Franchise Update Magazine - Issue I, 2022 by Franchise Update Media

Business Intelligence for Growing Franchisors

Annual

Q1 | 2022

WOMEN’ S Issue

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CONTENTS Franchise Update | Q1, 2022

LEADERSHIP

ANATOMY OF A BRAND: HOT DOG ON A STICK

After 75 years, this brand is a cultural icon

LEADERSHIP

IFA – OPEN FOR OPPORTUNITY

Get involved to protect the franchise business model!

48 04

FROM THE EDITOR’S DESK

RAISING UP THE NEXT GENERATION OF WOMEN LEADERS

FEATURE: SELLING BUY-IN Involving franchisees in your marketing programs

52 06

CONSUMER MARKETING

COVER STORY

WOMEN LEADERS PAYING IT FORWARD

CUSTOMERS COUNT

END EMPLOYEE ROULETTE!

6 ways to create a consistent customer experience

Mentoring tomorrow’s female franchise leaders

LEADERSHIP

CEO PROFILE: JENNIFER SCHULER, WETZEL’S PRETZELS LEADERSHIP

CEO PROFILE: KIM GUBERA, PIRTEK USA

“We had a phenomenal year of growth” 2

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CMO Q&A: LISA DIMSON, YOUR PIE

Change agent talks disruption, technology, innovation

Delivering a “Wetz in a lifetime” experience

CONSUMER MARKETING

CMO ROUNDTABLE

“What are some examples of how your marketing programs benefit your franchisees?”

Chairman GARY GARDNER CEO THERESE THILGEN Executive VP Operations SUE LOGAN EVP, Chief Content Officer DIANE PHIBBS EVP Business Development BARBARA YELMENE

SOCIAL MEDIA

Business Development Executives

TIKTOK AND META TIME

KRYSTAL ACRE JEFF KATIS JUDY REICHMAN

The future is here – are you?

GROWING YOUR SYSTEM

Managing Editor EDDY GOLDBERG

FEATURE: GOING BROKER?

Creative Director CINDY CRUZ

Frandev pros dish on brokers’ pros and cons

GROWING YOUR SYSTEM

FEATURE: BROKERS FOR BEGINNERS

Are brokers right for your emerging brand?

GROWING YOUR SYSTEM

CHALLENGE THE PROS

“How has Covid changed your 2022 franchisee recruitment strategy and tactics?”

Director of Technology BENJAMIN FOLEY Web Developer DON RUSH Web Production Assistants ESTHER FOLEY JULIANA FOLEY Director, Event Operations KATY COUTTS Senior Support Manager SHARON WILKINSON Senior Support Coordinator Franchisee Liaison LETICIA PASCAL Graphic Designer MICHAEL LLANTIN

MARKET TRENDS

Video Production Manager GREG DELBENE

TIME FOR AN ALIGNMENT?

Event Operations Manager CHELSEA WEITZMAN

Reevaluating your offering for Covid times

Executive Editor KERRY PIPES

SALES SMARTS

GETTING TO NO

In sales, no is actually a fantastic answer!

Event Production Coordinator JOSEPH EVANS Contributing Editors ART COLEY WILLIAM EDWARDS MATT HALLER JACK MONSON

Contributing Writers HELEN BOND

INTERNATIONAL

GOING INTERNATIONAL?

Taking your U.S. FDD abroad

IT’S CLOSING TIME

BLINDED BY SUCCESS

Attention franchise recruiters: How good are you?

JOHN DIJULIUS EVAN HACKEL DARRELL JOHNSON ANDREW SEID SARA WYKES

Advertising & Editorial Offices Franchise Update Media Telephone: 408-402-5681 Fax: 408-402-5738 Send Article Inquiries to: editorial@franchiseupdate.com Franchise Update Magazine is published four times annually Annual Subscription rate is $39.95 (U.S.) Subscriptions subscriptions@franchising.com 408-402-5681

