I came to this realization because I knew we could either create or be exposed to a wonderful business model but if we did not have the right type of person as either the owner or manager, the business would never reach its fullest potential. After researching and evaluating most of the “personality profiles” in the marketplace we concluded they were created with an Employer/Employee relationship in mind and were irrelevant to franchising. Some of these companies have attempted to convert their “tools” to franchise ownership but they are cumbersome, expensive, untested and unreliable.

What we learned, from our research, is an individual’s skills, values and behavior is a critical barometer in addition to financial resources.   This is what needs to be matched to the High Performers of a franchisor’s business and franchise model. Values are closely held principals that each of us have and are used as the basis for making decisions, especially when it comes to business ownership and day-to-day operational decisions.

On the franchisor side we have found that many, many franchise companies have sold a lot of franchises to the wrong type of person! No surprise there, eh? Well, once they know the profile of their Top Performers they can create an “attraction strategy” to recruit more Top Performers. Anyone who does not match this profile should not be offered the franchise – to the benefit of both parties. Unfortunately, there are many franchisors that either don’t understand this or don’t care because they need to recoup their investment to get into franchising.

A franchisor who is selling franchises without knowing this ideal profile, scientifically, is doomed to implode. What builds value for a franchise company is market share and brand awareness and when they sell franchises to the wrong people, who end up closing their businesses, everyone loses, even if it was or is a great business model.  And if they struggle to keep their businesses open the franchisors costs of servicing them increases beyond whatever they would receive in royalties and other fees.

Finding the right franchisee, who fits a particular business model, is a topic we will hear more about in future years and, in my opinion, will mitigate a lot of the problems we read about on this site. Brokers don’t really know how to go about this – they want their commissions. Franchisor’s, for the most part, are clueless on how to select the right franchisee because they just don’t know.

About Franchise Navigator: The Franchise Navigator is an on-line, web-based survey tool that in fewer than 10 minutes produces a report that identifies and quantifies an individual’s skills, values and behavior. A franchisor then matches a candidate’s individual results to their own franchisee population and can determine if the candidate is a good fit.

By: Craig Slavin
Phone: 847-465-0111
Web: http://franchisenavigator.com

As a franchisor in the chain restaurant arena, having an experienced Kitchen Equipment Supplier (KES) as part of your development team can be a real asset for your system.  Let’s examine how and why.

Without a doubt, Quoting, Ordering, and Delivery are the “Big 3” that come to mind when you think about the services a KES provides.  However, when we look more closely, the KES actually performs several intricate functions that are vital to the entire project schedule, from the trigger event to operations turnover. 

Prior to ground break, the KES reviews the site construction plans and provides a cost estimate of all items included in their scope of work for the project.  This initial quotation process typically surfaces many questions about the project and serves as a benchmark for further research and discussion.  The end result is a quote that is site-specific to the location.  This step is critical to a successful project yet often does not get the attention it requires.

Once the quotation is finalized and agreed upon, the order entry and date confirmation processes take place.  This leads to the creation of the delivery schedule that is coordinated with the onsite contact and the KES project manager.  As soon as the delivery dates are determined, the KES logistics team schedules the most cost effective way to meet these delivery timelines.  This is accomplished by taking into account factors such as manufacturing lead-times, location distances, staging requirements, and freight dimensions, and then contacting the appropriate carriers to move the various products. 

An important note here is that some items typically travel directly to the location, while others are consolidated or staged in a warehouse facility and moved separately at the appropriate time. Careful orchestration is required to ensure that the most efficient movements are implemented.

This oversimplifies a project of course, but in a perfect world, that would be it – orders would be placed, deliveries would be coordinated, product would ship, and everything would show up at the site – right place, right time, right condition, every time.

Unfortunately, as we all know, changes happen!  An example for comparison might be contrasting a location’s “as built” versus “as drawn” site plans – rarely do these match exactly. 

