Episode #16 - Is Three-Party Franchising Right for Your System
Release Date: 08/04/2017
Episode #37 - Financial Performance Representation (Item 19)
The Franchise Manual Podcast
My Podner in this episode is Cheryl Mullin and she’s going to talk with us today about Financial Performance Representation! Man, if that doesn’t make you salivate then you are no franchisor in my books. This can be a very dense topic but I am confident that Ms. Cheryl help us demystify this topic and maybe even help us pull our heads out from underneath the covers every time it is mentioned. But who knows, she may even have us running for the hills even faster. Time Stamps Cheryl Mullin Intro 00:00:30 Segment 1 00:02:49 Get to know Cheryl Mullin Segment 2 ...
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Episode #36 - Branding Your Franchise
The Franchise Manual Podcast
My Podner in this episode is Jordis Small and she’s going to talk with us today about branding. Branding is a word that is used in many contexts and sometimes misused and misunderstood. Jordis promises to clear all of that up for us today. This will be a fun ride Note: Ms. Jordis is recovering from a nasty cold and she lost her voice. The voice is scratchy but the content is GOLDEN. Time Stamps Jordis Small Intro 00:00:32 Segment 1 00:02:42 Get to know Jordis Small Segment 2 00:18:00 Topic Segment – Branding Your Franchise Segment 3 01:14:12 ...
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Episode #35 - The Challenges of Scaling to Over 50 Units
The Franchise Manual Podcast
My Podner in this episode is Tom Wells and he’s going to talk with us today about the challenges of scaling a brand over 50 units. It’s a moving target and things change, and he’s going to share some REALLY COOL stuff with us today. Time Stamps Tom Wells Intro 00:00:31 Segment 1 00:02:13 Get to know Tom Wells Segment 2 00:27:05 Topic Segment – Challenges of Scaling to Over 50 Units Segment 3 01:06:27 Quickdraw Questions Topics Discussed in this Episode Key areas franchisors miss in their first year: This ultimately comes down...
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Episode #34 - New Franchisor Pitfalls
The Franchise Manual Podcast
My Podner in this episode is Michael Peterson and he’s going to talk with us today about the mistakes that new franchisors typically make during their first year of operation. Some of these mistakes can be quite expensive, while others can lead to the death of your entire system. If you are a newly minted franchisor, or if you are about to start your journey, this is one that you won’t want to miss. Time Stamps Michael Peterson Intro 00:00:31 Segment 1 00:02:37 Get to know Michael Peterson Segment 2 00:20:39 Topic Segment – New Franchisor Pitfalls ...
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Episode #33 - The Franchise Expo
The Franchise Manual Podcast
My Podner in this episode is Tom Portesy and he’s going to talk with us today about how to maximize the return on your investment at a franchise expo, how to avoid the pitfalls, and best practices that will help you represent your brand in the best light. Time Stamps Tom Portesy Intro 00:00:27 Segment 1 00:03:41 Get to know Tom Portesy Segment 2 00:18:22 Topic Segment – The Franchise Expo Segment 3 01:03:42 Quickdraw Questions Topics Discussed in this Episode What is a franchise expo Short history of the expo How to manage...
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Episode #32 - Marketing to Prospective Franchisees
The Franchise Manual Podcast
Jackie Hoegger talks with us today about how to market to prospective franchisees. This conversation spans topics such as website design, digital marketing, even down to how you treat your existing franchisees. This is our first episode on the topic of marketing and we came out of the chute with a GREAT one.
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Episode #31 - The Franchise Operating Manual
The Franchise Manual Podcast
What franchisors should know about their franchise operating manual.
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Episode #30 - Site Selection, Real Estate, and Build-Out
The Franchise Manual Podcast
My Podner in this episode is Brendan Charles and he’s going to talk with us today about what franchisors should be teaching their franchisees about site selection, real estate negotiations, and build-out. Bad decisions in these areas can be detrimental to the success of the location.
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Episode #29 - Creating Customer Loyalty
The Franchise Manual Podcast
My Podner duo in this episode is Andy Erskine and Bob Gappa of Management 2000, and they’re going to talk with us today about the importance of customer loyalty, what drives it, and how to manage it.
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Episode #28 - Generating Franchisee Leads
The Franchise Manual Podcast
Red Boswell talks with us today about how to generate franchisee leads. This is one of the hottest topics with franchisors. This discussion will benefit both new and seasoned franchisors.
info_outlineIn this episode, Brian Schnell and I talk about Three Party Franchising – that’s using master franchisees and area developers to grow your franchise system. Many people misuse these two terms, or use them interchangeably – Brian’s going to clear it all up for us.
Time Stamp
Brian Schnell Intro 00:00:40
Segment 1 00:02:28
Get to know Brian Schnell
Segment 2 00:23:53
Topic Segment - Is Three Party Franchising Right for Your System?
Segment 3 01:00:51
Quickdraw Questions
Topics discussed in this episode:
What is the difference between a Master Franchisee and an Area Developer
What is the Three-Party Franchise model?
Three Party Franchise model works very well internationally
Avoid the temptation of "0-100 franchisees quick" through three party franchising without a full understanding of what is involved. Don't try to sprint before you know how to walk.
The conversation about Three Party Franchising shouldn't take place without a full understanding of risks and benefits to all parties.
What is the necessary infrastructure before diving into a three-party franchising model? A full understanding of:
- Site selection
- Field support
- Unit economics
The infrastructure must exist somewhere; either on the franchisor side or the area developer side.
The functions of managing a franchise system are usually carried out by a team of corporate employees. It is not realistic to expect an area developer to fulfill the same functions plus operate a unit without the proper infrastructure.
Finding an area developer that is good at EVERYTHING is not likely. Try focusing on an area developer's core competencies and supporting the area developer in the areas where he/she is weaker.
Don't offload functions of managing a system to an area developer that can be more efficiently executed by corporate office.
After you sign a master franchisee or an area developer, the system DOES NOT go into autopilot. The franchisor must stay involved and active.
Trying to fix problems in the three-party franchise relationship are much easier to correct early on, so stay connected and involved.
Educate yourself before trying to utilize a three-party model by talking to attorneys and consultants who have experience.
Manage expectations up front through a well written agreement and ops manual
Brian Schnell
Faegre Baker Daniels
612-766-7699
Kit Vinson
FranMan Inc. (Franchise Manuals)
214-736-3939 x1
Notable mentions in this episode:
Faegre BD Franchise Summit
https://www.faegrebd.com/faegrebd-franchise-summit
Paul Rocchio - IFA
202-662-0790
Contact Paul for information about joining the International Franchise Association
Book: Dare to Serve
By Cheryl Bachelder
Servant leadership is sometimes derided as soft or ineffective, but this book shows that it's actually challenging and tough minded - a daring path. Bachelder takes you firsthand through the transformation of Popeyes and shows how a leader at any level can become a Dare-to-Serve leader.