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EDITOR’S NOTE 4

Leading Women Written By KERRY PIPES & EDDY GOLDBERG

For almost a decade now, we’ve dedicated our Q1 issue to the growing ranks of women in franchise leadership roles. These women continue to change the landscape—for the better—bringing fresh energy, perspectives, ideas, and insights to what still is one of the country’s greatest business opportunities: franchising. We’re continually impressed not only by how these women have made a difference in their own lives, but also in the lives of other women, providing role models for those forging their own upward journeys. For today’s leading women, giving back as coaches and mentors by lending a helping hand to the succeeding generations is a natural way for them to pay it forward. We’ve seen this time and again over the years from the women we’ve featured in our annual Women’s Issue, now in its 9th year. So for 2022, we zeroed in on the importance of paying it forward, aka mentoring. We reached out to a diverse group of female leaders who represent brands large and small across different sectors and C-suite positions. The result is 12 insightful interviews with today’s leading women who tell the stories of their own journeys—and how today they are serving similar roles for tomorrow’s female franchise leaders. Each addressed why it is so important for them to give back to the next generation, as well as appreciating those who came before. Here are just a few selections we hope inspire you to dream large yourself. “Perseverance is needed throughout our careers. Work hard, and do not let the dayto-day frustrations get in your way. Attitude is critical if you want to climb the ladder. You must stay positive and have a ‘can-do’ attitude.” —Jania Bailey, 63, CEO at FranNet “The future of business and franchising depends on future generations, and we can’t take that lightly. The list of people who have helped to coach and mentor me is long, and I want to be able to pay it forward.” —Kristen Pechacek, 31, Chief Growth Officer at MassageLuxe

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“True success is opening doors for others and expanding opportunities for all women and minorities. What motivates me is helping the next generation reach even greater heights than we ever dreamed.” —Ericka Garza, 46, President & CEO at Au Bon Pain “If those ahead of me hadn’t been willing to mentor me, I wouldn’t be where I am today. I think it’s incumbent upon us all to give back at some point in our careers.” —Laura Coe, 50, Co-Founder and CEO at Snapology “Owning mistakes is absolutely crucial to both an employee’s and the company’s health and growth. The second piece of that is the necessity to look inward and have self-reflection.” —Jackie Bondanza, 41, CEO at Hounds Town USA “Be your true authentic self. Being anything other than yourself is extremely draining and unfulfilling. Being your true self also helps you attract the people you need to take you to where you want to go.” —Ruth Agbaji, 36, Co-Founder & CEO of Code Wiz Franchising remains one of America’s great fields of opportunity for women. After decades of struggle to overcome male pride and prejudice, opportunities for women to rise into leadership positions in all sectors of business are greater than ever before. There’s never been a better time to be a woman in franchising than now. We hope you find inspiration in their stories. As the saying goes, “Making it on your own doesn’t mean making it by yourself.” Finally, by bringing their stories to light, it’s been a privilege to do our small bit to aid in the advancement of women into the top tiers of franchise leadership. And we thank all the fantastic, fabulous females who took the time to participate in advancing the movement even further by telling their stories here.

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BEGINNING

IN 2014 Franchise Update has featured a cover story in our Q1 issue highlighting the evolving, ever-growing role of women in franchise leadership. Over the years, we’ve spoken with founders, CEOs, CMOs, CDOs, CTOs—and just about every other type of female C-suiter and leader—about how they achieved their success, what the journey has been like for them, who influenced them, and how they see their future. There have been some marvelous—and remarkable—stories. Last fall, as we began planning this year’s Women’s Issue, we thought about the important role mentorship has played—and continues to play—for the women profiled in previous editions. And how, for those at the top, it’s now their turn to pay it forward to the following generations. As you turn the pages, you’ll discover how some of today’s most successful female franchise leaders are giving back to the up-and-coming generations of women, serving as coaches, mentors, guides, and just plain friends. This year, we identified a dozen female leaders from brands both established and emerging, large and small, retail and service. We asked them a series of questions designed to help them share the many ways they’ve been mentored by those who came before—female and male alike—and how they are now influencing future generations of franchise leaders. We asked how they feel about risk-taking, their thoughts on building allies as they advance and grow, skill set development for effective leadership, and what they wished they knew before taking their first management role. Their responses reveal not only how each found their way into the top tiers of franchising, but also how they are now showing the way forward to other women, helping them to more quickly scale to new heights in their own growing, upwardly mobile careers in franchising. 

