results - International Franchise Association

Transcription

DECEMBER 2014
15
Improve Online Marketing Results by Centralizing Your Digital Strategy
20
Customer Satisfaction
Processes: Surveys
and Reputation
Management
18
Seven Ways to Take Control of Your Online Listings
26
Quality Content is
Important in
the Battle for
Search Rank
22
MARKETING
Marketing
Tips for Winning With
Millennials
to achieve
RESULTS
28
Underdog Marketing:
Competing Against the
Big Guys
32 Five Suggestions to
Improve Your Social
Media Program
ct.
Connveate.
Innoolve.
Ev
015
#IFA2
015
#IFA2
015
#IFA2
#IFA2015
Final
Program!
p. 41
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VOLUME 46, NUMBER 12
CONTENTS
Publisher
Stephen J. Caldeira, CFE
Associate Publisher
Scott Lehr, CFE
Executive Editor
Alisa Harrison
Senior Vice President, Media Relations and
Public Affairs
Matthew Haller
Marketing Manager
Courtney Moore
Graphic Design Coordinator
Rahath Alam
Publishing Manager
Laura Fenwick
Senior Director of Advertising & Media Solutions
Gregory M. Cook
Membership & Advertising Manager
Sara Williamson
Senior Coordinator, Membership & Advertising
Elizabeth Bailey
Regional Advertising Managers
Kelley Class
Carly Wooley
Subscription Manager
Rose DuPont
Communications Manager
Jenna Weisbord
Franchising World (ISSN 1041-7311) “Volume 46, Number 12,” is published
monthly by the International Franchise Association, 1900 K St., N.W., Suite
700, Washington, D.C. 20006. Subscription rates are $50.00 per year for 12
issues. Periodicals postage paid at Washington, D.C., and additional mailing
offices. Single copy price: $5.00. IFA members receive Franchising World as a
membership benefit.
POSTMASTER: Send address changes to Franchising World at 1900 K St.,
N.W., Suite 700, Washington, D.C. 20006. When requesting address changes,
please enclose mailing label. Please allow 4–6 weeks for the change of address
to be fully processed.
For advertising information, call: IFA Advertising Department (202) 628-8000.
The full text of Franchising World is available in the electronic versions of
the H.W. Wilson Company’s Business Periodicals Index. For information call
(800) 367-6770; outside the U.S. Call (718) 588-8400. Fax: (718) 590-1617.
Copies of Franchising World issues and articles also are available for
purchase on 16mm microfilm, 35mm microfilm and 105mm microfiche from
University Microfilms Inc., 300 North Zeeb Road, Ann Arbor, MI 48106-1346;
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Franchising World welcomes views and comments from its readers.
Correspondence should be addressed to Editor, c/o Franchising World at 1900
K St., N.W., Suite 700, Washington, D.C. 20006. Franchising World reserves
the right to edit letters for publication and also reserves the right to refuse
advertising. With the publication of Franchising World, IFA is not offering
legal, financial or any other professional advice or endorsements. Readers are
encouraged to seek advice from professionals in specialized fields before acting
on any information published herein. The views and opinions expressed in
Franchising World are those of the author(s) and do not necessarily reflect the
views and opinions of IFA members or staff.
For reprint information contact: PARS International Corp., Phone: (212) 2219595, Fax: (212) 221-1468, E-mail: [email protected], www.magreprints.
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Copyright © 2014 International Franchise Association. Printed in U.S.A.
FEATURES
15 Improve Online Marketing Results by Centralizing
Your Digital Strategy
By Jeremy LaDuque, CFE
18 Seven Ways to Take Control of Your Online Listings
By Will Yapp
3 PRESIDENT & CEO’S COLUMN
2
FRANCHISING WORLD DECEMBER 2014
By Austin Fiascone
28 Underdog Marketing: Competing Against the Big
Guys
By Sherri Fishman, CFE
20 Customer Satisfaction Processes: Surveys and
Reputation Management
32 Five Suggestions to Improve Your Social Media
Program By Keith Gerson, CFE
22 Marketing Tips for Winning With Millennials
By Jeff Fromm
IFA MEMBERS
6 People & News Briefs
GOVERNMENT RELATIONS & PUBLIC POLICY
8 IFA Seeks Details of NLRB Counsel’s “Joint Employer”
Opinion
BY ROBERT CRESANTI
10 FranPAC Report Card
BY ERICA FARAGE
STATE REPORTS – ADVANCING FRANCHISING
12 California Governor’s Veto of Relationship Law Raises Bar
For Proponents
BY MICHAEL SEID, CFE
INTERNATIONAL DEVELOPMENT
34 Managing Risks for International Franchises
BY ANDRES FRANZETTI
MANAGEMENT & OPERATIONS
36 How to Launch a Successful Regional Developer Program
By Andy Giefer
MULTI-UNIT FRANCHISE INNOVATORS
70 Transitioning From Single- to Multi-Unit Franchising
BY CHRIS DRUCQUER AND FRANK AND TAMARA
WETEGROVE
TECHNOLOGY
72 Cyber Insurance for Cyber Crime
BY SAM HIGGINBOTHAM
LEGAL
74 New Prohibitions on Sending Commercial Electronic
Messages to Canadians
BY LARRY MUNN AND JOHN L. ROGERS
TRENDS
76 Take Your Business on the Nontraditional Route
BY BILL CHEMERO, CFE
HONORING AMERICA’S VETERANS
77 VetFran Represents a Higher Purpose
BY KEVIN BLANCHARD
BY BRIAN K. MILLER, CFE
39 Your Step-by-Step Employee Termination Checklist
BY REBECCA MORRIS
MULTI-UNIT FRANCHISING
64 Best Practices for Expanding Your Brand in a Region
BY SETH LUCAS
66 Franchisors and Multi-Unit Franchisees Team Up For
Growth
BY THERESE THILGEN
DEPARTMENTS
26 Quality Content is Important in the Battle For
Search Rank
68 Four Ways to Improve Your Business Development Efforts
BY MIKE BOYD
IFA PRESIDENT AND CEO’S COLUMN
A Full Agenda Ahead
AS WE CLOSE OUT the year,
it’s a great time to reflect on
the increasing public policy
challenges we continue to
face at both the federal and
state levels, and we are also
acutely aware that we will
have an equally challenging
year in 2015. We have no
doubt that, as we have done
in 2014, in the New Year,
we will continue to rise to
these challenges to protect,
promote and enhance this
great industry that we call
franchising.
Our industry continues to
grow, but at a slower pace than what we would expect almost
five and a half years after the recession ended. We are still
outpacing other sectors of the economy when creating jobs
and economic activity. However, there are many factors still
stalling our growth potential, such as government regulatory
overreach in various areas, improving, yet still tight credit
markets, low consumer confidence and an overall struggling
global marketplace.
In 2014, we witnessed firsthand how the overreach of
municipal, state and federal regulators can impact our
industry. But there were a few events this year that will have
long-lasting, if not permanent, impact on the industry and the
IFA if we do not aggressively confront them.
For example, there were six state legislatures that
attempted to pass laws that would have changed the
franchise model so extensively that franchising would not be
feasible in those states. We executed intensive, integrated,
grassroots, media and lobbying campaigns, led by our
franchisee members, to stop each of them, including in
California where the bill made it all the way to Gov. Jerry
Brown’s desk.
A massive grassroots campaign led by IFA and franchisees
urging Gov. Brown to veto the bill was successful. I’m happy
to report that despite the California bill having passed
super two-thirds Democratic majorities in both the State
Assembly and State Senate, and with intense pressure from
organized labor on Gov. Brown to sign it in an election year,
the governor vetoed the bill. IFA’s success in large part can
be attributed to our still evolving, but increasingly effective
Franchise Action Network, or the FAN as we call it. FAN is
an initiative to educate, mobilize and activate franchisees and
franchisors to action on critical public policy issues that affect
the industry.
In Seattle, the City Council’s new minimum wage law
discriminated against franchisees by requiring them to
implement the new $15 an hour minimum wage, four years
earlier than small, non-franchise businesses with under 500
employees. The City Council made this determination by
saying that since franchisees were part of a branded chain,
they should be treated like big businesses instead of the
local small businesses that they actually are.
We cannot let this definition of franchise businesses
stand. It’s unfair, it’s discriminatory and it is a deliberate
attempt to achieve a political agenda at the expense of
local, small-business franchise owners. It would also set
a very dangerous precedent. So the IFA and five Seattle
franchisees filed a lawsuit in the U.S. District Court’s
9th Circuit in the state of Washington for a preliminary
injunction against the new law, which is scheduled to take
effect in April 2015. We should hear in the not too distant
future the results of this reasonable and common-sense
request.
We feel the legal arguments in Seattle are on our side
in this matter, and we are hopeful the courts will agree
with us and overturn the law. We are prepared to take
this case all the way to the Supreme Court if necessary,
because of the severe, and potentially negative long-term
impact this law could have on our industry.
The Chicago City Council also considered a similar
effort, but through the efforts of our local Franchise
Action Network, we were able to show why its proposal
was discriminatory and created an unlevel playing field
based on the fact that local franchise business owners are
indeed small businesses. The Chicago City Council also
made the decision after the Seattle lawsuit was filed.
At the federal level, the National Labor Relations
Board has launched a major offensive against the
franchise industry with the cornerstone of their efforts
being its attempt to define franchisees and franchisors
as joint employers. We are working with members of
Congress to press upon the NLRB to reveal their legal
reasoning for this determination. To date we have more
than 100 members in the House and 25 in the Senate who
have signed letters asking the NLRB General Counsel for
this information.
We have also organized a broad-based coalition of
like-minded organizations and companies to educate
lawmakers at the federal and state levels, the media
and the industry about the negative impact that a joint
employer designation would have on the franchise model.
This coalition will be a major component of our proactive
and very aggressive strategy as we continue to fight this
issue head-on in 2015.
Another issue that is impacting the franchise industry
today is the Affordable Care Act. While we have been
successful the past two years in having the Employer
Mandate delayed, and the 1099 Reporting Requirements
removed from the law, there is still one provision within
the law that is changing the way franchise businesses
operate, and that is the so-called 30-hour definition of a
full-time employee.
What we already know from a survey we commissioned
with the U.S. Chamber of Commerce, is that 50 percent of
franchisees will cut employees’ hours and 41 percent said
that Obamacare will cause them to delay hiring, thereby
(Continued on page 4)
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(Continued from page 3)
stunting job creation and much-needed
economic output for the U.S. economy. We
have worked extremely hard on this issue
since the bill was signed into law, but this
year we have seen some momentum and we
are now taking our efforts to the next level.
We initiated the development of the
More Time for Full Time coalition to increase
awareness and promote a legislative fix
to revert to the more traditional, wellestablished 40-hour definition of a full-time
workweek. We are well positioned to push
this issue to a successful conclusion with the
new Congress, as leaders of both parties
have raised it as an issue high on the agenda
of potential bipartisan solutions to make the
law more workable for small businesses and
their employees.
Many of these challenges will continue
next year and we will need your help and
support. The IFA board of directors has
generously provided the financial support
to help push back against this regulatory
overreach because we are facing formidable
opponents, primarily organized labor
and specifically, the Service Employees
International Union or SEIU. They are
reportedly spending $100 million just on
their efforts to increase the minimum wage,
and they were a major driver in the Seattle
discriminatory minimum wage increase.
They are also supporting efforts in the
state legislatures to change the franchise
model, as well as the efforts by the NLRB to
change the definition of a joint employer,
which would have a devastating effect on
the franchise business model as we currently
know it.
We can only surmise that they are
attacking the franchise model and creating
solutions to problems that don’t exist,
simply to make it easier to fill their steadilydwindling membership rosters and financial
coffers.
We are using all of the tools in our
arsenal, including the Franchise Action
Network to amplify our voices in targeted
cities and states, and to educate lawmakers,
the media and opinion leaders about the
very significant impact that these regulations
will have on the franchise industry. By
increasing the engagement of franchisees
and our franchisor and supplier members,
we are standing together to protect the
franchise model.
On the political front, this year we
launched a comprehensive effort to leverage
our political arm in a way that would
significantly impact the kind of pro-business,
governable leaders we need to elect. We
shifted our strategy to participate in the
primary season to help ensure candidates
who are in the general election are electable
and who will govern with courage and in a
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bipartisan manner once they are in office.
In the 2014 elections, FranPAC, our
political action committee, contributed
more than $1 million to pro-franchise
candidates and we were successful in 23
of the 25 Senate races in which we were
active, and 100 of the 111 House races.
We remain steadfastly focused on
achieving our FranPAC goal to reach $1.3
million for the 2013-2014 election cycle to
ensure that we are at the table (and not
on the menu) when policy agendas are
being determined. FranPAC is now in the
top 25 trade associations PACs in all of
the United States.
We are indeed proud of this
achievement and we will keep this
important effort going as our work begins
in the 2015-2016 election cycle because
we need a Congress that will focus on
pro-growth policies to help businesses
grow and create the jobs we need in this
country.
In addition to addressing the work
force and health care policies, we need
true immigration reform that fixes
the issue once and for all. We need
comprehensive tax reform that fixes both
the corporate and individual tax codes
to enable job creation, not stifle it. And
we need Congress to act on the growing
threats of cybersecurity. These are all
areas that we will continue to focus our
efforts on in 2015 and beyond.
We have had a great year at IFA
and we had many historic successes,
including all-time highs in membership
revenue. Since 2010, our organization’s
revenue has grown 60 percent. We will
also continue our very aggressive media
efforts on broadcast TV, national radio,
print, online and through all of our digital
platforms to defend and promote our
great industry. And we will continue
to provide members with best-in-class
educational conferences and information
to help meet the growing threats to the
franchise industry.
I look forward to another challenging,
but productive year in 2015, working
with our extremely-talented staff,
committed and engaged volunteer board
of directors, and most importantly, our
members to ensure that franchising
remains the vibrant and robust industry
that it is today.
I hope to see all of you in Las Vegas
at the IFA Annual Convention Feb. 15-18,
2015.
IFA’S MISSION
The International Franchise Association
protects, enhances and promotes franchising.
IFA’S VISION
IFA: The preeminent voice and acknowledged
leader for franchising worldwide.
EXECUTIVE COMMITTEE
Stephen Joyce
Choice Hotels International
Chairman
Melanie Bergeron, CFE
TWO MEN AND A TRUCK
Vice Chairwoman
Aziz Hashim
NRD Holdings, LLC
Treasurer
Shelly Sun CFE
BrightStar Franchising, LLC
Secretary
Steve Romaniello, CFE
Roark Capital Group and
FOCUS Brands Inc.
Immediate Past Chairman
Jeffrey Tews
BrightStar Healthcare of
Madison, WI
S and J Home Care LLC
Franchisee Forum Chairman
John Kujawa, CFE
McDonald’s Corporation
Franchisor Forum Chairman
Mark Kirsch, CFE
Gray Plant Mooty
Supplier Forum Chairman
Ex-officio
International Franchise
Association
Pres. & CEO
BOARD OF DIRECTORS
Doug Allison
PepsiCo
Darrell Johnson, CFE
FRANdata
James Anhut
InterContinental Hotels Group
Saunda Kitchen, CFE
Mr. Rooter of Sonoma
County, CA
Jania Bailey, CFE
FranNet Franchising, LLC
David Barr
PMTD Restaurants
Susan Black-Beth, CFE
Super Wash, Inc.
Gordon Logan
Sport Clips, Inc.
Robert McDevitt, CFE
Golden Corral Buffet
& Grill
Liam Brown
Marriott International
Barry Miller
Sylvan Learning Center of
Girard, OH
Charlie Chase
FirstService Brands
Catherine Monson, CFE
FASTSIGNS International
Mitch Cohen
Baskin Robbins/Dunkin’
Donuts Bayshore, NY
Tabbassum Mumtaz
Apex Restaurant
Management, Inc.
Jerry Crawford, CFE
Jani-King International, Inc.
Guillermo Perales
Sun Holdings, LLC
Ryan Cunningham
Javelin Solutions
Supplier Forum First
Vice Chairman
Karen Powell, CFE
Decor & You
FranchisEsource Brands
International
Carlton Curtis
The Coca-Cola Company
Andrew Puzder
CKE Restaurants, Inc.
Rocco Fiorentino, CFE
Swiss Farm Stores
Todd Recknagel, CFE
AM Conservation Group,
Inc.
Kathleen Gilmartin
Interim HealthCare Inc.
Peter Holt, CFE
Planet Smoothie/Tasti D-Lite
Michael Seid, CFE
CFWshops
Mariana Huberman
UPS Store of Washington, DC
Franchisee Forum First Vice Chairwoman
N AT I O N A L
& LOCAL P R
SOCIAL
MEDIA
FRANCHISEE
SUPPORT
FRANCHISE
DEVELOPMENT
CONTENT
MARKETING
GRAPHIC
DESIGN
BLOG
MANAGEMENT
SEE US AT THE IFA CONVENTION
February 15-18, 2015 in Las Vegas, NV
www.AllPointsPR.com | Jamie Izaks at [email protected]
PEOPLE & NEWS BRIEFS
IFA’S POODIACK, SERAFINO AND BAILEY
PROMOTED; SNIDER, PRODANOVICH AND
JONES HIRED
The International Franchise Association announced the following staff
changes: Anne Poodiack was promoted to vice president, conferences and
meetings; Kevin Serafino was promoted to senior manager, government
relations and public policy; and Elizabeth Bailey was promoted to senior
coordinator, membership and advertising.
Andie Snider joined IFA as director, conferences and meetings on Oct.
21. Snider was previously with Hargrove Inc. where she was an account
executive of events and trade shows, which included major events such as the
G-8 Summit 2012, the 2013 Presidential Inaugural and the Virginia Governor’s
Inaugural. She brings high energy, strong event planning skills and attention
to detail, which will assist IFA in continuing to produce the high quality events
for which the association is known.
Other additions include Cara Prodanovich, who joined IFA as coordinator,
communications and marketing; and Gionne Jones, who joined as coordinator,
special projects.
PEOPLE
Christina Russell was appointed president of
Camp Bow Wow.
David Carney was named chief operating
officer of Orangetheory Fitness.
Michael Iannuzzi, CFE, Eugene Ruvere
and Marc Sonnenberg have been named
directors at Citrin Cooperman and Alberta
(Ally) Kuklis has been promoted to manager.
Michael Sinclair has been named
ShelfGenie’s chief marketing officer.
Poodiack
Serafino
Snider
Bailey
Prodanovich
Jones
Kelly Poling was appointed executive vice
president and chief marketing officer of
Value Place.
Bill Engen has been named chief operating
officer of Wingstop.
Iannuzzi
Ruvere
Sonnenberg
Rosemarie Reed was
promoted to vice president of
marketing for CruiseOne.
Reed
Franchise lawyer Alexander Tuneski joined
DLA Piper’s Washington, D.C. office.
Todd Leonard was appointed Executive
Care’s vice president of operations and
franchise development.
Randy Cross was named president of Fish
Window Cleaning Services.
Gerry Pelissier was appointed vice president
of operations for Lapels Dry Cleaning.
6
GROWTH
Goldfish Swim School celebrated its 15th
location that opened in Burr Ridge, Ill.
Great Clips announces 10 consecutive
years — 40 quarters — of same-salon sales
growth. Company leaders say the decade
of uninterrupted growth helped Great Clips
become the first haircare brand to reach $1
billion dollars in total annual sales last year.
Hilton Worldwide opened the newly-built
Hilton Garden Inn Barranquilla in Colombia’s
Caribbean port city, the brand’s first hotel in
the country.
Huddle House signed five franchise
agreements in September for restaurants in
Sealy, Texas; Owensboro and Elizabethtown,
Ky.; Tuscaloosa, Ala.; and Hazlehurst, Ga.
Through the first nine months of 2014, the
brand signed 18 new franchises and two new
multi-unit deals representing 30 new restaurants.
The signings include Nebraska, New Jersey
and New York. Franchise agreements are up
more than 170 percent over 2013, and new
construction starts are 100 percent ahead of last
year. Huddle House, which celebrated its 50th
anniversary in September, has 377 operating
restaurants.
Kinderdance of India signed franchise
agreements with Manisha Ahuja and Sunitha
Venkatesh of India.
Lapels Dry Cleaning, an environmentally friendly
franchise, announced a five-store development
agreement with Scottsdale resident Shane Kelly.
McAlister’s Deli signed an agreement with new franchise group
MidSouth Hospitality Inc. to open 10 locations in Tennessee and one
with Southern Deli Holdings LLC to launch 10 additional locations
throughout North and South Carolina, Colorado and Wyoming.
Mosquito Joe, a leading insect control treatment franchise serving
residential and commercial customers nationwide, signed its 100th
territory this year.
Oxi Fresh Carpet Cleaning opened 48 franchise locations
throughout the United States and Canada in the first three quarters
of 2014.
Togo’s Eateries Inc. acquired 13 franchised restaurants in the East
Bay and San Jose areas of California from company founder Mike
Cobler. The acquisition brings Togo’s company-owned restaurants in
the state to 19 units.
Tutor Doctor, the private tutoring franchise, is preparing to enter
Australia for the first time with plans to open single locations in
Sydney and a second location in Melbourne by Oct. 15.
Visiting Angels, an in-home senior care company, launched its first master
franchise in Mexico City.
Winmark Corp.’s children’s resale franchise, Once Upon A Child, opened
its 300th location, while its sister brand, Plato’s Closet, the teen to
20-something resale franchise, opened its 400th location earlier this year.
Plato’s Closet was named the top franchise in the “$150,001 - $500,000
investment” category by Forbes magazine in its first annual “Best and Worst
in Franchising” list. Once Upon A Child, has ranked No. 1 in its category by
Entrepreneur magazine’s “Franchise 500” for 20 consecutive years.
ZIPS Dry Cleaners’ new franchisees will add units throughout the MidAtlantic and East Coast. They include: John Rusnak, president of Pilgrimage
Development, has agreed to build 20 ZIPS Dry Cleaners. Pilgrimage is a
Maryland-based investment and retail development group anchored by lead
investor Harvey Rothstein, CEO of DavCo Restaurants. Bashir Shams has
signed a five-store development deal, two of which are already opened.
Shahid Hashmi recently added one ZIPS Dry Cleaners to his already
extensive portfolio of franchise brands and plans to add more units in the
coming years. Samer Shalby, ZIPS’ newest franchisee, recently committed
to opening one location by the end of the year.
COMMUNITY OUTREACH
IFA Walks to Support Alzheimer’s
Care and Research
IFA staff members participate in the
Alzheimer’s Association Walk to End
Alzheimer’s, an annual event to raise
awareness and funds for Alzheimer’s care,
support and research. Nearly a dozen staff
members made the one or three-mile walk on
Oct. 25 and donated nearly $600 to the cause.
7
G O V E R N M E N T R E L AT I O N S & P U B L I C P O L I C Y
IFA Seeks Details of NLRB
Counsel’s “Joint Employer”
Opinion
“Floodgates” have opened, threatening franchises across the
spectrum of the economy, warns IFA Pres. and CEO Steve
Caldeira, CFE.
BY ROBERT CRESANTI
D
uring an Oct. 30 news media call, International
Franchise Association Pres. and CEO Steve Caldeira,
CFE, announced plans to file a Freedom of Information
Act request with the National Labor Relations Board. The
association is requesting the reasoning behind NLRB
General Counsel Richard Griffin’s recent recommendation
that franchisors and franchisees can be considered “joint
employers” in labor-practice complaints. Nearly 20 journalists
from business, trade and political media participated during
the call.
Caldeira was joined by Catherine Monson, CFE, the CEO
of FASTSIGNS International and an IFA board member; Clint
Ehlers, a FASTSIGNS franchisee from Pennsylvania; and Michael
Lotito, the co-chair of the Workplace Policy Institute of Littler
Mendelson. Lotito, an expert on the labor-related legal issues
impacting franchising, outlined the disastrous implications that
the general counsel’s recommendation would have, saying:
“The general counsel seems intent on finding separate
employers as one entity in many different business contexts,
including franchising. His efforts are creating confusion
and uncertainty. If his theory of joint employment becomes
accepted law, many organizations will be forced to reassess
their current way of doing business with one another. Such a
result is neither necessary nor wise.”
Caldeira warned that since the NLRB General Counsel’s
opinion was issued, complaints listing franchisors and
franchisees as joint employers have skyrocketed at the NLRB.
After the recommendation, 61 new complaints have been
issued against franchise brands in a wide variety of sectors,
including travel and lodging, hospitality management, fullservice restaurants and operational service and maintenance.
“We fear that the floodgates have opened because of the
8
general counsel’s opinion,” said Caldeira. “And given the
lack of transparency on the rationale behind the decision, it
is creating a huge amount of uncertainty in the franchising
community. This needs to stop.”
IFA PLANS HOTLINE AND INFORMATIONAL WEBSITE
RESOURCES
Given the likelihood of more complaints, Caldeira revealed
plans for a hotline and web resources to give IFA members the
latest information on joint employer developments, as well as
how to respond to them.
“Believe it or not, his [Griffin’s] reasoning, which has the
potential to disrupt a huge segment of our economy, has never
been made public,” said Caldeira. “That is unacceptable to us.”
In July 2014, Griffin authorized 43 complaints against
McDonald’s USA in which the franchisor was considered a joint
employer with its franchisees. “That opinion is deeply-flawed
and terribly misguided,” said Caldeira. “It ignores decades of
established law governing joint employment and franchising,
including a recent California Supreme Court decision, Patterson
v. Domino’s Pizza.” IFA sent a letter to Griffin on Oct. 30, 2014
asking that he immediately disclose his advice memorandum in
the original McDonald’s cases.
The IFA is not alone in its quest for transparency from the
NLRB. More than 125 members of Congress from both parties
have written to Griffin requesting he supply “written reasoning
and any relevant data supporting” his July opinion because of
the threat it poses to small businesses.
Robert Cresanti is executive vice president of
government relations and public policy for the
International Franchise Association. Find him at
fransocial.franchise.org.
REPORT
CARD
Erica Farage is senior director of political affairs and
grassroots advocacy for the International Franchise
Association. Find her at fransocial.franchise.org.
U.S. Senate:
Alexander, Lamar (R-TN).......................................................$5,000
Begich, Mark (D-AK).............................................................$2,500
Blumenthal, Richard (D-CT)..................................................$1,000
Brown, Scott (R-NH-Candidate)........................... ...............$10,000
Capito, Shelley Moore (R-WV-Candidate)............ ...............$10,000
Cassidy, Bill (R-LA-Candidate)...............................................$5,000
Cochran, Thad (R-MS)............................................................$5,000
Coons, Christopher (D-DE)....................................................$6,500
Collins, Susan (R-ME)............................................................$7,500
Cornyn, John (R-TX)...............................................................$7,500
Cotton, Tom (R-AR-Candidate)...............................................$7,500
Daines, Steve (R-MT-Candidate).......................... ...............$10,000
Donnelly, Joseph (D-IN)........................................................$5,000
Durbin, Richard (D-IL)...........................................................$7,500
Enzi, Michael (R-WY)............................................................$5,000
Ernst, Joni (R-IA-Candidate)...................................................$5,000
Gardner, Cory (R-CO-Candidate).........................................$10,000
Gillespie, Ed (R-VA-Candidate)..............................................$5,000
Hatch, Orrin (R-UT)...............................................................$2,500
Johanns, Michael (R-NE)........................................................$1,000
Johnson, Ron (R-WI)..............................................................$2,500
Kaine, Tim (D-VA)..................................................................$2,500
Land, Terri Lynn (R-MI-Candidate)........................ ...............$5,000
Landrieu, Mary (D-LA)......................................... ...............$10,000
Manchin, Joe (D-WV)............................................................$2,500
Markey, Ed (D-MA).............................................. ............$1,774.56
McConnell, Mitch (R-KY)..................................... ...............$10,000
Perdue, David (R-GA-Candidate)...........................................$1,000
Pryor, Mark (D-AR)................................................................$5,000
Risch, Jim (R-ID)....................................................................$2,000
Roberts, Pat (R-KS).................................................................$7,000
Rounds, Mike (R-SD-Candidate).......................... ...............$10,000
Rubio, Marco (R-FL)............................................ ...............$10,000
Sasse, Ben (R-NE-Candidate).................................................$2,500
Scott, Tim (R-SC)....................................................................$5,000
Shaheen, Jeanne (D-NH).......................................................$2,500
Sullivan, Dan (R-AK-Candidate).............................................$5,000
Tillis, Thom (R-NC-Candidate)...............................................$5,000
Toomey, Patrick (R-PA)...........................................................$2,500
Udall, Mark (D-CO)...............................................................$1,000
Warner, Mark (D-VA).............................................................$2,000
Wehby, Monica (R-OR-Candidate)........................................$2,500
U.S. House of Representatives:
Amodei, Mark (R-NV-02).......................................................$1,000
Barber, Ron (D-AZ-02)...........................................................$3,500
Barletta, Lou (R-PA-11)..........................................................$1,000
Barrow, John (D-GA-12)....................................... ..............$10,000
Benacquisto, Lizbeth (R-FL-19-Candidate).............................$5,000
Benishek, Dan (R-MI-01).......................................................$2,000
Boehner, John (R-OH-08)......................................................$5,000
Bilirakis, Gus (R-FL-12)..........................................................$3,000
Bishop, Mike (R-MI-08-Candidate)........................................$3,500
10
IFA’s political action committee, FranPAC, supports profranchise, pro-business candidates for U.S. Congress.
FranPAC’s current financial support of federal candidates
as of late October is reflected in the following “report card.”
