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 Quickdraw Questions Topics Discussed in this Episode What is your brand? Most folks think it’s logo, fonts, colors... It’s much more Why do you need to know your brand better than your spouse? Are you prepared to articulate your brand to potential franchisees? How to audit your own brand... Test your logo to see if it’s good, is everything in alignment with the vision of the company, will people understand it with you telling them? What makes a GOOD logo? Is your logo scalable, timeless, and appropriate for growth? Why do you need a robust brand guide before franchising? What is worth including, like color usage ect… How to set up your franchise for success through creating an asset library. Basically pre making various marketing materials for them so they don’t DIY. Why does this brand work now? Prepare for growth and longevity. Jordis Small Stellen Design www.stellendesign.com jordis@stellendesign.com 310-418-6287 Kit Vinson www.franman.net kit.vinson@franman.net 214-736-3939 x 101

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 to People, Process, and PrioritizationPeople:Process:Prioritization:Being Ready to Grow:Great unit economics:Differentiation:Structure / Process :How brands scale:Who the franchisee is:Where you grow:How you develop: Books Mentioned The Hard Thing About Hard Things by Ben Horowitz Unbroken By Laura Hillenbrand Tom Wells www.10pointcapital.com twells@10pointcapital.com 404-444-3110 Kit Vinson www.franman.net kit.vinson@franman.net 214-736-3939 x 101

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 Segment 3 01:03:05 Quickdraw Questions Topics Discussed in this Episode Key areas franchisors miss in their first year: Pre-launch Post Launch Books Mentioned Think Like a Freak by Steven D. Levitt, Stephen J. Dubner The Memory Illusion By Julia Shaw Eye of the World Robert Jordan Michael Peterson www.franchisebeacon.com michael.peterson@franchisebeacon.com 949-282-7304 Kit Vinson www.franman.net kit.vinson@franman.net 214-736-3939 x 101

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 Tom Portesy MFV Expositions tom.portesy@comexposium.com https://www.franchiseexpo.com/ Kit Vinson www.franman.net kit.vinson@franman.net 214-736-3939 x 101

My Podner in this episode is Jackie Hoegger and she’s going to talk 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.. Time Stamps Jackie Hoegger Intro 00:00:33 Segment 1 00:05:26 Get to know Jackie Hoegger Segment 2 00:16:50 Topic Segment – Marketing to Prospective Franchisees Segment 3 01:00:57 Quickdraw Questions Topics Discussed in this Episode Brand on Fire Social All The Way The Power of the Existing Franchisees Web oh Web Keep is Simple in a Complicated Process Eyeballs and Attention 7, Hire an Agency (00:55:21) - They can develop a 3 pillar strategy to drive conversions to your website which leads the first touch. Books Mentioned in the Episode Crush It By Gary Vanerchuck Jackie Hoegger Hoegger Communications Jackie@TeamHoegger.com www.teamHoegger.com 940-631-7999 Kit Vinson www.franman.net kit.vinson@franman.net 214-736-3939 x 101