Consider what can take place on a jobsite; Rain and severe weather.  Permits are not issued as expected.  Interior dimensions change.  Inspections cause re-work.  Any of these can cause labor to fall behind.  The potential for unexpected cost overruns is elevated when restaurants don’t re-open on time and revenues are delayed.

This is where an expert KES really shines and provides values and benefits to the system that are hard for operators to reproduce on their own.

When conditions change at the site that require the onsite contact to alter the delivery schedule, especially with items on the critical path, it’s important to understand the absolute impact of that change.  A favorite expression is “The devil is in the details,” because recognizing exactly which orders and deliveries to modify is a skill not to be taken lightly, and enlisting the support of the vendor and carrier partners is essential.  The KES must determine all of the potential conflict points and work with the parties involved to resolve each of them, not just the one that’s hot at the moment. 

Which items?  Which delivery?  Where in the transportation matrix are they?  Was it a direct ship or staged order?  What other deliveries will be impacted?  Will local storage be necessary?  How will we meet the new timelines?  Who do we communicate with?  These are just some of the myriad of questions a KES asks internally when determining a solution to a delivery change request.  Hands on, proactive follow up allows the onsite contact and KES to modify plans and schedules accordingly and work together toward a new solution.  An experienced KES has your operator’s best interests at heart.

Operators usually ask a question along the lines of, “Can’t I do all of this myself and save a couple bucks of cost?” when dealing with any third party provider.  Restaurant equipment distribution in the chain arena is no exception.  Depending on a franchisee’s level of expertise, it’s possible.  But, as an owner and operator who wears many hats, dealing with architects, contractors, local governments, regulatory, financing, and crew hiring – do you really want them adding Equipment and Logistics to the list?  It’s tougher than you think to do it right, and the resources a KES brings to the table on behalf of the system save substantial dollars one would incur in headcount, deposits, cost of capital, and project management systems.  Think about it from an operations perspective, and be sure to ask yourself what the highest and best use of your valuable time is. 

Astute business operators surround themselves with experts in their respective fields.  Let a professional KES be your equipment expert.  It’s definitely money well spent.

Drew Golley is a Certified Food Service Professional (CFSP) and a foodservice equipment expert who works in partnership with chain restaurant operators to develop solutions that drive scale and efficiency for their distribution systems.  Connect at www.linkedin.com/in/drewgolley

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Franchises that assist and equip homeowners in their quest for a healthier living environment are rapidly expanding, with no foreseeable end to this trend. The EPA cites that indoor air pollution is ranked as one of the top five environmental threats to public health. As homeowners and potential homeowners become more aware of this information, they are demanding air duct cleaning and mold remediation services.

In addition to offering air duct cleaning and mold remediation services, select franchises in the indoor air quality industry also offer disaster restoration services – a service that has proven to be a recession-resistant demand among homeowners. 

AdvantaClean Systems, Inc., a national indoor air quality franchise, was recently recognized as a top low-cost franchise by Fox Small Business Center in an article naming ten low-cost franchise corporations under $100,000 that have proven to be recession-resistant despite the current economic downturn.

“Our number of locations has tripled since the beginning of 2010,” says AdvantaClean CEO Jeff Dudan. “AdvantaClean franchisees perform three high-margin, non-discretionary services – air duct cleaning, mold removal, and emergency water removal. It’s a winning combination of scheduled events, and emergency services, that lead to the best possible utilization of resources in a small business.”

Franchises that cater to trendy, health-conscious consumers have seen an increase in sales this past year as well. Despite downward trends in the past, the success of frozen yogurt franchises indicates long-term expansion in the future. 

Froyo big-shot TCBY is raking in $120 million in annual sales with approximately 800 locations nationwide. That’s quite a turnaround from 1994 when the company saw its sales drop by almost $30 million. “The fro-yo category is in the midst of a revolution and we are certain there will be causalities. For TCBY, we are rewriting our future – lost leader turned energized stalwart ready to leverage its infrastructure, innovation and commitment to setting the tone for the category’s healthy standards,” explains CEO of TCBY Tim Casey, according to Franchise Direct.