2013-2014 Cycle Expenditures: $950,974.56
Republicans: $757,200
Democrats: $173,774.56
Other:
$20,000
Buchanan, Vernon (R-FL-13)..................................................$4,000
Byrne, Bradley (R-AL-01).......................................................$5,000
Cain, Emily (D-ME-02-Candidate)..........................................$1,000
Camp, Dave (R-MI-04)..........................................................$5,000
Cantor, Eric (R-VA-07)........................................ .................$10,000
Carter, John (R-TX-31)............................................................$2,500
Coffman, Mike (R-CO-06)......................................................$5,000
Collins, Christopher (R-NY-27)...............................................$1,000
Collins, Douglas (R-GA-09)...................................................$8,500
Comstock, Barbara (R-VA-10-Candidate)...............................$7,500
Costello, Ryan (R-PA-06-Candidate).................... ................$10,000
Cuellar, Henry (D-TX-28).......................................................$5,000
Davis, Rodney (R-IL-13)...................................... .................$10,000
DelBene, Suzan (D-WA-01)...................................................$1,000
DeMaio, Carl (R-CA-52-Candidate).......................................$2,500
DeSantis, Ron (R-FL-06).........................................................$4,900
Diaz-Balart, Mario (R-FL-25)..................................................$1,000
Dingell, Debbie (D-MI-12-Candidate)...................................$5,000
Dold, Bob (R-IL-12)...............................................................$5,000
Ellis, Brian (R-MI-03-Candidate)............................................$5,000
Ellmers, Renee (R-NC-02)......................................................$3,500
Farr, Sam (D-CA-20)...............................................................$2,500
Fitzpatrick, Michael (R-PA-08)...............................................$2,000
Fleischmann, Chuck (R-TN-03)..............................................$5,900
Fleming, John (R-LA-04)........................................................$5,000
Flores, Bill (R-TX-17).............................................................$5,000
Gerlach, James (R-PA-06)......................................................$5,000
Goodlatte, Bob (R-VA-06)......................................................$2,500
Gorell, Jeff (R-CA-26 Candidate)............................................$1,000
Graves, Samuel (R-MO-06)....................................................$7,000
Griffin, Tim (R-AR-02)............................................................$2,000
Grimm, Michael (R-NY-11)....................................................$2,500
Guthrie, Brett (R-KY-02).........................................................$4,400
Hall, Ralph (R-TX-04)............................................................$1,000
Hanna, Richard (R-NY-24).....................................................$3,000
Hayworth, Nan (R-NY-18-Candidate).....................................$5,000
Heck, Denny (D-WA-10).......................................................$7,000
Heck, Joe (R-NV-03)..............................................................$1,000
Hensarling, Jeb (R-TX-05)......................................................$5,000
Huizenga, Bill (R-MI-02)........................................................$5,000
Hunter, Duncan (R-CA-50)....................................................$1,000
Holding, George (R-NC-13)...................................................$7,000
Hoyer, Steny (D-MD-05)........................................................$2,500
Hudson, Richard (R-NC-08)...................................................$5,000
Jenkins, Evan (R-WV-03-Candidate).......................................$5,000
Jenkins, Lynn (R-KS-02)..........................................................$4,000
Jolly, David (R-FL-13).............................................................$5,000
Joyce, Dave (R-OH-14)..........................................................$5,000
Kelly, Mike (R-PA-03)........................................... .................$2,500
Kind, Ron (D-WI-03).............................................................$5,000
Kline, John (R-MN-02)...........................................................$7,000
Latham, Thomas (R-IA-05)................................... .................$2,500
Lipinski, Dan (D-IL-03)........................................ ...............$10,000
Luetkemeyer, Blaine (R-MO-09)............................................$2,500
Matheson, Jim (D-UT-04).......................................................$5,000
McCarthy, Kevin (R-CA-23)....................................................10,000
McCaul, Michael (R-TX-10)...................................................$7,500
McHenry, Patrick (R-NC-10)..................................................$2,500
McMorris-Rodgers, Cathy (R-WA-04).....................................$5,000
McSally, Martha (R-AZ-02-Candidate)...................................$5,000
Meehan, Pat (R-PA-07)...........................................................$5,000
Moolenaar, John (R-MI-04-Candidate)...................................$2,500
Mullin, Markwayne (R-OK-02)...............................................$2,500
Mulvaney, Mick (R-SC-05).....................................................$4,500
Murphy, Patrick (D-FL-18)......................................................$3,500
Murphy, Tim (R-PA-18)......................................... ...............$10,000
Neal, Richard (D-MA-01)......................................................$5,000
Nunes, Devin (R-CA-22)........................................................$2,500
Olson, Peter (R-TX-22)...........................................................$1,000
Paulsen, Erik (R-MN-03)........................................................$2,500
Peters, Scott (D-CA-52)..........................................................$2,500
Peterson, Collin (D-MN-07)...................................................$5,000
Poe, Ted (R-TX-02).................................................................$6,000
Pompeo, Mike (R-KS-04).......................................................$5,000
Price, Thomas (R-GA-06).......................................................$5,000
Radel, Trey (R-FL-19).............................................................$1,000
Reed, Tom (R-NY-23).............................................................$2,000
Renacci, James (R-OH-16).....................................................$7,500
Roby, Martha (R-AL-02).........................................................$2,500
Rogers, Michael (R-MI-08).....................................................$1,000
Rokita, Todd (R-IN-04)...........................................................$6,000
Roskam, Peter (R-IL-06).........................................................$7,500
Ross, Dennis (R-FL-15)..........................................................$3,500
Rothfus, Keith (R-PA-12)........................................................$5,000
Runyan, Jon (R-NJ-03)............................................................$2,500
Ryan, Paul (R-WI-01).............................................................$5,000
Scalise, Steve (R-LA-01).........................................................$3,500
Schrader, Kurt (D-OR-05).......................................................$2,500
Schock, Aaron (R-IL-18).........................................................$5,000
Shimkus, John (R-IL-15).........................................................$2,500
Shuster, Bill (R-PA-09)............................................................$1,000
Simpson, Mike (R-ID-02).......................................................$5,000
Smith, Jason (R-MO-08).........................................................$2,500
Southerland, Steve (R-FL-02)..................................................$3,500
Stivers, Steve (R-OH-15)........................................................$2,500
Swalwell, Eric (D-CA-15).......................................................$2,000
Terry, Lee (R-NE-02)...............................................................$1,000
Tiberi, Patrick (R-OH-12)..................................... ...............$10,000
Tisei, Richard (R-MA-06-Candidate)......................................$5,000
Trott, David (R-MI-11-Candidate)..........................................$2,500
Upton, Fred (R-MI-06)......................................... ...............$10,000
Van Hollen, Chris (D-MD-08)................................................$1,000
Wagner, Ann (R-MO-02)........................................................$3,000
Walberg, Tim (R-MI-07).........................................................$5,000
Walden, Greg (R-OR-02)..................................... .................$5,000
Walorski, Jackie (R-IN-02).....................................................$2,000
Walters, Mimi (R-CA-45-Candidate)......................................$2,000
Webster, Daniel (R-FL-10)......................................................$2,500
Wilson, Joe (R-SC-02)............................................................$2,500
Yoder, Kevin (R-KS-03)...........................................................$2,500
Young, Todd (R-IN-09)...........................................................$5,000
Zinke, Ryan (R-MT-AL-Candidate).........................................$5,000
Leadership PACs:
AmeriPAC..............................................................................$5,000
Ann PAC................................................................................$1,000
Bluegrass PAC.......................................................................$2,500
CMR PAC..............................................................................$2,500
COATS PAC...........................................................................$2,500
Continuing A Majority PAC....................................................$5,000
ERICPAC.............................................................. ...............$10,000
Eye of the Tiger PAC...............................................................$2,500
First In Freedom PAC.............................................................$1,000
Freedom & Security PAC........................................................$5,000
Healthcare Freedom Fund.....................................................$2,500
The Freedom Project..............................................................$5,000
Kelly PAC..............................................................................$1,000
Louisiana Reform PAC...........................................................$3,000
Majority Committee PAC..................................... ...............$10,000
New Pioneers PAC................................................................$5,000
Orrin PAC..............................................................................$1,000
People for Enterprise Trade and Economic Growth PAC.........$2,500
Pioneer PAC........................................................ ...............$10,000
Prosperity PAC..................................................... ...............$10,000
Rely On Your Beliefs Fund.....................................................$5,000
Reclaim America PAC.......................................... ...............$10,000
Republican Operation to Secure and Keep a Majority..........$10,000
TRUST PAC...........................................................................$2,500
PAC to PAC:
American Society of Association Executives (APAC)...............$5,000
Blue Dog PAC..................................................... .............. $10,000
Chamber of Commerce of the
United States of America PAC................................................$5,000
Democratic Congressional Campaign Committee................$15,000
National Republican Congressional Committee... ...............$30,000
National Republican Senatorial Committee......... ...............$30,000
New Democrat Coalition..................................... ...............$10,000
Republican Party of Michigan................................................$2,500
U.S. Travel Association PAC................................. ...............$10,000
11
G O V E R N M E N T R E L AT I O N S & P U B L I C P O L I C Y
VETO OF CALIFORNIA SB 610 — A VICTORY FOR FRANCHISING? DEFINITELY.
A PERMANENT WIN? DEFINITELY NOT.
“The veto of California SB 610 saved franchising from unimaginable damage. Franchisees and franchisors worked
together in defeating the bill and owe Gov. Jerry Brown an enormous debt of gratitude. However, we fully expect the
proponents of SB 610 to reintroduce similar legislation in 2015. Rest assured, the International Franchise Association
will remain steadfast in its message that governmental intervention is not the answer to resolving conflicts between
franchisees and franchisors. While much has been written on California SB 610, the following article by Michael Seid,
CFE, IFA board member, provides an excellent analysis of not only the legislation, but also the subsequent veto by Gov.
Brown.”
ROBERT CRESANTI
INTERNATIONAL FRANCHISE ASSOCIATION EXECUTIVE VICE PRESIDENT
GOVERNMENT RELATIONS AND PUBLIC POLICY
California
Governor’s Veto
of Relationship
Law Raises Bar For
Proponents
BY MICHAEL SEID, CFE
G
ov. Jerry Brown of California reset the bar for the consideration of state
relationship laws nationwide through his veto of SB 610 in September. If
enacted, the measure would have substantially changed the California
Franchise Relations Act by imposing new restrictions on franchisors in their
contractual relationship with their franchisees and in their ability to manage their
franchise systems.
Under the bill that Brown vetoed, franchisors would have been restricted
in their ability to select and approve the franchisees who operated under their
brands. Additionally, the bill would also have impeded the ability of the franchisors
to manage their franchise systems sufficiently to protect consumers and other
franchisees by allowing for the repetitive breaches of the franchisor’s brand
standards by franchisees.
SB 610 would also have superimposed ill-defined legislative terms into the
contractual relationship between franchisors and franchisees, thereby heightening
12
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the probability of increasing unnecessary disputes and costly
litigation to settle formerly routine disagreements between the
parties.
In his veto letter Brown stated: “This bill alters the
relationship between franchisors and franchisees by, among
other things, changing the standard required to terminate a
franchise agreement from ‘good cause’ to a ‘substantial and
material breach.’ While the ‘good cause’ standard is common
and well understood, the standard provided in this bill is new
and untested.”
He went on to state that: “The bill’s changes would
significantly impact California’s vast franchise industry that
relies on the certainty of well settled law.”
In raising the bar for other legislators nationwide who might
be considering the imposition of restrictions on franchisors, he
set two sensible hurdles for them to meet:
1. That there be some proof that there is a systemic
problem of “unacceptable or predatory practices by
franchisors;” and,
2. That “the solution crafted will fix those problems and
not create new ones.”
SEIU’S RATIONALE
Throughout the debate on SB 610, the major proponents of
the bill, the Service Employees International Union, the Coalition
of Franchisee Associations and the American Association
of Franchisees and Dealers, advanced the notion that there
were significant problems in California on how franchisors
manage and operate their franchise systems. SEIU’s rationale
for becoming involved in a non-labor issue was apparently for
the purpose of weakening franchising in California sufficient
to support the recruitment of a new class of worker, and to
further strengthen its nationwide push to organize fast-food
workers to replenish its steadily dwindling private-sector union
membership ranks and financial coffers.
Much of what the proponents presented in support of SB
610 was in the form of anecdotal narratives that were shown
to be inaccurate assertions unsupported by the facts in those
instances. Supporters portrayed the termination of franchisees
for defaulting on their contractual relations as being unfair to the
franchisees even when it was the franchisee who was personally
responsible for violating those franchise agreements.
Proponents also raised the possibility of future acts by
franchisors as reasons that SB 610 was required to protect the
equity of franchise owners, but were unable to sustain their
argument that those potential acts by franchisors actually
occur. The proponents’ failure to show that problems in the
franchise model as practiced in California, actually exist. This
was the rationale and overall basis for Brown’s rightful decision
not to sign the bill.
14
SB 610’S OVERREACHING CHANGES
In opposition, the International Franchise Association
was able to show that the contrary position was accurate
by reflecting on the growth of franchising in the state and
the limited number of litigation cases that had been filed in
California. The IFA was able to sustain its argument that SB
610’s inclusion of overreaching changes to the terms franchisors
include in franchise agreements and limiting a franchisor’s
ability to select to whom franchise rights were granted was also
problematic. Brown’s requirement that before a bill be inserted
into the law that there first must be proof that a problem
actually exists and that the bill not create new issues or have
unintended consequences is common-sense governance.
The governor suggested that some collaboration between
franchisors and franchisees be considered before a similar
measure is brought to his desk again. With an understanding
that the baseline requirements he set need to prove that a
broad based problem in franchising exists in California, and
that any legislation not have unintended consequences,
limits the likelihood that effective discussions can happen.
Proponents will first need to come to the table with clear,
precise, factual and measurable evidence that the franchise
model is systemically flawed and not working in California in
order for any collaboration to occur. Simply arguing that the
relationship is not balanced is insufficient because no licensing
relationship can truly be balanced if it requires the licensor to
limit how it protects its intellectual property and dictates to
whom the franchisor provides those license rights.
To be certain, SB 610 will not be the last effort to legislatively
change the franchise relationship we will see in the United
States. But opponents of those measures will have the ability
to present to legislators the bar set by the California governor
— that there actually needs to exist material problems —
before recasting the franchise relationship. Unsupported and
limited anecdotal information by proponents and assertions
that bad acts that don’t currently exist might occur in the future
(supported by organized labor with its own, separate agenda)
will be insufficient for legislators to consider changing a method
of business working well in their states.
Michael Seid, CFE, is chief concept officer of
CFWshops and a member of the IFA board of
directors, as well as managing director of MSA
Worldwide. Find him at fransocial.franchise.org.
FEATURES
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Centralized marketing solutions allow you and your franchisees to more effectively and more
efficiently tell their stories, engage with their audiences.
BY JEREMY LADUQUE, CFE
MARKETING PROFESSIONAL S AT SOME of the biggest
brands don’t envy their counterparts within a franchise
organization. Why? They face all of the challenges that come
with the job — struggles with economic lead generation,
digging in and really utilizing big data, building and executing
the customer experience journey and much more.
But in a franchise organization, you add a team of dozens,
or hundreds of entrepreneurs, all with their own ideas on
marketing, lead generation and branding.
For many organizations, the result is either a tightly
controlled marketing effort that limits the individual owners
from capitalizing on their own efforts or a hodge-podge set of
tactics that differ from one location to the next.
Neither outcome is ideal: In one case, brand preservation
undermines your brand’s power; in another, the only consistency
is inconsistency, which leaves customers confused.
Thus, a distinct trend in franchise marketing has emerged:
Distributed organizations are aiming to centralize all of their
online marketing efforts starting with the underlying marketing
software that supports functionality such as local websites,
email marketing and social media management. And some
have gone one step further, recognizing that control over
suppliers that franchisees use also fosters consistency, and
maintains best practices in digital marketing tactics on the
national and local levels.
More often than not, anything worth doing is difficult, and
the journey toward centralization is not easy, although it comes
with its rewards.
THREE KEY STEPS TO ONLINE MARKETING
CENTRALIZATION
1. The platform. A single, unified platform powering
the websites for each local franchisee has become a
requirement for any multi-unit organization. Franchisors
need a simple, easy-to-use web management platform
that can be distributed to each franchisee.
The goal of this platform is to provide corporateapproved templates and copy, but still allow franchisees
15
to add local, community information and execute microlocal campaigns.
However, simply setting up a centralized web
management platform only gets you halfway there.
The risk of having too many platforms to manage is
still high as new technologies and digital strategies
emerge. Consequently, platforms that can integrate
key marketing efforts like email marketing, social
media, analytics and even commerce bring further
centralization to your marketing goals.
Why is this better? Digital management suites
allow you and your franchisees to have a single
repository for content, videos and images for use
within social promotions, email communication and on
individual local websites. This single dashboard makes
everything easier, from onboarding new franchisees to
gaining adoption from existing franchisees. Beyond a
repository, a centralized suite of tools reduces overhead
and eliminates the risk of creating “silo” technologies
that operate separately from everything else. But the
ultimate benefit of a single suite comes in one key area:
your data.
2. The Data. According to research by audit, tax and
advisory firm KPMG, seven out of 10 chief information
officers and other top executives identify data analytics
as a “crucial” or “very important” business driver.
Understanding, and more importantly, using the macrolevel data gained from your customers in a microlevel way is the foundation of personalized customer
experience.
And it’s not slowing down. Baseline magazine
recently reported that 90 percent of the world’s data
has been created in the last two years. Focusing and
utilizing your data to make global decisions and deliver
individual experiences is no longer a thing of the future.
Centralizing your customer data in a single system
means you can quickly identify trends related to
customer engagement, conversion rates and campaign
success. This will allow you to focus your efforts more
effectively, engage deeper with your customers and
gain better conversion rates across all your campaigns,
whether they be website, paid advertising, social media
or email marketing.
New technologies are going to rely on data as a
fundamental driver. An example of this is persuasive
content, or targeting content to a specific user’s
attributes. Sophisticated platforms can leverage data
from several sources — ranging from keywords someone
typed into a search engine to the user behavior on your
website or email — to drive more targeted, and more
relevant content to each user interacting with your
brand. This is true of all aspects of online marketing,
from website content to paid advertising.
3. Advertising. The third key toward centralizing your
online marketing is advertising.
16
Local marketing spending is up: 66 percent of small
businesses are maintaining or increasing expenditures on
digital marketing, according to the AT&T Small Business
Technology Poll. And with a strong focus on return on
investment, spending efficiently has become critical.
Unfortunately, in a distributed marketing environment,
those crucial efficiencies are often lost. Individual paid
search campaigns and display advertising mean lost
insight and poor spending.
The story is a common one: individual franchisees work
with local agencies to run their advertising campaigns.
The issue? They work in a silo, writing their own ad copy,
researching their own keywords, designing their own ads
and constructing their own campaign. They see results,
tweak the campaign and hope they improve their ROI.
And while that approach gives franchisees control
over whom they partner with, it means there is literally no
shared learnings or efficiencies with shared assets. Rather
than using existing campaign assets, these franchisees
end up paying for a PPC shop in Dallas to put together
fundamentally the same campaign as another shop has
done in Denver.
A centralized advertising approach means individual
franchisees can benefit from the shared knowledge of
dozens of campaigns. Converting ad copy, top performing
keywords and best ad group structures can generally be
applied across all locations, with a local twist. The result?
Advertising tests become insightful more quickly and
valuable budgets are spent with greater efficacy.
Additionally, individual franchisees can benefit further
from a centralized strategy as it relates to shared history.
Though Google’s paid ranking algorithm is a secret
system few know intimately, it’s readily understood
that your ad’s click-through rate, landing-page quality,
keyword and ad relevancy, and your historical AdWords
account performance are the primary factors. What does
this mean for franchisees? Historical knowledge on ad
performance will accelerate your click-through rates from
the beginning. And, you can benefit from the historical
performance of other franchisees to further boost your
rankings and lower your cost per click.
Technology moves fast. But digital marketing solutions that are
built to handle the unique challenges of multi-unit organizations
can keep you ahead of the ever-changing digital landscape.
These solutions alleviate administrative headaches, control
brand-handling best practices and enable franchisees to engage
with their respective communities, as well as highlight services for
their specific locations. Ultimately, centralized marketing solutions
allow you and your franchisees to more effectively and more
efficiently tell their stories and engage with their audiences.n
Jeremy LaDuque, CFE, is senior vice president of
multi-unit marketing for Bridgeline Digital, a digital
engagement company. He is a member of IFA’s
Marketing and Communications Committee. Find
him at fransocial.franchise.org.
At the office. On the go.
Servant Systems delivers franchise management software tailored to meet
the ever-changing needs of your franchisees. Whether it is for a back-office
system, a management dashboard, or to enable mobile workers with a range
of tablets and smart phones, we can utilize multi-platform technology to
greatly extend your office and mobile team capabilities.
Call Don DeSmith at 734.475.1619 x 21 or email [email protected]
to learn how Servant Systems can help you go mobile.
www.servantsystems.com
SUPPLIER
FORUM
FEATURES
SEVEN Ways to Take Control
of Your Online Listings
Incorrect or out-of-date information is not the first impression you
want tied to your business.
BY WILL YAPP
THE WAYS CONSUMERS FIND new businesses has changed
a lot in recent years.
In addition to search engines like Google or Bing,
consumers are using city guides such as Citysearch, review
sites like Yelp, and mobile apps such as Foursquare to discover
new businesses. This is great news because there are now even
more ways for new customers to find you.
But it also creates a bit of a problem.
There are now more places for you to manage, especially
as a franchise brand with many locations to worry about
maintaining an online presence for. Many of these listings
are automatically generated and can often contain incorrect
or out-of-date information. This incorrect or out-of-date
information is not the first impression you want someone to
have of your business.
That’s why it’s important to be in control of your online
listings.
Here are seven ways to do it.
1. Identify Your Industry’s Hot Spots
Take the time to identify the places that your target
audience is turning to when searching for businesses
similar to yours.
The best way to do this is to search for your business
on a site such as Google and see what type of results
18
appear. Watch for any publishers that specialize in
your particular industry, as they will offer the biggest
opportunity to reach your next great customer.
Once you have an inventory of the information that’s
out there, you can take steps to control it.
2. Claim Your Listings
A lot of the top publishers will give you the opportunity
to “claim” your listings.
This is something all businesses should take
advantage of. Claiming your listings lets you take
control of the information that people are finding on
these sites.
You can manually update contact information,
upload photos, and even share updates about specials
and promotions, depending on the platform you
decide to use.
3. Optimize Your Website with Location Information
Publishers such as TripAdvisor or UrbanSpoon rely on
your websites to populate their platforms. Making sure
your contact information is up to date on your own site
will help avoid having potential new customers sent to
the wrong location.
4. Offer Location Information to Data Aggregators
Collecting information from across the web and
publishing it in a single location is hard work. That’s why
many of the top publishers rely on data aggregators to
provide relevant information about your brand.
While it’s natural to want to be protective of your
information online, making basic information available
to these companies, such as your location, can go a long
way in keeping your listings up to date.
6. Pay to Sponsor Listings
Just as you can pay to promote posts on such sites as
Facebook or Twitter, you can also pay to sponsor your
listing on a number of the top listing sites. This is another
option you may want to consider after identifying the
places where potential customers are most likely to
be looking. While this won’t help update information
on other sites, it will increase the visibility of your best
information on your most important platforms.
5. Encourage Reviews and Recommendations on Social
Media
The interactions you have on social media can positively
impact your search result rankings. That will improve your
chances of getting the highest quality of information in
front of potential customers when they’re searching for
your business online.
Encouraging your fans and followers to share
feedback and interact with your business on such sites
as Yelp or Foursquare will also help ensure the quality of
user-generated content. Why? Because the feedback
will be coming from people who know you best.
7. Find a Better Solution
A lot of work goes into taking control of your online
listings for even one of your locations, let alone
managing on behalf of your entire system.
The good news is that there is an alternative to doing
it all on your own. n
Will Yapp is vice president of business development
at Constant Contact, a company that provides an
all-in-one online marketing platform. Find him at
Multi-national Strategic Authority
International expansion is a whole new ball game. MSA knows how to help you play by the rules.
Contact Kay Marie Ainsley, Managing Director at 1-770-794-0746
msaworldwide.com
13-M1-001_MSA_Multi-National_AD.indd 1
1/8/13 3:11 PM
19
FEATURES
Customer Satisfaction
Processes: Surveys and
Reputation Management
Each franchise system has a reputation, whether or not it helps
shape that reputation.
BY KEITH GERSON, CFE
“Glass, China, and Reputation, are easily cracked, and never well mended.”
– Benjamin Franklin
ACCORDING TO A RECENT national survey by market
research firm Dimensional Research, 90 percent of consumers
who recalled reading online reviews claimed that positive
reviews influenced their decision to buy. On the flipside, 86
percent said that negative reviews had also influenced buying
decisions. Clearly, reputation management must become one
of today’s most critical parts of a franchise system’s overall
business management strategy.
The online revolution has gained momentum to the point
where word of mouth is no longer an intimate conversation
between individuals, but something that operates on a one-tomany basis. As Jeff Bezos, founder of Amazon has pointed out
“If you make a customer unhappy they won’t tell five friends,
they’ll tell 5,000 friends.”
The speed with which the information that consumers
access when making their purchasing decisions spreads
(whether good, bad, accurate or inaccurate) is mind-boggling.
Keeping tabs on what’s being said about your franchise system
and franchisees across hundreds of social media sites and
blogs, and responding when appropriate is crucial, though
almost impossible to accomplish manually.
If I were to impress anything upon the readers of this
article, it would be that execution is always the weakest link
in the marketing process. Management guru Peter Drucker
wrote that “the purpose of business is the making and
keeping of customers.” There should be little doubt that your
system’s No. 1 driver of increased revenues today is tied to
your franchisees’ ability to market and create positive user
experiences effectively.
What follows are recommendations on tactics that can be
employed to alleviate the burden that otherwise falls upon the
shoulders of your franchisees. These tactics will increase the
likelihood of execution.
20
REPUTATION MANAGEMENT AND CUSTOMER
LOYALTY BEST PRACTICES
Today, marketing technology tools offer the most effective
ways to manage your brand’s reputation both nationally and
at the local franchise level. If you’re not using a marketing
technology tool, online reputation management can easily
demand lots of time. Between monitoring social media
mentions, ad campaigns, blog comments and mentions across
the web at large, you can easily find yourself thoroughly tied
up trying to keep tabs on your brand online. Fortunately, there
are tools that can simplify online reputation management
and leveraging the loyalty of your customers. Some are free,
others are not, but all will drastically reduce the time you spend
managing your brand online. Here are several best practices
to consider:
1. Social Media Monitoring. Tools are available that offer
instant notification when your brand is mentioned. That
means you can respond promptly and appropriately,
even when you’re not glued to your Facebook newsfeed
all day. With built-in analytics capabilities, you can take
online reputation management to the next level by
tracking and analyzing trends, such as which marketing
efforts elicit the most positive responses.
2. Respond to Your Followers. Too many businesses
build Twitter and Facebook accounts and use them
only to promote products or services. If someone
tweets a complaint about a company or leaves a lessthan-ideal comment on a company’s Facebook page,
the post needs to be addressed immediately. This
demonstrates to other followers that you are engaged
with your audience and care about meeting and
exceeding their expectations.
3. Automate Referrals and Testimonials. Consumers
want to know they can trust your franchisees to provide a
positive experience before deciding to make a purchase,
sign up for a service or visit your stores. A best practice
is to utilize the services of customer loyalty survey tool
providers, such as those that utilize the Net Promoter
System which can be programmed to automate the flow
of favorable reviews from your raving fans where they
post to your Facebook pages, and post as testimonials
to your franchise recruitment and consumer websites.
4. Monitor Directory Listings. Your online listings need
to be monitored constantly because the computers
powering Google and millions of other sites scour the
web continuously to update old information — even if
the new information happens to be wrong. If someone
enters an incorrect phone number for your business on
a popular site, the information will be picked up and
spread across the web, rapidly creating a cascade of
errors. With directory listings technologies, the tool
will check to make sure your franchisees’ information
remains accurate. Additionally, you won’t remain
competitive in your market if your franchisees can’t be
found. Not being able to be easily found when someone
is seeking your services on Google, Facebook, Open
Table, Yelp, Angie’s List and others translates into a lack
of social proof and credibility, and not being there is
equally as detrimental as being there and receiving bad
commentary.
reputation leader should be the one to get copied on
all complaints, Net Promoter Score analytics and open
ended responses, and other key information plus that
person should keep the organization focused on the
most important leading indicators in the business.
All of these recommended approaches will work to the
extent that you keep things simple for your franchisees. Since
execution is the weakest link in the marketing process, we’re
moving toward a future in which franchisees will work on creating
a superior customer experience while franchisors or outsourced
service organizations will take responsibility for executing the
reputation and loyalty tools.
Each franchise system has a reputation, whether or not it
helps shape that reputation. Organizations that do not manage
their reputations will have them managed by competitors, critics
or others. n
Keith Gerson, CFE, is president of global
operations for FranConnect and a member of IFA’s
Marketing and Communications Committee. Find
him at fransocial.franchise.org.
5. Recognize That Your Loyalty Surveys and Customer
Reviews are Management Tools. It’s always difficult
to take an unflinching look in the mirror under harsh
lights at oneself, but there is no better way to take rapid,
corrective action. This helps to fix the problem on behalf
of that customer, but more importantly, enables you
to make necessary, systemic improvements to replace
ill-conceived operations systems now in place.
6. Segment Your Email Addresses. Remember that your
customers aren’t all the same. Some resent receiving
emails and offers that fail to recognize their history and
preferences, yet 55 percent of marketing executives
are not segmenting their email lists. List segmentation
will improve your reputation with your contacts and
email engagement will increase. Segmentation is
simply breaking out your email list into multiple lists so
that you can target groups of customers based on any
criteria you define. Segmentation enables you to send
more “personalized” emails than a simple blast to your
entire list. According to a study by Experian Marketing
Services on optimizing email, 39 percent of marketers
who segmented their email lists experienced higher
open rates, 28 percent lower unsubscribe rates and 24
percent greater revenue. It’s all about demonstrating
that you know your customers and the reward is that
“relevant” emails drive 18 times more revenue than
“shotgun” emails.
7. Have an Empowered Reputation Leader. The best
programs I’ve encountered have clearly defined
reputation goals and one person who is specifically
in charge of and accountable to the program. Your
21
FEATURES
Marketing Tips for
Winning With Millennials
Brands that create authentic, meaningful and unique
interactions and experiences will have better odds of
sustained success with millennials.
BY JEFF FROMM
HOW DO FRANCHISEES ADDRESS MILLENNIALS?
To connect with millennials and speak to their mindset, franchisees
must provide high participation and shareworthy content to their
patrons. Participation means that consumers can co-create the product
or service with the brand, co-create the customer journey before,
22
SHAREWORTHY
HIGH
WHAT’S A TOP MARKETING priority for today’s retail franchising professionals? Millennials. Millennials account for more
than 21 percent of consumer discretionary purchases, totaling $1.3 trillion in direct spending power. With millennials
having just entered parenthood, expected to hit their peak spending years soon and having significant influence over other
generations, this group is now the most powerful of U.S. economic players.
The millennial influence on the market is so dramatic that it has
altered the language that brands use when discussing target audiences.
In fact, the term “target audience” has shifted to account for millennial
attitudes. Millennials want to be consumer partners — not a target
audience — with their favorite brands, and because of that, franchise
professionals must shift their thinking to engage this influential group.
Another big shift is that the term millennial has morphed into the
Millennial Mindset or even more broadly, “consumer mindset for the
modern brand,” because their influence on purchasing decisions is so
vast that people of all ages are starting to shop, buy and behave like
millennials.
HIGH
LOW
PARTICIPATION
WHAT WE DO BEST:
Japs-Olson Company is your direct mail production solution provider.
To receive our sample kit, text GEN to 313131 or contact
Debbie Roth at [email protected] or 952-912-1440.
during and after the purchase moment, and co-create the
marketing (that’s a big “M” not just an “S” for social media).
To be shareworthy, a brand must be authentic, transparent
and stand for something more than its bottom line. Ultimately,
what we’ve seen with the relationship between brands and
millennials is that sharing is about the sharer often seeking
peer affirmation. A consumer shares something about the
brand based on how he feels. It’s not about the brand; it’s
about the consumer and the meaning behind the content.