My Podner in this episode is me, Kit Vinson (finally!), and I'm going to talk to you about what franchisors should know about their franchise operating manual. Time Stamps Kit Vinson Intro 00:00:29 Segment 1 00:02:15 Get to know Kit Vinson Segment 2 00:13:30 Topic Segment – The Franchise Operating Manual Segment 3 00:00:00 There are no Quickdraw Questions in this episode Topics Discussed in this Episode What’s Included in a franchise operating manual? Every manual is customized to the industry of the company, but there are elements of a franchise operating manual that are common to all manuals. What is the process for producing a franchise operating manual? Make the manual creation process fun so that you can start the flow of your team’s creativity juices. How often does the typical franchise manual need updating? Manual updates should be completed on a regular basis. Younger franchise systems will need to update their operating manual more frequently because their systems seem to evolve at a much faster pace than that of a mature franchise system. If you do not keep your franchise operating manual updated regularly, you increase the probability of you having to explain to a judge why your manual isn’t up-to-date. How are franchise operating manuals typically distributed to the franchisees? Hard copy manuals have extreme limitations. They are not secure. They are only a snapshot of your system on that day. Media limitations. PDF manuals are searchable, but they are not secure. They are also a snapshot of your company’s system on that day. They are relatively easily to update but you run the risk of having multiple versions of your manual floating around your system. Web based, online operating manuals are secure, they are extremely easy to update, you can track your franchisees activity in the manual, and you can include multimedia content such as videos. What are the functions of a franchise operations manual? First, the Franchise Operations Manual is the authority document of the franchise System Standards. The System Standards are the standard procedures that a franchisor requires of all franchisees in order to duplicate the customer experience in every location. The customer experience is the driving force behind profitability. If you can duplicate a favorable customer experience, then you may have a business that you can franchise. If you have a well prepared Franchise Agreement, it will refer to the Franchise Operations Manual as the System Standard. This way, as your system grows and your System Standards change, you only have to update the manual instead of updating the Franchise Agreement. Second, the Franchise Operations Manual is the most effective tool for protecting your Brand. A company’s Brand is one of its most valuable assets. The Brand is also the asset that is at most risk when a company decides to franchise. When you franchise a concept, you are putting your Brand in the hands of other people, all of whom likely have different ideas about the best direction for the company. A properly prepared Franchise Operations Manual, with well-defined and organized System Standards, will be one of the few tools you have to manage the Brand and control the franchisees when they try to act on their vision for what is best for your Brand. Third, the Franchise Operations Manual will likely be the principal tool for training new franchisees. It is the “Your Company for Dummies” book. You have to assume that most of your franchisees will not have experience in your industry. They may not have any business experience at all. It is very common for a retired schoolteacher or a retired military person to invest in a franchise. This is not to suggest that schoolteachers or military personnel don’t have any business savvy, it is only to say that they were not formally trained in business and have not practiced it during their career. Your manual needs to be a document that not only...

My Podner in this episode is Brendan Charles and he’s going to talk with us today about what franchisors should be teaching their franchisees about site selection, real estate negotiations, and build-out. Bad decisions in these areas can be detrimental to the success of the location. Everybody has some skin in the game here. This discussion will benefit both new and seasoned franchisors. Time Stamps Brendan Charles Intro 00:00:28 Segment 1 00:02:44 Get to know Brendan Segment 2 00:15:38 Topic Segment – Site Selection, Real Estate, and Buildout Segment 3 01:25:10 Quickdraw Questions Topics Discussed in this Episode Brendan Charles Red C Business Advocacy www.redcadvocacy.com Brendan@redcadvocacy.com Phone - 303-333-3420 Kit Vinson www.franman.net kit.vinson@franman.net 214-736-3939 x 101

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. This discussion will benefit both new and seasoned franchisors. Today’s episode will be unique. This will be the first time to have a returning podner with the GREAT, Mr. Bob Gappa. You may remember Bob Gappa from Episode #2 where we discussed the nature of the relationship between franchisor and franchisee. Andy has been Bob’s Protégé for 8 years now as he’s been learning franchising from the master and taking Bob’s accumulated knowledge and adding his own flavor to it. Time Stamps Andy Erskine Intro 00:00:29 Segment 1 00:02:36 Get to know Andy Segment 2 00:11:20 Topic Segment – Creating Customer Loyalty Segment 3 01:05:10 Quickdraw Questions Topics Discussed in this Episode What is customer loyalty? What makes customers loyal? How do you measure customer loyalty? What do you do with customer loyalty data after you get it? What should I be doing today as it relates to customer loyalty? Andy Erskine Management 2000 www.mgmt2000.com M2000@mgmt2000.com Phone - 800-847-5763 Kit Vinson www.franman.net kit.vinson@franman.net 214-736-3939 x 101 Books Mentioned in the Episode: Love Marks By Kevin Roberts The Effective Executive By Peter Drucker Emotionomics By Dan Hill Retail is Theater