Pinkberry, runner-up to TCBY as the largest frozen yogurt chain by sales, reports $109 million with the addition of 19 stores.

Another close competitor is Red Mango, a Texas-based company that opened in 2007 and began franchising in 2009. By the end of 2010, Red Mango awarded agreements for 147 locations and opened 62 new stores. Red Mango plans to double their locations by the end of 2011.

Franchise systems that take advantage of the new market realities, whether they are services designed to make healthier snack options available or to assist homeowners with indoor air quality, will be well-positioned this year and likely in years to come.

Article by: Sarah Wilbanks

About AdvantaClean – AdvantaClean Systems, Inc. is a nationwide franchise specializing in water removal, air duct cleaning, mold removal, dryer vent cleaning and indoor air quality solutions. The company is experiencing record growth as a recession-resistant, high margin, low overhead business opportunity. The company is headquartered in a 22,000 square foot state-of- the-art facility in Huntersville, N.C.

In fact, the Kelsey Group calculates that 74 percent of internet users perform local searches.

Local business searchers are also further along in the purchase cycle—they’ve already decided on what they’d like to purchase, now they just need the where—demonstrating a low cost per lead and a high conversion rate. And map listings on Google are often the first place that customers turn.

To increase the findability of your franchise, and ensure accurate and up-to-date map listings, follow these eight steps listed below.

Step I: Claim your listings

Search for your local store on Google Maps. Click through to the profile and find the “Edit this place” link at the top right or bottom of the page. You must sign in to or create a Google profile to edit any listings.

Step II: Get started with location-based check-in apps

Mobile check-in apps, such as Foursquare, Facebook Places and Yelp, are huge. Create an account with these sites and make sure you have a listing so that users can easily check-in, post comments and review your business during their visit.

Step III: Include basic info

Update your listing with the basics: address, phone number, hours of operation, brief description, categories, email address and website. Be sure the description clearly defines what your business does and that the categories you select are as specific as possible.

Step IV: Enhance your listings

Add a list of products or services, logo, photos, coupons, videos, accepted payments, parking info and any other details you think customers should know before contacting you.

Step V: Create a keyword theme

Think about the terms or phrases that a customer might use to find your business. For example, a pizzeria in Denver, CO might attract customers with the keyword “pizza Denver.” Determine which terms and phrases are relevant for your business and create a keyword theme based on your business’s core products/services and location. Incorporate this theme into your listing’s content.

Step VI: Pay attention to customer reviews

Google allows users to add reviews and rate your business directly on your map listing. Check your listing every two weeks to determine if any new reviews have been added. Google allows you to respond as the business owner to each review. Do this for both positive and negative reviews, and follow up offline if necessary. You should also encourage current customers and business partners to write genuine reviews of your business. This not only serves as a testimonial for your products/services, but can also play into how high your listing ranks within Google’s search engine results.

Step VII: Increase Citations

Citations are mentions of your business name and address on other websites, with or without a link to your own site (e.g., online yellow pages directory, local chamber of commerce site, annual report on local businesses). Citations are an important ranking factor in making it to the top of the local listings on Google. Be proactive about increasing citations—submit a listing to both major and local search channels and add your business to local business directories. You can even ask local partners or vendors to list this information on their websites.

Step VIII: Track and measure success

Simple ways to track and measures success are positioning, coupons codes and in-store surveys. Use web analytics for more detailed results (Google Analytics is free and easy to use); look at the referral report to see if visitors are coming from Google Maps. We provide our clients with monthly performance reports as well as accuracy reports, which reveal before-and-after comparisons of correct business info and that found in listings.

The tips discussed here are the foundation that can lead to a larger localized marketing program. Before carrying out any of these steps, check with your corporate marketing department to determine if they have a broader local marketing plan in place so that you do not overlap or offset those initiatives. If you would like to learn more or have questions, please feel free to contact us at info@location3.com or @Location3.