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Brand: Code Wiz Title: Founder & CEO Age: 36 Years in Franchising: 3 No. of units system-wide: 8

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Female Leaders Raising Up the Next Generation – Ruth Agbaji

What do you wish you had known before taking your first management role? Strong, clear communication when laying out the vision and the plan goes a long way in getting everyone aligned and moving faster toward the goal without needing major course corrections that might arise because of miscommunication. As an entrepreneur, my thoughts are typically all over the place, and I recognized after a few missteps that my team needs me to distill those thoughts into a coherent plan they can take and run with. Which leadership skills were most difficult to develop? Having difficult conversations face to face. With a personality that wants peace and harmony all the time, this was one of the more challenging skills I needed to develop. Once I realized how much of a positive impact constructive, but direct conversations can have on the team and the business, it got easier and easier to have such difficult conversations.

matter what. Everything is “figureoutable” and we shouldn’t count ourselves out of an opportunity because we can’t figure it out right now. Say yes and figure it out later. What skill sets do you think are imperative for young women leaders? 1) Confidence: Believe in yourself. 2) Let your voice be heard: Don’t let people shut you down. Loud doesn’t always mean smart. Loud isn’t always right. Trust yourself and what you know. What are your leadership do’s and don’ts? Always lead by example. Treat your team like family and they will do the same for you. Don’t be afraid to make mistakes. Don’t take personal credit for the team’s successes. How did you learn to embrace risk-taking? Risk-taking comes naturally to me. I’ve always been drawn to anything that pushes the envelope. Seeing the massive rewards that come from taking massive risks has encouraged me to do more! How should aspiring female leaders build allies? Find people who believe in you, people you can be vulnerable with, people who have similar backgrounds and stories, and people who lead the way you’d like to. Put yourself out there. When people know you are open to mentoring and learning, they are more than willing to teach you what they know and root for you. What roles do education and experience play in leadership development? You can never stop learning. From generation to generation, some principles never change. Execution of said principles might be different, but the underlying idea is the same. There is an African proverb that says, “While sitting down, elders see what a child who is standing up cannot see.” I believe it is critical to be open to learning and mentoring from those who have gone before you. It shortens the path to success. What about attitude and mindset? Mindset is everything. The battle is won or lost in the mind. If you see yourself achieving despite all obstacles, and you go for it, nothing can stop you.

Who helped you on the way to the top? A number of mentors. You learn a little from everyone, but if I have to name one, Angela Coté has made the biggest impact on my leadership journey. What was the best advice you ever got? Be your true authentic self. Being anything other than yourself is extremely draining and unfulfilling. Being your true self also helps you attract the people you need to take you to where you want to go. Is that different than the advice you give? No. I have found this to be true over and over. I tell everyone the same thing: Be your true self, your authentic self, and watch magic happen. How do you mentor, and what advice do you give those you mentor? I have found social media to be a great platform for sharing my leadership lessons. I try to be vulnerable and share my triumphs as well as my failures. I encourage people to try and never give up no

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Was there a time when things didn’t turn out as planned? How did you bounce back? I got into franchising because things didn’t turn out as planned! When I started Code Wiz, my goal was to have 5 locations across Massachusetts. Life happened and my son was diagnosed with life-altering disorders that forced me to abandon that plan. Not wanting to give up on the dream of expansion, I decided to look into franchising as an expansion vehicle. Today, we have doubled the number of locations in my original dream, and the dream is much bigger than it was initially. What’s the most important leadership lesson you’ve learned, and how has it proven invaluable? Know your leadership style and improve on your areas of weakness while staying true to yourself. Why is it so important to give back to the next generation of leaders? I have been inspired to reach for the stars because of many women leaders who have gone before, people I can look up to. It is important to keep that cycle of inspiration going. We need more women in leadership positions, and that happens when we can provide inspiration, support, and guidance to those coming behind. 