My Podner in this episode is Red Boswell and he’s going to talk with us today about how to generate franchisee leads. This is one of the hottest topics with franchisors. This discussion will benefit both new and seasoned franchisors. Red is a unique character, and I mean that in a good way. This guy has been driven to make money ever since he was a kid. Starting in grade school when he was selling NFL pencils for a profit, into hos twenties when he build up a pet services franchise system all the way up to 148 units. He’s been operating in the world of franchising practically his entire adult life. He’ll give us more details in just a few minutes. Red now gets to fuel his business building passion as President of the International Franchise Professionals Group (IFPG), The World’s Largest and Most Respected Franchise Consultant Organization. . Time Stamps Red Boswell Intro 00:00:28 Segment 1 00:02:05 Get to know Red Boswell Segment 2 00:29:45 Topic Segment – Franchisee Lead Generation Segment 3 01:01:50 Quickdraw Questions Topics Discussed in this Episode The cost of a lead 16 sources of leads The marketing mix is a moving target and is different for every concept. There is no silver bullet, one size fits all solution for the marketing spend mix. Do a lot – do it for a long time – test and measure Every option will involve one or all of these three The trick is to utilize the options that require the resources you have the most of. Red’s Favorite Five Red says that every solution must be customized to the individual concept, but if he HAD to pick his favorite five, the would be: Brokers PR Industry Conversions Live Events / Expos Online Bonus Source: Guerilla Marketing Common mistakes made by franchisors as it relates to lead sources: Books Mentioned Red Boswell International Franchise Professional Group www.ifpg.org Red@ifpg.org 888-977-4374 x 112 Kit Vinson www.franman.net kit.vinson@franman.net 214-736-3939 x 101

My Podner in this episode is Rob Vinson and he’s going to talk with us today about Franchising 101 – Where to start when you backed into franchising by accident, and don’t know where to go. Rob has been a franchise attorney for 26 years. He was a partner at the prestigious law firm of Strasburger and Price, which is now Clark Hill after an April 2018 merger. Over 13 years he worked his way from associate up to partner. In 2001, he started his own law practice of Vinson Franchise Law and has been doing that ever since. He works, and has worked, with clients all over the United States as well as internationally. Rob is also a founding partner of FranMan Inc, a company that specializes in producing franchise operating manuals. In 26 years Rob has accumulated a great deal of experience that he is going to share with us today. Time Stamps Rob Vinson Intro 00:00:27 Segment 1 00:02:00 Get to know Rob Vinson Segment 2 00:22:32 Topic Segment – Franchising 101 Segment 3 01:06:50 Quickdraw Questions Topics Discussed in this Episode What is Franchising?Business Format Franchising versus Product Distribution FranchisingWhat is the difference between franchising and traditional licensing?What are the three elements that must be present in order to be considered a franchisor by the FTC?Just because you may not be considered a franchise by the FTC, you may still be considered a franchisor by the state government.Why franchise instead of expansion through company owned locations?What types of business lend themselves to franchising and which don’t?What elements of a business does Rob look at when advising a client on whether the business is “franchisable”?What resources are available to a new franchisor to help navigate the waters of franchising?How can a franchisor find a franchise attorney?What should the franchisor consider when selecting a franchise attorney?What services do franchise attorneys offer to franchisors?What is the FDD and Franchise Agreement?Why did the FDD come about?What are the dangers of a new franchisor using a template to create their own DFF and Franchise Agreement?How important is a well-documented franchise operations manual? Rob Vinson Vinson Franchise Law www.franchiselaw.net rob@franchiselaw.net Phone - 775-832-5577 Kit Vinson www.franman.net kit.vinson@franman.net 214-736-3939 x 101