About the Author

Erik Whaley is director of Location3 Media (www.location3.com), a digital marketing provider build to improve the findability and performance of consumer and multi-unit brands through enterprise-level and local digital marketing solutions. To date, Location3 has developed local store digital marketing strategies for more than 10,000 retail locations nationwide, including AT&T, Staples, Public Storage, FASTSIGNS, Domino’s Pizza and State Farm.

By Larry Carnell, CFE,CBI,CFB: Nationally Respected Franchising & Funding Expert, LinkedIn “Top Recommended Professional”

As a young boy, there was always an excitement in finding a new “secret” fishing hole where the “Big Fish” could be found. Often a friend would share their favorite fishing hole – but once the word got out we would often find many heading to the same spot (franchisors often have a similar feeling). For us avid fisherman, we were always looking for new fishing holes and “Big Fish”.

For several decades, many of us have witnessed a variety of lead generation methods and resources. In the journey of reaching our goals, the best have spent a great deal of time, energy and financial resources to find the most efficient and effective form of lead generation. The simple truth is that great lead generation is not a destination – it’s often a temporary stop. As such, the best in franchising are continually evaluating, listening and for the very best… watching the landscape for new fishing holes where the big fish are either going or waiting.

Having been one of the first to use franchise magazines, the internet, franchise brokers, other lead generation resources and tools to set record closing ratios; I have predicted and seen the migration of consumers from one resource to another. The lessons learned from the past can help those today who are facing challenges.

It is of primary importance that we first develop an action plan to have any real chance to reach our goals in the shortest period of time and at a minimal expenditure of expense – this includes determining the following:

1. What attributes are found with “Big Fish” or the best candidates?
2. Where are they and/or Where are they going?
3. What attracts them & gets them to Bite…. To be Engaged?

First- Historically the best candidates (but not the only candidates) have possessed several key attributes:

- They have had a strong motivating force (a fear, an obligation, or a passion or desire)
- They are generally better educated and becoming more technologically savy.
- They commonly are better skilled ( i.e. are professionals, and/or have supervisory, managerial or executive experience)
- They tend to have better credit scores and greater financial resources –including greater assets, net worth, retirement funds and greater current or past income.
- Additionally the majority of franchise buyers possess certain personality types – but in all cases, have different needs, and perspectives of what is important and therefore should be approached differently with customized presentations to produce the greatest engagement and best results (Personality types and effective presentations are an entirely different discussion for another time)

Second – Many of us recall the time when we marketed primarily via the Biz Op sections of newspapers. This was where franchisors found the “best candidates”…. Who possessed many of the attributes listed above. Prior to the introduction of the newer resources and technology that we now have….

The newspaper was a primary source of information for the educated, skilled, and better financially qualified candidate. However, as we started to see the introduction of business journals, franchise magazines and other resources that started to target or focus on specific groups… we also started to see the migration of candidates from the Biz Op sections of newspapers to these other resources.

During this time we also saw the emergence of “Business Brokers”(not to be confused with Franchise Brokers) and soon followed by franchise brokers which has accelerated during the last decade. We also started to see the introduction of franchise expos and in the 1990’s we discovered the INTERNET.

Third – What is often not discussed is WHY. Why did consumers migrate from the Biz Ops section of newspapers to these other resources and how that points towards Virtual Events. It is important to understand what has motivated consumers to go to these other resources… in doing so we understand where many have been, where many may be, why many are leaving and where are they going!

In almost every emergence of a new but better lead generation resource are seen several benefits for the consumers…. When you see resources that provide the following you also find consumers migrating in that direction – valuable information for the observant franchisor.