Brand: Walk-On’s Sports Bistreaux Title: Vice President of Marketing Age: 38 Years in franchising: 6 No. of units system-wide: 60

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Female Leaders Raising Up the Next Generation – Erin Amadeo

What do you wish you had known before taking your first management role? I wish I would have known in advance that it is okay to make mistakes—and trust me, lots of them have been made over the years! A person who makes no mistakes lacks life experience.

day growing up. These are both qualities very much linked together, yet different. Patience means endurance, and perseverance means determination. Another term that we use internally that combines both of these qualities is “grit.”

Which leadership skills were most difficult to develop? Listening has been an acquired leadership skill for me. I’ve learned over the years that listening first, and to the entirety of a story, helps me mentor much more effectively. I find that offering my team the opportunity to speak first has strengthened their trust in me as someone to confide in as a leader.

What roles do education and experience play in leadership development? Education lays the foundation. The macro knowledge and experience teach you the lessons you need to develop as a leader.

Who helped you on the way to the top? This is tough to narrow in on because I feel as though I’ve had mentors in every step of my life: personally (my mom, dad, and grandfather), athletically (college coaches), and professionally (through executive leadership at Walk-On’s).

Was there a time when things didn’t turn out as planned? How did you bounce back? Rarely does anything I do professionally turn out exactly as planned. Rolling with the punches and optimizing as you go is what produces great results. It doesn’t mean there isn’t focus. On the contrary, optimizing means you are focused enough to adjust as needed to get the best result.

What was the best advice you ever got? You have to invest in the root to get the fruit. Always remember that the amount of fruit we produce is just an outcome and measurement of how well we are nurturing our roots. Is that different than the advice you give? Actually, no. Although in the marketing world we have a fiduciary duty to get a positive ROI, I constantly encourage my team to focus on the pieces that build for long-term results. Those who are relationship-focused always yield the most lasting results. How do you mentor, and what advice do you give those you mentor? My first question when I mentor is to ask what their goals are, both personally and professionally. This helps frame the approach I take when mentoring. If they aren’t sure, then we break it down until they are able to pinpoint focused areas. I believe that it’s always important to work toward the mentee’s goals so they are able to stay motivated. What skill sets do you think are imperative for young women leaders? Inner fortitude is #1 every single time. Finding the strength to face adversity head-on with a level head instead of emotion is critical. What are your leadership do’s and don’ts? Do: Take risks. Show interest in employees’ lives. Motivate and delegate. Create the right work/life balance. Don’ts: Have a one-size-fits-all leadership style. Create barriers for your team. Put yourself on a pedestal; be a servant leader instead. Focus on mistakes; turn them into life lessons. How did you learn to embrace risk-taking? Covid made taking risks a lot easier because we had to make new decisions if we wanted our business to survive. Fortunately, the size of our brand allows for calculated risk-taking, so we are able to be nimble as needed. How should aspiring female leaders build allies? In a very much male-dominated industry, it’s important for women to be assertive, work together, and master the art of reading a room. Active listening (listening to understand, not respond) is equally important. How do aspiring female leaders balance patience and perseverance? I love this question because it allows me to reference my grandfather! The phrase “patience and perseverance” is the exact reason for his mention above. I heard these words from him every

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What’s the most important leadership lesson you’ve learned, and how has it proven invaluable? Just go for it, even if you are the underdog. There is no stronger mindset than that of an underdog. You must have the willingness to do whatever it takes to get the job done, the grit, the hustle. These are qualities that great entrepreneurs, athletes, and other bright minds possess. Why is it so important to give back to the next generation of leaders? The next generation of leaders are the future. It is quite literally our responsibility as mentors to make sure they are equipped to take charge and create change within their communities. 

Brand: Big Frog Custom T-Shirts & More Title: President & CEO Age: 49 Years in franchising: 12 No. of units system-wide: 78

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Female Leaders Raising Up the Next Generation – Tina Bacon-DeFrece