My Podner in this episode is Stan Friedman and he’s going to talk with us today about Customer Relationship Management software, or CRMs. Time Stamps Stan Friedman Intro 00:00:27 Segment 1 00:02:34 Get to know Stan Friedman Segment 2 00:23:32 Topic Segment – CRM – Customer Relationship Management Segment 3 01:07:51 Quickdraw Questions Topics Discussed in this Episode Stan Friedman FRM Solutions sfriedman@frmsolutions.com 404-936-8677 Skype - stanfriedman1 Kit Vinson FranMan Inc. kit.vinson@franman.net 214-736-3939 x 101 Books Mentioned in the Episode:

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

My ponder on today’s show is Ms. Angela Angela Coté of Cultivate Advisors, and she is going to visit with us about Franchisee Compliance, or as she likes to call it, franchisee success. Angela cut her teeth really early on in the world of franchising as the daughter of Max Voisin, founder of M&M Food Market. If you are listening from the U.S., you may not have heard of M&M but if you are from Canada, with about 500 locations in its prime, M&M Food Market is a BIG deal. She worked on both sides as both the franchisor and as a franchisee running three locations of her own. Angela has been interviewed on shows such as Social Geek Radio, Franchising Rising Podcast, Tutor Doctor Podcast, and Own Up, Grow Up Podcast. She has been written about in multiple publications such as Global Franchise Magazine, Franchise Blast, Canadian Franchise Association, Douglas Magazine, The Franchise Voice Magazine, Franchise Canada, and a few more Time Stamps Angela Coté Intro 00:00:40 Segment 1 00:02:48 Get to know Angela Angela Coté Segment 2 00:24:34 Topic Segment – Franchisee Compliance – “Success” Segment 3 00:58:56 Quickdraw Questions Topics Discussed in this Episode: All franchisees should be as concerned about system-wide compliance as much as the franchisor because compliance to the system standards directly protects their investment. Common reasons for lack of franchisee compliance are: How can a franchisor inspire franchisees to WANT to follow the system? Angela Angela Coté angela@cultivateadvisors.com Cultivate Advisors Kit Vinson FranMan Inc www.franman.net kit.vinson@franman.net 214-736-3939 x101

My Podner in this episode is Justin Howe and he’s the president of a brand-new franchise concept called H-Tea-O. Justin has agreed to let us do a series of episodes as we follow him through the process of franchising his business. This will be the first episode of that series. This interview is one of the best ones I have done so far, and I am really excited about it. Time Stamps Justin Howe Intro 00:00:40 Segment 1 00:02:20 Get to know Justin Howe Segment 2 00:26:05 Topic Segment – Franchising H-Tea-O Part 1 Segment 3 01:10:30 Quickdraw Questions Topics Discussed in this Episode: Justin Howe H-Tea-O justin@jhowecapital.com Kit Vinson FranMan Inc www.franman.net kit.vinson@franman.net 214-736-3939 x101

