GROWING BEYOND 100 UNITS

Panel:Karen Spencer, CEO and Partner - Fran-Systems

Brian Scudamore, CEO and Founder - 1-800-GOT-JUNKTom Goldsmith, Director of Development – Culver’s

Brian Boycan, Director Real Estate & Site Development – Auntie Anne’s

AGENDA

• Review presentation “A Template for Growing Beyond 100 Units”

• Moderator to Panel Q & A

• Open Q & A

Topics to cover:• What do they have that we do not?

• What can we do now to get to that magic number?

• What are the top 5 things to have in place?

• What are the common mistakes to avoid?

SWOT Analysis

Internal External

SWOT• Grasping externalexternal dynamics

enables smart choices that increase chances for success.

• Understanding internal capabilities defines what you can realistically do.

• This is the foundation for your roadmap.

Internal SWOT– The Key Areas

A review of internal strengths and weaknesses relating to key areas of the company

External SWOT – The Key Areas

External Factors Include the Consideration of:

• Consumer Trends

• Industry Trends

• Franchise Industry Trends

INTERNAL AND EXTERNAL - 6 main factors in assessing a franchisors ability to reach national prominence & segment domination

Optimal Results - For Growing Beyond 100

Because of Franchise Industry Trends The Number of Franchisees Making Investment Decisions Based on “Sex Appeal” Alone is Diminishing.Directly or Indirectly Prospect Decisions Will Increasingly Relate to These 6 Dimensions.

Expectation Management – A natural Imbalance?

The Franchisor/Franchisee

Disconnect

The 6 dimensions and Expectation Management Problematic

Optimal

PURCHASE MOTIVATION

*

FOLLOWING THE FRANCHISE AWARD, HOW THE FRANCHISOR IMMEDIATELY INTERACTS WITH THE NEW FRANCHISEE SETS AN IMPORTANT TONE.Problematic

Optimal

PURCHASE MOTIVATION

MOTIVATION TO SUCCEED

Expectation Outcome- We Reap What We SewAT THIS POINT IN THE RELATIONSHIP IT IS DIFFICULT TO TURN AROUNDPROBLEMATIC BELIEFS.

Problematic

Optimal

MOTIVATION TO SUCCEED

All Franchisors Face the Challenge of Evolving

Poor Expectation Management is Usually a Major Cause of Franchise Systems Stalling

Things Must BeChanged Concurrently.A Cultural Shift Occurs.

Inflection Point:

Cannot Outpace Problems

Via Hype or Growth

Symptoms:High Churn, Flat Sales,

Poor Execution, Lack of Organic

Development

Time

Uni

ts

A Franchise System – To Launch and Evolve!

Source: Fran-Systems: © Copyright Fran-Systems, LLC All Rights Reserved 2008

What you Wrote

What you Sold

What they Learned

What they signed

What they should be

doing

Review again - Topics to cover:• What do they have that we do not?

SWOT Assessments – Internal and External (on-going)Disciplined Management TeamA growth plan and accountability

• What can we do now to get to that magic number?Assess honestly - people, systems, and brandPut in place, a plan to redirect

• What are the top 5 things to have in place?Culture, People, Systems, Capital, and Profitable Brand

• What are the common mistakes to avoid?Reactionary and undisciplined behavior, lack of culture or structure, and not setting expectations for everyone!