Brands that are both “highly participative” and “highly
shareworthy” tend to be more unique. Brands that
create authentic, meaningful and unique interactions and
experiences will have better odds of sustained success with
millennials.
WHAT DOES THIS MEAN FOR FRANCHISEES?
Franchisees must be on the upside of these trends to
provide customer experiences that inspire millennials to not
only choose their brands, but also to share them with their
friends. Fashion, for example, has always been social; there’s
nothing new about a few friends meeting for lunch and a day
of shopping. The definition of what we describe as “social”
has expanded, however.
For 13 years, “friends” have been the No. 1 purchase
influencer according to Piper Jaffray’s “Taking Stock with
Teens & Young Adults” survey. The Internet has moved from
No. 7 10 years ago to No. 2 currently. Friends + Internet =
Social Media. Millennial women don’t only ask their friends
for opinions when it comes to choosing their outfits. They
check fashion blogs, sift through photos on Pinterest and
often take and share photos of clothing in the store before
purchasing.
Eighty-three percent of the U.S. millennials surveyed in
a recent study by Netbase said that they consulted at least
one social platform before making a fashion purchase.
Specifically, 63 percent cited fashion blogs and message
boards as their main sources of inspiration. Word of mouth,
however, is also important. A recent report from PunchTab
found that 60 percent of the 1,200 millennials interviewed
learned about brands via word of mouth.
The bottom line: Franchisees will win if they provide
opportunities for experiences that will inspire consumer
partners to share.
THE PERSONAL EXPERIENCE
Once upon a time teens begged their moms for shirts,
bags and shoes covered in logos by Nike, Hollister and
Abercrombie. Although high-quality is still important to
millennials, they aren’t as concerned with touting name
brands across their chests. In fact, 2013 research by Ypulse
found that expressing individuality was more important to
people ages 13 to 34 than flashing high-end names. The
same study also reported that 55 percent of those surveyed
agreed with the statement: “I don’t follow trends; I like to
have my own personal style.” Brand logo goods accounted
for more than 40 percent of fashion purchases, for example.
Now, it is less than 10 percent, according to investment bank
and asset management firm Piper Jaffray’s “Taking Stock
with Teens & Young Adults” survey.
24
Personal style is also very important to millennial moms who
are trying to balance their new mommy roles with staying true
to themselves. People StyleWatch recently polled this group
and found that although the demands of motherhood have
changed how they shop, they still want to look fashionable and
youthful. To succeed in both aspects of their lives, millennial
moms plan purchases online, spend less time in the store,
often shop alone and embrace technology to get feedback
before making purchases.
The bottom line: Franchisees can attract millennials by
offering them ways to showcase their personal styles.
A VALUABLE EXPERIENCE
Value isn’t only about price for millennials. They are willing
to pay top dollar for products that they view as worthy. They’ll
even rent or share items when they want access to an expensive
item for a special occasion or for a limited time.
Choice counts are up significantly, by a factor of near two
times over the past decade. Millennials have more choices
today and more accessibility to those choices. Brands that had
historically concentrated their merchandise offering on few,
high-volume ideas are losing share to brands that offer greater
choice, versatility and convenient solutions. Personalization
and customization are also creating more differentiation.
The bottom line: Brands must show millennials the value of
their products.
A WINNING EXPERIENCE
Few things are more satisfying to a millennial than finding
a great deal. Millennials who are “incentivized and rewarded”
are three times more likely to follow a brand on Twitter and
seven times more likely to share that experience there. They’re
also six times more likely to upload photos of the items on
Instagram, according to PunchTab.
The bottom line: Millennials are very receptive to marketing
tactics, such as emails and texts, if they deem it worth their
time. Spamming is not a problem for millennials if they
see a benefit to trading their information. Franchisees who
provide exclusivity and reward loyalty will win with millennials.
Millennials love secrets. Make sure your rewards program has
both linear (expected) and non-linear (surprise and delight)
benefits.
BUILD A MODERN BRAND WITH A HIGHER PURPOSE
Millennials believe in brands with a higher purpose. They
believe in powerful ideas that align with their values. Today,
brands that are winning stand for more than just their bottom
line. It’s called a Modern Brand Mindset. Brands must focus on
creating ideas that they can share ownership of with millennials.
In return, millennials are looking for brands that add to their
story. It’s not a question of “What can you do for me?” but,
“What can you add to my story?” Or, “What are you doing to
help make my life better?” n
Jeff Fromm is vice chairman of Three Dog Bakery.
Find him at fransocial.franchise.org.
IFA SUPPLIER FORUM SPOTLIGHT
back to the content, so they can see it again and retain it. A great
system will allow role-play simulations, exercises and other progress
checks.
5. Content Structured for the Adult Learner in the Online
World – Trainers structure their LMS programs just like they have
always done. The result is long and boring content, which results
in poor user satisfaction, a high abandonment rate and no actual
learning. The right online platform will deliver content in small
digestible three to five minute modules to keep it engaging and
ensure end user retention.
6. Track, Measure and Monitor Progress – Most systems
allow users to track their own progress in the learning management
system. However, it is equally important that management knows
how their employees are progressing. An outstanding platform allows
managers to track, measure and monitor progress ensuring that the
employee is in a review, repeat, retain, remind and reinforce mode —
rather than the more traditional watch and forget mode.
Top 10 Things to Look
For in Your New Online
Training Platform
7. Language Subtitles – In our increasingly diverse society, it is
important to make training available in various languages. The best
programs feature a simple subtitle “CC” button that allows a user to
toggle on training in his native language.
THE SAV V Y FR ANCHISOR IS aggressively integrating online
learning into their training curriculum. Previously hard-to-teach
subjects, such as supervisory skills, and “how to” training are finding
a new home online. The payoff is having better-trained franchisees,
better-trained team members and increased revenue.
The landscape is changing, and the linear and boring LMSs of the
world need to take notice.
1. It’s Not About the Technology – It’s about what technology
enables us to do. It’s about the return on investment. The technology
should engage people to improve performance and increase revenue.
You make purchase decisions based on the value you receive, so too,
you should make this decision. This is not an IT or Ops decision, nor
an HR or Finance decision. This is a corporate decision based on the
needs of the franchisor and franchisee.
SUP
PLI
2. Full-Motion Interactive Video Modules – Is the instructor
talking to you directly? Most online learning is mind numbing, voiceover-PowerPoint or a bad recording of a live presentation someone
delivered. Best of class today should deliver training virtually as
though the subject matter expert was there live one on one in the
first person.
ER
3. Interactive Questions – What would it be like if the presenter
asked you a question during the training that required an answer for
you to continue? It would certainly be interactive and engaging, just
like in a live classroom. The way you answer the question would then
determine the response you get from the instructor. For example, the
instructor might be talking about planning and then ask, “Are you a
store manager or kitchen supervisor?” If you select store manager, the
instructor then tells you about the planning tools, such as strategic
planning, used at that level.
8. You Run Your System – The ideal platform lets you choose
how you want to interact administratively. The administrative task
of entering employees into the system and running reports has to
be user friendly. A 45-minute tutorial with accompanying 55-page
workbook should be a warning sign to run.
9. Cobrand platform – Employees like knowing they are using
something that was created for them. Using off-the-shelf generic
training sends a message that neither the training nor the employees
are very important. Does your online platform feature a welcome
screen custom-designed for your company? Is there a custom
greeting from the trainer that welcomes your employees? It’s
possible, and it sends the message that this program is going to be
different.
10. Easy to Use, Simple to Deploy – A great platform should
have a clean and simple design ensuring you won’t need a training
program to learn how to use it. This also means you shouldn’t need a
complex plan to deploy it.
Charlie Cina is the vice president of sales at
Lightspeed VT.
FOR
UM
Lightspeed VT is the next generation of virtual training and a web based
communication platform.
Our On Demand Virtual Training System delivers interactive video
modules and offers comprehensive testing and progress reporting.
Deliver and engaging online experience so your team can truly succeed.
Contact us at 702.369.4260 or visit us online at www.lightspeedvt.com.
4. Progress Testing – One of the best features of online learning
is the ability to test students in real time and assess progress. If they
don’t fully grasp a concept, a good system will immediately take them
ADVERTISEMENT
FEATURES
Quality Content
is Important in
the Battle For
Search Rank
Digital marketing and SEO take time
and effort, but the rewards can be substantial.
BY AUSTIN FIASCONE
EARLIER THIS YEAR, GOOGLE announced that it had
released and begun to implement a new version of its search
filter. Panda 4.0 is the latest version of the algorithm of the
same name that Google first implemented in early 2011 to
provide users with higher quality websites in searches based on
a website’s content. Panda’s goal is to push sites that Google
deems high quality to the top of searches while sites with more
static and lower quality content will suffer and not be shown in
the top rankings.
Panda 4.0 is Google’s newest shot directed at websites
with poor content. Gone are the days where websites with
duplicate copy, replicated keywords and static images appear
high in Google searches. This shift toward rewarding sites with
higher quality content is logical for Google given its objective
is to provide users who are searching specific key words with
what it deems to be the best sites to satisfy the user’s query.
ASSESSING SITE VALUE
Google Webmaster blog offered a series of criteria it uses
to assess whether a site is of high or low value. Within this
list are some important items of note for franchises, many of
which deal with the penalties in search rank a site can acquire
by having duplicate content on its website. Additionally,
Google is now paying attention to “whether the content on
the site is mass-produced by or outsourced to a large number
of creators, or spread across a large network of sites, so that
individual pages or sites don’t get as much attention or care.”
More importantly, Panda 4.0 has now put an emphasis on
keeping the content on your website fresh while it competes
with other websites related to your industry.
26
CONTENT IS KING
So what does this all mean for a franchisor? Moving forward,
it means that content is king and the more original content you
can showcase on your website, for both consumer and franchise
recruiting purposes, the more successful you will be when
fighting for page rank.
Keeping content original can be a challenge when dealing
with any business that has multiple locations. Franchises are
inherently meant to have their processes replicated, which
does not translate well on the Web in terms of search rank.
As a franchisor, you shouldn’t view this challenge as negative,
but more as an opportunity to distinguish your locations and
spotlight your individual franchises, leading to a unique higher
visibility both for the franchise recruiting efforts and marketing
at a local level.
MAINTAIN YOUR BRAND AND STRONG SEO
CAMPAIGNS
In the wake of Panda 4.0, TopFire Media has developed
strategies that allow a franchise to maintain its brand message
on the Web, while still facilitating strong search engine
optimization campaigns. For a franchise, increased Google
page rankings start with how you structure your website.
We recommend always separating your consumer- or
business-facing website from your franchise-recruiting website.
This solves a couple of problems that Panda 4.0 poses for
franchises. First, it allows you to develop two different sets
of original keyword-rich content in two different places that
relate to your company. Second, a separate franchise recruiting
website with its own individual SEO campaign will typically
lead to higher quality traffic coming to the website since its
search rank will be tied directly to the franchise-rich content.
This means that organic visitors to your franchise recruiting
site will be those who generally have a better understanding
of the franchise world and are more interested in the franchise
opportunity.
So how do you keep your website’s content fresh? It
would be a hassle to continuously rewrite all of the content
on your website to keep it fresh and new. To combat this, we
recommend that a blog be incorporated on your site. A blog
will not only keep content fresh, but offers another space to
add keyword-rich content. Blogging is also a great way to get
your franchisees involved in the marketing process and can be
leveraged as a promotional tool.
The blogs should be added at minimum twice a month,
optimally one a week. The blogs provide an opportunity to
share the unique selling proposition of your brand or franchise,
talk about brand values, focus on trends in your industry, share
community or charitable involvement or spotlight individual
franchisees or locations.
To really take advantage of the new Panda 4.0 algorithm,
franchises can go a step further and utilize each location to
make separate micro sites for each franchise. While these micro
sites will have some of the same content, they can host lots of
original content related to the location and community. These
micro sites will not only add to the SEO value of your entire site,
but will allow each franchisee’s location to have its own Web
presence that will provide a significant boost when a location is
used in a search.
Using geo-specific targeting in your SEO campaigns can also
give your website a giant step up in search rank. While the more
general keywords that are associated with your business might
be highly competitive, when you couple those keywords
with a location, your website has a much better chance of
rising significantly higher in a given search.
Finally, for franchises that sell a tangible consumer
product, it is important that your website renders on a
mobile device. With more searches initiating from mobile
devices every year, more of your consumers will be searching
for your services from their phones and tablets. If your site is
not mobile compatible, even the best SEO will not help drive
business. Responsive website designs are a great solution.
With such, the desktop version of your website, with all of
its rich content and accurate information, will automatically
resize to fit the screen dimensions of the device being used.
This eliminates the need to develop an app or a completely
separate mobile website, saving both time and money.
Google is notorious for changing the way it indexes
websites, but it seems the trend of higher quality, original
content driving search rank is here to stay. The habit of
copying and pasting basic sales pitches onto a website
is no longer a viable strategy. Digital marketing and SEO
take time and effort, but the rewards can be substantial.
Be original and keep your content fresh, and Google will
reward you with a better search ranking and more traffic. n
Austin Fiascone is a digital marketing manager
at Homewood, Ill.-based TopFire Media, a
digital marketing agency. Find him at
When was the last time a vendor made you say, “WOW!”
AdGeo is that kind of partner, connecting your customers with
the right franchisee and providing unique reporting tools that
help you make better decisions. We like to tailor technology
to ﬁt your business, not the other way around.
Let us make you say, “WOW!”
© 2014 AdGeo
Perhaps that vendor solved a complex
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1499 AdGeo Franchise World ad October 2014.indd 1
9/11/14 12:23 PM
FRANCHISING WORLD DECEMBER
2014 27
FEATURES
Underdog Marketing:
Competing Against
the Big Guys
Exceptional customer service enables an underdog
franchise brand to use public opinion to boost the
perceived value of its merchandise.
BY SHERRI FISHMAN, CFE
HISTORY THERE HAS always been an
underdog. From the biblical story of David and Goliath to
competition between sports teams, Americans love to love the
underdog. In the world of franchising, underdog competition
is most often played out with marketing.
Obviously, not every franchise has deep pockets or the
ability to push primetime commercials across the major TV
networks. However, just because a franchise lacks the expansive
budget of a larger, more established brand, doesn’t mean its
marketing tactics have to be any less effective. By capitalizing
on every occasion as a marketing opportunity, even a brand
with the smallest budget can compete against the big boys.
Ever heard the phrase, “It’s not the size of the dog in the fight
that matters; it’s the size of the fight in the dog?” Franchises
with tight marketing budgets can make up for their smaller size
by becoming fiercely strategic and disciplined. In fact, smaller
budgets mean more flexibility and faster turnaround time,
often a key advantage in the battle for market share.
Deploying an effective, powerful marketing strategy
starts with identifying key opportunities ripe for the picking.
Rather than trying to compete with the big brands and their
big budgets, Fishman PR advises its franchise clients to focus
on utilizing every resource available in a cohesive, impactful
manner.
THROUGHOUT
Based on experience with franchise brands of smaller sizes,
here are some key opportunities and tactics for underdog
marketing.
IDENTIFY A TARGET AUDIENCE OR TWO
Not every customer has the same background and
expectations. As a result, a franchise brand operating on a
tight budget should identify its key customer demographic. Is
the primary customer target audience middle class couples or
C-level executives? By building a clear understanding of who
a franchise is targeting and their needs, pain points, dreams
and expectations, a brand is better able to make its marketing
dollars count.
Rather than trying to be all things to all people, a franchise
brand with a tight budget can market toward those who are
most accessible, willing and able to utilize its products or
services. Selective marketing initiatives create a higher return
on investment because they reduce the time and money spent
trying to reach an audience that may not ever buy.
EMBRACE WORD-OF-MOUTH MARKETING
It’s often said that word-of-mouth marketing is the most
powerful of all. Data supports this theory; in fact Lithium, a
28
social media marketing solution provider, reports that 92
percent of consumers trust recommendations from friends
and family more than other forms of advertising. According
to AdAge, about 20 percent to 50 percent of all purchases
are the result of word-of-mouth recommendations.
As a result, it’s imperative for a smaller franchise brand
to focus its efforts on providing its customers an exceptional
buying experience to drive positive reviews. A few comments
made between friends about a great experience can mean
the difference between a strong fiscal quarter or a budget
that is in the red. Just 1,000 customers can generate up to
500,000 conversations about a franchise brand, according to
Lithium. As long as customers are having a great experience
with a brand and saying the right things, it can be extremely
powerful.
UTILIZE YOUR LOCATION’S SQUARE FOOTAGE
Smart underdogs realize that the power of persuasion
starts inside of their franchise locations. Every square foot of
a franchise location is a marketing opportunity. By utilizing
this physical space, an underdog can create a brand that
sticks in consumers’ minds and hearts. Use every inch of
property to convey important messages to the thousands of
customers that walk through the front doors. Such physical
property as trucks, exterior and interior walls, LCD screens,
napkins, plates and point-of-purchase displays all represent
an opportunity to drive sales with strategic messages.
MAXIMIZE THE POWER OF SOCIAL MEDIA
A strategic underdog marketer makes the most of social
networks by engaging with customers through humor,
photos, offers, contests, and other ideas on a regular basis. In
addition to pro-active social media engagement programs,
review sites have grown exponentially as consumers of all
ages use these platforms to share opinions about brands,
products and services. Online customer reviews not only
affect whether a customer will make a purchase or not, but
also influence the perceived value of a product or service.
For example, researchers found that someone intending
to buy a high-tech product like an iPad would pay $22 more
based on positive online reviews by strangers and $27
more based on reviews by a close friend or family member,
according to The Atlantic magazine. On the other hand, a
negative online review by a stranger would make a consumer
want to pay $32 less for the product.
Franchise brands’ products or services value in the
marketplace are increasingly dependent on consumer
opinion. By diligently providing exceptional customer
service, an underdog franchise brand can utilize public
opinion to boost the perceived value of merchandise and
perhaps charge more.
Rather than trying to compete with the big guys at their
level, an underdog franchise can use the power of all of these
strategies, and others, to effectively market their brand.
In the end, if done right, the smaller brands can find they
actually have the edge over the giant in their space. n
ENACT ROBUST CUSTOMER LOYALTY AND
RETENTION PROGRAMS
Public opinion regarding the quality of customer service a
franchise provides can help a brand thrive or fail. Deploying
robust customer loyalty programs help ensure retention
for the long haul. Approximately 71 percent of consumers
have ended their relationship with a company due to poor
customer service, according to Kissmetrics, a web analytics
provider. With the average value of a lost customer totaling
$243, franchises — especially smaller brands — can’t afford
to lose sight of what’s important: providing exceptional
customer experience. Every time a customer benefits from a
rewards program, the chance increases that he will support
the brand with positive reviews and continue to utilize the
franchise’s services or products increases.
DEPLOY LOCAL GRASSROOTS MARKETING
TACTICS
Creating a strong bond with a local community allows an
underdog franchise to sweep in under the big brands to gain
a greater customer following. Consumers are often enticed
to purchase a product or service from another provider when
there is a localized incentive. For example, a pizza franchise
can gain new customers by sending out a flier through a
school network that promises to dedicate a percentage of
the profits to a class trip, club or program. Customers not
only get the pizza they were planning on having for dinner,
but also a warm and fuzzy feeling for helping their local
school community — a double win. Whether it’s schools,
sports teams, youth groups or other local organizations,
the opportunities for community grassroots marketing are
endless.
30
Sherri Fishman, CFE, is the president and
co-founder of Fishman PR, a franchise PR and
content marketing agency and a member of the
IFA’s Marketing and Communications
Committee. Find her at fransocial.franchise.org.
UNDERDOG MARKETING STATISTICS
•
•
•
•
•
•
•
•
92 percent of consumers trust recommendations from
friends and family more than other forms of advertising.
(Lithium)
About 20 to 50 percent of all purchases are the result of
word-of-mouth recommendations. (AdAge)
Just 1,000 customers can generate up to 500,000
conversations about a franchise brand. (Lithium)
Approximately 71 percent of consumers have ended
their relationship with a company due to poor customer
service. (Kissmetrics)
The average value of a lost customer totals $243.
(Kissmetrics)
A negative online review by a stranger would make a
consumer want to pay $32.30 less for the product. (The
Atlantic magazine)
Someone intending to buy a high-tech product like an
iPad would pay $22.26 more based on positive online
reviews from strangers. (The Atlantic magazine)
Someone intending to buy a high-tech product like an
iPad would pay $27.42 more based on a review from a
close friend or family member. (The Atlantic magazine)
WHY CHOOSE ONE WHEN
YOU CAN REACH THEM ALL
Existing Business
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potential buyers from all spectrums of business.
That’s because affluent business buyers aren’t just reading franchise publications.
In fact, many aren’t reading them at all. To get the complete perspective on business
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36 Years Strong in the
Franchise Market
FEATURES
Five Suggestions to
Improve Your Social Media
Program
Provide an experience that’s worth talking about, and your
customers will do much of the work for you.
BY ANDY GIEFER
WE’RE ALL ADAPTING TO a world that’s gone social. Every
franchisor and franchisee thinks they could be “doing” social
media more or better. The hard part is knowing where to focus
your efforts, especially when a shiny new object comes along
daily. Let’s look at some ways to keep your program moving
forward, even when resources are limited.
1. START OFFLINE
Whether it’s Snapchat, Instagram, Vine, Ello or Pinterest,
there’s pressure to be on top of the latest and greatest social
media opportunities. But we need to remind ourselves
that great customer experiences are a large part of social
media success, because it’s the source of authentic online
word of mouth — customer recommendations, referrals
and reviews. Are you offering an experience so good that
your customers can’t wait to recommend you? Do you have
baked-in touch points that surprise and delight, creating
socially shareable moments for your customer? If you do
nothing else with social media, provide an experience that’s
worth talking about, and your customers will do much of
the work for you.
2. ASSESS YOUR CURRENT SOCIAL FOOTPRINT
Take an honest look at each social network that your
franchise participates in currently. Who uses the site? Do
they align with your target audience? What are they trying
to accomplish? What are you trying to accomplish and
where’s the overlap? Do you have the resources to achieve
your goals on this site or are you already stretched too thin?
If you can’t answer these questions for each social network,
scale back and focus on the ones where you can. Let go
of the notion that you need to be everywhere, and just
be where it matters. Consider it “minimum viable” social
media marketing.
32
3. WORK TOWARD SCALABILITY RATHER THAN
CONTROL
As franchisors, we often put a premium on brand
consistency. While it’s a noble goal, it can hamstring your
social efforts. There’s a temptation to resort to a commandand-control social media model, where all social posts come
directly out of the corporate office, and the franchisee has
little or no say in his local social presence. The problem
is that control doesn’t scale. Rogue franchisee-created
Facebook pages will crop up, which you’ll have to police.
Audience questions, comments and complaints will go
unanswered. What’s more, corporate posts are more likely
to get ignored than local ones. A study by Mainstay Salire,
an organization that quantifies and communicates the value
of technology investments, found that local Facebook
posts get eight times more engagement per fan than their
corporate counterparts.
Furthermore, without local control of social media, you’re
missing a great opportunity to keep franchisees empowered
and accountable. Social media (particularly Facebook)
provides an easy way for franchisees to get involved in
marketing themselves and driving their own success. It also
encourages good behavior and customer service, as they
begin to understand that good behavior is rewarded with
positive online reputation and word of mouth in the form of
reviews, social comments and blog posts, and that a poor
customer service is punished in the same way.
How do you make a social media program scalable?
First, your organization needs to accept some level of risk.
Franchisees aren’t perfect. Occasional brand violations will
occur and remediation may be required. That said, there are
enterprise social media platforms with approval layers that
can help you mitigate risk.
From there, you need to provide franchisees with the
tools and education to put their best foot forward for
your brand. The tools are the easy part, assuming that
you already have branded content that you’re sharing on
your corporate social media accounts. You simply need
to find a platform to get that content into the hands of
your franchisees. This can be done by resharing from
corporate accounts, or by creating a content library from
which franchisees can browse and share pre-approved
materials, while adding their own local flare. There are
a number of enterprise tools on the market that this
possible as well.
4. BUILD OR ENHANCE YOUR SOCIAL MEDIA
EDUCATION PROGRAM
Employees and franchisees differ greatly in their
knowledge and savvy with social media. That’s why
the biggest factor in successfully scaling a social media
program across a franchise is education. Franchisees
should have access to social media training that covers
topics such as your organization’s social media goals,
how to go about accomplishing those goals, and what
support they can expect from the corporate office. There
should also be a clear delineation of roles between the
franchisee and franchisor. For example, who creates local
pages on sites like Facebook, Yelp and Google+? Who
is responsible for the day-to-day management of these
properties? Failure to clarify roles can result in duplicate
efforts, unanswered inquiries and consumer confusion.
Vital to scaling social media is that your franchise
consultant and corporate customer service teams also
receive some basic social media training, since they’re
likely communicating with your franchisees on a daily basis.
At the very least, they should be able to point franchisees
in the right direction to get educational resources. Finally,
your most social media savvy franchisees may be your
best asset for educating other franchisees. Hold up their
success as an example to those who are still learning.
You might be surprised how motivating some friendly
competition can be.
5. EMPOWER CUSTOMERS TO ADVOCATE FOR
YOU
Word of mouth has always been the most powerful
form of advertising, and social media gives anyone a
public platform to widely share their customer experience.
But sometimes, even your best advocates need a little
nudge to spread the word, and it’s your job to give them
that push. Start an email program requesting customer
reviews. Hold a social media contest or challenge that
allows customers to tell their story and share it with
friends. (There are a number of advocacy platforms that
enable programs like these.) This user-generated content
can be shared in your corporate and local social media
efforts. It can also be repurposed on your website in the
form of blog posts and testimonials that add authentic
“social proof” to your marketing efforts. n
Andy Giefer is social media director for Anytime
Fitness, a 24-hour gym franchise with 2,500
gyms serving more than 2 million members on
five continents. Find him at fransocial.franchise.
org.
Empower Your Local Network
The tools your franchisees need to drive your national brand more leads
Get the Case Study:
www.surefiresocial.com/franchise
Trusted by leading franchise partners
33
INTERNATIONAL DEVELOPMENT
Managing Risks
For International
Franchises
Overseas expansion can be very profitable, but careful
consideration is required.
BY ANDRES FRANZETTI
T
oday, roughly 95 percent of the world’s potential
consumer population resides outside the United States.
This substantial and largely untapped market is eager for
consumer goods. International expansion has clearly become a
logical next step in any firm’s business strategy.
While expansion overseas can pay a big dividend, it is not
without risk. The varied terrain and challenges of international
expansion require careful consideration, especially for
franchisors.
because political currents can shift quickly. Most recently,
McDonald’s fell victim to what appeared to be a politically
motivated reprisal in Russia. There 12 of its franchises were
closed for “violations of technical regulations requirements,”
which seemed to coincide with the timing of sanctions imposed
against Russia by the United States and other Western powers.
These unanticipated closures in one of the world’s fastest
growing markets triggered a serious impact on McDonald’s
profits, which posted 3.7 percent drop in August.
BIG REWARD, BIG RISK
Yet political issues are only one area of concern. While the
introduction of established global brands like McDonalds,
Burger King or KFC are often heralded as signs of progress in
many markets, the reality of operating in uncertain conditions
often exposes companies to reputational risks.
Tight control of supply chain management and service
standards within international franchises must also be in
keeping with the brand’s existing operations back home. While
developing economies are eager to attract foreign investment,
the regulations and quality controls governing these operations
are often still being defined and not always enforced. These
Growing instability around the world makes today’s
volatile news cycle the “new normal” and franchisors need to
understand how instability and risk can affect their brand and
global operations. For example, franchisors should account
for things such as the political and economic stability in target
markets, regulatory climate and sophistication, as well as the
purchasing power of local consumers. These categories are
key indicators of the underlying risks that exist throughout the
world — a look at the unrest gripping Hong Kong serves as a
stark example.
Factoring in the broader risk landscape can be difficult,
34
conditions, coupled with the frequent struggle to source
quality supplies or stock, places added strain on a franchise,
particularly those in the food service industry. With the
food and hospitality sector representing 65 percent of
employment within the franchise sector, the risks of supply
chain disruption can be substantial and sudden.
The need to ensure that tight supply chain controls
are in place is a concern any franchise should have when
expanding internationally. Likewise, the same standards that
are employed in U.S. locations should follow suit abroad to
ensure consistency of product and to preserve the brand
from reputational exposures.
PROTECTING ASSETS BEYOND THE BRAND
Not every risk will be as intangible. Notwithstanding a
global world where franchises are purchased by local and
regional investors, the majority of assets are still bought in
hard currencies, and then insured in soft currencies. This
creates exposures to currency volatility and depressed
purchasing power in the event of property losses.
Furthermore, local insurance policies often do not cover
risks such as social unrest, war or terrorism, which tend to
be most prevalent in highly trafficked areas where franchise
locations will likely be.
Marriot suffered such a loss. A 2008 terrorist bombing
in Islamabad killed 40 people and seriously wounded 200,
while causing large-scale property loss. A tragedy such as
this one damages consumer perception and underscores
a severe liability exposure. In the wake of the Islamabad
bombing, for example, many Western governments issued
travel warnings urging their citizens to avoid international
hotels for safety reasons.
The liability exposure for these kinds of events is also of
concern, particularly for the franchisor. While the Islamabad
hotel was a franchise operated by a Pakistani company, it was
Marriott International Inc. that was sued by a victim’s family
for failing to take the necessary safety measures to protect
guests.
DOWNSIDES WILL ALWAYS FOLLOW THE UPSIDES
The examples cited above represent some of the more
catastrophic, but often overlooked risks that global brands
WHERE WEAK LOCAL SUPPLY CHAINS MEET
GLOBAL EXPOSURE
When Chinese meat supplier OSI Group LLC was
found to be selling expired and tainted meat to nine
global chains, including YUM Brands, McDonald’s
and Starbucks, the reputation of these brands
became seriously compromised. While all restaurants
immediately halted sales of the tainted products and
conducted investigations, it was a lack of on-theground quality control, loose regulations and weak
supply chain management that put the companies at
risk.
Many consumers both in China, as well as around
the globe, are now contemplating the quality of the
products they are consuming from these brands, the
backlash of which is reflected in declining earnings.
can face. However, organizations also need to ensure that
standard employee practices and operating guidelines are
in place. While established global brands do bring a positive
value to emerging markets, they also bring litigation risk
with them. From a client slipping and falling in a store, to
an employee getting burned and injured on the job, routine
business activities can just as easily bring reputation exposure
to a global brand as third-party risks. With today’s access to the
Internet and social media platforms, information about global
brands not behaving in the same socially responsible way as
their U.S. counterparts can travel quickly causing a ripple effect
that affects the organization’s profits across multiple markets.
While these risks are considerable, the upsides are greater.
Growth will continue to be found on a global scale, especially
as developing nations flush with natural resources begin to
enter the global economy. Franchises who seek growth in
countries such as Libya, which sits atop Africa’s largest oil
reserves, will continue to thrive as long as considerations are
taken into account to properly mitigate risks.