Drue Townsend Show Notes My Podner in this episode is Ms. Drue Townsend and she’s going to share with us A LOT of what she has learned from managing the MARKETING FUND at FASTSIGNS International. The words “Marketing Fund” can create anxiety in many people and Ms. Drue will demystify the concept and teach you exactly what you need to know to make the most of your company’s marketing fund. Rob Vinson from Vinson Franchise Law joins the conversation to help us with some of the legal issues that are related to the Franchise Marketing Fund. Time Stamps Drue Townsend Intro 00:00:40 Segment 1 00:02:23 Get to know Drue Townsend Segment 2 00:13:45 Topic Segment – Franchise Marketing Fund Segment 3 00:59:10 Quickdraw Questions TOPICS DISCUSSED IN THIS EPISODE: What Is A Marketing Ad Fund? It is a collection of money paid by franchisees and managed by the franchisor, to enact defined marketing and advertising initiatives and bring value to the brand and franchisees. It is in addition to any Royalties paid by the franchisee to the franchisor. It is usually a percentage of gross sales (but could be a flat fee) Marketing Fund By Laws: There should be written By-Laws that outline how the fund can be used (what types of initiatives; pro-rata vs. major markets vs. national only), who makes decisions about it (as an example, highest ranking Marketing Person and CEO with Franchisee Ad Council input), who can sign contracts (often just the CEO and Marketing Person), where the money is kept (recommendation is that it is held in a different financial account with its own Profit and Loss Statement and Balance Sheet), who is providing the fiscal oversight and ensuring proper collection and use of the fund. Sample Acceptable Uses of the fund Unacceptable Uses How to Justify an Ad Fund to A Franchisee The Importance of Franchisee Involvement in the Marketing Fund What Should You Start Spending Money on Today From an Ad Fund Common Pitfalls with a Marketing Funds Franchise Marketing Fund Tips How to Set Up a Franchise Marketing Fund Drue Townsend FASTSIGNS International drue.townsend@fastsigns.com 214-346-5797 Rob Vinson Vinson Franchise Law www.franchiselaw.net rob@franchiselaw.net 775-832-5577 Kit Vinson FranMan Inc www.franman.net kit.vinson@franman.net 214-736-3939 x101

My Podner in this episode is Robert Bilotti and he’s going to talk to us about franchisee onboarding and training. We will dive deep into “training theory” and then wrap it all up with a step-by-step discussion on how a new franchisor needs to set up a training program for franchisees. Time Stamps Rob Bilotti Intro 00:00:40 Segment 1 00:02:31 Get to know Rob Bilotti Segment 2 00:18:55 Topic Segment – Franchisee Training and Onboarding Segment 3 01:14:03 Quickdraw Questions Topics discussed in this episode: The difference between a franchise system and a collection of mom and pops is “Training” What is the difference between onboarding and training? When do I need to hire a full-time trainer? What to train versus how to train Can a start-up franchisor use the operations manual as the training program at first? Your first franchisees will be some of the most important validators of the concept, and if you skimp on training up front, it will come back to bite you. Your most important franchisee is the first one after the former employee, friends, and family franchisees. That is the one that will really be the proof of concept. Be sure that you have a solid training program BEFORE that franchisee starts. Invest in a learning management system (LMS) early What is an LMS? How does training change when you are in growth mode? How to select an LMS right for your system Moodle is a free, open source LMS Look for a user-friendly system (from the administrative perspective) and a nimble system. Learn this by doing lots of demos and talking to other companies that use an LMS. Google is a great resource. LMS support is probably one of the most important features. Usually, the more you pay, the more support you get. What are the different modes of training (modality)? If you set up a mentoring program to help train new franchisees, be sure to invest in a training program for the mentors so they can be trained in how to train. There is a difference between lecturing and facilitation when it comes to training. There is not one modality that is best for everybody. There is not a “one size fits all” when it comes to training. Survey your franchisees, and do it often, how you are doing with training. Don’t just capture “smile sheets”, rather actionable information. This should happen every 3 to 6 months. You CAN measure return on investment in training, especially in a franchise system. Use gust satisfaction surveys to draw training topics. What are the steps that a start-up franchisor needs to follow to develop a training program? Step1: Document – document – document. What makes your business a success. Step 2: What can you expand on from that? Create actionable content from that documentation? This is the “what”. Step 3: Determine how you will take that information and disseminate it to the people who need it? This would be the franchisee and their employees. This is the “how”. Step 4: Determine how you will support your franchisees in their training efforts to their employees. Step 5: Establish a mechanism for measuring the results of the training. Allow plenty of time to develop your training program. If you start developing your training program after you have signed your first franchisee then you have waited far too long. Rob Bilotti www.novitatraining.com info@novitatraining.com Kit Vinson FranMan Inc www.franman.net kit.vinson@franman.net 214-736-3939 x1

