location to go by? Utilize the free services of your real estate broker to provide the demographic reporting Once you have multiple locations in operation (data points), then you can compare performance with location attributes and fine tune your site criteria Onboard your broker about the brand – make sure they share the enthusiasm of the brand’s potential as they will be your #1 sales person when presenting the concept to potential landlords Spend a full day viewing all available locations in the “Market Tour”. Take copious notes on the good as well as the bad locations Boil your options down to 3-5 locations Time kills all deals. You have to move FAST after your market tour and get the letters of intent out quickly. The franchisor should be very involved in the site selection process – don’t sit on the sidelines Submitting a good letter of intent is the most important step in the whole landlord negotiation process – rent, term, tenant improvements, etc. If you don’t get the Letter of Intent right, there is no way you will get the build out right, and if you don’t get the build out right, you’ll be behind schedule and way out of budget Once the letter of intent is delivered, the landlord is on notice to respond, however, that doesn’t mean that you can stop looking. Always have backup sites in your pocket Use two LOIs to leverage the deals against each other. Once you reach the lease stage, the due diligence of the space continues – make sure that the space is exactly what the landlord advertised it to be. This is done with a site survey The drawings from the landlord aren’t always accurate so don’t rely on them It is best to utilize a national architect for every franchised location rather than local architects Floor plan design in a restaurant – the dining room is your money maker and should be maximized Familiarize yourself with the design review process – go down to the city offices and meet the people who will be doing the plan review Identify general contractor bid pool – qualify them – Have they built in the market you are in? – Do they have the relationships with the city officials, etc. Avoid too many GCs in the bid pool At the time of the build-out, the interests of the landlord are in line with yours because they get rent money once you open your doors for business, so they can be a good source of referrals of general contractors. Poorly planned design submitted to the city will stall the process Be aware of a TAP

    • 1 hr 29 min
    Episode #29 - Creating Customer Loyalty

    Episode #29 - Creating Customer Loyalty

    My Podner duo in this episode is Andy Erskine and Bob Gappa of Management 2000, and they’re going to talk with us today about the importance of customer loyalty, what drives it, and how to manage it.

    • 1 hr 17 min
    Episode #28 - Generating Franchisee Leads

    Episode #28 - Generating Franchisee Leads

     
    My Podner in this episode is Red Boswell and he’s going to talk with us today about how to generate franchisee leads. This is one of the hottest topics with franchisors. This discussion will benefit both new and seasoned franchisors.
    Red is a unique character, and I mean that in a good way. This guy has been driven to make money ever since he was a kid. Starting in grade school when he was selling NFL pencils for a profit, into hos twenties when he build up a pet services franchise system  all the way up to 148 units. He’s been operating in the world of franchising practically his entire adult life. He’ll give us more details in just a few minutes.
    Red now gets to fuel his business building passion as President of the International Franchise Professionals Group (IFPG), The World’s Largest and Most Respected Franchise Consultant Organization. .
    Time Stamps
    Red Boswell Intro
    00:00:28
    Segment 1
    00:02:05
    Get to know Red Boswell
    Segment 2
    00:29:45
    Topic Segment – Franchisee Lead Generation
    Segment 3
    01:01:50
    Quickdraw Questions
     
    Topics Discussed in this Episode
    The cost of a lead
    The average cost of a lead in 2019 is $10,000 That number does not including commissions That number includes large companies that don’t need to spend anything for leads because their brand is so well knows that they don’t need to advertise to get leads Small companies usually pay a lot more to generate leads since their concepts usually don’t have any brand recognition  
    16 sources of leads
    Direct mail Print Online Brokers Referrals Consumer / Clients PR Industry / Conversions Prospecting Buying leads Live events / Expos Mobile / Roadside Upgrade / Multi-unit Operators Past leads Guerilla marketing TV Radio  The marketing mix is a moving target and is different for every concept. There is no silver bullet, one size fits all solution for the marketing spend mix.
    Do a lot – do it for a long time – test and measure
    Every option will involve one or all of these three
    Time Money Resources The trick is to utilize the options that require the resources you have the most of.
     
    Red’s Favorite Five
    Red says that every solution must be customized to the individual concept, but if he HAD to pick his favorite five, the would be:
    Brokers
    Best option for any size franchisor You pay to be a member then pay a commission per close Many broker groups won’t accept smaller start-up concepts Big saver of time and resources PR
    Hire a PR firm Find one who is familiar with the world of franchising IFA members a plus Validate with their past clients Industry Conversions
    Converting existing business people who are struggling You never know who may be disenchanted with operating their own concept and who would love to convert These are cold calls usually Live Events / Expos
    Usually between $5k and $10K per event Use common sense and work it hard Energy – follow-up – is key Online
    You could make online all five PPC Pay per click / Banners SEO of your own franchise site Develop a GREAT portal that grabs and tracks leads and conveys the information well. Portals tend to generate  a lot of volume with lower quality, but still worth the spend Social media posting Big data targeting Job boards – make a job advertisement  with the tag “some investment required” – describes a dream job Bonus Source: Guerilla Marketing
    Example: flyers on every windshield at the local franchise expo  
    Common mistakes made by franchisors as it relates to lead sources:
    Lack of infrastructure – be able to walk away from your business for 6 months Don’t try to run your business and franchise it all by yourself Franchise Development person Marketing person Onboarding / Training person Field support person Lack of good ops manuals Not charging enough for the fra

    • 1 hr 13 min
    Episode #27 - Franchising 101

    Episode #27 - Franchising 101

    My Podner in this episode is Rob Vinson and he’s going to talk with us today about Franchising 101 – Where to start when you backed into franchising by accident, and don’t know where to go.