PRE-INVESTMENT DUE DILIGENCE
While parent companies historically selected franchisees
with close government connections, the Arab Spring and
other destabilizing movements have shown that these may
no longer be the most desirable candidates to help expand
global brands. Today, a financially solid investor, coupled with
an in-depth risk evaluation, may be the best path to ensure
sustained growth abroad.
Here are three key steps that can be taken to address the
concerns of expanding overseas:
1. Conducting pre-investment due diligence is the first
step to take when looking at new markets. Consulting
with risk management and insurance specialists will
help the organization better understand and identify
its exposures.
2. As global brands, franchisors must ensure that both
global and local compliance is followed. Even though the
franchisee is managing many of the daily aspects such
as insurance, human resources and so on, a vicarious
liability still remains for the franchisor. Lawsuits can still
be targeted to the brand owner, and the reputational
exposure can cause long-term damage reaching well
beyond a single store or location. Implementing a set
of operating guidelines and working with providers
to facilitate access to reliable insurance coverage and
other related services will help create a global standard
for all franchisees to adhere.
3. Working with outside partners and utilizing external
resources is the last line of defense to ensure that the
organization has taken all facets of its operation, and
potential exposures, into account. Having a network
of partners allows for global access and onthe-ground
assistance for unexpected events. n
Andres Franzetti is the engagement manager at
Clements Worldwide and holds the Certified Risk
Manager designation. Find him at fransocial.
franchise.org.
35
How to Launch
a Successful
Regional
Developer
Program
The most effective regional developer programs tend to be
winning scenarios for both the franchisor and the developer.
BY BRIAN K. MILLER, CFE
A
ll regional developer programs are not created equal.
At its best, a regional developer program can help a
franchisor expand rapidly and provide exceptional
support. It can also be a fantastic way for an investor to build
wealth and equity with no caps on income potential. However,
if not implemented carefully, bringing the program into a
franchise system could lead to internal conflict and breed
maverick regional franchisees. Although the RD model might
not be suited for all businesses, franchisors should consider the
following practices and insights if launching such a program is
a strategy the leadership team is considering.
WHAT IS A REGIONAL DEVELOPER PROGRAM?
A regional developer owns the right to “develop” a territory
with a defined number of “units” or “slots.” He has both the
right and the obligation to open a certain number of units as
prescribed by a development schedule. RDs earn a fee when
they sign a new franchise agreement in their territory and
usually participate in the ongoing royalties from the franchises
in their region. RDs operate in a unique position where they
often provide or are an extension to the ongoing support and
resources franchisees expect from headquarters. The RD will
usually operate at least one unit for income generation, as well
as advancing his ability to train and bring on new franchisees.
36
Regional developers are often local liaisons between
franchisees and the franchisor. As a result, it’s important
that the franchisor consider a prospective developer’s
professional background, leadership and management skills
before awarding a regional franchise agreement.
WHY CONSIDER A REGIONAL DEVELOPER
PROGRAM?
For many franchise businesses, regional developer
programs are effective solutions for strategic brand growth
within a targeted region. Instead of having to hire more
franchise development staff as overhead, the regional
developer’s primary function is to fill out his territory. It’s
also the quickest way for the individual developer to reach
his income and lifestyle goals. RDs usually participate in lead
generation, as well as taking franchise candidates from the
discovery to the “awards” process.
In some cases, having a reliable group of regional
developers throughout the franchise system will actually
allow the franchisor to more efficiently manage headcount
at its support center. Since regional developers typically
pick up the opening training and ongoing support once a
new franchisee leaves training, it reduces the overhead for
additional staff members at headquarters.
Linking payroll and business insurance.
Your franchisees can benefit from the connection.
Your franchise brand is your most important asset — help
strengthen it by providing your franchisees with integrated payroll
and business insurance solutions, backed by the support they
need to help them run a successful business.
With 60+ years as a payroll, compliance and HR services leader,
ADP® has partnered with leading franchisors to help franchisees
better manage their cash, people and risk.
As an ADP affiliate, Automatic Data Processing Insurance Agency,
Inc. (ADPIA) can help franchisees stay protected by providing
them access to a range of business insurance products.
Make the connection
Your franchisees can work with ADP to link their payroll and
insurance, and benefit from:
• Increased control over cash flow
• More accurate premium payments
• Relief from time-consuming administrative work
Let ADPIA help your
franchisees with:
Property & Casualty
• Workers’ Compensation
• Business Owner’s Policy
• Commercial Auto
• Umbrella Policy
• NY Disability Insurance
Group Health Insurance
• Medical
• Dental
• Vision
• Life
• Disability
Get connected today!
For more information on ADP’s franchise solutions or
ADPIA, call 866-762-8245 or visit ADP.com/franchise.
The information contained herein represents the products and services of only one of the business groups of Automatic Data Processing Insurance
Agency, Inc. (ADPIA). ADPIA services mid and large sized clients with other insurance products and services through its other business groups.
All insurance products will be offered and sold only through Automatic Data Processing Insurance Agency, Inc., its licensed agents or its licensed
insurance partners; 1 ADP Blvd. Roseland, NJ 07068. CA license #0D04044. Licensed in 50 states. Certain services may not be available in all
states or with all carriers. Automatic Data Processing Insurance Agency, Inc. is an affiliate of ADP, LLC. The ADP logo and ADP are registered
trademarks of ADP, LLC. All other trademarks and service marks are the property of their respective owners. Copyright ©2014 ADP, LLC.
WHAT MAKES A GOOD PROGRAM?
The most effective regional developer programs
tend to be winning scenarios for both the franchisor
and the developer. For the franchisor, successful RDs
will open new revenue streams via franchise fees and
royalties that might have taken longer to develop, with
the burden resting solely on the franchisor. The local
presence and regional familiarity that an RD provides
is often unrivaled. Since their income is based on the
success of the local franchisees, RDs have a vested
interest in seeing franchisees mature to cash flow
with the business as soon as possible. A successful
program should offer the potential for a high return on
investment to its developers. It’s not only a strategy for
franchisors to expand their footprint quickly, it must
also provide a solid vehicle for success for the regional
developer as well. As they sign new franchisees, train
recruits, produce ongoing support and create revenue
streams for the franchisors, it’s paramount that their
work and influence is rewarded by the system.
Perhaps most importantly, a good regional
developer program meets the specific goals set forth
by the franchisor. If a program is designed to double
a franchisor’s presence in a market, but only increases
franchise locations by 10 percent, the individual or the
program needs to be re-evaluated. Likewise, if the
franchisor’s goal is to substantially increase signed
agreements via an RD, the business must have the
resources to handle those new locations. Don’t let a
regional developer program grow out of control.
WHAT MAKES A GOOD REGIONAL
DEVELOPER CANDIDATE?
Generally, regional developers are often former
senior executives with a strong blend of leadership
and management abilities. These are people who can
inspire a team of franchisees to yield better results,
while ensuring the entire region runs smoothly and
efficiently. Although they’re already bright and
highly skilled professionals, there are still some steps
franchisors can take to ensure RDs are operating to their
highest ability. As stated earlier, it’s often helpful to
provide the developer with a franchise unit to operate.
Sharing the franchisee experience equips RDs with
an understanding for the specific responsibilities and
challenges faced by their regional team, it improves
their training ability and they have more wisdom at
their disposal as they help award additional franchises.
The best candidates are growth minded, proactive
and willing to work closely with the franchisor as
the entire business grows and evolves. Regional
developers must have the ability to inspire a team
of franchisees and provide guidance during difficult
periods. They must have the patience and foresight
38
to manage a geographically diverse team of franchisees
as their businesses will be miles from each another. Lastly,
strong RD candidates must have the ability to represent
the franchisor as if they were members of the management
team at headquarters; all parties must be able to
communicate with each other to stay on the same page.
WHAT ARE THE PITFALLS?
Although the RD model has its unique challenges,
none are insurmountable. Proper training, management,
communication and foresight will keep the entire system
running smoothly. Among the pitfalls to beware are maverick
RDs, lack of clarity within the communication channels and
lack of focus on long-term success. The franchisor must be
committed to ensuring that there is an open channel of
communication and take into consideration the “boots on
the ground” feedback learned from its developers.
The amount of responsibility and authority RDs have
can actually breed mavericks that fall out of line with the
franchisor’s objectives and identity. Either because the
developer was misinformed, undervalued or even poorly
selected, a maverick could emerge that might intentionally
or unintentionally disrupt the system. Keeping an RD
in alignment with headquarters’ objectives might only
take a few key steps. Ensure developers are present or
at least informed of larger brand strategy sessions and
management decisions; make sure they are properly
trained in brand objectives, identity and messaging;
and ensure a clear understanding of franchisor and RD
objectives, especially which party has what responsibility
pertaining to franchisee relations.
One of the most common pitfalls that seems to occur
with franchisors and RDs amounts to short-term gains
that lead to long-term pains. Sometimes the pressure of
signing franchisees within a development schedule leads
to a lapse in judgment by a prospective franchisee or
regional developer. Developing an ideal candidate profile
for both single-unit and regional franchisees and sticking
to it when approving franchise candidates is paramount to
long-term success.
While no one has a crystal ball, adhering to your
principles will pay off in the long run. Expediting a signed
agreement to quickly secure a franchise fee could lead to
headaches later if the franchisee is not fully qualified for the
role. Don’t take shortcuts when awarding new franchisees
— everyone in the system is a brand ambassador. n
Brian K. Miller, CFE, is the chief operating
officer of Patrice & Associates, restaurant and
hospitality recruiting firm with more than 100
franchisees across the United States and
Canada. Find him at fransocial.franchise.org.
Your Step-byStep Employee
Termination
Checklist
The employee separation process should
be handled with extreme care to ensure
compliance with federal and state notices
and final pay requirements.
BY REBECCA MORRIS
S
eparation is a term used to describe the end of the employeremployee relationship in any business or organization. It
may occur voluntarily (e.g., resignation or retirement) or
involuntarily (e.g., layoff or termination for cause). Regardless of the
reason, when the employment relationship ends, there are certain
responsibilities that you as the employer will need to address.
The following checklists can be used to help you manage both
voluntary and involuntary employee separations.
INVOLUNTARY SEPARATIONS
VOLUNTARY SEPARATIONS
When employee separation is voluntary (i.e., employeeinitiated), consider the following steps:
•
•
When employee separation is involuntary (i.e., companyinitiated), consider the following steps:
•
•
•
Make a decision to terminate. Carefully examine the facts
and circumstances of the case before making the decision
to terminate an employee. Your decision must be based on
job-related criteria and should be supported by relevant
and appropriate documentation (e.g., discipline notices,
performance reviews, etc.).
Prepare for the meeting. After making your decision,
schedule a time and place for the termination meeting and
plan to have a witness present. Be prepared to provide the
employee with specific reasons for the decision.
Prepare for an unemployment claim. Generally,
employees who are involuntarily terminated are eligible for
unemployment benefits. Once a former employee has filed
a claim for unemployment benefits, you will receive written
notice from the state unemployment agency.
•
Obtain a resignation letter. When employees choose to
leave the company voluntarily, they should be asked to
complete a resignation letter to document the reason for
separation and the effective date.
Prepare for transfer of responsibilities. Once an
employee gives you notice that he or she is resigning
or retiring, ask the employee to provide you with an
outline of current projects so that you can create a plan
for re-assigning those duties. If time permits, consider
having the departing employee train co-workers on those
responsibilities.
Conduct an exit interview. An exit interview is typically
conducted with employees who leave the company
voluntarily to gather information about their experience
working for you. This data is typically used to identify
areas in which the business excels, as well as areas that
may need improvement.
39
ALL SEPARATIONS
•
Consider taking the following steps in all separations
(employee- and employer-initiated):
•
•
•
•
•
40
Document the reason for separation. This
documentation should include the effective date
of separation and be kept in the employee’s file.
Note: If the employee’s separation is a result of
misconduct or performance issues, you should
also make sure you keep records supporting
your decision (e.g., past performance reviews,
disciplinary notices, etc.).
Comply with final pay requirements. Under
federal law, final pay is due by the next regular
payday, but many state laws have stricter
deadlines. At the state level, final pay deadlines
generally depend on whether the employee
initiates the separation or the employer does.
Additionally, some states require that an
employee’s final paycheck include accrued,
unused vacation and paid time off. Check your
state law to ensure compliance and be sure to
keep a record of when final pay was provided and
exactly what it was for (e.g., salary, commissions,
accrued vacation, etc.).
Provide state-required forms and notices.
Some states require employers to provide
separated employees with certain notices (e.g.,
a separation form explaining how the employee
can claim unemployment benefits). These notices
are generally available from the appropriate state
agency.
Provide benefits information. If the employee
is enrolled in group health insurance sponsored
by your company, separation may entitle the
employee to health insurance continuation
or “COBRA,” which triggers certain notice
requirements. Work with your health insurance
provider to ensure compliance with these notice
requirements. If the employee is enrolled in
a company retirement plan, you should also
provide information regarding the employee’s
options after leaving (e.g., cash out, rollover or
keeping the plan as is).
Ensure return of company property. It’s a good
idea to get started on the process of collecting
company property from the employee as soon
as you know the employee will be leaving. Use
a Receipt of Company Property or a similar form
to track company-issued property that has been
returned to you, such as company ID badges, cell
phones, laptops, keys, etc. You should also take
necessary steps to disable building codes and
access to computers and confidential data.
•
•
Address the issue of reference requests. Develop
a written policy on reference checks and ensure
supervisors follow it consistently. Your policy should
address the types of information you provide (e.g.,
dates of employment and position(s) held,) as well as
the requirement to obtain written authorization from
the employee before providing any information. Upon
separation, remind employees of your practice and
consider obtaining authorization at that time.
Confirm mailing address. It is important to have the
correct address for sending a departing employee’s
Form W-2 and other pertinent information in the future.
Ask the employee to verify their current address and to
notify you if he has a change in address.
Notify key staff and contacts. Notify appropriate
staff and key clients or customers that the individual is
no longer with your company. Let them know who will
be handling his work responsibilities in the future. In
general, you should avoid revealing the reason for the
employee’s departure.
The employee separation process should be handled with
extreme care to ensure compliance with federal and state
notices and final pay requirements. You also want to ensure
company property is returned and important projects and
responsibilities are re-assigned after the employee departs. n
Rebecca Morris is the content development
manager for ADP HR411. Whether it’s human
resources, payroll or benefits, ADP provides the
services and insights that let you focus on what
matters: growing your franchise. For more
information, contact ADP Vice President, Strategic
Alliances Joe Francis. Find him at fransocial.franchise.org.
Disclaimer: This content provides practical information
concerning the subject matter covered and is provided with the
understanding that ADP is not rendering legal advice or other
professional services. ADP does not give legal advice as part of its
services. While every effort is made to provide current information,
the law changes regularly and laws may vary depending on
the state or municipality. This material is made available for
informational purposes only and is not a substitute for legal advice
or your professional judgment. You should review applicable law
in your jurisdiction and consult experienced counsel for legal
advice.
#IFA2015
#IFA2015
#IFA2015
Connect.
Innovate.
Evolve.
Meet cutting-edge, smart and savvy supplier members in our Exhibit
Hall who can help build your brand and provide solutions to better your
business.
+HDUIURPƓUVWFODVVEXVLQHVVDQGWKRXJKWOHDGHUVGXULQJRXUKLJKHQHUJ\
and dynamic general session programs. These are unique venues for gathering thousands of franchisors, franchisees and suppliers to the industry
– we will unite and discuss the state of franchising and how we can rally
together to protect our time-tested and proven business model.
Engage in in-depth discussions during interactive concurrent sessions and
business solution roundtables on topics ranging from operations, franchise
relations, digital marketing & technology, sales & development, international development and more! Our sessions will provide real nuggets of
take-home value that will make a difference for your brand.
Get to know other franchise professionals at a variety of networking events
like the one-and-only Taste of Franchising. Everyone is experiencing the
same challenges and IFA 2015 will allow time for you to meet your fellow
attendees to gain insights, talk through your challenges while making new
friends.
Have fun, learn new business practices and feel inspired!
•
•
•
•
•
#IFA2015
EVOLVING and staying ahead of the curve is crucial in today’s competitive
environment. IFA 2015 features creative ways to evolve your brand so you
can grow, increase your customer base and increase your bottom line. It’s
time – your time – to make a change and IFA 2015 will show you the way.
•
convention.franchise.org
Discover the latest INNOVATIONS in the marketplace for taking your franchise system to the next level. How can these innovations change the way
\RXUXQ\RXUEXVLQHVV"+RZFDQ\RXEHPRUHHIƓFLHQW"+RZGR\RXPDNH
your brand stand out and appeal to new customers and new franchisees?
Innovation is the key to success and you will learn strategies and trends
that will inspire you back home.
•
2
CONNECT with leading franchise executives who will share their stories of
success, mistakes and lessons learned. There is no better venue than IFA
2015 to increase your knowledge and portfolio of contacts.
•
At #IFA2015, you will:
WHY ATTEND?
President & CEO
International Franchise
Association
Stephen Joyce
IFA Chairman
CEO, Choice Hotels International
We would like to invite you to Las Vegas to join
thousands of franchise business leaders at the 55th IFA
Annual Convention, February 15-18, 2015, for what will be the
most rewarding and entertaining meeting you will attend all
year.
This year’s Convention theme is “Connect. Innovate. Evolve.” In
light of current legislative, regulatory and economic pressures,
now, more than ever, it is essential that we expand our
networks and strengthen our existing connections to unite
our industry and promote innovation. IFA’s Convention—
specifically designed for franchisees, franchisors
and our steadfast supplier partners that support the
franchise industry—is the forum to build and enrich these
relationships and ideas. The program will provide information
and tools that will allow the franchising community to continue
evolving, while we remain diligent and resilient as an industry
against the multiple efforts to damage the franchise model.
As always, IFA’s Convention will draw top speakers who will share
best practices as the industry continues to work its way out of these still
challenging economic and public policy times. Our Convention is filled
with educational sessions, roundtables, summits and mini-super sessions
designed to give you the latest trends and information in the areas of
franchise relations, management and leadership, financing, multi-unit
growth, international growth, franchise development, social media and
more.
You’ll also find the industry’s premier exhibit hall showcasing nearly 250
companies offering state-of-the-art tools and resources that franchise
professionals need to grow their business.
The Convention Committee has done an excellent job filling the
program with top-flight speakers, high-level interactive programming,
energizing roundtables, and the best networking anywhere. Our sincere
congratulations to the committee for making the 55th IFA Annual
Convention a must-attend event.
You don’t want to miss the best franchising event of the year. Register
today at convention.franchise.org, or use the form found at the back of this
brochure. We look forward to seeing you in Las Vegas in February, where
we will deliver another meaningful program for our great industry.
Dear Colleagues,
2015 LIST OF EXHIBITORS
Registration and hotel information, Mobile app and more!
REGISTRATION INFORMATION
CONNECT, INNOVATE, EVOLVE...AND MORE!
EVOLVE
MINI SUPER SESSIONS
MARKETING & TECHNOLOGY
OPERATIONS
LEGAL
INTERNATIONAL
NEXTGEN IN FRANCHISING
FRANCHISEES
FRANCHISE RELATIONS
FRANCHISE DEVELOPMENT
FINANCE
GENERAL
EDUCATIONAL SESSIONS BY TRACK
ANNUAL LEADERSHIP CONFERENCE
GENERAL SESSIONS
Programming for summits and breakout sessions are grouped
together by areas of focus. Areas of focus are denoted below by
color-coding and can also be found on the Schedule-At-A-Glance.
INNOVATE
Connect with other franchise professionals through a variety of
collaborative and interactive networking events.
CONNECT
SCHEDULE-AT-A-GLANCE
SPONSORS
CONNECT • INNOVATE • EVOLVE
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15
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TABLE OF CONTENTS
”
-JIM TATeM
President, Signarama
3
”
-Rosemarie Hartnett, CFE
President, abrakadoodle
“I’m taking back a lot of great information
and things that we can use in our franchise
organization day in and day out and passing
that along to the other members of my
team.”
“
“
“I urge anyone who is driven to grow and
develop their franchise brand to make the IFA
Convention a “must attend” event every year.
After 20 years in franchising - and having
attended the Convention almost every year I have always come away with valuable input
that I could put to use immediately to help
grow and develop my franchise system.”
EST
Business Solutions Roundtables
International Reception
Mobile App
“You Are Here” Signs
International Summit - Track 1
New Member and First Timer
Reception
®
TOF Cash Sponsor
Guest Room Drops
Lobby Banner
Technology Summit
Event Sponsor
Leadership Conference Program
International Lounge
Board of Directors’ Amenities
Scooters
Exhibit Hall Footprints
Registration Lists
TOF Cash Sponsor Exhibit Hall Footprints
Registration Lists
Business Solution
Roundtables
FranPAC 365 Club Event
Leadership Conference Reception
New Member and First Timer
Reception
Twitter Feed
Convention Badge Lanyards
Board of Directors’ Dinner
Opening General Session
Entrepreneur of the Year Award
Taste of Franchising Title Sponsor`
Registration Lounge/Email Kiosks/
Print Stations
Convention At-A-Glance Pocket
Guides
*LIW&HUWLƓFDWHV
Scooters
Convention Program Book
Ronald E. Harrison Award
Escalator Run
VetFran Chairman’s
Corps Reception
Escalator Runs
Small Screen Promotions
Convention Badge Lanyards
Bonny LeVine Award
Franchise Party Title Sponsor
Leadership Conference Lunch
Tuesday Super Session`
THANK YOU TO OUR SPONSORS
This list is current as of press time. For sponsorship opportunities please contact Lynette James at [email protected] or 202-662-0782.
Exhibit Hall Footprints
Crystal Compass Award
Franchise Development Summit
Mobile App
General Session Production
Registration Bags
Wednesday Super Session Keynote
Speaker
Mobile App Title Sponsor
Opening General Session Speaker
Wednesday Super Session
Executive Committee Dinner
Sponsor Tower
Escalator Run
Hall of Fame Award
®
UALITY
Opening General Session Speaker
EST OF THE
chicken
World Franchise Council
Meeting*
Dinner*
ICFE Registration
Concurrent ICFE Special
Sessions**
Meeting*
Franchising Gives Back**
ICFE Special Session Lunch**
Executive Committee Dinner
(by invitation only)
Dinner*
1:00 pm – 5:45 pm
12:00 noon – 5:00 pm
11:30 am – 1:00 pm
11:30 am – 12:45 pm
10:00 am – 12:00 noon
10:00 am – 12:00 noon
10:00 am – 12:00 noon
8:30 am – 5:30 pm
8:00 am – 10:30 am
8:30 am – 10:30 am
8:00 am – 10:00 am
7:00 am – 7:00 pm
8:00 am – 10:00 am
8:00 am – 10:00 am
8:00 am – 10:00 am
8:00 am – 10:00 am
Registration
VetFran Committee
Membership Committee
Legal Legislative Committee
Marketing & Information
Technology Committee
Diversity Institute Advisory
Board
Finance Committee
Women’s Franchise
Committee
Concurrent ICFE Special
Sessions**
Franchise Relations
Committee
Franchising in the Social
Sector Task Force
IFA Executive
Committee
ICFE Special Sessions Lunch**
Leadership Conference
Lunch**
IFA Board of
Directors’ Meeting
Annual Leadership
Conference**
SUNDAY, FEBRUARY 15, 2015
7:00 pm
11:30 am – 4:30 pm
11:30 am – 1:00 pm
7:00 pm
9:00 am – 5:00 pm
7:30 am – 10:00 am
8:30 am – 5:30 pm
SATURDAY, FEBRUARY 14, 2015
7:00 pm
9:00 am – 5:00 pm
FRIDAY, FEBRUARY 13, 2015
Supplier Forum Orientation
New Member Orientation
New Member and First-Time
Attendee Reception
NextGen in Franchising
Reception
Taste of Franchising
IFA Board of Directors’
Dinner with the World
Franchise Council (by
invitation only)
11:30 am – 12:30 pm
12:30 pm – 2:30 pm
Roundtables
International
Committee Meeting
Chairman’s Reception w/
Exhibitors
VetFran Chairman’s Corps
Reception
Registration
Super Session w/
Continental Breakfast
CONCURRENT SESSIONS
• Kiss, Bow or Shake Hands: Negotiating, Managing and
Communicating Internationally
• SF Best Practices Workshop: Nontraditional Sources for
Franchise Leads
• Optimizing Franchisor and Franchisee Performance
Through Good Communications
10:15 am – 11:45 am
7:00 am – 6:00 pm
8:00 am – 10:00 am
TUESDAY, FEBRUARY 17, 2015
8:00 pm – 9:30 pm
8:00 pm – 9:30 pm
4:30 pm – 8:00 pm
4:30 pm – 6:30 pm
2:45 pm – 4:15 pm
CONCURRENT SESSIONS
FRANCHISEES
GENERAL
Registration
Super Session w/ Continental
Breakfast
ICFE Board of Governors
Business Solution
Roundtables
Convention Adjourns
5
* Open to World Franchise Council Members Only
** Events with separate registration and/or fee required
12:15pm
10:00 am – 11:30 am
10:15 am – 12:15 pm
7:00 am – 10:30 am
8:00 am – 10:00 am
WEDNESDAY, FEBRUARY 18, 2015
5:00 pm – 7:00 pm
8:00 pm – 11:00 pm
2:45 pm – 4:45 pm
1:00 pm – 2:30 pm
1:15 pm – 2:15 pm
1:00 pm – 2:30 pm
Networking Lunch with
Exhibitors
EF Board of Trustees &
Capital Campaign
Committee
Franchisee Forum
International Delegations
Meeting
Business Solution
Roundtables
Reception with Exhibitors
Franchise Party
• Convention Strategies—Retention, Growth and Changed
Outcomes; Are You Getting Results from Your Annual
Meeting?
• Social Sector Franchising
• Franchising Under Attack: How Recent & Proposed
Legislation Affects Your Bottom Line
• Where is The Point of No Return in Guiding Franchisees
in People Matters?
• Human Productivity – The Secret Sauce of the Successful
Franchisor
• Referral Networks: Maximizing Growth and Candidate
Quality from this Important Lead Source
• SF Best Practices Workshop: Cyber Security & Data Privacy
Protection: Practical Steps to Manage This Potentially
Brand Threating Risk
• Marketing Best Practices for Driving More Leads and
Sales: SEO, SEM, Mobile, Social Media and Reputation
Management
• How to Win Customers from Rivals: Using Technology to
Gain an Advantage
• Settling Franchise Disputes: Business Solutions to Legal
Claims
• ,PSURYLQJ)UDQFKLVHH3HUIRUPDQFH3URƓWDELOLW\
(Managing Financial Performance at the Unit Level)
• CEO Best Practices Roundtable Session
• Property. People. Protection
• Point of View: Inspiration & Insights from Successful
Athlete Franchisees
12:00 noon – 2:30 pm
INTERNATIONAL
LEGAL
OPERATIONS
• International - News From Around the World
• 0LOHVWRQH0LQGVHWV+RZWR*HQHUDWH4XDOLƓHG
Coachable Candidates Who Become High-Performance
Franchisees
• SF Best Practices Workshop: Effective Use of
Outsourced Suppliers
• Best Practices for Newer Franchisors
• Preventing Fraud – How Secure Are Your Company’s
Assets?
• Recruiting and Hiring “Best Practices” of Veterans & How
a Franchise Brand Can Better Engage
• Getting Things Done: Creating a Culture of Execution
and Accountability
• Employees Make or Break Your Brand: Real Life Lessons
from Undercover Bosses
• Failure is Not an Option: How to Get Past Tragedy to
Triumph
• How to Adapt Your Franchise Sales Process to Changing
Buyer Behavior
• Harnessing the Power of Your System: How to Gain
Franchisee Support for Strategic Initiatives
• From Strategy to Execution: Delivering Super-Charged
Grand Openings
• Think Big: Creative Social Media Campaigns
• The Meeting of the Future: It’s An Art and a Science
• Casting a Wider Net – The Rules of the Road to NonTraditional Venues
• People-The Essential Element for Growth
2:45 pm – 4:15 pm
FranPAC VIP Reception**
Opening General Session &
Luncheon
• 7 Traits of a Successful Leader
• Getting Your Front Line to Care About Your Bottom Line:
How Great Leaders in Franchising are Attracting Superstar
Employees and Motivating them to Perform Better, Work
Harder, and Stay Longer
• The C-Suite With Jeffrey Hayzlett
9:00 am – 11:00 am
10:30 am – 12:00 noon
9:00 am – 12:00 noon
9:00 am – 12:00 noon
9:00 am – 12:00 noon
9:00 am – 12:00 noon
9:00 am – 12:00 noon
9:00 am – 12:00 noon
9:00 am – 12:00 noon
9:00 am – 12:00 noon
9:00 am – 12:00 noon
8:00 am – 10:00 am
9:00 am – 12:00 noon
7:15 am – 8:45 am
7:30 am – 9:00 am
Registration
Supplier Forum Executive
Committee
Prayer Breakfast**
Supplier Forum Advisory
Board & Membership Meeting
Franchisor Forum
International Summit – Track
One
International Summit – Track
Two
Franchisee Leadership
Summit
Digital Marketing &
Technology Summit
New Markets Summit
Summit
Elements of Successful
Franchising
Franchise Relations Summit
Financial Summit
Franchise Development/
Sales Summit
Past Chairmen’s Council
Mini Super Sessions
MONDAY, FEBRUARY 16, 2015gistration
7:00 am – 7:00 pm
7:00 am – 7:30 am
6:30 pm – 8:30 pm
8:00 pm – 10:00 pm
5:30 pm – 6:30 pm
3:00 pm – 4:00 pm
4:30 pm – 5:30 pm
5:30 pm – 6:30 pm
SCHEDULE AT-A-GLANCE
FINANCE
FRANCHISE RELATIONS
6
Sponsored by:
Co-Sponsored by:
Mike & Jinny Isakson
Mike & Dina Owens
Brian & Sally Oxley
Todd Recknagel
Ken & Vickie Walker
Ben Litalien
HomeTask.com
Parable Christian Stores
MSA Worldwide
#IFA2015
Two Men And A Truck
Servant Systems
Tasti D’Lite
Monday, February 16
7:15am – 8:45am
A non-denominational event, the Prayer Breakfast is a great way to start the day with music,
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the full day ahead with his presentation of “Servant Leadership”. The Prayer Breakfast is offered on a
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served basis (advance registration is requested)
Prayer Breakfast
If you would like to participate in the Taste of Franchising to showcase your product or to increase
your visibility within the franchise community, please contact Catherine Murphy at 202-662-0786 or
[email protected].
Title Sponsor
Sunday, February 15
6:30pm – 8:30pm
The Taste of Franchising is one of the most popular events during the IFA Annual Convention. It
LVWKHƓUVWRSSRUWXQLW\IRUDWWHQGHHVWRFDWFKXSZLWKROGIULHQGVDQGPHHWQHZFRQWDFWVGXULQJ
the unique networking reception that showcases the many savory and sweet delights franchise
companies have to offer. Franchisor members generously provide branded food and beverage items
making this the perfect beginning to your convention experience.