These attributes include:

- Greater Convenience
- Lower Costs
- Greater and Easier Access to information
- Superior Quality Information & Selection
- Quicker Responses from experts
- Education preference versus being Sold
- Greater Interactivity and Engagement

Many recognize the gaming devices “Wii”, Xbox 360, Playstation, etc… but remember this started decades ago with bowling alleys, pinball machines, Pacman, Pong, Atari, Nintendo and many precursors to today’s gaming systems… the migration to what we have now is directly related to convenience, easier access, better quality systems, better selection, greater engagement (with better audio, visuals and interactivity – now the controller is a person’s arms and legs… not just a controller).

Once we recognize this – we now know why there is such a massive migration to social media and interest in it…. Understand that a primary driving force with social media is interactivity, access to information, education and virtually ZERO cost. Many of us remember when franchisors were seeing an average of 3%-4% lead to close ratios with internet portals. While still a valuable source of deals, during the last few years challenges have resulted in a deterioration of these ratios. Many are reporting conversion ratios now around ½% more or less (depending on investment level and other factors).

Not surprising, we are seeing stronger franchisor desire to find higher closing ratios and lower total overall costs. As such many have migrated to franchise brokers. The supply and demand aspect of that migration has seen the increase in broker fees (often now close to $18,000 or more and rising) plus the introduction of additional marketing, advertising and even minimum referral fees. The franchise community is also seeing the number of franchise brands being carried by broker groups significantly increasing creating greater competition for franchisors.

Franchise expo costs are also increasing with estimated costs for a major weekend expo often costing $10,000 – $15,000 when one considers “all” of the costs. However attendance has diminished during the last decade – reasons cited often includes inconvenience, traffic, limited access (most are only held once a year in large metropolitan markets), costs (entry, parking, rising gas & travel costs).

With all of these considerations these resources still produce deals with the right planning and use.
THE FUTURE – Many are seeing the growth of Social Media but there is also a new player that has come to the franchise community… VIRTUAL franchise expos. Virtual events are not new… they have been used in other industries with a great deal of success. At a national convention for Virtual Events earlier this year – providers were noting 60% – 300% year over year increases. Of particular note is that providers are noting better quality candidates – better educated, skilled, and financial qualifications. In addition comments from attendees reflected a 93% preference versus live events.

Earlier attempts at virtual expos had significant limitations including platforms that created problems in accessing the event, limited periodic infrequent events, events that were almost expressly “sales” oriented and few exhibitors resulting in little resources to generate traffic. The newest ( and soon to launch www.FreeFranchiseExpo.com) virtual franchise expo addresses many previous limitations while implementing strategies that have proven successful with other industries. This event is being developed and supported my several of the TOP franchisors and franchising experts in the country. FreeFranchiseExpo will be the World’s 1st YEAR ROUND VIRTUAL franchise expo and education forum.

The advantages are extensive. Franchise exhibitors today have the ability to “customize” their message, have greater access to candidates and present their concept, and most importantly provide an education platform along with videos, interactivity and “instant” chat features that create better engagement while providing what consumers and “Big Fish” desire.

Are Virtual Events designed to eliminate other resources? Absolutely not! Going back to my fishing days – we often used “Trot”Lines… a long string where several lines with baited hooks were suspended to increase the potential of catching more fish. The most successful continue to use a similar strategy – using multiple resources to cast a wider net to catch more candidates (fish). All the best candidates (fish) are not found in one pond. We have to watch the landscape and be open to try new places. The best surfers catch the rising waves and don’t wait till they have already crested or passed or wait till there are many that have already found the best fishing holes… at that point, results start to diminish.

Larry Carnell is a respected franchise and funding expert. CEO/Founder of FranCastle Enterprises – a national franchise consulting firm that has helped many achieve record results. President / CoFounder of FreeFranchiseExpo – The World’s 1st Year Round Virtual Franchise Expo (Launching Fall/2011). To learn more send request to FreeFranchiseExpo@gmail.com or call at 770-652-5393 to learn more about a prelaunch promotion. Connect, review my credentials and recommendations: http://www.linkedin.com/in/larrycarnell

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