What do you wish you had known before taking your first management role? I wish I had a better understanding of the various personalities I would be working with over the years. It took me time to learn how to communicate with different personality types and make them feel appreciated in the way they needed most. Which leadership skills were most difficult to develop? The art of delegation was something that took me a while to embrace. I am more type A and can be a micromanager, but having a strong team means one must trust them to do what they are there to do. Who helped you on the way to the top? My business partner Leeward Bean and my board of advisors have been instrumental in giving me the mentorship I needed to continue developing my leadership skills. What was the best advice you ever got? My favorite piece of advice was from a friend’s mom who, on her deathbed, said she wished she had eaten more cake. While I like cake, I think of that more as a metaphor for work/life balance. I try to schedule at least one true vacation a year so I don’t miss out on those precious memories. Is that different than the advice you give? My advice is similar, in that life is short and if you’re not happy in your job or where you live or something else about your situation, it’s time to think about a change. How do you mentor, and what advice do you give those you mentor? I spend a lot of time listening. It’s important to understand a person and what they are trying to accomplish, personally and professionally. I focus mainly on strategic planning and practical, realistic tactics to accomplish their goals. What skill sets do you think are imperative for young women leaders? Understand the difference between assertive and aggressive. Women often are still ignored or neglected in the educational system, so on entering the workforce we can be overly aggressive to make sure we’re heard. Aggression causes others to not hear you or to disregard you. Find your voice; be assertive but not confrontational unless the situation warrants it. The other skill is to learn how to multitask toward project completion. Women are natural multitaskers and tend to take on too much at once. Find tools and methods to keep yourself on track to finish projects before you start new ones. Keep yourself accountable. What are your leadership do’s and don’ts? Do: Constantly be learning. Read leadership books, read trade magazines, attend conferences, network. Don’t feel guilty about having to let someone go if they aren’t a good fit. It’s more important to the team that everyone is pulling their weight, because that creates a good culture. How did you learn to embrace risk-taking? I don’t think I have. I’m very risk-averse, although I will if it’s a calculated risk. I won’t dive into the pool without knowing the approximate depth. How should aspiring female leaders build allies? Personally, my allies are from networking or are previous colleagues. Join a women’s networking group once you’re in the career force. While in college, join clubs within your major or honor societies to make those lifelong connections. If your college has alumni mentoring programs, sign up for those.

How do aspiring female leaders balance patience and perseverance? Perseverance and patience are intertwined in one’s journey as a leader, and both require focus. Without focus, one loses patience. Without patience, one loses the will to persevere. As leaders, we must recognize the virtues of both and understand they are not always perfectly balanced. There are days when we need to persevere, to push forward and relentlessly act toward a goal, deadline, or mission. But true leaders know when to pause, reevaluate one’s course of action, and be patient as they wait for the right moment to navigate the challenges ahead. What roles do education and experience play in leadership development? I am a big believer in higher education. My background is in science, but I was exposed to a lot of liberal arts courses as well. History, art, literature, logic, and scientific reasoning all make a wonderful podium on which to base your leadership development. All these facets make you well-rounded and relatable to many different types of people. Leadership is about relationships and inspiration. Experience is what allows you to make better decisions because of what you’ve learned along the way. What about attitude and mindset? My mindset is always focused on growth, both personally and professionally. I want to learn how to paint and to speak Italian. I want to grow my franchise system to 150 units in 2 years. My attitude is that I (and the team) can make all these things happen with the proper dedication of time and resources. I’m confident we can accomplish anything with the right plan. Was there a time when things didn’t turn out as planned? How did you bounce back? One of our first big investments after we started Big Frog was to try and create a decorating distribution center to supply our stores. Unfortunately, it became clear very quickly that the partner we chose didn’t have the same vision we did. Instead of hemming and hawing, we pulled the plug on the venture and put our energies into other ways to help our franchisees. It was an expensive mistake, but by pulling that Band-Aid off fast, not placing blame among the partners, and recognizing where we went wrong, we moved forward to better things. What’s the most important leadership lesson you’ve learned, and how has it proven invaluable? You don’t have to be the loudest person in the room to be heard. So many people think that the more they talk and the louder they are, they “win” the room. It’s about listening, asking the right questions, and proposing solutions. Listening and questioning give you time to hear everyone’s opinions, be thoughtful, and be a problem-solver. That’s what you’re there as a leader to do. Why is it so important to give back to the next generation of leaders? My mentors have been invaluable to me over the years. Together they have more than 200 years of business experience. How could I ever live long enough to get that much experience? Sharing lessons, even painful ones, with our future leaders can help them make effective decisions sooner and bypass some of the missteps and mistakes we’ve made. 