Sunday, February 15
5:30pm – 6:30pm
1HZ,)$PHPEHUVDQGƓUVWWLPHFRQYHQWLRQDWWHQGHHVDUHLQYLWHGWRJHWDFTXDLQWHGZLWKWKHLU
IUDQFKLVHFRPPXQLW\FROOHDJXHVPHHWWKHLU$PEDVVDGRUDQGRWKHU,)$/HDGHUVDQGƓQGRXWKRZWR
make the most of their IFA membership and Convention experience!
New Member & First Time Attendee Reception
Tuesday, February 17
8:00pm – 11:00pm
You asked for more engagement, more networking time at the convention and we listened!
Join us on Tuesday evening to network and mingle with fellow convention-goers at our all-new
revamped Franchise Party. Join us on the MGM Pool Deck for a fabulous Las Vegas style party
where you can relax and get to know other franchise professionals while sampling the best of
the MGM Grand’s restaurants. At IFA 2015’s party, you can connect and expand your portfolio of
contacts; forge new relationships and learn what innovations your peers are capitalizing on to
gain an edge; talk to your colleagues and discover new trends and strategies so you can evolve
your brand and be more successful in the future. You can’t miss it! This will be the franchise
party of the year!
Franchise Party
Monday, February 16
8:00pm – 9:30pm
INTERNATIONAL COMMITTEE
Network with leaders in international franchising at this reception
to make connections and learn about trends and developments in franchising across borders.
Attendees will be key players in international franchising including members of the World Franchise
Council, international investors, high-level franchisor executives and U.S. Commercial Service staff.
All registered Convention participants are welcome to attend.
Monday, February 16
8:00pm – 9:30pm
Please join the Chairman’s Corps reception honoring our veterans and celebrating
the success of VetFran’s Operation Enduring Opportunity campaign. Thanks to the
efforts of VetFran members, and our sponsors, IFA has reached its goal of helping
80,000 veterans and military spouses start careers in franchising. IFA honors our
nation’s heroes with respect and action -- offering opportunities to help veterans
become leaders of our civilian economy and, through franchising, create the jobs America needs.
We are excited to highlight some of the leading companies that have made this program a success.
VetFran Chairman’s Corps Reception
CONNECT.
Join thousands of other franchise professionals at one or more of our
unique networking events and make connections that will help your
business last a lifetime.
Bonny LeVine Award
Wednesday, February 18
Ronald E. Harrison Award
Hall of Fame Award
Monday, February 16
Entrepreneur of the Year Award
The most prestigious awards in franchising will be presented at our General
Sessions. Join us for the following to celebrate some of franchising’s best
and brightest:
AWARD PRESENTATIONS
IFA’s general sessions offer exciting, compelling programming that meet
the wide-ranging needs of our diverse membership. At the general sessions,
attendees will Connect with their peers, learn new ways to improve and
Innovate for business success and gain best practice tips from some of the
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Our Opening General Session Monday afternoon will kick-off our 55th
Annual Convention and feature powerhouse speaker Mike Duke, Retired CEO
of Walmart, discussing what it takes to be an inspiring and effective leader in
today’s challenging environment. Attendees will become aware of how to face
the challenges and problems that threaten their businesses head-on. After
attending one of our general sessions, you will be motivated to Evolve and take
your business to the next level!
7
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built and sold his company to Google. The author of Exponential Organizations, he works to solve humanity’s greatest challenges
as he looks at how to innovate, turn cutting edge ideas into thriving startups, and apply leading-edge thinking to invigorate
entire industries. He shares informative, entertaining, and downright jaw-dropping insights on the future of technology and its
social impact—all while showing us how these changes are creating opportunities along the way. He will look at today’s fastest growing technologies and
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how these technologies are changing the face of many industries and creating new innovations and opportunities.
Technology Strategist and Executive Director of Singularity University, Former Vice President of Yahoo!
SALIM ISMAIL
During the Tuesday Super Session, Paul Brown will share his extensive experience in leading brands from his roles at Hilton
Worldwide, Inc., InterContinental Hotels Group and now as CEO of Arby’s Restaurant Group. Brown will inspire your own brand’s
innovation by sharing how he has focused his team on building the Arby’s system and taking its revitalization to the next level
over the past year and now into the future. You’ll walk away with real-world information that you can bring back to your business
- such as how this iconic brand has sustained 16 consecutive quarters of positive same-store sales that helps Arby’s keep their loyal franchisees. You don’t
want to miss this rising star’s perspective on the franchise industry!
CEO, Arby’s Restaurant Group
PAUL BROWN
Ranked No. 10 on Forbes’ list of “The World’s Most Powerful People” in 2013, Mike Duke built his expertise by learning from
DQGLQWHUDFWLQJZLWKHYHU\RQHIURP:DOPDUWFXVWRPHUVDURXQGWKHZRUOGWRRIƓFLDOVLQWKHKLJKHVWOHYHOVRIJRYHUQPHQW'XNH
led the world’s largest retail business and largest private employer from 2009-2014. While having retired from the company,
he continues to work with Walmart as the Chairman of their Executive Committee. During our Opening General Session, he will
share his insights on how to create a lasting corporate culture that values integrity, responsibility, inclusion, and innovation. From communication, training,
and information sharing to incorporating culture into everyday management activities, he will take a look at how culture is top-down driven (and how
managers should handle this), how to address variants from culture, and how to deal with differences in how business is done in other countries.
Retired CEO of Walmart, Chairman of Walmart’s Executive Committee of the Board of Directors
MIKE DUKE
GENERAL SESSION SPEAKERS
Alexis Glick, Former Anchor and Vice President of Business News, will serve as a facilitator for the General Session programs and bring her knowledge and business experience to the
stage. While at Fox Business Network Glick helped launch the largest cable news network in history and anchored Money for Breakfast and The Opening Bell. Prior to joining FOX, Glick
served as a correspondent for The Today Show and co-anchored the third hour of that program. Before her stint at NBC News, she was the senior trading correspondent for CNBC and
UHSRUWHGIURPWKHŴRRURIWKH1HZ<RUN6WRFN([FKDQJHSURYLGLQJOLYHGDLO\XSGDWHVIRUSquawk Box.
CONVENTION 2015: CONNECT. INNOVATE. EVOLVE.
GENERAL SESSIONS
Business Journalist
Former Anchor and Vice President of
Business News, FOX Business Network
ALEXIS GLICK
General Session Host
NEW THIS YEAR!
INN VATE.
Break
“Brass Tacks” Council
Roundtable Discussions
Closing Remarks
Networking Reception
Conference Adjourns
8
The Leadership Conference is developed by the Women’s Franchise Committee and is
open to fully-registered convention attendees only. The fee to attend this event is $100.
4:00pm – 4:10pm
4:15pm – 5:45pm
5:45pm
#IFA2015
WOMEN’S FRANCHISE COMMITTEE
Participants will discuss a real-world case study of an actual franchise system (the system in question will remain
a mystery until the end of the event!). Drawing on the content of the day, groups will be charged with arriving at
solutions to address the challenge presented. Conclusions will be shared and the mystery case study will be revealed
before our closing remarks.
3:15pm – 4:00pm
Join us as three experienced senior-level franchise executives take the stage to share their mistakes, lessons learned
and best practices in leadership and business development. We will focus on a variety of key areas including:
building and managing relationships; corporate culture and how to instill accountability into your everyday
operations; managing growth and getting your team to rally around you to follow your vision; and more!
2:00pm – 2:15pm
2:15pm – 3:15pm
Our keynote address will set the stage for an exciting and informative day. We will feature Amit
Kleinberger, CEO of Menchie’s Frozen Yogurt, one of franchising’s rising stars who is highly
respected for building his brand by developing strong relationships, creating a culture of
collaboration and setting a clear vision for the system’s growth and getting the buy-in needed to
succeed. Kleinberger will share the tools and strategies he used to his advantage as he learned
how to develop his own leadership style. He will discuss the bumps he encountered during his
journey, his best practices for overcoming those challenges and what he learned about himself
along the way. Kleinberger is truly passionate about franchising and surrounds himself with positive people. You
won’t want to miss this riveting presentation during which Kleinberger will share his unique philosophy for leading a
franchise system to success.
SCHEDULE OF EVENTS
11:30am – 12:45pm
Opening Luncheon featuring the Crystal Compass Presentation
12:45pm – 1:00pm
Break
1:00pm – 2:00pm
Keynote Address
Guest Speaker: Amit Kleinberger, CFE, CEO, Menchie’s Frozen Yogurt
who has never achieved much.” Successful leaders will grow not only from their mistakes but also from examining
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UHODWLRQVKLSVGHYHORSDXQLƓHGFRPSDQ\FXOWXUHZLWKDVWURQJOHYHORIDFFRXQWDELOLW\DOOZKLOHHQFRXUDJLQJ\RXU
system to rally around one vision that leads to overall growth? Join some of franchising’s top leaders in a candid
discussion about how mistakes can serve as a platform for success. Participate in a real-world case study roundtable
session where you will engage with other attendees to brainstorm solutions to a unique challenge presented by a
well-known franchise executive. You will walk away with tangible solutions that will help you be a better leader and
strengthen your relationships and overall business. Missing this conference will be a big mistake!
Joan Collins once said: “Show me a person who has never made a mistake and I’ll show you someone
ANNUAL LEADERSHIP CONFERENCE Beyond the Blunders: From Mistakes to Great
SUNDAY, FEBRUARY 15, 2015 11:30am – 5:45pm
9:00AM – 12:00 NOON
2:45PM – 4:15PM
Moderator: Dave Hood, President, iFranchise Group
Speakers: Robert Stidham, 3UHVLGHQW&KLHI'HYHORSPHQW2IƓFHU)UDQFKLVH'\QDPLFV//&Scot Crain,
Vice President, Franchise Relations, Auntie Anne’s, Inc.
Best Practices for Newer Franchisors
• Essential building blocks for creating success as a newer franchisor.
• The importance of business planning for the younger franchisor.
• Effective lead generation strategies to support a small to medium size marketing budget.
• &UHDWLQJDQHIIHFWLYHIUDQFKLVHVDOHVDQGTXDOLƓFDWLRQVWUDWHJ\
• Strategies for maintaining quality control as the system begins to grow.
• Developing an effective support program for franchisees.
• Maximizing franchisee relationships.
• Business planning with franchisees.
• Creating a best-in-class communications strategy with franchisees.
• The potential impact of strong third-party vendor programs.
MONDAY , FEBRUARY 16, 2015
Speakers: John Hamburger, President, Franchise Times; Rich Greenstein, CFE, Partner & Chairman,
Franchise and Distribution Practice, DLA Piper LLP; Phillip Zeidman, Senior Partner, DLA Piper LLP;
Melanie Bergeron, CFE, Chair of the Board Two Men And A Truck International, Inc.™
The 24th Annual Elements of Successful Franchising
• What’s happening right now? Trends franchisors are facing today.
• What are the characteristics of the up and coming franchises?
• How are we affected by the world around us?
• Franchisors and Franchisees -The changing patterns of ownership.
• Government and Franchising.
• Going international: Yes? No? When? Where? How?
• Growth trends of the top 200 franchise companies.
GENERAL
Listed on the following pages are the current educational sessions to help you further your business. They are
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that best suit your needs.
EDUCATIONAL & PROFESSIONAL
DEVELOPMENT OPPORTUNITIES
Speaker: Helena Lehman, Senior Vice President, Leading Authorities Inc.
The Meeting of the Future: It’s an Art and a Science
No format is more compelling, drives business results, and cements relationships more effectively than
a live meeting. This owned media channel has the power to tell a story that changes behavior. But risk
always gets in the way of change; good ends up being good enough. And budgets will never be high
enough. What if you could learn a methodology for creating a true meeting experience that incorporates
a real theme, engages the audience with video and graphics, takes advantage of shared spaces to
create real connections, and elevates your brand all at the same time? And what if you could deploy
this skill across and through your organization consistently for your current budget? This session from
Leading Authorities, Inc. will share the principles that guarantee strong experience design, best practices
from leading conferences like TED and SXSW, techniques for building a shared vision for all event
stakeholders, and resources, tips and tactics for staying true to your objectives.
Moderator: Mary Ann O’Connell, CFE, President, FranWise
Speakers: Mike Skitzki, CFE, Vice President, TITLE Boxing Club; Larry Myer, VP of New Business
Development, F.C. Dadson, SIB, LLC; Adam Robinson, CEO, Hireology, Inc.; Tim Johnson, CFE, President,
Process Peak LLC
Supplier Forum Best Practices Workshop: Effective Use of Outsourced Suppliers
Developed by the Supplier Forum
This discussion allows the suppliers to show the depth of their expertise across the
board and franchisors to attest to their results from outsourcing. Most franchisors are
SUPPLIER FORUM
neither funded properly, nor have the expertise to do everything in house, and the
proper use of the appropriate outsourced professionals can enhance their survival/
growth throughout their development.
• When outsourcing is appropriate.
• The advantages and disadvantages of outsourcing.
• How to determine when it’s the best option.
• How to choose the best supplier.
• How to take the process back in house.
Moderator: Scott Frith CFE, CEO, Lawn Doctor Inc.
Speakers: Bryon Stephens, President and COO, Marco’s Pizza; Brian Spindel, CFE, President & COO,
PostNet International Franchise Corp. RoseMarie Hartnett, CFE, President, Abrakadoodle
Getting Things Done: Creating a Culture of Execution and Accountability
In this session, we will discuss the following:
• Giving accountability a positive connotation within your organization.
• Properly evaluating your team to ensure the necessary balance of talent.
• Articulating your strategy in a way everyone understands.
• Translating budgets into actionable plans that make an impact.
• Setting the right expectation.
• Striking the balance between developing people and sweating the key details.
• Effective performance tracking and recognition.
10:15AM – 11:45AM
Moderator: Stan Friedman, CFE, President, FRM Solutions
Point of View: Inspiration & Insights from Successful Athlete-Franchisees
The PAFI Session will examine franchising from the point of view of the successful
athlete-franchisee. From recruitment to opening, an athlete panel will share insights,
experiences and triumphs. The session will dive into the advantages and drawbacks as
well as strategies for success. Participants will be privy to a thoughtful discussion about
engaging the professional athlete space as a franchisor. The Session will conclude with the introduction
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a keynote address by the recipient.
• Effectively Engaging and Developing Successful Professional Athlete Franchisees
• Learn how to successfully engage the professional athlete franchisee
• Get a feel for how your brand can become professional athlete-franchisee friendly
• *HWDƓUVWKDQGSHUVSHFWLYHIURPWKHWHDPEHKLQGWKHSURIHVVLRQDODWKOHWH
• Athlete Franchisee of the Year Award Ceremony
• Presentation of the 1st Annual Athlete Franchisee Award
Moderator: Cynthia Gartman, CFE, Publisher, Seniors Blue Book Franchising
Speakers: Harvey Homsey, CFE, Vice President Franchise Systems, Express Services, Inc.; Kory Kogon,
Global Productivity Practice Leader, Franklin Covey; Ken Walker, IFA Past Chairman of the Board
Human Productivity – The Secret Sauce of the Successful Franchisor
Human Capital – It’s our most precious resource at the Franchisor, Franchisee and Supplier level.
We will discuss culture creation, key competencies and best practices in:
• Hiring
• Training
• Coaching/Mentoring
• Relationship Development
TUESDAY , FEBRUARY 17, 2015
Moderator: Joe Lindenmayer, Marine Veteran, President/COO, TSS Photography, Inc.
Speakers: Derek Weida, Veteran Franchisee, Anytime Fitness; Jeff Bevis, CFE, President & CEO, FirstLight
HomeCare; Jon Rucker, Airforce Veteran, Military Program Manager, Snap-On-Tools Company, LLC; David
Posin,)RXQGHU3DUWQHU6ROGLHUƓW)UDQFKLVH//&Danny Farrar, )RXQGHU3DUWQHU6ROGLHUƓW)UDQFKLVH//&
Recruiting and Hiring “Best Practices” of Veterans & How Franchise Brand Can Better
Engage
Developed by the VetFran Committee
• Ranking your Brand to VetFran’s Standards of Excellence.
• Veteran Franchise Owners Tell Their Story & Help You Learn What They Want.
• Successful Franchisors Recruiting Veterans, Achieve Growth by Doing the Right Things.
10
#IFA2015
Moderator: Sam Ballas, CFE, President & CEO, East Coast Wings & Grill
Speakers: Shelly Sun, CFE, CEO & Co-Founder, BrightStar Franchising, LLC; Rob Israel, Founder, Doc
Popcorn; Meg Roberts, President, Molly Maid, Inc.; Marla Topliff, President, Rosati’s Franchising, Inc.
CEO Best Practices Roundtable Session (for c-level franchise executives only)
• Tools and Tactics on system wide communication, including candid franchisee input and
collaboration.
• How do you lead and motivate through changing times?
• How do you maintain and promote your core values so they resonate throughout your
system?
• Unit level economics- What best practices have you implemented on gathering this data and
how do you use it?
• What ‘Best Practices’ do you have in place that lets you know it’s time for an infrastructure
change?
Speaker: Jarrett Weinpel, Vice President Product Management and Carrier Relations, Automatic Data
Processing Insurance Agency
Property. People. Protection
Representatives from Automatic Data Processing Insurance Agency (ADPIA), a leading insurance broker,
will discuss key needs and considerations when securing businesses insurance. The 60 minute session
will explore what business owners need to know when securing Property & Casualty solutions (including
:RUNHUVō&RPSHQVDWLRQDVZHOODVNH\+HDOWK%HQHƓWFRQVLGHUDWLRQVLQFOXGLQJWKHLPSDFWRIWKH
Affordable Care Act (ACA).
Moderator: Marla Rosner, CFE, Senior Consultant, Training and Development, MSA Worldwide
Speaker: Greg Starbird, COO, HealthStore Foundation; Julie McBride, Senior Social Franchise Advisor,
PSI; Peter Holt, CFE, President & CEO, Planet Smoothie/Tasti D-Lite
Social Sector Franchising
Developed by the Social Sector Task Force
Franchising at the Bottom of the Pyramid – Solving the Challenges in
the Developing World. Attendees will learn:
SOCIAL SECTOR TASK FORCE
International Franchise Association
• How commercial franchising is dealing with health and quality of life
issues around the world.
• How social franchising is creating opportunities for women in the emerging markets.
• How mentoring by IFA members is having an impact in the third world?
• What the IFA is doing and how you can become involved.
9:00AM – 12:00 NOON
Moderator: Stephen Blahunka, Vice President, Financial Advisor- Merrill Lynch Wealth Management
Panelists: Greg Danziger, President, Battery Giant Franchise, LLC; Randy Jones, Partner, Funding
Solutions LLC; Kathleen Gilmartin, CEO & President, Interim Healthcare, Inc.
Panel Discussion
Roundtable topics to be discussed include:
• Crowdfunding in franchising
• Managing the Due Diligence process with Private Equity transactions
• Franchisor Business Metrics for established operations
• )UDQFKLVH'HYHORSPHQWƓQDQFLQJVWUDWHJLHV
• Effective corporate structuring
• Strategies for reducing current taxable income
• Retirement Plans for Small Businesses
• Strategies in buying and selling your franchise
• +RZWRSUHYHQWGHWHFWDQGGHWHUIUDXGDQGLQWHUQDOƓQDQFLDOORVV
• ,PSURYLQJIUDQFKLVHHSHUIRUPDQFHDQGSURƓWDELOLW\
• 0D[LPL]LQJƓQDQFLDOFUHGLWVDQGLQFHQWLYHVDYDLODEOHWRIUDQFKLVHV
• Minority investments in established franchise concepts
• Planning capital expenditures to maximize return on investment
Speakers:
Kathleen Gilmartin, CEO & President, Interim Healthcare, Inc.- Managing the Due Diligence Process
with Private Equity Transactions; Stephen Blahunka, Vice President, Financial Advisor- Merrill Lynch
Wealth Management - Small Business Retirement Programs; Michael Fieweger, Partner, Corporate &
Securities, Baker & McKenzie – Strategies for Buying, Selling, and Structuring Your Franchise
Financial Summit
7KLVVHVVLRQZLOOGHOLYHUSUHVHQWDWLRQVRQFXUUHQWƓQDQFHEHVWSUDFWLFHVWKDWVSHFLƓFDOO\UHODWHWR
franchisees, franchisors, and shareholders. Attendees will have the opportunity to participate in
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panel will complete the program by sharing their thoughts and best practices on a variety of subjects
LQFOXGLQJIUDQFKLVHƓQDQFLQJUHDOHVWDWHDQGIUDQFKLVRUSURƓWDELOLW\
FINANCE
10:15AM – 11:45AM
9:00AM – 12:00 NOON
Moderator: Gerry Fernandez, President, Multicultural Foodservice and Hospitality Alliance
Speakers: Justin G. Nelson, Co-Founder and President, National Gay and Lesbian Chamber
of Commerce; Pamela Gore, CFE, Senior Manager, Franchisee Recruitment, Dunkin’ Brands;
Cheryl Pearson-McNeil, Senior Vice President, U.S. Strategic Community Alliances and Consumer
Engagement, Nielson; Ron Busby, Sr., President, U.S. Black Chambers, Inc.
11
Accelerating the Mission of Franchising
New Markets Summit
Diversity and Buying Power: How Much Money are You Leaving on
the Table?
I N S T I T U T E
Developed by the Diversity Institute
Successful companies understand the value of reaching diverse communities
in this global economy. Has your company explored the buying power of diverse groups such as
racial/ethnic minorities and/or LGBT community? Consider this, when you don’t actively engage
the LGBT community, you miss out on the buying power of an $830 million dollar block; African
Americans ‘buying power is estimated at $1 trillion and Hispanics’ is $1.2 trillion. Can any company
afford to leave that much money on the table?
In this session attendees will:
• /HDUQKRZWRWUDQVODWHRSSRUWXQLWLHVWRSRVLWLYHƓQDQFLDORXWFRPHV
• Understand how to optimize the reach potential.
• 5HFHLYHWLSVWRLQŴXHQFHWKHVHFRQVXPHUVRUKRZGLYHUVHJURXSVVHWWUHQGV
• Leverage knowledge learned to increase market-share.
• +HDUƓUVWKDQGZKDWRWKHUFRPSDQLHVDUHGRLQJWRDWWUDFWGLYHUVHDXGLHQFHV
Moderator: Brian Balconi, CFE, Vice President, General Counsel of Little Caesar Enterprises, Inc.
Speakers: Amy Cheng, Partner, Cheng Cohen; John Teza, &KLHI'HYHORSPHQW2IƓFHU-HUVH\0LNHōV
Subs; Peter Lindsey, Vice President, Franchising, Sport Clips
Session 2
Franchise Development: More than Closing the Deal
What happens after the candidate is approved? How do you have a well-orchestrated process to
ensure a smooth start for your franchisee? In this session we’ll look at the other side of the process
and how impactful members of your company outside the franchise sales group can be.
• 6LWH6HOHFWLRQŊ:KHQLVWKHEHVWWLPH",I\RXFDQōWƓQGWKHULJKWORFDWLRQGRHV\RXU
candidate get his/her money back?
• What can you do to lessen the risk of a legal claim?
• What does a great store opening process look like?
• :KRLVLQFKDUJHRIWKHƓQDODSSURYDO"
• When does your candidate come to training? What works best?
• How much involvement does Operations want from Franchise Sales once the sale is
made?
Moderator: Mark Liston, CFE, President of Glass Doctor, A Dwyer Group Company
Speakers: Mike Hawkins, VP of Franchising, Dwyer Group; Kevin Drudge, CFE, VP of Franchise
Development, AdvantaClean Systems; Steven Cox, CFE, Director, Franchise Development, Aerus
Franchising, LLC
Session 1
Solutions for Today’s Franchise Development Professional
The process and features of successful Franchise Development Professionals, including:
• How to Get More Leads – It has Changed!
• Qualifying Your Prospect – Who is a Good Candidate?
• The Discovery Day Process – What Works Best and Why?
• Evaluating Your Candidate – Does it take More than Just Money?
• When do you do Background Checks?
• 'R<RX3URƓOH&DQGLGDWHV":K\ZK\QRW"
• When does the Job of a Franchise Sales professional end?
Franchise Development Summit
'HŵQLQJ)UDQFKLVH'HYHORSPHQWŎ+RZ,W,PSDFWV<RXU(QWLUH2UJDQL]DWLRQ
Moderator: Eric Stites, CFE, CEO, Franchise Business Review
Speakers: Mary Kennedy Thompson, CFE, Executive Vice President, The Dwyer Group & President, Mr.
Rooter; Freddy Dupuy, Director of Unit Level Economics/Quality Assistance, East Coast Wings; Tamra
Kennedy, Owner, Twin City TJ’s Inc.
,PSURYLQJ)UDQFKLVHH3HUIRUPDQFH3URŵWDELOLW\0DQDJLQJ)LQDQFLDO3HUIRUPDQFHDW
the Unit Level)
Driving unit-level economics and franchisee performance is much easier said than done. In this
VHVVLRQZHōOOH[SORUHWKHSV\FKRORJ\RIPDQDJLQJƓQDQFLDOSHUIRUPDQFHDWWKHXQLWOHYHODQGD
WDFWLFDODSSURDFKWRKHOS\RXUIUDQFKLVHHVUXQPRUHSURƓWDEOHEXVLQHVVHV:HZLOOFRYHUř
• 6HWWLQJUHDOLVWLFƓQDQFLDOH[SHFWDWLRQVIURPGD\RQH
• How to tie-in personal goals to help achieve business goals.
• +DYLQJIUDQFKLVHHVFUHDWHD<HDUƓQDQFLDOSODQ
• &ROOHFWLQJDQGVKDULQJWKHULJKWƓQDQFLDO.3,VIRU\RXUEXVLQHVV
• 8VLQJSHHUGULYHQSHUIRUPDQFHJURXSVWRPD[LPL]HUHYHQXHDQGSURƓW
Attendees will receive case study information, as well as all the tools and steps they need to launch a
VXFFHVVIXOƓQDQFLDOSHUIRUPDQFHSURJUDPLQWKHLUQHWZRUN
2:45PM – 4:15PM
12
#IFA2015
Moderator: Brian Schnell, CFE, Partner, Faegre Baker Daniels, LLP
Speakers: Joseph Mathews, CFE, Founding Partner, Franchise Performance Group; Jennifer Durham, Vice
President of Franchise Development, Checkers & Rally’s Restaurants, Inc; Josh Wall, CFE, VP of Franchise
Development, Christian Brothers Automotive Corporation Geoff Hill, Vice President, Roark Capital Group
How to Adapt Your Franchise Sales Process to Changing Buyer Behavior
A majority of franchise candidates now make key purchase decisions well before they opt in to any franchisor’s
development process. During this session we will address how this evolution of the way people research and
purchase franchises impacts the traditional franchise sales process and what you can do to adapt to these
changes. Our best practices, “make a difference” discussion will focus on:
• How you can effectively connect with a candidate well before the candidate goes through the
more traditional steps of a franchise development process.
• Understanding the evolution of the behavior of buyers, including the how, why, when and where,
is critical and often overlooked by franchisors.
• The important role that technology can play in these behavior changes, so that you can
distinguish your brand and your opportunity from the competition.
• Shaping the attitude of your brand messaging and your culture that goes far beyond initial
impressions and becomes a key component in your development process.
• Steps you can take immediately to begin to see a meaningful difference in the next 60 days.
Moderator: Dan Martin, CEO & Founder, IFX Franchise Management Systems
Speakers: Shane Evans, President & COO, Massage Heights Corporate LLC; Patrick Walls, CFE, President/COO,
Capriotti’s Sandwich Shop, Inc.
0LOHVWRQH0LQGVHWV+RZWR*HQHUDWH4XDOLŵHG&RDFKDEOH&DQGLGDWHV:KR%HFRPH+LJK
Performance Franchisees... Faster!
Who’s wearing the pants? A 12-Step System for turning the tables in your favor to produce coachable
candidates who become winning franchisees... faster! Turn lackluster leads into faithful and motivated
followers ready to apply your system now. Avoid the headaches and longterm misery of continually selecting
the wrong candidates for your brand. It’s all about running candidates through the paces long before they
sign on the bottom line. 12-Steps to qualifying and motivating coachable franchisees who get up-to-speed
LQKDOIWKHWLPH6SHFLƓFWLSVDQGVWUDWHJLHV\RXFDQDSSO\LPPHGLDWHO\$PXVWDWWHQG)UDQFKLVH([HFXWLYH
Forum session designed for both start-up and established franchise organizations.
Moderator: Earsa R. Jackson, CFE, Partner, Strasburger & Price, LLP
Speakers: Brian Boycan, VP, Non-Traditional Development, Auntie Anne’s, Inc; John Draper II, President of
Operations, V&J Holdings, Inc.; Connie Alires, CFE, Director of Franchise Development, Which Wich Franchise,
Inc.
Casting a Wider Net – The Rules of the Road to Non-Traditional Venues
This program will explore the pros and cons as well as lessons learned from concepts expanding into nontraditional venues such as airports, event centers, stadiums, military bases, casinos, hospitals and urban areas.
• How do you assess the risk vs. rewards?
• +RZZLOOWKHEUDQGRUVHUYLFHQHHGWREHPRGLƓHG"
• How will the economics differ?
• This program will provide insight from the perspective of brands experienced in nontraditional
venues as well as those new to non-traditional venues.
10:15AM – 11:45AM
Moderator: Geoff Seiber, CEO, FranFund, Inc.
Speakers: Jania Bailey, CFE, President & COO, FranNet Franchising, LLC; Jeff Elgin, CEO, FranChoice;
Terry Powell, CFE, Founder, FranchisEsource; Doug Schadle, CEO, Rhino 7; Michael Mudd, Senior
Franchise Development Manager, Menchie’s Frozen Yogurt
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Source
A blockbuster panel featuring the heads of three major referral networks and two ultra-talented
franchisors working within them, will explore the basic premise and value equation of referral
networks, the pros and cons of the candidates they provide to franchisors and the secrets of
maximizing results from this type of lead source.
• +RZGR\RXNQRZLI\RXUFRQFHSWLVDJRRGƓWIRUDUHIHUUDOQHWZRUN"
• How to calculate the true value equation of using referral networks.
• What changes may need to be made to your sales system with regard to referral
networks to maximize results?
• How to “build your brand” within the networks to generate more leads.
• What is the lifecycle of a brand within a referral network? How to move from high growth
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Moderator: Ryan Cunningham, President, Javelin Solutions
Speakers: Mark Kiekenapp, CEO/President, Kiekenapp & Associates; Jeff Sturgis, CFE, Chief
'HYHORSPHQW2IƓFHU0F$OOLVWHUōV&RUSRUDWLRQCharles Watson, CFE, Vice President of Development,
Tropical Smooth Café
Supplier Forum Best Practices Workshop: Nontraditional Sources for Franchise Leads
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SUPPLIER FORUM
with development authorities, industry associations, community
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• Partnering with non-competing brands to co-exhibit to promote development
opportunities.