My Podner in this episode is Ms. Lori Kiser and she’s going to talk to us about how to best utilize a franchise broker consultant company. Everybody wants to know how to find the path to granting more franchises, and in this episode we definitely talk a lot about that. Time Stamp Lori Kiser Intro 00:00:40 Segment 1 00:04:30 Get to know Lori Kiser Segment 2 00:24:19 Topic Segment – How to work with Franchise Broker Consultants Segment 3 00:57:15 Quickdraw Questions Topics discussed in this episode: Franchise Broker Consultants are not business consultants in the traditional sense of the word. They specialize in producing qualified, vetted leads for franchisors. A franchise broker consultant is not part of the sales team of the franchisor. They will not take the prospect through the franchisor’s sales process, though they will stay involved as the candidate passes through the process. In order to be successful with a franchise broker consultant, a franchisor must have the following already in place and running within their concept: A typical start-up franchisor is usually not a good candidate for a franchise broker consultant group because the broker consultant is paid based on successfully bringing a prospect that eventually signs a contract with the franchisor. Because start-up franchisors typically don’t have the infrastructure in place to handle the lead volume, broker consultant groups are less likely to accept them as a client. How to take your startup system and get it ready to be accepted by a broker consultant group: A typical franchisor broker consultant will sift through over 100 candidates before they find one that is worthy of passing on to the franchisor clients. The Franchise Rule does apply to a franchise broker consultant, although the broker consultant shouldn’t be doing any selling of the specific system. Once a franchisor is able to join forces with a franchise broker consultant group, what is the best way to manage that relationship? Lori Kiser www.lorikiser.com Kit Vinson FranMan Inc www.franman.net kit.vinson@franman.net 214-736-3939 x1

My Podner on this episode is Tom Spadea. Tom and I will discuss the benefits of properly managing the FDD and the Franchise Agreement, from the beginning, making sure to keep the end in mind. The "end" he speaks of is a possible acquisition by an investment company. What will they expect to see when they look at your franchisees contracts in your files? Time Stamp Tom Spadea Intro 00:00:40 Segment 1 00:03:22 Get to know Tom Spadea Segment 2 00:24:40 Topic Segment – Managing Your Franchise Agreements with the End in Mind Bonus Segment 00:57:15 Managing Franchisee Growth Segment 3 01:02:50 Quickdraw Questions Topics discussed in this episode: Where do most franchisors get it wrong? Many franchisors and franchise attorneys focus mostly on the substantive issues of the and forget about procedural issues related to the process - managing latent defects You can have the best FDD and franchise agreement in the world, but if you don’t manage the process properly, it can cost you a lot of money in the short term with an unenforceable contract, and in the long run, upon exit. It’s important to understand who the real audience of the Franchise Agreement is. It is the franchisee, but it is also a prospective private equity investment firm who may want to purchase your system in the future. What is the process? Step 1: Make sure that the franchise agreement is up-to-date Step 2: Geographical Analysis - Ensure that the franchisor is registered in every registration state where the concept will be offered. That includes where the prospect is currently located as well as where they want to open a location. Both states must be registered if required by that state. Deliver the correct FDD for the state. Step 3: Ensure that 14 days pass between delivery and signing of the Franchise Agreement, not including delivery day and signing day Step 4: Spend the time to ensure that names are all spelled correctly, along with middle intials. Check the address, LLC name etc Step 5: Prepare a custom franchise agreement based on the specific agreements made between franchisor and franchisee – do not use the sample franchise agreement that is included in the FDD. Deliver the document to all required recipients and ensure proper signatures Step 6: Ensure that the lease includes all of the required language as per the franchise agreement There are many different software packages that can help you with each aspect of the transaction, but Spadea Law has the platform that hits every element. Compliance Map helps franchisors ensure that they are only offering the franchise in the proper states. The link to the Compliance Map software demonstration is below: https://vimeo.com/260105446 If you haven’t managed the steps of the process well, then it is not too late. Review your documents and get the documents in line now, before you are approached by an investor. Books: Exponential Organizations By by Salim Ismail and Michael S. Malone Seven Habits of Highly Effective People By Stephen Covey The E-Myth By Michael Gerber Khan Conn Iggulden Podcasts: Dan Carlin’s Hardcore History Tom Spadea Spadea Lignana www.spadealaw.com 610-662-0192 (cell) Kit Vinson FranMan Inc. www.franman.net 214-257-7685 x1 Kit Vinson