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Brand: FranNet Title: CEO Age: 63 Years in franchising: 24 No. of units system-wide: 40

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Female Leaders Raising Up the Next Generation – Jania Bailey

What do you wish you had known before taking your first management role? I wish I had known how hard it is not to hold people accountable for not living up to my work style, expectations, and commitment. Which leadership skills were the most difficult to develop? Patience was the most difficult for me, with the willingness to face conflict quickly being the second most difficult. Who helped you on the way to the top? I had several people give me opportunities and encourage me along the way. The bank president of the first bank I worked at in Paducah, Kentucky, believed in me and encouraged me more than he probably realized. A female executive with Fantastic Sam’s gave me a massive opportunity in the organization and let me know she believed in me from Day 1. She is still a friend and cheerleader for me. What was the best advice you ever got? “Give yourself permission to be human.” I was hard on myself for many years. I learned that it was okay to say no to extra projects or outside commitments. Is that different than the advice you give? I find myself giving a lot of the same advice given to me. How do you mentor, and what advice do you give those you mentor? I allow my mentees to set the agenda for our meetings and the topics they want to address. I need to be what they need when they need it. A lot of the advice involves being patient with themselves and being sure they work toward work/life balance. Many of us ignore the personal side of our lives while trying to get ahead. Later in life, we must make peace with the sacrifices we made and the things we missed. I encourage my mentees not to make those mistakes. What skill sets do you think are imperative for young women leaders? Today’s leaders must be resilient, strategic, willing to lead by example, not take themself too seriously, know when to be firm and when to be flexible, know when to cut their losses with a problem employee, and learn to trust their gut instincts on everything! What are your leadership do’s and don’ts? Do stay humble and approachable. Don’t believe your own press. Do surround yourself with people who complement your work style and personality. Don’t always hire people like yourself. Do protect your team from the outside. Don’t let your team be the fall guys for mistakes. How did you learn to embrace risk-taking? My training as a commercial loan officer taught me that you must take calculated risks. If you wait until you have all the answers and are 100% sure of the outcome, you will never make a decision. No decision is a decision, and it is usually the wrong decision.

struggle with patience, but I have learned that everything comes to those willing to work hard and not lose sight of the goal. What roles do education and experience play in leadership development? Education is essential, but experience is invaluable. Commit yourself to learn everything about the industry and the various specialties. Read the industry magazines and multiple articles, and attend the educational sessions at conferences. Internally, become the go-to person at your company for all things in your specific area. Volunteer to cross-train when the opportunity arises. Learn all you can! What about attitude and mindset? Attitude is critical if you want to climb the ladder. You must stay positive and have a “can-do” attitude. Do not be seen as a complainer or someone who “expects” special treatment. Your mindset has to be that if you will work hard enough, they cannot help but promote you. Avoid the attitude of “entitlement” at all costs! Was there a time when things didn’t turn out as planned? How did you bounce back? I accepted a position with a bank that recruited me hard, despite being very happy with my then-current bank. The new bank made many promises, increased my pay by a large percentage, and offered stock options. Accepting this position was the worst mistake of my career. The bank did not live up to many of the promises, and their culture was toxic. I bounced back by quitting the bank and exploring other options, which ultimately led me to franchising. I would never have left the banking industry without this “mistake.” What’s the most important leadership lesson you’ve learned, and how has it proven invaluable? Not to let disappointments or misplaced trust make you bitter or unwilling to give the next team member complete confidence and effort. At some point, everyone in leadership will have employees who disappoint you, who leave without sufficient notice, and that you find out have lied to you. You must take these situations with a grain of salt and move on. I have found that after these disappointments, I can always look back and see that things turned out for the best! Why is it so important to give back to the next generation of leaders? We must mentor the next generation and share what we have learned along the way. If we can spare them some of the mistakes and heartaches by sharing our experiences, it will help them move ahead more quickly. None of us in leadership today did it alone. We all had people open doors, pull us up, and encourage us along the way. We owe this to the next generation as our thank-you to the generation that came before us. 