• Targeting executive recruiters, 401K and Retirement Plan Specialists to network for
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9:00AM – 12:00 NOON
2:45PM – 4:15PM
10:15AM – 11:45AM
13
Moderator: Evan Hackel, CFE, Founder & Principal, Ingage Consulting
Speakers: Dawn Uremovich, President, Häagen-Dazs Shoppe Co.; -LP6DWWHUƓHOGPresident & COO,
Firestorm; Kathy Schneider, CFE, Franchisee, Instant Imprints of Fullerton, CA
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Developed by the Franchise Relations Committee
• Think about communication like an orchestra—each channel
FRANCHISE RELATIONS COMMITTEE
has its purpose and when used together they blend
beautifully.
• Invite your community into the conversation by making your communications
interactive.
• 5HGXFHWKHDPRXQWRIFRPPXQLFDWLRQVRIUDQFKLVHHVDUHQōWŏGULQNLQJIURPDƓUH
hose”), while ensuring the important information is received and read.
• Make your conventions an effective communication tool.
• Create a culture of communication in your franchise system.
• 0D[LPL]HVRFLDOPHGLDIRUWKHEHQHƓWRI\RXUIUDQFKLVHV\VWHPōVFRPPXQLFDWLRQ
Moderator: Therese Thilgen, CEO and Co-Founder, Franchise Update Media
Speakers: Robert Branca Jr., President, Dunkin Donuts of Worcester, MA
David Grimaud, President, Grimaud Enterprises Inc, Precision Tune Auto Care of Chapin, SC
People - The Essential Element for Growth
Spend a “day in the life” of large multi-unit franchisees and learn what they think about, how they
plan, what gets them out of bed in the morning, and what keeps them up at night. Our panel of
multi-unit operators, developed by Franchise Update Media Group, will share their experiences on
culture, core values, work/life balance, implementing change, and the similarities and differences
between managing a smaller and a larger multi-unit or multi-brand organization – especially in
the areas of your people needs (talent development, compensation, and retention). Learn to avoid
“rookie mistakes” as you prepare yourself and your organization for growth at the pace you need to
succeed.
Moderator: Janet Muhleman, CFE, President, re:group, inc.
Speakers: Brian Petranick, CFE, President & COO, Right At Home, Inc.; Michael Juceum, Owner,
Right at Home Franchisee; Jeff Brimer, CFE, Counsel, Faegre Benson Daniels LLP
Harnessing the Power of Your System: How to Gain Franchisee Support for Strategic
Initiatives
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contribute additional monies to a marketing fund or invest in new software. Franchisees may hold
GLIIHUHQWYHUVLRQVRIFRQWUDFWVWKH\KDYHGLIIHUHQWVDOHVYROXPHDQGSURƓWPDUJLQVDQGWKH\PD\
have different personal goals regarding growth and performance. Right at Home recently completed
a two year process to develop a centrally coordinated, national marketing program that required an
addendum to their existing franchisee contracts. Amazingly, almost 100% of the system agreed to
participate. This panel will share the process taken to achieve franchisee support and discuss why it
worked from a corporate, legal and franchisee perspective.
Performance Groups Moderated by: Greg Nathan, CFE, Founder, Franchise Relationships Institute
Panel of the Pros Moderator: Jack Pearce, CFE, Executive Director, Franchise Integration, Annex
Brands, Inc.
Panelists: Barbara Moran-Goodrich,CFE, CEO, Moran Family of Brands; Catherine Monson, CFE, CEO,
FASTSIGNS International; Paul Mangiamele, President & CEO, Bennigan’s Franchising Company;
David Barr, Chairman, PMTD Restaurants; Barry Miller, President, Sylvan Learning Center of Girard,
OH; Mitch Cohen, Owner, Baskin Robbins / Dunkin’ Donuts of Bay Shore, NY
Summit Host: Jim Squire, CFE, Executive Vice President & CDO, Firestorm
Franchise Relations Summit
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Developed by the Franchise Relations Committee
FRANCHISE RELATIONS COMMITTEE
• What Franchisees Really Want.
• +RZWR&UHDWHWKH5LJKW&XOWXUHřWKH&RUHRIWKH)UDQFKLVH5HODWLRQVKLS
• The “Tools” of Engagement: Franchise Advisory Councils, Two-Way Communication,
• Trust and Transparency.
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• +RZWKHŏ<RX:LQ:H:LQŐ&XOWXUH%XLOGV3URƓW$0XWXDO$OLJQPHQWRI*RDOV
• +RZWR'HDOZLWK&RQŴLFWDQG&KDQJH
FRANCHISE RELATIONS
9:00AM – 12:00 NOON
2:45PM – 4:15PM
14
#IFA2015
Moderator: Saunda Kitchen, CFE, Owner, Mr. Rooter of Sonoma County, CA
Speakers: Debbie Shwetz, CFE, Co-Founder, Nothing Bundt Franchising, Inc.; Mara Fortin, Nothing
Bundt Cakes Franchisee; Lorne Fisher, CFE, CEO/Managing Partner, Fish Consulting; Robin
Blanton, Senior Director of Marketing Services, McAlister’s Corporation
Failure is Not an Option: How to Get Past Tragedy to Triumph
Developed by the Franchisee Forum
• Hear real life stories from both franchisees and franchisors of how they went from
tragedy to triumph.
• Key takeaway action steps to protect your brand quickly in crisis.
• Gain best practices from both franchisees and franchisors to mitigate risk.
• Increase awareness in the art of managing the franchisee/franchisor relationship for
success.
• Learn the role a franchisor must play when a franchisee is in crisis.
Part 2 – Digital Marketing
Guest Speaker: Ford Saeks, President and CEO, Prime Concepts Group, Inc.
Panelists: Jon Carlston, CFE, VP of Brand Development, Process Peak LLC; Edwin Nissanoff, VP of
Brand Sales, Local Market Launch; Todd Juneau, President, Mindstream INTERACTIVE
Part 1 – Customer Service/Customer Loyalty
Guest Speaker: Shep Hyken, Founder, Shepard Presentations, LLC and Customer Relations Expert
Panelists: Jeffrey Tews, Multi-Unit Franchisee, BrightStar Care of Madison, WI; Tim Lightner,
Owner, Two Men And A Truck of Madison and Racine/Kenosha, WI; Mariana Huberman,Owner, UPS
Store of Washington, DC
Franchisee Leadership Summit
Come In and Try the WORST Meatball Sandwich That One Guy On YELP Ever Had In His LIFE
In addition to expert speakers on capitalizing on the latest in customer service skills and digital
control to build brand loyalty, time during this Summit will be devoted to breakout groups to
discuss, present thoughts and raise questions for our speakers.
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increase your Bottom Line in the Digital Age.
• How to establish a comprehensive Online Presence and Monitor, Manage and Control
your Digital Reputation.
• How do you choose a vendor to establish your online presence, build your digital
reputation and develop a social media strategy to build customer loyalty?
FRANCHISEES
10:15AM – 11:45AM
FRANCHISEE FORUM
Building local businesses,
one opportunity at a time.
Franchising
6:30pm – 8:30pm
12:30pm – 2:30pm
Opening General Session and Luncheon
8:00am – 10:00am
Super Session with Continental Breakfast
10:30am – 12:00 noon
Mini-Super Sessions
2:45pm – 4:45pm
8:00pm – 11:00pm
Franchise Party
10:15am – 12:15pm
8:00am – 10:00am
Super Session with Continental Breakfast
Exhibit Hall Schedule
4:30 pm – 8:00 pm
Chairman’s Reception with Exhibitors
12:00 noon – 2:30 pm
Networking Lunch with Exhibitors
2:30 pm – 5:00 pm
Optional Hours for Exhibitor Appointments
5:00 pm – 7:00 pm
Reception with Exhibitor
Take advantage of the franchisor/franchisee package: one franchisor plus three franchisees
from the same system can register together for a special discounted rate of $2200 for all 4
attendees!
Monday, February 16
Sunday, February 15
Monday, February 16
Don’t miss these educational and networking opportunities to
further your professional growth and development!
Moderator: Matthew Patinkin, Owner, Auntie Anne’s Pretzels Franchisee/Double P Corporation
Panel Discussion: Tom Baber, Franchise Owner, Money Mailer of Mercer, Somerset County; Bill
Spae, CFE, Owner, Dairy Queen of Irving, TX; Matt Haller, Senior Vice President Communications &
Public Affairs, International Franchise Association
Franchising Under Attack: How Recent & Proposed Legislation Affects Your Bottom Line
The purpose of this session is to educate franchisees, and engage them in discussion about
recent and proposed legislation that affects the franchise industry in general, and franchisees in
particular. Matt Haller, SVP of the IFA, will kick off the session with a 30 minute review of legislation
affecting our industry. We will follow with a panel discussion of experts including heavy audience
participation. Hot topics to be discussed include (among others):
• Joint Employer status: It’s not just the NLRB, but the SEIU and others are trying to
destroy the franchise model.
• Minimum wage issues: The battle to raise the minimum wage, and how this will impact
your bottom line.
• Department of Labor proposal re: overtime rules: How this effects your employee’s
exempt/non-exempt status, what tasks your Managers can and cannot do, and how this
impacts your pay structure.
• SB610: This California proposal was vetoed by the Governor, but his veto ruling left the
door open to continued further legislation. How SB610 will impact existing and new
franchise agreements.
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sessions and networking events will give the franchisee perspective a voice within our convention, tackling topics
like customer service skills, digital control as well as real life stories from both franchisees and franchisors.
NextGen In Franchising Roundtables – What’s Your Idea?
Monday, February 16
2:45pm – 4:15pm
During this interactive session, IFA members – franchisees, franchisors, and suppliers -- will exchange
ideas with NextGen contest winners about new franchise concepts and new ways to take franchising
into the future. Case studies will show how the franchise business model is being used in new
industries, in new markets, and in new frontiers.
The Stewart & Jane Bainum Fund
The Stephen P. Joyce Fund
The Choice Hotels Foundation
The J. Willard and Alice S. Marriott Foundation
Tariq Farid, Edible Arrangements
Charlie Chase, FirstService Brands, Inc.
Aziz Hashim, NRD Holdings
Amit Kleinberger, Menchie’s Frozen Yogurt
Joe Bourdow, Valpak
Melanie Bergeron, Two Men & A Truck
Amit Pamecha, FranConnect
Lawrence “Doc” Cohen, DOC & Associates
The NextGen In Franchising program is sponsored with generous donations from:
With global youth employment and entrepreneurship education being touted as critical challenges
to solve on the world stage, the IFA Educational Foundation is stepping forward to present the
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powerful network that can make a serious impact.
Monday, February 16
9:00am – 12:00 noon
The IFA Educational Foundation is excited to launch the NextGen In Franchising program at the
Annual Convention. The Summit program will feature:
• Learn about NextGen and how your company can participate to engage the next
generation of franchising industry leaders and entrepreneurs.
• Panel presentation about the exciting opportunities to Work, Invest, and Build Brands in
the franchising industry.
• Panel presentation by the top winners of the First Young Entrepreneurs In Franchising
Global Competition. The top prize winners for the most innovative, best new franchise
concepts and the best marketing ideas will give brief demos of the winning entries.
• Keynote speaker (surprise) will present additional cash prizes to the winning entries
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learned.
N ex t Ge n I n Fra nc hi si ng Su mm i t
NextGen In Franchising Networking Reception
Sunday, February 15
8:00pm – 11:00pm
Please join us to welcome the NextGen In Franchising contest winners and participants. These
young men and women represent a huge talent pool from which to seek future franchise owners,
employees, and entrepreneurs with ideas and energy for new franchise concepts.
NEXTGEN
9:00AM – 12:00 NOON
15
Moderator: Ned Lyerly, CFE, President- International, CKE Restaurants Holding, Inc.
Speakers: John Kersh, Vice President, International Development, Anytime Fitness, LLC; Donna
A. Infurchia, Director of International Support & Training, The ServiceMaster Company
International Summit – Track Two
(For Those Already Franchising Internationally)
Developed by the International Committee
Session 1
Training and Supporting International Licensees
• International operations best practices.
• Supporting development after you sell a license.
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• +RWPDUNHWVWRƓQGQHZOLFHQVHHV
Moderator: Carl Zwisler, Principal, Gray Plant Mooty
Speakers: Jim Hartenstein, Vice President - International, Little Caesars Enterprises, Inc.;
Benjamin Simon, Senior Director – International Development, Radio Shack Corporation; Charlie
Weeks, World of Beer Development (Intl), World of Beer Franchising, Inc.
Session 2
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• +RZWRHYDOXDWHZKLFKPDUNHWVDUHWKHEHVWƓWIRU\RXUEUDQG
• How to decide which markets to avoid.
• Adapting to new markets and cultures.
Moderator: Bill Edwards, CFE, CEO, Edwards Global Services
Speakers: Jeff Kolton, Principal, Franchise Market Ventures; Brian Duckett, Director, The
International Franchising Centre (UK)
International Summit – Track One
(For Those Considering International Expansion)
Session 1
Know When Your Franchise Is Ready To Go Global
• Reasons to expand internationally (and reasons not to).
• When is the right time to take your brand international?
• What does international expansion involve in terms of sales, operations and
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• How can you maximize success and avoid mistakes?
INTERNATIONAL
2:45PM – 4:15PM
10:15AM – 11:45AM
16
Introduction: Phil Zeidman, Senior Partner, DLA Piper LLP (US)
Speaker: Terri Morrision, Author, Kiss, Bow or Shake Hands
#IFA2015
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experience. Terri will host a Question & Answer session as part of the program.
Terri will offer straightforward advice for the professional who is doing business in foreign countries.
With wit and wisdom she’ll discuss icebreakers, negotiating, global trade etiquette, advertising
taboos and how to deliver successful presentations in the global environment.
Kiss, Bow or Shake Hands: Negotiating, Managing and Communicating Internationally
How do you break the ice in the UAE? When should you bring out a contract
in China? How close should you stand in South Korea? Terri Morrison turns
her attention to sales and marketing, providing the information and advice professionals need to
ensure their intended meaning comes through in every form of communication with customers,
partners and team members around the world.
Moderator: Michael Isakson, CFE, Partner, Insight to Execution & Chairman, IFA International
Committee
International - News From Around the World
• Country Trends.
• Business Climate.
• Opportunities for International Franchisors.
• Legislative and Regulatory Updates.
• Learn the latest country updates from World Franchise Council Executives who will
serve as panel members.
Moderator: Jason Zickerman, CFE, President & CEO, The Alternative Board
Speakers: Hair Parra, Vice President of International Development, Wing Zone Franchise
Corporation; Tony Foley, CFE, International Director, United Franchise Group; Rogelio Martinez, CFE,
VP of International Franchise Development, Tutor Doctor Systems, Inc.
Session 2
If I Knew Then What I Know Now: The Biggest Mistakes I Made
• IFA member success stories and pitfalls.
• Partner selection lessons learned.
• Market and concept adaptation.
• Trusted advisors – where do you turn when things go wrong.
The answer to all of these questions will be focused on things that they didn’t consider, that they
wished they would have. If we had known then what we know now, what aggravation, pain or
expense could have been avoided?
10:15AM – 11:45AM
Moderator: Mark Kirsch, CFE, Principal, Gray Plant Mooty
Speakers: Tom Epstein, CFE, CEO, Franchise Payment Network; Bruce Daise, &KLHI3ULYDF\2IƓFHU
Assistant General Counsel, H&R Block, Inc.
Supplier Forum Best Practices Workshop: Cyber Security & Data Privacy Protection:
Practical Steps to Manage This Potentially Brand Threating Risk
This workshop will address the operational and legal issues involved in protecting
franchise systems, including franchisors, franchisees, and company-owned outlets,
SUPPLIER FORUM
from data breaches and privacy pirates. We will address:
• Lessons learned from large and small retailer data breaches, and identifying the privacy,
cyber security and payment card (PCI) risks for all brands.
• Best practices for evaluating and selecting the right vendors, implementing new
• equipment, software and processes, and monitoring compliance at all levels in the
franchise network.
• Current issues and trends with PCI compliance, including the new and updated rules for
use of mobile payment systems.
• First response practical steps a franchisor should take in the face of a data breach.
• &\EHU/LDELOLW\,QVXUDQFHŊZKDWGRHVLWGRDQGKRZLWƓWVLQWKHRYHUDOOVROXWLRQ
• The legal underpinnings of the applicable laws and rules, and how a franchisor can
incorporate those into the franchise system documents, policies and procedures.
Moderator: David W. Oppenheim, Shareholder, Greenberg Traurig, LLP
Speakers: Michael Seid, CFE, Managing Director, MSA Worldwide, Kevin Feher, Attorney, Greenberg
Taurig, LLP
Where is The Point of No Return in Guiding Franchisees in People Matters?
With the recent cases and administrative matters suggesting that a franchisor can be a joint employer
along with its franchisees and thus, responsible for “people matters” at a franchised location, and
the longstanding concerns about a franchisor being held vicariously liable for injuries sustained
by employees or customers at a franchised location, franchisors must take a fresh look at how they
interact with their franchisees and control certain aspects of their franchisees’ business. Franchisors
are asking “Can we give any guidance to franchisees for people matters?” In this panel discussion,
we will review technical elements of joint employer liability and vicarious liability and review how
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training of the franchisee’s employees. The presenters will provide recommendations, “best practices”
and business tips for how franchisors should approach these matters with franchisees in order
to balance the need to protect the brand by providing consistent consumer experiences without
unnecessarily exposing the franchisor to liability as a joint employer or on a theory of vicarious
liability.
LEGAL
2:45PM – 4:15PM
10:15AM – 11:45AM
Moderator: Bonnie Siegel, President & CEO, ASE Group, Inc.
Speakers: Renee Maloney, CFE, Co-Founder, Painting with a Twist, LLC; Tom Schad, Director of
Communications, DineEquity;
17
A panel of high level executives discusses their strategies for overall successful conference initiatives to
grow their franchises.
• How do you successfully use our annual conference as a marketing tool for your brand?
• What are the top brands doing for their annual conference that you are not doing?
• Learn what you are not doing that can make the difference in growing your brand and
getting past that 500 mark!
• What is the perfect combination of education, motivation and entertainment for a changed
outcome at your annual conference?
• Leading Franchise Liaisons discuss their successes and missed opportunities for their annual
conference.
Convention Strategies - Retention, Growth and Changed Outcomes; Are You Getting Results
from Your Annual Meeting?
Moderator: Lane Fisher, CFE, Partner, FisherZucker LLC
Speakers: Maryellen Sebold, Managing Director, BDO, USA LLP; Parker Pieri, CFE, Vice President of
Finance, The Dwyer Group; Keith Mueller, CEO, Bookkeeping Express Enterprises, LLP;
Preventing Fraud – How Secure Are Your Company’s Assets?
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susceptible to misappropriation of assets by employees, vendors or others. As a business owner, you
need to protect yourself and be proactive in the prevention of fraud and limitation of risk. From fraud
within the realm of your accounting department to fraud from outside contract compliance, this session
will detail proactive steps to help strengthen or create policies and procedures that Franchisors and
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• Essential building blocks for creating success as a newer franchisor.
• The importance of business planning for the younger franchisor.
• Effective lead generation strategies to support a small to medium size marketing budget.
• &UHDWLQJDQHIIHFWLYHIUDQFKLVHVDOHVDQGTXDOLƓFDWLRQVWUDWHJ\
• Strategies for maintaining quality control as the system begins to grow.
• Developing an effective support program for franchisees.
• Maximizing franchisee relationships.
• Business planning with franchisees.
• Creating a best-in-class communications strategy with franchisees.
• The potential impact of strong third-party vendor programs.
Moderator: Steve Greenbaum, CFE, CEO, PostNet International Franchise Corp.
Speakers: Amit Kleinberger, CFE, CEO, Menchie’s Frozen Yogurt; Dina Dwyer-Owens, CFE, Executive
Chairwoman, The Dwyer Group; Catherine Monson, CFE, CEO, FASTSIGNS International
Employees Make or Break Your Brand: Real Life Lessons from Undercover Bosses
The people side of your business can make or break your brand. So why then are leaders not
spending more deliberate time with their team on the front line to get the real story? During this
session you will:
• Learn what CEOs learned when they had the courage to become Undercover Bosses to
better understand the true cultures operating in their organizations.
• Gain insights about what employee brand engagement means.
• Learn strategies and proven tactics for how to build bonds with your team in a franchise
system, and bond them to your brand.
• Discover what you need to do to go below the surface to know what people really think.
• Take away insights about changes 4 different Undercover Bosses made to ensure they
stay better connected to the people who make or break their brand.
OPERATIONS
Moderator: Len MacPhee, Partner, Perkins Coie LLP
Speakers: Stephen Hagedorn, General Counsel, Jani-King International, Inc; Robert F. Salkowski,
Partner, Zarco, Einhorn, Salkowski & Brito, P.A
Settling Franchise Disputes: Business Solutions to Legal Claims
The session will address:
• Potential business solutions available to resolve “typical” types of franchise disputes
ranging from non-payment of fees, failure to meet operating standards, system
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• The early warning signals of potential franchise disputes and how to identify and get “in
front” of them before they rise to the level of “dispute.”
• The importance of understanding the interests, values and needs of the parties behind
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• The role of the business person and counsel (and, relatedly, transactional counsel and
the litigation counsel) in settling franchise disputes.
9:00AM – 12:00 NOON
2:45PM – 4:15PM
18
#IFA2015
Moderator: Deb Evans, CFE, President, Franchise Foundry
Speakers: Alissa Ramsay, CFE, Director of Marketing & Branding, MilliCare Textile and Carpet Care;
Taylor Hulyk, Social Media Director, re:group, inc.; Haley Hughes, Marketing Director, Pinot’s Palette
Think Big: Creative Social Media Campaigns
Everyone’s heard about the big impact social media can have on local business. From contributing to
sales, instilling brand trust and loyalty and creating brand ambassadors, social media is a powerful
tool. Meet some of the companies that do it the best. In this panel, we’ll give you examples of some
of the most thought-provoking, engagement-driving social media campaigns. The audience will
have a better understanding of social marketing trends and how to implement the best in their own
franchise system. Not only will you leave encouraged and motivated to do more with social media
programs but you will know how! This session should be attended by anyone navigating the maze of
digital marketing!
Keynote Speaker: Scott Klososky, Partner, Future Point of View, LLC
Digital Marketing & Technology Summit
Developed by the Marketing & Technology Committee
An expert speaker on the future of digital marketing and technology will
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below. Roundtable discussions allowing for in-depth interactive dialogue between attendees will
follow.
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who have not.
• How digital marketing is changing the revenue engine for franchisors.
• How data can be used as a weapon in the market to gain a competitive advantage.
• The critical role of leadership in driving a digital transformation.
10:15AM – 11:45AM
Moderator: Joe Sciara, Senior VP, Brand Research, SMG
Speakers: Don Fox, CEO, Firehouse Subs; Barbara Williams, VP Performance Analysis, Sonic
Corporation
How to Win Customers from Rivals: Using Technology to Gain an Advantage
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detection technology
You’ll learn how to:
• Win larger share of wallet by capturing GPS data consumers willingly share via
smartphone apps.
• Benchmark your customer experience versus named competitors, down to day of week
and time of day.
• Gain insights about where, when and why customers drive past your locations to visit
competitors.
• Drive incremental sales by increasing your conversion of non-purchasers and partial
purchasers.
• Measure your changing share of total customer visits in your competitive set as a result
of changes you make.
Moderator: Amit Pamecha, CFE, CEO & Co-Founder, FranConnect
Speakers: Jayson Pearl, CFE, CMO, Brightstar Franchising, LLC; Philip St. Jacques, CFE, Partner, St.
Jacques Marketing
Marketing Best Practices for Driving More Leads and Sales: SEO, SEM, Mobile, Social
Media and Reputation Management
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• :KHQWKH\ƓQG\RXGRWKH\FOLFNDQGEHFRPHOHDGV"
• Does your brand have a strong social and reputation factor?
• 7KLVVHVVLRQGHƓQHVVWUDWHJLHVIRUOHYHUDJLQJGLJLWDOPDUNHWLQJEHVWSUDFWLFHVWRGULYH
more leads and sales including hype vs reality; some common pitfalls; and how to try
and do it all on a low budget.
Moderator: Susan Black-Beth, CFE, COO, Super Wash, Inc.
Speakers: Robert Fish, CEO, Biggby Coffee; Shelby Reno, Marketing and Communications Director,
Two Men and A Truck International, Inc.™; Eric Ersher, CEO & Founder, Zoup! Fresh Soup Company
From Strategy to Execution: Delivering Super-Charged Grand Openings
• Creating a dynamic and effective Grand Opening Strategic Plan.
• Establishing the GO budget and communication timeline.
• Utilizing PR and grassroots marketing pre-event to build awareness and gain trial.
• Leveraging social media and cause marketing to drive GO success.
• Managing GO expectations and formulating key GO performance indicators.
Presented by: Jeffrey Hayzlett, Expert Speaker and TV Host of the
C-Suite with Jeffrey Hayzlett
Join the host of Bloomberg’s #1 primetime business television show, the C-Suite with
Jeffrey Hayzlett, for an eye-opening and unique look inside the boardroom. C-Suite
with Jeffrey Hayzlett is an original primetime series on Bloomberg Television that
brings viewers unprecedented access into the c-suite’s of some of the most powerful
companies that are changing the business landscape. Hayzlett has spent time with the
executive teams of such well-known brands as Dunkin Brands, Dominos, and Cadillac
and CrossFit in order to discover new perspectives on boardroom decision-making from
top executives who candidly have shared their key learnings along the way. What tough
decisions have they had to make? How did they take ownership of those decisions?
What innovative strategies have they adopted to keep their brands relevant and evolve
with the marketplace? How did they gain buy-in for their new vision? How have they
communicated and led their companies through the ups and downs? Learn these
insights and more during this compelling session that will keep you
on the edge of your seats.
The C-Suite With Jeffrey Hayzlett
Presented by: Eric Chester, Award-Winning Speaker and Bestselling
Author of On Fire at Work, Reviving Work Ethic and Getting Them to Give
A Damn
After working in-depth with more than 70 leading franchised brands, Eric Chester has
uncovered the secrets of the most successful concepts and will reveal what sets them
apart when it comes to attracting, developing, and retaining the best and the brightest
young team members and future leaders. In this session, Chester will expose these best
practices and show you how to create a workplace culture that will literally transform
your brand into a talent magnet for the kind of people you want and need throughout
your organization.
The new emerging workforce has the energy, the desire, and the talent to help you grow
your brand, but most haven’t been taught how to work at home or at school and they
don’t possess the critical soft skills needed to achieve at their remarkable potential. This
leads to poor quality, unacceptable customer service, rampant employee turnover, and
legions of frustrated franchisees.
Getting Your Front Line to Care About Your Bottom Line: How Great Leaders in
Franchising are Attracting Superstar Employees and Motivating them to Perform
Better, Work Harder, and Stay Longer
THREE MINI-SUPER SESSIONS
Presented by: Nancy Friedman, Keynote Speaker, Author & President, The
Telephone Doctor
You probably have many of these traits – few folks have all of them. Nancy
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Don’t leave early prizes and surprises run throughout the program!
Choose Your Attitude In AdvanceVisualize Success
Demonstrate Humor, Energy and Enthusiasm
Resist Negative Tendencies
Be a “Whatever It Takes Person”
Embrace Change; Expect It and Accept It
Be Grateful For What You Have
2:45pm - 4:45pm
10:15am – 12:15pm
19
Hosted by both Franchise Executives & Supplier Forum Members, don’t miss this unique opportunity
to sit down -- at literally a round table of 10-12 people -- and exchange ideas, challenges, solutions
and best practices with some of franchising’s most accomplished professionals including CEO’s,
Presidents and COO’s of leading companies in the industry. Pose questions and listen to their
success stories, lessons learned, innovative business solutions, and where they see the future of
franchising. Discussion topics include such issues as franchise sales, credit/lending, operations,
legal issues, branding, technology and much more! Many say these are the most valuable and
rewarding sessions offered at the convention so don’t miss your change to learn from franchise icons
and thought leaders – what they share can really have an impact on your franchise brand’s future!
Tuesday , February 17
BUSINESS SOLUTION ROUNDTABLES
•
•
•
•
•
•
How do you handle growth and change? What about bad news? Or other obstacles that come
your way? Does “Apathy” sound familiar? In this program, Nancy shares how to handle these
things, with grace, style and humor. She uncovers the strategies behind these 7 leadership traits:
An expert in customer service and engaging the customer, Nancy Friedman, the Telephone
Doctor is back at IFA this year with a unique session for both the Franchisor and the Franchisee. A
EDUHERQHVERWWRPOLQHODG\ZLWKDŴDLUIRUKXPRUDQGIXQWKLVVHVVLRQZLOOJLYH\RXWKHFRPPRQ
sense tools to get you thinking.
7 Traits of a Successful Leader: Engaging Within Your BRAND – Do you have all 7 Traits?
Delve deeper into the following subjects in these 1.5-hour sessions. Each session provides a
unique opportunity to learn from professional speakers from outside the franchise community in
an interactive environment, providing a comprehensive marketplace and business prospective.
20
#IFA2015
BDO USA, LLP
Benetrends, Inc.
The Bernard Group
BFC
BizBuySell
BizVision
Bluewater
BoeFly LLC
Booker Software
Bridgeline Digital
BuildASign.com
Bullseye Telecom
Buxton
CallidusCloud
CallTrackingMetrics
Certilearn, Inc.
Choice Hotels International
Citrin Cooperman
Clarity Voice
Cockrell Enovation
Constant Contact, Inc.
Creative Producers Group
CruiseOne/Pollin Group
Dawson Franchise Insurance Division /
An AssuredPartners Company
DECA
Direct Capital Franchise Group
Direct Connect Franchise Financing
DirectMail2Go
DirecTV
Divvy by Alexander’s
E3 Local Marketing Solutions
Ecolab Inc.
('8&HUWLƓHG
Engage121
Entrepreneur Media, Inc.
Executive Leads LLC
F.C. Dadson, SIB, LLC
Faegre Baker Daniels LLP
FGP Commercial Leasing
FisherZucker LLC
Fishman PR
Fort Worth Convention & Visitors Bureau
Forum Analytics, LLC
Foundry Local
Franchise Business Review
Franchise Clique, LLC
Franchise Council of Australia
5th Avenue Leads, LLC
8x8, Inc.
919 Marketing Company
A Closer Look
Actio Marketing
AdGeo
ADP, Inc.
Aranco Productions
Associated Luxury Hotels International
Audio Video Unlimited
Availe, Inc.
Avitus Group
Baker, Donelson, Bearman, Caldwell &
Perkowitz, PC
Balboa Capital
The Bancorp Bank
Bank of America
Baum Realty Group
BBES (AdSmart)
5:00 pm – 7:00 pm
Reception with Exhibitors
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enter the drawings to win $1,000!