    • 1 hr 15 min
    Episode #26 – CRM on STEROIDS

    Episode #26 – CRM on STEROIDS

    My Podner in this episode is Stan Friedman and he’s going to talk with us today about Customer Relationship Management software, or CRMs.
     
    Time Stamps
    Stan Friedman Intro
    00:00:27
    Segment 1
    00:02:34
    Get to know Stan Friedman
    Segment 2
    00:23:32
    Topic Segment – CRM – Customer Relationship Management
    Segment 3
    01:07:51
    Quickdraw Questions
     
    Topics Discussed in this Episode
    Brief history of CRM What is CRM today How is CRM used in franchising Can a franchisor get by without CRM at first When does a franchisor need to graduate to CRM How to choose a CRM What is FRM Solutions The features of FRM Solutions The types of information a franchisor need to be managing the juggling act that a franchisor has to do when business gets that busy Sortable, Reportable, and Dashboardable, Candidate Gate – Franchisee Gate Gating the candidate experience versus free reign Managing beyond acquisition  
    Stan Friedman
    FRM Solutions
    sfriedman@frmsolutions.com 
    404-936-8677
    Skype - stanfriedman1
     
    Kit Vinson
    FranMan Inc.
    kit.vinson@franman.net
    214-736-3939 x 101
     
    Books Mentioned in the Episode:
    Traction by Gino Wickman The E-Myth by Michael Gerber Seven Habits of Highly Effective People by Stephen Covey Spin Selling by Neil Rackham The Physics of the Impossible by Michio Kaku  

    • 1 hr 19 min
    Episode #25 - Franchisee Recruitment

    Episode #25 - Franchisee Recruitment

    My Podner in this episode is Art Coley and he’s going to talk with us today about how to develop a franchisee recruitment system that will attract higher quality franchisees to your system.
    Time Stamps
    Art Coley Intro
    00:00:27
    Segment 1
    00:03:00
    Get to know Art Coley
    Bonus Segment
    00:19:40
    Near business failure – Art’s “E-Myth” moment
    Segment 2
    00:32:00
    Topic Segment – Franchisee Recruitment System
    Segment 3
    01:25:29
    Quickdraw Questions
     
    Topics Discussed in this Episode
    What is the founder’s trap that keeps many small business owners from growing to their Business?
    Becoming royalty self-sufficient needs to be a franchisor’s #1 goal at first.
    Most franchisors never understand that franchise recruitment is a separate business that requires a separate skill set.
    The value of a franchised business in not built on selling franchises, the value is based on unit economics.
    Traditional franchise recruitment systems - what’s good about them - what’s bad about them?
    What do you mean when you say “Disillusioned” franchise system?
    Franchising Statistics:
    9% of all franchisors have ever made it past 200 locations 20% have ever grown past 100+ units The secret to franchise recruitment is having a system and implementing the system properly
    What is Recruitment Operating System all about?
    Discovery Culture versus Sales Culture - what does that mean?
    Why is “Executive Buy-In” so important to a successful franchise recruitment system?
    Building a recruitment operating system isn’t for a bunch of wimps!
    What are the 4 Pillars of the ROS System?
    Lead Generation Pre-Discovery 8 Step Discovery Process On-Boarding Any franchisor who is not doing some sort of Discovery Day is making a massive mistake.
    Managing the handoff to Onboarding – Why is that important?
    When there is no communication between Onboarding and Recruitment teams, the quality of the new franchisees will never improve.
    What are the three phases of the discovery process? What do they mean?
    Vision Grind Angst What are some of the key metrics that every franchisor should be following regardless of what recruitment system they use?
    What is situational leadership and what role does that play in the recruitment process?
    Unconscious Incompetence Conscious Incompetence Unconscious Competence Conscious Competence What role does a good CRM play in the recruitment process?
    Communication is key in every organization, but you say that communicating with existing franchisees is really important. Why?
     
    Art Coley
    www.cgifranchise.com
    acoley@cgifranchise.com 
    281-658-9409
     
    Kit Vinson
    www.franman.net
    kit.vinson@franman.net
    214-736-3939 x 101
     
    Books Mentioned in the Episode:
    Scaling Up
    Verne Harnish
     
    Lessons Learned – Wisdom Gained
    Harish Babla
     
    Empire of the Summer Moon
    S.C. Gwynne
     
    E-Myth
    Michael Gerber

    • 1 hr 33 min

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