My Podner on today’s show is Mike Pollock and he’s going to give us tips on how to build a franchise development system for your franchise. But it was more than just that because we also talked about how to take a warm lead through the process to close the deal. Time Stamp Mike Pollock Intro 00:00:40 Segment 1 00:03:15 Get to know Get to know Mike Segment 2 00:22:10 Topic Segment – Franchise Development 101 (Sales) Segment 3 01:18:40 Quickdraw Questions Topics discussed in this episode: How to set up an efficient process for franchise development · Brand Overview Presentation (45 minutes to 1 hour long) · Develop a solid franchise prospect application that focuses on: o Background o Financial situation · Have the Unit Economics Call o FDD introduction call (15 minutes) o Unit Economics (45 minutes) o Receive signed Item 23 (Proof of receipt of FDD) o Password o Validation instructions · Validation Debriefing Call · Discovery Day o Brand Overview Review o Meet the Team o Lunch and dinner are the best opportunity to visit with prospects o Field Visits · Voting Process It is best to have multiple prospects attend a discovery day (between 4 and 5) If you are going to hire a company such as FranLift to manage the franchise development process, then it is best to get them involved earlier rather than later. Have a marketing budget set aside in advance. It typically costs between 8K and 15K to bring 1 franchisee in the door. Mike Pollock FranLift Franchise Experts mikep@franlift.com 214-551-0261 Kit Vinson FranMan Inc. (Franchise Manuals) Kit.vinson@franman.net 214-736-3939 x1

In this episode, Doug Groves and I talk about insurance, specifically, what types of business insurance are out there, the importance of finding a rep that knows your industry, and what role does insurance play in the relationship between franchisor and franchisee. Time Stamp Doug Groves Intro 00:00:40 Segment 1 00:02:41 Get to know Get to know Doug Segment 2 00:16:17 Topic Segment – Insurance 101 for Franchisors Segment 3 00:38:19 Quickdraw Questions Topics discussed in this episode: Basic coverage that all business owners should have: Every insurance policy has a purpose. Umbrella policies are a cheap way to purchase vast amounts of insurance for a much lower price When you are deciding on limits for each type of insurance: Best Practice: Select an insurance broker who has experience in providing insurance for companies in your same industry. They will know which questions to ask in order to recommend the right options for you. The question is answered, why does this line appear in all franchise agreements and franchise operating manuals: ““All liability insurance policies must name us (the franchisor) and any subsidiaries that we designate as additional insured.” We answer the question, why do franchisors require franchisees to carry certain levels of insurance. What is the EZCert program and how does it help franchisors manage all of the insurance certificates from all of their franchisees – for FREE. Doug Groves Program Insurance Group doug@pigbcs.com 512-848-7210 Kit Vinson FranMan Inc. (Franchise Manuals) Kit.vinson@franman.net 214-736-3939 x1 Notable mentions in this episode: Book: Killing the Sacred Cow By Garrett B. Gunderson Our culture is riddled with destructive myths about money and prosperity that are severely limiting the power, creativity, and financial potential of individuals. In Killing Sacred Cows, Garrett B. Gunderson boldly exposes ingrained fallacies and misguided traditions in the world of personal finance. He presents a revolutionary perspective that can create unprecedented opportunity and wealth for thoughtful, mission-driven individuals.