2:30 pm – 5:00 pm
Optional Hours
The Exhibit Hall will remain open for optional
appointments and additional networking time.
12:00 noon - 2:30 pm
Networking Lunch with Exhibitors
Take advantage of the second opportunity to meet
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our service providers can offer to help build your
brand and run a more streamlined operation.
Monday, February 16
4:30 pm – 8:00 pm
Chairman’s Reception with Exhibitors
-RLQ,)$ōV&KDLUPDQRIWKH%RDUGIRUWKHRIƓFLDO
RSHQLQJRIWKH([KLELW+DOO7KLVLV\RXUƓUVW
opportunity to meet with service providers who
offer innovative and cost-effective products and
solutions to help your company achieve its strategic
goals.
EXHIBIT HALL SCHEDULE
LearningZen
LED Source
LiftForward, Inc.
LightSpeed VT
Lipscomb & Pitts Insurance, LLC
Listen360
Local Market Launch
Location3 Media
LoyaltyGenerator, Inc.
m2M Strategies
Management 2000
Manalto Inc.
MarComet
Marquette Group
Marron Lawyers
Master Lock Company
Meet AC
MFV Expositions
Mindstream Interactive
Modernistic, Inc.
MyPayRollHR.com LLC
Naranga
National Association of Professional
Employer Organizations
NCR Corporation
NetSearch Direct
New Image Marketing Research, Corp.
Newmark Grubb Knight Frank
No Limit Agency
Northwood University
Order With Me
Our Town America
Out of the Box Technology
Pavilion Development Company
Paychex, Inc.
Paycom
Paycor
Pegasus Communication Solutions, Inc.
(PCS)
PlayerLync
PODS
POSitive Technology
Precision Services Group
PrintComm/Marketing Impact
PrintingForLess.com
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3URƓW.HHSHU
PROGRADE
Programmers On Call
Proven Match/Franchise Works (FranNet)
Public Reputation
Qiigo, Inc.
Quatrro FPO Solutions
Randal Retail Group
RBZ, LLP - Franchise Services Group
ReachLocal, Inc.
Rehmann
Remote Quality Bookkeeping
Rhino 7 Franchise Development Corp.
Rio SEO
ROIC analytics LLC
Royal Caribbean International
Safeguard by Team/MHC
Scorpion Design, LLC
SDCooper Company
Servant Systems, Inc.
Service Management Group (SMG)
ShopperLocal, LLC
Siegel Financial Group
Silvercrest Advertising
SMB Franchise Advisors
6SHFLDOL]HG2IƓFH6\VWHPV,QF
St. Jacques Marketing
Standard Register
Strategic Meetings Solutions
6XUHƓUH6RFLDO
Sympateco, Inc.
Tortal Training
TransFirst
Uniserv, Inc.
United States Postal Service (USPS)
Universal Backgound Screening, Inc.
The UPS Store, Inc.
Valpak
VF Imagewear, Inc.
Visualogistix
The Wall Street Journal
Web.com
WebPunch
Where 2 Get It, Inc.
Worklogic
World Manager
WSI Digital Marketing
Yodle
ZeeWise, Inc.
ZOOM.7, Inc.
This list is current as of press time. For exhibiting opportunities please contact Lynette James at [email protected] or 202-662-0782.
Franchise Development Services Ltd.
Franchise Direct
Franchise Gator LLC
Franchise Marketing Systems
Franchise Opportunities Network
Franchise Payments Network
Franchise Software Systems
Franchise Solutions
Franchise Times
Franchise Update Media
Franchise.com
FranchiseBlast
FranchiseHelp.com
FranchiseRanking.com
FranConnect
FRANdata
FranFund, Inc.
FranWise
G. Neil Poster Guard Compliance Protection
G/O Digital
Gallagher
GbBIS
GetCompanyUniforms.com
Global Cash Card
Grand Sierra Resort & Casino
Gravity Works Design & Development
Gray Plant Mooty
Guidant Financial Group, Inc.
Heartland Investigative Group
Higher Logic
HigherVisibility, LLC
Hot Dish Advertising
Hylant Group
iConnect POS
iFranchise Group
IFX Software & Strategies
INFINITI HR
Infogroup
Initial Impression
Integra Business Systems, Inc.
International Council of Shopping Centers
Intuit, Inc.
JobOn
KD Kanopy Inc.
Keyser
Kiekenapp & Associates
Konnect Public Relations
Leading Authorities
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7KH,)$([KLELW+DOORIIHUVVRPHWKLQJIRUHYHU\RQHŋDFFRXQWLQJEXVLQHVVDQGOHJDOVHUYLFHVƓQDQFLDOVHUYLFHVLQVXUDQFHSURJUDPVPDUNHWLQJ
and public relations specialists, software and technology providers, human resources experts, franchise development resources, and travel,
hotel and special event services. Stroll the aisles for new ideas, inspiration and some fun while learning about products and services that can
help you better achieve your business goals. Stop by our new Franchise Solutions Think Tank, visit with your current business partners and meet
SRWHQWLDOQHZRQHV:KLOH\RXōUHWKHUHGRQōWIRUJHWWRHQWHUWKHH[FLWLQJGRRUSUL]HGUDZLQJVIRUKHOGGXULQJRIƓFLDOH[KLELWKRXUV
EXHIBIT HALL
For more information about signing up for any of our FranPAC events, please contact Erica Farage at
202/662-0760 or [email protected].
11:30 AM – 4:30 PM
21
Get your convention experience off to a great start and plan to connect with your fellow
attendees Saturday, February 14 as we help to build the community and enrich lives. This year we
will devote our time to helping veterans in the Las Vegas area. Not only will you leave a lasting
impact but this is a good opportunity to network with other attendees before the convention
kicks into high gear. A boxed lunch, transportation, t-shirt and supplies are all included. There
LVQRDGGLWLRQDOIHHWRSDUWLFLSDWHDQGVSDFHLVOLPLWHGWRWKHƓUVWSHRSOHWRVLJQXS7R
indicate your participation, simply check off the box on our registration form and watch for more
details about Franchising Gives Back coming soon!
*While there is no registration fee to participate in Franchising Gives Back, we do reserve the
right to charge a $100 “no show” fee in the event you fail to participate. All fees collected will be
donated to the local charity we will be helping in Las Vegas.
The franchise industry contributes to local communities throughout the year by supporting local
charities and donating time and resources to those in need. Now it’s time once again for IFA
Convention-goers to come together at the Franchising Gives Back event.
SATURDAY, FEBRUARY 14
Join us for our annual FranPAC 365 club event held to honor and thank all franpac contributors. The 365 club
is franpac’s initial level of membership and asks franchise community leaders to pledge $1 per day a year. This
pledge helps provide effective political representation in washington and allows individuals to become part of a
critical IFA endeavor.
365 Club Event
Another excellent opportunity to support FranPAC is during the VIP Reception with our guest of honor, opening
general session keynote speaker, Mike Duke. Mingle with other FranPAC supporters during this intimate
reception and have your photo taken with Mr. Duke before he takes the main stage during lunch.
VIP Reception
The FranPAC Silent Auction returns in 2015. Held in the Exhibit Hall during regular exhibit hours, the silent
auction is a fun way to support FranPAC. You will have the opportunity to bid on an array of travel packages,
electronics and other spectacular prizes donated by IFA members.
Silent Auction
All proceeds from FranPAC events help IFA support franchise-friendly candidates and Members of Congress as
well as educate lawmakers about legislative issues important to your business and the franchise community.
FRANPAC EVENTS
IFA is honored to host the meeting of the World Franchise Council at its 55th
Annual Convention. The meeting coincides with the 21st anniversary of the
establishment of the World Franchise Council at IFA’s Convention in Las Vegas
in 1994. IFA is also pleased to welcome a host of international delegations.
By attending IFA’s Convention, international delegations and World
Franchise Council members act as ambassadors, facilitating dialogue across
the international franchise community. We encourage convention-goers
to capitalize on this unique opportunity to network with our international
delegates to learn more about franchising around the world and to gain an understanding of how
you can build your business in locations perhaps you never considered before.
WORLD FRANCHISE COUNCIL MEETING
FRANCHISING GIVES BACK
AND M RE!
22
#IFA2015
Registration Fees* are per person and include:
• Entry into all convention general sessions and educational sessions including the
Summits and Mini-Super Sessions.
• Exhibits and evening networking events.
• Educational session instruction and materials.
• Continental Breakfast Tuesday & Wednesday.
• Lunch on Monday.
• Tuesday Franchise Party.
• Sunday Taste of Franchising.
• Refreshment breaks.
*Pertains to full convention registration fees only. This excludes our Spouse Rate (applicable to
evening social events only) and our Exhibit Hall Access badge rate (provides booth workers entry
into the Exhibit Hall and Taste of Franchising only).
REGISTRATION FEES
To register for all events described in this brochure, please visit http://convention.franchise.org
and click on the registration link. Our pre-registration deadline is January 30, 2015. Once you
KDYHUHJLVWHUHG\RXZLOOUHFHLYHDFRQƓUPDWLRQSDFNHWYLDHPDLO)RUTXHVWLRQVSOHDVHFDOO,)$ōV
Conference Assistant, Haleema Murtaza, at 202/662-0763 or [email protected].
PRE-REGISTRATION
#IFA20
15
IFA is offering a mobile app again this year. You can download the app (at no cost) to your iPad,
iPhone, Droid, or use a hybrid for web-based app for blackberries and other web-enable phones.
Enhance your convention experience by using the IFA Convention app for the following:
• Schedule of Events
• Exhibitor Listings
• Exhibit Hall Floor Plan
• Session Descriptions
• Speaker Bios
• Speaker Handouts
• Connect with other attendees
• Convention Announcements and more!
Please stay tuned for more information on how and when you can access our convention app as it
becomes available!
STAY CONNECTED BEFORE, DURING AND AFTER THE SHOW!
WHAT YOU NEED TO KNOW
BEFORE YOU GO
The deadline for booking your room at one of our convention hotels is January 19, 2015 (or when
WKHURRPEORFNVVHOORXWZKLFKHYHUFRPHVƓUVW$OOJXHVWVDUHUHVSRQVLEOHIRUVXEPLWWLQJDFUHGLWFDUG
number, or a deposit equal to one night’s room rate, plus tax as a guarantee, at the time the reservation
is made. Deposits will be refunded for rooms cancelled more than 48 hours prior to arrival.
Check-in is available after 3:00 pm and check-out is required by 11:00 am.
Booking through the IFA room block also allows you to receive a discounted resort fee of $10 per night
which includes:
• In-room complimentary high speed internet access
• Daily newspaper available for pick up
• $15 beverage credit per room per stay applicable at any MGM Grand owned bar/lounge
• Complimentary printing of boarding passes, copies and faxes up to 5 pages (excluding
color), and notary services at the Business Center
• Unlimited local and toll free calls
• Complimentary daily access to the Cardio Fitness room
Make your reservations at our host hotel, the MGM Grand, online by visiting convention.franchise.org
and clicking on the hotel drop down box. You can also call the hotel directly at 1-800-929-1111 and hit
1 twice for general reservation and mention block code IFA0215A. The room rates are as follows:
February 14, 15, 16 & 17: $189/night
February 12, 13, 18, 19 & 20: $139/night
HOTEL ROOM RESERVATIONS – BOOK YOUR ROOM NOW!
The registration desk will be open at the following times:
Sunday, February 15th
7:00 am – 7:00 pm
Monday, February 16th
7:00 am – 7:00 pm
Tuesday, February 17th
7:00 am – 6:00 pm
Wednesday, February 18th
7:00 am – 10:30 am
REGISTRATION / CONVENTION CHECK-IN
Attendance at the ICFE Special Sessions Saturday and Sunday is not included in the
convention registration fee. There is a separate registration fee of $550 for members,
IRUQRQPHPEHUVIRUWKHVHVHVVLRQV*RWRZZZIUDQFKLVHRUJFHUWLƓFDWLRQDVS[RU
call Rose DuPont at 202/662-0771 for more information.
ICFE SPECIAL SESSIONS
The Annual Leadership Conference on Sunday is an additional $100 for fully registered convention
DWWHQGHHV7KH3UD\HU%UHDNIDVWLVRIIHUHGRQDFRPSOLPHQWDU\EDVLVWRWKHƓUVWIXOO\UHJLVWHUHG
FRQYHQWLRQDWWHQGHHVRQDƓUVWFRPHƓUVWVHUYHGEDVLV
ADDITIONAL EVENT FEES/INFORMATION
Check here if you are a U.S. Veteran

CANCELLATION POLICY: Convention registration
refunds (minus a $100 processing fee) will be
granted for cancellations received in writing by
January 11, 2015. Cancellations received after this
date are subject to a 50% penalty. No refunds are
permitted after February 6, 2015. Substitutions
are permitted at any time, but are subject to a
$50 fee. All registrations received after January
30, 2015, including those that would have been
complimentary if submitted by the due date,
will be handled onsite and are subject to a $100
additional onsite processing fee.
HOTEL RESERVATIONS: To make your reservations at our host
hotel, the MGM Grand, call 1-800-929-1111, hit 1 twice for
general reservation and mention block code IFA0215A. To make
your reservation online, please visit convention.franchise.org
and click on the hotel drop down box. The deadline for booking
your room at one of our convention hotels is January 19, 2015
RUZKHQWKHURRPEORFNVVHOORXWZKLFKHYHUFRPHVƓUVW$OO
guests are responsible for submitting a credit card number, or a
deposit equal to one night’s room rate, plus tax as a guarantee,
at the time the attendee makes the reservation. Deposits will
be refunded for rooms cancelled more than 48 hours prior to
arrival.
Check here if you do not wish to receive emails on Convention events and issues of interest.
(An individual email address for the actual person attending convention is required for confirmation
packets.)
Email: _____________________________________________________________________________________________
Telephone: __________________________________________________ Fax: ___________________________________
Country (if not U.S.): __________________________________________________________________________________
City: __________________________________ State/Province: __________________ Zip/Postal Code: _______________
Address: ___________________________________________________________________________________________
Company: __________________________________________________________________________________________
Spouse (if registering): ________________________________________________________________________________
Job Title: __________________________________________________________________________________________
Nickname for Badge: __________________________________________________________________________________
Franchisor Franchisee Supplier
Full Name: _________________________________________________________________________________________
Discover
Questions? Call IFA’s Conferences Department at 202-662-0763
SEND YOUR COMPLETED FORM(S) WITH PAYMENT TO: INTERNATIONAL FRANCHISE
ASSOCIATION, 1900 K Street, NW, Suite 700, Washington, DC 20006
Phone: 202/628-8000 • Fax: 202/628-0812 • franchise.org
Signature __________________________________________________________________
____________________________________________________________________________
Cardholder’s Billing Address _________________________________________________
Cardholder’s Name __________________________________________________________
Expiration Date _____________________________________________________________
Account # _______________________________ Security Code_____________________
MasterCard
Credit Card: AMEX

Visa
Check payable to IFA (Federal Tax ID # 36-6108621)
Total Fee $_________________________________

PAYMENT METHOD

IFA Member (Franchisor/Supplier)
1-3 registrants when registering together
$1040
4-9 registrants when registering together
$940
10 or more registrants when registering together $849
Franchisee Member
$590
Franchisor/Franchisee Package (includes one
$2200
franchisor and three franchisees from the same system)
Non-Member
$2250
Member Exhibitor Badge (tradeshow access only)
$250
Member Exhibitor
$690
Spouse (includes evening social events only)
$500
Moderator/Speaker (does not apply for
$650
roundtable facilitators)
University Faculty
$840
Annual Leadership Conference (Sunday)
$100
Prayer Breakfast (Monday)
Complimentary
Franchising Gives Back (Saturday)
Complimentary*
*Requires a credit card number. A $100 “no show” fee will be charged post-Convention
for non-participation.
Media
Complimentary
upon approval
Please mark the appropriate boxes to indicate your participation and fees. Registration fees are PER PERSON.
REGISTRATION FORM
Please complete one form per person. Pre-Registration closes on January 30, 2015. Registrations received after this date will be
processed onsite and subject to an additional $100 fee. For up-to-date convention news or to register online, please visit
convention.franchise.org.
#IFA2015
Best Practices for Expanding
Your Brand in a Region
Never stagnate or forget why you’re where you are today and
how you got there.
BY SETH LUCAS
G
rowing a brand throughout a region is not
an easy task, especially for those with no
previous business experience. It takes time
and dedication, but when you have the right group
of people working together with the same goal in
mind, anything can be achieved.
Since purchasing our first East Coast Wings &
Grill franchise in 2009, my younger brother Jared
and I have been able to open a new location
each following year. Sharing an interest in the
restaurant industry from an early age, we joined the
restaurant scene after college and after moving up
the ladder into management roles, began looking
into launching a restaurant of our own. We thought
about doing it ourselves, but once we looked into
franchising, we quickly realized all the benefits
that come with an established brand and business
model.
There are so many concepts to choose from
once you decide to go into franchising; yet even
with the vast options, Jared and I found exactly
what we were looking for right in our own backyard.
When we came across a local East Coast Wings &
Grill restaurant, we instantly fell for the concept,
even though it was a young company with less
than 12 locations at the time. Not only did the
brand align with our values, but also provided the
business model and food quality which we were
looking for. Once we spoke with current owners,
the positive feedback we received only confirmed
our decision. We were sold and decided to invest in
our first franchise before we even had the financing
arranged.
64
We were aware of the risk of failure as we had no prior
experience in franchising or growing a business on our own;
however, we were determined to build a successful restaurant
and create a legacy that we could pass to our children. In less
than five years, we’ve established five successful locations
throughout the Carolinas and have become the company’s
first area representatives by following the steps and protocols
provided by the franchisor. We’ve also expanded our brand
throughout the region by practicing various lessons we’ve
learned along the way.
Based on our experience, the following are a few tips for
fellow franchisees to keep in mind when expanding a brand
regionally.
•
•
Location is Key. Before entering new markets, it’s
important to find a location in a high-traffic area.
When we opened our first restaurant, our strategy
was to move into a busy shopping center as a way
to bring people in, or at the very least, get our name
out. The first six months were tough, but opening in
a congested area within a smaller market helped us
grow our brand quickly. We opened our fourth East
Coast Wings & Grill location in a military town that
provided a great customer base for the business
and our fifth location in a smaller market with no
other concept like ours. Another key to our success
has been opening restaurants in second-generation
locations. For example, we took over a building that
previously housed a popular restaurant, which allowed
us to focus our efforts on building our brand in a new
market. When you start with a solid foundation, it
should enable you to spend less time recreating the
wheel for kitchen and store layout, and construction
expenses. Rather than worrying about what type of
equipment you should buy, or designing an effective
kitchen, you can focus your time on improving
operations and training employees. Furthermore, an
existing restaurant typically comes with an established
customer base which makes it easier to market your
brand.
For our third location, we opened the company’s
first “on-the-go” model across town from our original
location to capitalize on the large student population
at a nearby university, and to provide a more
convenient option for customers on the opposite side
of town. While East Coast Wings & Grill was already
an active and integral part of the area, we knew that
establishing a second restaurant in the same market
would serve as a tremendous opportunity to reinforce
our community commitment and build a relationship
with a new demographic of customers.
Never Stop Improving. As a business owner, you
should constantly work to improve your brand. The
underlying factor that drives the success of our
restaurants is a collaborative mindset to never stop
improving. We look at our business daily and evaluate
how we can build upon our success and reach our
“big picture” goals by continuously evolving the look
and feel of our restaurants and by putting money
back into each location. More importantly, never
•
•
stop enhancing your team and management skills. A
strong team of employees and managers is essential
to growing a brand, especially a restaurant which
depends on accountability and customer service.
Because of our hard work and ability to successfully
grow with the right employees, we are now able to
spend more time with our families and be in better
control of our own business.
Lead by Example. From the beginning, we knew
that as long as we were hands-on in the business
we would be successful. Whether it’s taking over
the cash register, busing tables, greeting customers
or scrubbing dishes, a good manager must also be
willing to do it all. No matter how business-savvy
you are, you won’t gain the respect and drive of your
employees if you’re not an expert in all realms of
your respective industry. When it comes to managing
several hundred employees at multiple locations, it’s
important to stay apprised of what’s happening at
each location. We strive to stay engaged and actively
involved as much as possible by working closely with
our general managers and visiting each location
on a weekly basis. We also do our best to lead by
example and show each employee how their roles and
responsibilities — even the simplest tasks — impact
the success of our brand. Showing your employees
that their work is recognized and appreciated will
instill a strong work ethic in your team and lead to
inspiration for further achievement.
Become an Integral Part of Your Community.
Every business owner should strive to give back to
his community in some way, shape or form. Whether
it’s helping a local basketball team by selling coupon
books, which is one way our stores have given back,
or by supporting a local charity, you’re making a
difference in the lives of others. Not only is it rewarding
on a personal level, but also on a financial level. Giving
back to local sports teams shows the community that
we care for our schools and our neighborhood, and
also serves as a reputation booster by attracting
customers to the restaurant, at which point we can
introduce them to our product and hopefully win
them over.
To be successful in expanding any type of business
throughout a region, you need to first find a franchise system
and concept that fits your lifestyle and personality. It’s hard
not to get excited about a company that shares the same
ethics and values as you. All companies have different values,
so make sure it’s what you truly want and believe in. Most
importantly, never slow the momentum. Continue looking
forward to what the future has to offer and constantly look
for new ways to innovate and grow with the company. Never
stagnate or forget why you’re where you are today and how
you got there. n
Seth Lucas, along with his brother Jared, own and
operate five East Coast Wings & Grill restaurants
in the Carolinas. They are also the company’s first
area representatives. Find him at fransocial.
franchise.org.
65
Franchisors and Multi-Unit
Franchisees Team Up For
Growth
Multi-unit franchisees control more than 200,000 franchise units
in the United States.
BY THERESE THILGEN
M
ulti-unit franchisees dominate today’s marketplace,
controlling more total units than their single-unit
counterparts — and an increasing number are
operating multiple brands.
Franchisors, in tandem with the growing base of multiunit operators, have recognized this change and responded
by altering their sales approach, even their franchise
disclosure documents to accommodate multiple-unit sales
to experienced franchisees. The “three-pack” has grown
to the five-pack and 10-pack, and we’re hearing more about
deals to develop upwards of 50 or 100 units in territories
that grow larger each year.
THE BEST AND BRIGHTEST
Franchisees are an optimistic lot, expansion-minded,
on-the-grow, and always alert to new opportunities. And for
them, multi-unit franchising represents one of today’s most
attractive opportunities. Whether it involves increasing the
number of units of their current brand or adding new brands
to their holdings, the allure of multi-unit franchising is
attracting the best and brightest franchisees in the business
with increasing frequency.
During the past 20 years, what began as a trickle has
become one of the hottest vehicles for building a business
rapidly and sustaining it through the years. FRANdata puts
the number of multi-unit operators at more than 40,000,
and they control more than 200,000 franchise units in the
United States.
Successful multi-unit operators are a different breed
than the single-unit franchisees they are displacing. Light
years beyond the old “buying a job” mentality, they are
skilled, professional business executives who have chosen
franchising as their business model. They possess the skills,
training, capital, infrastructure and vision to keep adding
66
units to their portfolio — without stressing their organization
or their stomachs.
Even during the recent economic upheaval, savvy multiunit franchisees continued to expand, especially in QSR and
services such as senior care, hair salons, massage, home
maintenance, children’s activities, pet care and more. After
all, if you can make money with one unit you can make even
more with two, three or more, right?
Well, yes — but it takes a certain skill set, dedication and
infrastructure to make it all work effectively and efficiently.
If you’re a regular reader of Multi-Unit Franchisee magazine,
especially our ongoing profiles of successful multi-unit
franchisees, you know exactly what we mean.
RIGHT PIECES, RIGHT PLACES
All the right pieces must be in all the right places for a
multi-unit franchise organization to succeed. If they’re not,
the results can be disastrous for both the franchisee and
franchisor. At its best however, multi-unit franchising allows
franchisees (and franchisors) to increase their unit count,
market penetration and profitability more rapidly than a
single-unit owner ever could.
Multi-unit franchising has already altered the landscape
of franchising in many ways and will continue to do so. In
recent years, private equity has “discovered” the profit
potential of multi-unit franchise organizations or acquiring
them outright — even doing the same with franchisors.
And they appreciate the benefits and value of a diversified
portfolio.
In other words, while multi-unit franchising is the way
to go for any franchisee seriously looking to grow his
organization, it’s not for everyone and it’s far from easy. In
fact it’s hard work, and not without risks. Successful multiunit franchisees must do at least three things well:
1. Finance the additional locations/territories. That
means deep pockets or at least access to deep pockets.
This often requires business partners or lenders who
then have “skin in the game” and can influence the way
a franchisee conducts his business. This is an important
reality to keep in mind for franchisees and franchisors.
2. Form an organization with a management team
and infrastructure to command the expanding
enterprise. Franchisees can remain hands-on with a
handful of units, but when they reach 10 or more it’s
no longer feasible to oversee day-to-day operations.
At some point, the franchisee will need to bring in a
team to handle everything from operations to finance
to marketing and HR. He’ll need to learn to delegate
and get out of the way.
3. Leadership is the final ingredient. Franchisees
have vision, ambition and inspiration. The challenge
is communicating these crucial intangibles to the
expanding organization and keeping them intact as
they filter down to the multi-unit managers and frontline staff through the in-house team. This is necessary
and achievable; never simple nor easy.
For those who have the backgrounds, experience and drive
to take on these challenges, multi-unit franchising offers a path
to achieve their dreams. They are looking for the best brands
to help grow their enterprises.
But franchisees can’t do it alone. They must rely on people,
partners and task delegation, along with large helpings of
passion, patience, dedication and hard work. They also need a
strong franchisor who understands multi-unit franchising and is
actively seeking experienced operators to help penetrate new
markets quickly and effectively.
Together, franchisors and multi-unit franchisees make the
perfect team for growth. n
Therese Thilgen is CEO of Franchise Update
Media. Find her a fransocial.franchise.org.
67
M U LT I - U N I T F R A N C H I S I N G
Four Ways to Improve Your
Business Development Efforts
Every business has something that makes it unique.
BY MIKE BOYD
B
est practices is a hot buzzword right now, but don’t get
lost in a jargon black hole. What it really boils down to
is business development — taking the company you’ve
got and helping to transform it into something to be admired.
The tips that follow have been helpful in spreading the Instant
Imprints brand to more than 45 locations across North America
and several more locations are being developed.
TOP-NOTCH TRAINING PROGRAM
Thomas Edison said: “There is always a better way.” That’s
an attitude you should embody while considering training
franchisees. Continual improvement is a key step.
Faced with making some big changes to Instant Imprints’
training program, we went back to the roots — rewriting the
training manual, reworking the class systems and teaching
business development. I’ve found that less than 2 percent of
franchises teach business development.
Consider the most important skills you aim to teach those in
your system, and follow through to make sure that the learning
doesn’t end after training. Have your new franchisees visit a
store nearby and talk with the owners. Let them observe a
typical business day and find out what makes the place run
smoothly. During on-site training, try role-playing to focus on
customer-service skills.
Don’t forget about continual learning. You might have
franchisees who have been in the system for years, and it’s your
responsibility to ensure that they receive ongoing training in
technology, marketing and other programs that are of value.
Don’t let anyone fall through the cracks.
Now that you’ve got a great training program, what’s next?
YOU HAVE TO MEASURE TO WIN
You have to measure if you want to grow. The results you
have now will tell you what’s working, and the results you don’t
have will make obvious what is absent.
But you’re a small-business owner, and you’re already
overwhelmed; measuring can’t be your full-time job. It doesn’t
have to be.
A system I recommend is called the “Thumbprint.” It’s just
three groups of numbers:
•
•
•
68
Sales — We usually talk about monthly sales and
compare them to last year.
ACT – The amount of an average customer transaction.
TGM – Total Gross Margin
ACT and TGM should both be measured historically over 12
months or as many months as you’ve been in business.
There are only two ways to grow sales: either get more
customers or convince your existing customers to spend more.
To calculate ACT, divide sales by transactions. Both ways to
grow sales are accounted for in that one simple number. There
are also only two ways to grow margin: raise prices or lower
costs. TGM is the money you have after you subtract any costs
that are directly related to making a sale, so both sides of that
equation are represented in that number as well.
This is an accurate way for franchisees across the system to
compare how they’re the same, how they’re different, who is
having success and who needs a hand. This quick Thumbprint
allows two small-business owners from completely different
businesses and regions to relate to and learn from each other.
In turn, this multiplies opportunities to learn from each other.
ONLY MARGIN PAYS
Break it down however you want, but the truth remains:
there are only four ways to grow a business:
•
•
•
•
More customers,
More often,
More money,
More margin.
As a business owner, you know that only one of the “Four
Mores” pays: more margin. Very little of the formula for
business success is complicated. It may not be easy, but it is
simple. Consider how to grow your margin: you can raise your
prices or lower your costs. The key to success is to work with
both sides of this equation.
Be aware of your costs and watch for the same or better
product at a lower cost. That’s not to say you shouldn’t be loyal
to your vendors, but one of the best ways to lower your costs is
to consolidate purchasing with fewer vendors. As the volume of
business that you do with them grows, they are likely to reward
you with better pricing.
Take the time to calculate your margins on a regular basis
— monthly, for example. You should break out your costs into
the same categories that you use to categorize your sales.
Total gross margin makes a great indicator for the overall profit
health of your business. But when troubleshooting, changes
and improvements are necessary. You have to address those at
the department level. This means you’ll need to calculate gross
margins for each department in your business.
On the other hand, the prices that you charge your customer
need to be competitive. When gauging the effectiveness of
your pricing structure, listen to your customers and shop your
competition. While price is commonly one of the first questions
your customers will ask, it’s not necessarily the key to customer
satisfaction. Your job is to create value for your customers and
finding a winning balance between cost and price helps build a
strong business foundation.
MARKETING IS YOUR TRUMP CARD
One of the most successful programs we’ve put in place as
franchisees is a Marketing Action plan. Simply put, this plan
plays to the strengths of the franchisee. I was never one for
going door-to-door to find new customers, so I found a few
specific actions I could do well to get new people in the door. If
we got a business card, we’d turn it into a luggage tag and send
it back to the client. We found that 73 percent of these people
actually used the luggage tag, and many became customers.
I also recommend joining a networking group or a BNI
group. Becoming a business leader in your community is an
easy way to make lasting connections with influential people.
You never know when that can turn into a mutually beneficial
relationship. Consider too, looking into something like pay-perclick advertising. This is a great way to reach people you don’t
already know who can become new customers. What you do
isn’t as important as the fact that you do something consistently
and well.
To reach existing customers for repeat business, we’ve
always strongly believed in sending thank-you notes. If you
spend more than $100 in our store, you get a personalized
thank-you card. Nearly 85 percent of our business comes from
repeat or referred customers. We send out weekly emails to
more than 1,400 customers. The messages are product-based,
include news from the shop and feature a customer to tell their
story and ask for ideas to grow.
Most importantly, remember to tell (and show) customers
what you can do, not what you can’t. Marketing is not a verb.
