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
Profiling. Strategy. Results. ®
Profiling. Strategy. Results. ®
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?
Profiling. Strategy. Results. ®
Thank you for attending. We are going to answer the
following five questions:
Profiling. Strategy. Results. ®
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?
Profiling. Strategy. Results. ®
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?
Profiling. Strategy. Results. ®
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
Profiling. Strategy. Results. ®
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.
Profiling. Strategy. Results. ®
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?
Profiling. Strategy. Results. ®
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.
Profiling. Strategy. Results. ®
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:
Profiling. Strategy. Results. ®
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.
Profiling. Strategy. Results. ®
Because franchising is all about people doing business with people
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.
Profiling. Strategy. Results. ®
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.
Profiling. Strategy. Results. ®
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
Profiling. Strategy. Results. ®
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%
Profiling. Strategy. Results. ®
Because franchising is all about people doing business with people
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
Profiling. Strategy. Results. ®
Target Marketing
Of the 191 franchisees who participated:
52 (27%) are considered Top Performers70 (37%) are considered Mid Performers69 (36%) are considered Poor Performers
Profiling. Strategy. Results. ®
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.“
Profiling. Strategy. Results. ®
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.
Profiling. Strategy. Results. ®
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
Profiling. Strategy. Results. ®
Because franchising is all about people doing business with people
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
Profiling. Strategy. Results. ®
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!
Profiling. Strategy. Results. ®
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
Profiling. Strategy. Results. ®
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
Profiling. Strategy. Results. ®
Because franchising is all about people doing business with people
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
Profiling. Strategy. Results. ®
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.
Profiling. Strategy. Results. ®
Because franchising is all about people doing business with people
Thank you for attending.We trust we have opened
your eyes to using a predictive model in your franchising efforts.
Profiling. Strategy. Results. ®
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.
Profiling. Strategy. Results. ®
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