With a few specific actions you can do well and measure, you
can be successful. Big corporations market based on money,
but small businesses market with the time, energy and passion
of the owner.
Every business has something that makes it unique — the
thing that it does better, faster or cheaper than the competition.
This uniqueness and your guarantee need to be the core of the
message that you deliver to your customers. Put yourself in the
mindset of your customer. This will allow you to speak to their
fears, wants, needs, expectations and delights. Describe your
business in the terms that are most familiar to the people who
buy from you. This will lead to more business for you. n
Mike Boyd is vice president of field support and
training for Instant Imprints and a former
franchisee of Instant Imprints and McDonald’s
Corp. Find him at fransocial.franchise.org.
Don’t Miss The 2015 ICFE Special Sessions! February 14-15, 2015
February 14
• IFA Fran-Guard™
• Principles of Franchising
• Financial Boot Camp: Improving
Network Unit Profitability and
Performance
• Leading with Excellence
#IFA2015
February 15
• IFA Fran-Guard™
• Profit Mastery Charting a Course for the Future
• Leadership Motivation and Sales
Techniques for Champions
• Moving from Conflict to Collaboration:
Effective Franchise Relationships
Drive Bottom Line Success
This year at the 2015 IFA Annual Convention, the ICFE will present eight sessions over a two-day period (February 14-15). No matter if you
are a new CFE candidate or a current CFE seeking credits for recertification there is a session for you! You owe it to yourself and you also
owe it to your staff to take advantage of these courses.
At the 2014 IFA Annual Convention, the ICFE celebrated its 1,000th CFE; currently there are nearly 1800 franchise executives who are
certified or currently working toward their certification. If you are not already enrolled in the Certified Franchise Executives ™ (CFE)
program, don’t wait another minute. Enroll today online at our website—www.franchise.org/cfe.aspx. The ICFE Special Sessions and the
CFE designation will advance you, your staff and your system – take 2015 by storm and be the best you can be!
Robert Nevadomski, CFE
To register and for more information visit our website:
http://s4.goeshow.com/ifafoundation/icfe/2015/
69
M U L T I - U N I T franchise innovators
Transitioning From
Single- to Multi-Unit
Franchising
Franchising’s
high-achieving,
multi-unit
franchisees
share views on
key topics.
QUESTION: What advice would you offer a single-unit franchisee
seeking to become a multi-unit franchisee?
DRUCQUER: “Within CertaPro Painters, the philosophy is to prove yourself first in one territory
Chris Drucquer currently owns two
CertaPro Painters franchises in the
suburbs of Philadelphia. Find him at
before you buy a second one. The problem with buying right out of the gate is that it puts added
financial pressures on an already tenuous financial picture; it may affect your chances of early success.
“Once you’ve proved yourself and become comfortable and profitable, it is worth considering a
second territory for either defensive or offensive reasons. If the neighboring territory is in the same
general community as your current franchise then you may buy this second territory for defensive
purposes to completely control your local image and word of mouth. That last thing you want is to
hear about unhappy customers in a neighboring franchise that you cannot positively impact.
“If you have the necessary cash resources and can grow the management team to take advantage
of a second territory without diluting the first territory, buying the second territory could be a great
offensive move. This will allow you to grow your overall gross revenue much faster.
“I bought my second CertaPro Painters territory five years into business to control the local word of
mouth and image. The two territories were both in the same community so I wanted consistency of
execution and control. For the first several years I really just split the same marketing expenses over
the larger area and it didn’t provide a spike in gross revenue beyond slow growth. After ‘seeing the
light,’ I began to invest more in marketing and put together a management team to take advantage of
the additional clients I could service and business has skyrocketed! Initially it was a defensive move
until we started to ‘put the pedal to the medal’ and began to reap the rewards, tripling our business in
the past four years!”
WETEGROVE:
Frank and Tamara Wetegrove are
owners of Camp Bow Wow franchises
in San Antonio and one in Austin, Texas.
Find them at fransocial.franchise.org.
70
“First and foremost, you must have an entrepreneurial spirit. Start with setting
small milestones for your franchise. The main objective should be to get your franchise to work as a welloiled machine, with or without your constant attention. Set the parameters for success and empower
your staff to handle the rest. There is no real magic, but without a doubt, you must set a solid foundation
by employing the right people who clearly share your vision for compassionate client care. Fine tune your
policies and procedures and stay within the guidelines set by the franchisor. Remember, in the franchise
world, you are buying the idea of the business with a support system in place, but it still takes hard work,
sacrifice and devotion.
“Once your next location has opened, you will quickly realize the economies of scale at work. Overall,
business areas such as hiring, training, operating, marketing, B2C and B2B transactions, etc. are much
more familiar and easier to conduct because you already have a great blueprint for success. For example,
areas like marketing an additional location can typically be done at no additional cost. This proves to be
invaluable when opening up that next location as resources can be scarce. When you do start to turn
a profit, marketing dollars from this additional location can help to boost the opportunity for you to now
market in entirely different ways that were previously unaffordable.
“While financing your franchise can be difficult, we learned early on to look for many different
options and ask the tough ‘what if’ questions. Knowing where you need to be to position yourself for
the next franchise allows you to focus on these benchmarks. Despite what most believe, financing can
be obtained if you focus strongly on that need and have a great professional relationship with the right
broker.”
Sponsored by:
OVER 25 YEARS OF PRODUCING WORLD CLASS EXPOS
EXPOSURE TO THOUSANDS
OF QUALITY PROSPECTS
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waiting to meet you at one of our 3 expos.
FEBRUARY 5-7, 2015
Houston, TX
Take your franchise business to the next
level at Franchise Expo South in Houston
- one of the fastest growing cities in the
U.S. Meet thousands of entrepreneurs
and business owners from throughout the
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RESERVE
YOUR SPACE NOW
JUNE 18-20, 2015
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Be where 400+ of the hottest concepts in
franchising are – at the franchise industry’s
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your opportunities with 19,000 key
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and 85 countries. Pursue your domestic
or international goals, and sell single units,
area developments or master franchises, at
this one-stop event.
NOVEMBER 12-15, 2015
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Secure success with your franchise by being
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are thriving. Show eager attendees from
over a dozen states in the West the benefits
of your franchising business and how to
move to the next step with you, while you
make progress towards your expansion
goals.
Call 201.888.1666 or email [email protected]
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TECHNOLOGY
Cyber
Insurance for
Cyber Crime
Companies with fewer than
1,000 employees are nearly
twice as likely to be attacked
electronically.
BY SAM HIGGINBOTHAM
T
hanks to technology, businesses, suppliers and customers
are more connected today than ever before. Digital
storage of customer information, cloud computing, social
media and other innovations offer entrepreneurs substantial
cost savings and increases in efficiency. However, with these
advantages come increased risks. According to the Center for
Strategic and International Studies, a nonprofit research and
analysis organization, electronic criminals stole roughly $100
billion from companies and individuals across the United States
last year. Due to the threat these criminals pose to businesses,
many insurance providers have begun offering coverage for
losses sustained during a cyber attack.
DIGITAL THREAT PROTECTION
The importance of this new insurance category to franchisees
and small franchisors cannot be overstated because they often
don’t have the resources, training or staff to provide complete
protection from digital threats. Criminals exploit this reality and
companies with fewer than 1,000 employees are nearly twice as
likely to be attacked electronically, according to a 2014 Verizon
Data Breach Report. Despite having security systems in place
and trained security professionals on staff, several high-profile
data breaches have occurred at major banks and retailers. Smallbusiness owners can’t afford to ignore the threat of these kinds
of attacks.
If victimized by an electronic criminal, franchise businesses
can sustain substantial damage. Vital customer and employee
records could be lost forever. If these attacks actually disable
a location’s computer systems, they could even force closure of
the business while it reconstitutes itself. These damages can go
far beyond disruptions in service and loss of data, as businesses
are often held legally and financially liable for any costs incurred
by credit card companies and customers due to lack of adequate
security.
72
Fortunately, market forces have responded to the growing
demand for increased protection from cyber threats. A
recent report from the law firm McGuireWoods concluded
that roughly 25 insurance companies offer some form of first
or third-party insurance for cyber losses, with 31 percent of
all U.S. companies taking advantage of these options.
First-party insurance covers costs sustained as a direct
result of an attack, such as business interruption, extortion
and data loss. Third-party insurance covers liability that a
business might have to other parties, including customers,
regulators and suppliers after a cyber incident.
International Franchise Association Exec. Vice Pres. of
Government Relations and Public Policy Robert Cresanti
praised these business owners for taking charge of their
own cyber security. “Entrepreneurs are well-known for their
resourcefulness. Every day brings new challenges to their
doorstep. Rising labor prices, increased regulation and the
general risks that accompany going into business, already
threaten their hard work to provide high-quality goods and
services to their customers. Just as the threat of fires, floods
and legal liability are facts of life, so is the threat of electronic
crime.”
Thanks to public and private support for new educational
efforts, there are substantial resources available to franchise
small-business owners looking to enhance their own cyber
security. The National Cyber Security Alliance, which recently
announced a partnership with IFA, has released several
useful guides designed for small businesses. These tools,
along with a wealth of other information, can be found at
www.staysafeonline.org. n
Sam Higginbotham is special projects
coordinator for the International Franchise
Association. Find him at fransocial.franchise.
org.
RESERVE
YOUR SPACE
www.FranchiseExpoSouth.com
TODAY
DON’T MISS YOUR CHANCE TO MEET
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FACTS
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• Position your franchise opportunity in the booming Houston market,
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FEBRUARY 5-7, 2015
NRG CENTER - HOUSTON, TX
Sponsored by:
• Meet motivated prospects with the ability & financial resources to
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UPCOMING SHOWS
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LEGAL
New Prohibitions on
Sending Commercial
Electronic Messages to
Canadians
Understand how Canada’s Anti-Spam Legislation works and how
to comply with it.
BY LARRY MUNN AND JOHN L. ROGERS
O
n July 1, 2014, one of the world’s toughest anti-spam laws
came into effect: Canada’s new Anti-Spam Legislation,
commonly known as “CASL.” CASL prohibits the sending
of a commercial electronic message to an electronic address,
unless consent has been given by the intended recipient and
certain legislated content has been included in the message.
CASL regulates all commercial electronic messages accessed
within Canada, and so will affect franchisees and franchisors
equally. Its stated aim is to promote efficiency in commerce by
regulating electronic communication, but it also significantly
affects a business’ ability to send electronic messages to
Canadians. With fines up to $10 million for an organization and $1
million for an individual for failure to comply, it’s very important to
understand how CASL works and how to comply with it.
WHAT IS A “COMMERCIAL ELECTRONIC MESSAGE”?
CASL regulates “commercial electronic messages” or CEMs
accessed in Canada. It only affects commercial messages, those
which encourage participation in a commercial activity, such
as the purchase of goods or services. CASL does not apply to
faxes or broadcast messaging such as tweets and posts on social
media, but rather email communications, particularly promotional
emails seeking new business, are clearly at issue.
If the message is accessed in Canada, even if sent by a business
outside of Canada, CASL will apply.
HOW CAN MY BUSINESS OBTAIN CONSENT TO SEND
CEMS?
CASL requires that consent be given by a person or entity,
prior to a commercial electronic message being sent to that
74
person or entity.
For many businesses operating in North America, this
will come as a surprise. CASL is quite different from similar
legislation in the United States, commonly known as “CANSPAM.” In general, CAN-SPAM permits the sending of CEMs
so long as the recipient has not opted out of receiving them.
CASL, in contrast, demands that the sender opt in, by taking
a step to consent to receiving CEMs. Such a step cannot be
made a condition of buying of a product, and must be received
prior to sending any CEM. Consent cannot be requested via
an email seeking consent. When preparing a consent form,
CASL requires that the consent sets out “clearly and simply”
the purposes for which consent is being sought, information
identifying the person seeking consent, including the name
under which he carries on business if different from the legal
name, along with the address and contact details. An entity
obtaining consent must be the same one that will be sending
the CEMs.
An ideal method of obtaining consent by a franchisor or
franchisee would be to post a link to a sign-up page on its
webpage and in its social media.
The onus is on the sender of a CEM to prove it had the
consent of the recipient before the message was sent.
BUT WE ALREADY HAVE AN E-MAILING LIST!
Unfortunately, mailing lists that include email addresses
located in Canada are going to need to be updated for the
consent requirement. Franchisors and franchisees looking to
advertise and promote their franchised businesses by building
databases through electronic means must be keenly aware of
CASL’s provisions. Such database lists may be inadequate to
prove that the sender of CEMs has consents of the intended
recipients.
WHAT ABOUT EXISTING BUSINESS
RELATIONSHIPS?
In some limited circumstances, consent may be implied,
including where there is an “existing business relationship”
between the sender of a CEM and the intended recipient.
Such a relationship is defined in CASL as any recipient who
or which has, within the last two years, purchased or leased
products, goods or services from the sender, has signed a
written contract or has accepted an investment opportunity
with the sender. If an existing business relationship does
exist, then the intended recipient is deemed to have given
implied consent to continue receiving CEMs from the sender,
but limited in time as mentioned in the next paragraph.
This is a very important exception for ongoing franchisor/
franchisee relationships and established relationships
between franchisees and their customers. As long as the
relationship continues, there is implied consent to send
CEMs, but only continuing for two years after the last contract
for supply of goods and services ends. Once two years have
passed, a sender cannot continue to send promotional or
other information by CEM unless a new consent is obtained
before or when the existing contractual relationship ends.
Ascertaining when a “business relationship” based
on implied consent expires can be tricky. To avoid any
chance of liability under CASL, a sender’s best course is to
obtain written consent complying with CASL from existing
relationships with persons or entities when entering into new
business relationships.
WHAT IS THE KEY LESSON FOR FRANCHISORS AND
FRANCHISEES?
Here are some guidelines for franchisors and franchisees to
follow to comply with CASL.
•
•
•
•
•
WHAT CONTENT MUST BE INCLUDED IN A CEM
UNDER CASL?
A sender’s obligations under CASL do not stop once it
has a written consent from an intended recipient of CEMs.
Again, CASL requires that the sender identify itself and
provide contact information.
Further, all CEMs must include an “unsubscribe”
mechanism. This must remain open for 60 days after the
CEM is sent and once received, must be given effect without
delay, at most within 10 business days.
Franchisors and franchisees must ensure that all CEMs
sent to Canadian persons or entities include this requisite
information.
•
•
Appoint a staff person to be in charge of compliance
with CASL and establish formal policies and procedures
for all staff, using the information below. Review your
existing emailing lists and note which Canadians
(persons and entities) listed have given express or
implied consent to receive CEMs and the dates of their
consents. Show two-year expiry dates of consents
implied by “existing business relationships.”
Set up a binder with a current copy of your emailing list,
copies of all express consents, plus notes of implied
consents.
Seek fresh consents in person at your office or
franchised business and by using a website or social
media. Continue to update your binder with a record
of the date and method of each new consent. For
consents that are received by email, set up an automatic
email reply to the recipient requesting confirmation.
This way the consent will be verified and documented.
Ensure that your CEMs are only sent to intended
recipients who have given consent and that the CEM
includes your purpose in sending it, your contact
information, including your legal name (and any
business name you use), your complete street address
and telephone number and your email address.
Include in each CEM you send an “unsubscribe” option
for the recipient to complete and return by email if the
recipient does not wish to receive some or all future
CEMs from you (you may show a selection of categories
of CEMs that recipients may choose to maintain or
refuse). Update and test the “unsubscribe” mechanism
regularly, to ensure it continues to operate effectively.
If a franchisor or franchisee is sending the CEM on
behalf of each other, then this must be noted and the
above contact information for both must be included.
Also, the same contact information must be included
for any affiliate involved in the CEM.
To obtain toolkit guidance directly from CASL, visit
http://casltoolkit.com/. The Internet has several other
sites searchable under “CASL.” n
Larry Munn is a partner and John
L. Rogers is associate counsel for
the law firm Clark Wilson LLP.
Find them at fransocial.franchise.
org.
IS THERE A DEFENSE?
CASL includes a potential defense to non-compliance
of “due diligence” by the sender. To avail itself of such a
defense, a franchisor or franchisee must show that it took all
reasonable steps to comply with CASL, although consents
were not obtained from all recipients of CEMs the sender
sent. The sender will also need to demonstrate that it has
taken corrective measures to comply fully with CASL in the
future.
MUNN
ROGERS
75
TRENDS
Take Your Business on the
Nontraditional Route
Nontraditional expansion has great potential for a brand while
fueling system-wide growth.
BY BILL CHEMERO, CFE
F
ranchising growth and expansion is a tough hurdle for many up-and-coming brands to overcome.
More businesses and franchises are fighting for space and market share, and there are certain
markets that are saturated with operators. Throw into the mix the continuing difficulty to access
capital, and adding franchise units to your portfolio can be a daunting challenge. It is becoming more
common for small businesses to explore other routes for expansion, such as tapping into nontraditional
locations.
The days of owning small businesses solely in strip malls are gone; companies are now turning to
arenas, military bases, hotels, colleges, larger retail giants, rest areas and airports as locations. This trend
has been driven not only by the big franchise players, but by emerging brands as well. While there are
many benefits in nontraditional venues, such as lower start-up costs, potentially lower rent and lower
monthly bills, there are also major risks to consider before executing a specific expansion strategy. Small
businesses have to make key considerations and follow best practices when looking to chart a course into
the foreign territory of nontraditional locations.
MODIFY YOUR CONCEPT
Nontraditional locations typically mean a smaller model regardless of your specific industry whether
those are restaurants, service companies, travel agencies and so on. It is important your model remains
recognizable and reflects your brand’s true identity. Many businesses face the challenge of scaling its
unit to fit, but they must be flexible. Key considerations include design, hours of operation, equipment
requirements, and alterations to products and services.
For example, Wayback Burgers, recognized as one of the most aggressive and ambitious better-burger
brands in the United States, has recently expanded into the Wells Fargo Center in Philadelphia. Hours of
operation had to drastically shift to accommodate the schedule of arena events at the venue. With short
intermissions and roughly 20,000 attendees, Wayback Burgers had to create a limited menu to speed up
the typically relaxed fast-casual style of service it implements in traditional locations.
A final consideration is price points. Because of potentially higher overhead costs, extra fees and a
captive audience, price points typically increase between 20 percent and 25 percent. For nontraditional
locations without limited hours of operations, such as airports, the unit may frequently be among the
chain’s highest volume-units, doubling a typical store’s customer traffic.
STRENGTHEN THE ADVANTAGE OF THE CAPTIVE CUSTOMER
One of the greatest advantages of nontraditional locations is that they serve captive customers. A
way to strengthen this advantage is to customize products and services to their unique needs. This may
include adding convenience factors and new features to the product or service.
For example, restaurant businesses opening on military bases may explore the option of adding
76
breakfast to their menu to meet the demand of early risers in
the military community. Wayback Burgers has nontraditional
locations in partnership with the Navy Exchange, including a
location in the Naval Base Ventura County in Port Hueneme,
Calif. which enjoys high breakfast sales each day.
UNDERSTAND FINANCIALS
The investment, operational costs and unique shipping
and distribution fees of nontraditional locations vary, and
also include the involvement of additional parties. For
example, the rent is much higher in the private sector (i.e.
malls and airports); about 20 percent to 30 percent higher,
whereas for military bases, the rents are very low. Another
consideration is the tenant-landlord relationship. It is
important for businesses to create a close relationship with
the host location to maintain finances and conduct status
updates.
STRATEGIC SELECTION OF OWNERS
Development in nontraditional venues often involves
single- and multi-unit owners with solid experience in their
industries. Stadiums and airports have high security, which
makes it difficult even for experienced institutional-type
operators to get qualified through the vetting process.
Businesses and owners seeking to expand into this venue
should understand it will take time, but the payoff could be
huge.
Above all, just as with traditional locations, the
owner must possess a passion for the business and have
exceptional leadership skills. Training of nontraditional
location employees becomes crucial in the success of the
business. Nontraditional locations are serving customers
who come in during unique hours and often all at once. For
example, businesses located in larger retail centers, such as
travel agencies or home improvement businesses, will see a
larger rush during the lunch hours in which consumers are
breaking from traditional nine-to-five work hours. Similarly,
when classes are dismissed on a college campus, restaurants
will often experience a flood of customers and then have
no traffic until classes are released again. This puts a lot of
pressure on the employees to be efficient with their services
during the high- and low-volume waves.
Exploring the route of nontraditional expansion has
allowed brands to establish a competitive advantage,
differentiating them in the crowded marketplace.
Businesses are gaining more exposure, reaching a different
customer base and generating new leads. If done correctly,
nontraditional expansion has great potential for a brand
while fueling system-wide growth. n
Bill Chemero, CFE, is executive vice president
of Wayback Burgers. Find him at fransocial.
franchise.org.
H O N O R I N G A M E R I C A’ S V E T E R A N S
VetFran Represents a
Higher Purpose
VetFran isn’t just for your franchise, it’s
for all franchises representing all veterans
and military spouses.
V
BY KEVIN BLANCHARD
etFran represents something special. It is rare that close to one-half of an entire industry comes together on one cause.
VetFran has enabled the franchise industry to employ or recruit 151,000 veterans and spouses as business owners or
employees since 2011. This has been part of the White House’s Joining Forces initiative, and the 500,000 jobs committee of
the U.S. Chamber of Commerce’s Hiring Our Heroes Foundation.
Where do we go from here? As a Marine veteran, someone who manages the VetFran program and aspires to be a franchisee
as well, there are several opportunities that exist within the VetFran program. To realize these opportunities franchisors need
to think outside the box, think at the industry level, be leaders and realize a higher purpose. The following article outlines a few
starting points on how the franchise community and VetFran can work together.
One example of the franchise industry working with VetFran is through a very generous partnership between VetFran and
IFA suppliers Qiigo LLC and Process Peak LLC. The goal is to launch a new website and support our social media efforts that
make it much easier to engage with VetFran and upcoming activities. This partnership is at the program level and perhaps less
77
interesting to some, but what this really means is it’s the
starting point to carry out even more influential initiatives
for veterans and their families on a national scale. There are
two important opportunities within the VetFran program to
serve these individuals who have served us.
the newest generation of veterans. VetFran is all about
empowerment.
For franchisors who want to participate in VetFran, but don’t
know where to start or want to further engage in the program,
the following starting points should be considered.
EXPANDING THE VETFRAN MENTORSHIP
NETWORK
CREATING AN EFFECTIVE VETFRAN PROGRAM
As an industry, we can dramatically expand the current
VetFran mentorship network. A VetFran Mentor assists
veterans in understanding the options available to them
in the franchise sector. Such options may include franchise
ownership, employment, internship or other roles to build
a career after their military service. Mentors are available to
listen to what veterans are saying, enlighten them by sharing
information on franchising, help them to understand and
navigate various aspects of the journey and, in general, be
a resource of unbiased and worthwhile information to help
veterans make the best decisions.
All VetFran Mentors are 100 percent volunteers. There
are certain guidelines potential mentors will need to follow
when considering whether volunteers have the time,
willingness and the veteran’s best interest in mind. Details
can be found at www.vetfran.com/become-a-mentor/.
CREATING A GRANT PROGRAM
The mission statement of VetFran is: “To Provide Access
and Opportunities in Franchising to Our Nation’s Veterans
and Their Spouses.” In many cases, providing access means
breaking down some of the financial barriers of entry. If
we look at who needs assistance most, it is often younger
transitioning veterans.
For example, these are people that have recently exited
the military, and then utilized GI Bill benefits to obtain a
college degree. After completing college, many veterans
want to be entrepreneurs and franchisees. They want to
use their real-life experiences of leadership to make their
communities better, live with real purpose and complete a
defined mission, much like their military experience.
Regardless of their leadership skills and intense desire
to become business owners and leaders, there are still
financial burdens to overcome. A well-structured and
responsible grant program will significantly increase access
to franchise business ownership. A grant program will
increase veterans’ chances of getting a small-business
loan, U.S. Small Business Administration financing and
utilize franchisors’ loan programs. Grants could be used
for franchise ownership training and equity injection.
We need industry leaders to step up and empower
78
1. DEFINE A CLEAR OBJECTIVE
Set a clear objective of what your company is trying to
accomplish with your VetFran program. You can consider
developing a program plan that spells out your objectives and
goals, how they are going to be executed, an expected timeline,
who is involved and their roles for accomplishing the mission.
Whether you are implementing a veterans hiring commitment
or veterans franchise recruitment strategy, it is important that
everyone involved understands the objectives and how they
will be accomplished. Most importantly, how can your company
benefit the military and veterans communities?
2. ESTABLISH PROCEDURES TO TRACK PROGRESS
Once you have a clear understanding of your objectives, it
is important to establish company-wide procedures and a way
of tracking your progress. First, it is wise to know how many
veterans are already employees, who they are and which ones
are franchisees within your system. This will help you evaluate
goals for veterans’ recruitment. You can conduct a brief systemwide survey to collect this information. It is important to explain
the importance and value that veterans add to your brand and
reasons for the survey. VetFran conducts an annual survey with
participating companies, and tracking this information is of great
value to the program’s progress and success.
3. CREATE AND MAINTAIN A MILITARY-FRIENDLY
CULTURE
As a VetFran participating company, it is important that your
franchise create and maintain a military-friendly culture. This
can be done through effective communication and networking
within your system. One way is to communicate to the public
and media about the veterans already in your franchise system,
their success, and the programs or initiatives designed for them.
Give your veteran-employees and franchisees opportunities
to tell their stories. If your company is able to facilitate bringing
the veterans already in your company together, the bond that
was formed during their time in service will be rekindled. This
is both beneficial to the veteran-franchise-business community
and your brand. In many cases, veterans have unique, but similar
communication styles, and sharing “best practices” comes
naturally between their veteran peers.
4. PROMOTING TO VETERANS AND MILITARY
COMMUNITIES
Communicating with veterans and military communities
can be no easy task. It requires dedication and a thoughtful
outreach strategy. Regardless of whether you are an
established franchisor with many years of experience or
considering franchising for the first time, promoting any
new program can be overwhelming.
As an industry, so many franchise businesses have
seen success in reaching their veteran target audience.
There is certainly a large market to evaluate, given that
tens of thousands of servicemen and women return from
deployment each year. These are unique individuals with
particular skills, lifestyle preferences and leadership
experiences that make them excellent candidates for
franchise business ownership.
How to get started? To whom do you target your
message and how? And how do you stay within your
budget? We have taken some of these questions into
account and have conducted some initial research to assist
VetFran participating companies in their outreach strategy.
We have provided some information as a starting point to
spread the word of your veteran’s program at www.vetfran.
com/veterans-outreach/.
IFA Tees Off to Support the Simpson
Cup and Wounded Warriors
W
hen the 2014
Simpson Cup
golf tournament
got underway at the
Congressional
Country
Club near Washington,
D.C. in October, it brought
together some fierce U.S.
and U.K. competitors:
injured servicemen and
veterans. The International Franchise Association, along
with the U.S. Chamber of Commerce, were two of the cup’s
supporting sponsors.
IFA was represented by Pres. and CEO Steve Caldeira,
CFE; TSS Photography Chief Operating Officer and Pres.
Joe Lindenmayer, who serves as IFA VetFran Committee
chairman; and IFA Educational Foundation Coordinator
Kevin Blanchard, who manages the VetFran program.
As one of the few sports that enables players of all skills
and abilities to participate on a level playing field, the
Ryder Cup-style tournament is an excellent showcase for
golf due to the game’s handicap system. The Simpson Cup
raises awareness and funds for the On Course Foundation
which, through golf, helps restore self-confidence and
purpose to servicemen, women and veterans after injury.
Tournament founder John Simpson is the former
senior vice president of the International Management
Group, who has only one fully functioning leg as a result
of suffering polio as a child.
^ From left, IFA Educational Foundation Coord. Kevin
Blanchard, TSS Photography COO and Pres. Joe
Lindenmayer, Team U.S. member and Wounded Warrior
Eric Napier, American Continental Group Partner and
Congressional Country Club board member Manus Cooney,
IFA Pres. & CEO Steve Caldeira, and caddy Jeff Watson.
< Members of the U.S. Team (top) and the British Team >
(bottom) prepare for the tournament.
79
IFA’s VetFran Program Receives Top American
Society of Association Executives “Power of A
Gold Award” at 15th Annual Summit Gala
Caldeira Serves as Dinner Co-Chair – Event Raises All-Time Record of $670K.
IFA’s efforts to support our nation’s veterans, military spouses and wounded warriors represented the largest
private-sector veterans’ hiring commitment at the time of its launch on Veterans Day 2011.
T
he International Franchise Association has been
honored by the American Society of Association
Executives (ASAE) for the ongoing success of its
Veterans Transition Franchise program and Operation
Enduring Opportunity initiatives. ASAE presented its
“Power of A Gold Award” to IFA in October during a gala
awards summit in Washington, D.C.
The ASAE awards gala recognizes the outstanding
accomplishments
of
associations
and
industry
professionals for their efforts to enrich lives, create a
competitive workforce, prepare society for the future
and drive innovation. IFA’s efforts to support our nation’s
veterans represented the largest private-sector veterans’
hiring commitment at the time of its launch.
IFA Pres. and CEO Steve Caldeira, CFE, and American
Speech-Language-Hearing Association CEO Arlene
A. Pietranton, Ph.D. served as co-chairs for the 15th
Annual Summit Awards Dinner. The gala set an all-time
fundraising record of $670,000 with more than 1,200
people in attendance. National Association of Chain Drug
Stores Pres. and CEO Steven Anderson served as master
of ceremonies.
VetFran helps returning service members access
franchise ownership and employment opportunities
through training, financial incentives and industry support.
Today, more than 650 franchise systems voluntarily offer
financial incentives and mentoring to prospective veteran
franchise small-business owners.
OEO was a franchise industry-wide effort aspiring to
hire and recruit 80,000 veterans, military spouses and
wounded warriors by the end of 2014. Since Veterans Day
2011, there have been 203,000 veterans who have found
career opportunities in the franchise industry, with 5,600
becoming small-business franchise owners, significantly
surpassing IFA’s goals in both areas. The program is
supported by First Lady Michelle Obama and the White
House’s Joining Forces Initiative. In 2013, IFA was honored
at the White House for its ongoing efforts. VetFran has
also successfully partnered with the U.S. Chamber
of Commerce’s Hiring Our Heroes program, which is
financially supported by a grant from Capital One Bank. n
Kevin Blanchard is coordinator of research &
strategic initiatives for the International
Franchise Association. Find him at fransocial.
franchise.org.
80
^ From left, National
Association of Chain
Drug Stores Pres. &
CEO Steven Anderson,
IFA Pres. & CEO Steve
Caldeira, American
Speech-LanguageHearing Association CEO
Arlene A. Pietranton,
Ph.D. and ASAE Pres. &
CEO John Graham.
< American SpeechLanguage-Hearing
Association CEO Arlene
A. Pietranton, Ph.D. and
IFA Pres. & CEO Steve
Caldeira address ASAE
gala audience.