How should aspiring female leaders build allies? Be yourself! No one likes a phony or someone wanting to use them to get ahead. Work hard and get to know the successful people in your industry, but don’t be pushy or assume they should make time for you. The right people will be available to you, and the connection will be natural. How do aspiring female leaders balance patience and perseverance? Perseverance is needed throughout our careers. Work hard, and do not let the day-to-day frustrations get in your way. I still FRANCHISEUpdate

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Brand: Hounds Town USA Title: CEO Age: 41 Years in franchising: 9 No. of units system-wide: 21 open, 48 in development

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Female Leaders Raising Up the Next Generation – Jackie Bondanza

What do you wish you had known before taking your first management role? Leadership takes a lot of work and energy. I wish I had taken more time to factor that into my role and day to day. It’s difficult to lead people and a fast-growing company without other top-level executives to lean on. If leaders aren’t very careful about time management to push both along in tandem, one can suffer or be out of balance.

How did you learn to embrace risk-taking? I always think of it like this: Franchisees are investing in me to develop the brand. This involves taking risks for the company to push the company forward and forge through challenges. Even though I may not be personally comfortable with the risk, I am acting on behalf of the brand and the franchisees. It helps me see the path more clearly when I remove my own emotions.

Which leadership skills were most difficult to develop? We are in a major growth phase. For me, it was difficult to carve out time to upskill employees while still keeping the company moving at 100 miles an hour.

How should aspiring female leaders build allies? Network. Connect with others. Have open and honest conversations. Make real connections with people.

Who helped you on the way to the top? Rob Flanagan, our new COO, came on board in 2021 and stepped into leading the team. This helped tremendously, as I could then focus exclusively on brand growth while he focused on leading and managing the team. Many other people helped and supported me along the way including Tam Kennedy, Mitch Cohen, and Tom Baber. What was the best advice you ever got? The best advice I ever got was from Mary Wowk, the director of sales at Abrams Books where I was an editor. She always encouraged everyone to fully own their mistakes verbally. She would say, “When you acknowledge your mistake and apologize for it, watch other people’s faces. It changes the trajectory of the conversation and allows the focus to shift to a solution.” Is that different from the advice you give? No, that is my number-one piece of advice to all our employees. Owning mistakes is absolutely crucial to both an employee’s and the company’s health and growth. The second piece of that is the necessity to look inward and have self-reflection. To fully own mistakes, we must look inward to acknowledge and embrace our shortcomings, as opposed to becoming defensive. How do you mentor, and what advice do you give those you mentor? I always foster and encourage honest conversations. If I’m having a conversation with an employee about an issue, I always ask them first what their role is in the issue. It triggers them to think about their accountability, and then to think about it from someone else’s perspective. It follows our value of seek to understand first, not seek to be heard first. What skill sets do you think are imperative for young women leaders? Confidence. Although this is (thankfully) changing, we are fed this narrative as a society that leaders have to be dominant, aggressive, and assertive. While those traits are certainly important at times, I reject the notion that leaders always need to present that way. Great leaders are made, not born. Those of us who work really hard at it can achieve great things without having to dominate others to do anything. What are your leadership do’s and don’ts? Do: Having emotional intelligence is a big must for me. The ability to listen, really hear people, and to see and understand things that are going on within your company is really valuable. By nature, this can be easier for women because we are born with a high nurturing instinct. This should always be leaned into and developed. Don’t: My biggest don’t is allowing ego to dictate leadership style. Our egos can be our worst enemy. When we act in ego we are responding emotionally in a way that serves ourselves first. That is not the role of a leader.

How do aspiring female leaders balance patience and perseverance? It can be challenging. When I first came into my role here, I was very focused on building a franchise growth plan. I also had to juggle running two corporate stores and managing a staff of about 20 people. I managed it by allotting time in my week for all the different things I had to do to make sure I kept all the balls rolling in the same direction at the same time. If there was an issue with one, I knew I had a specific day in the week to address it. To balance patience and perseverance, I found that having emotional intelligence really helps—and so does throwing the idea of perfectionism out the window! What roles do education and experience play in leadership development? Education has been the foundation of my success as a leader. For me, it is the bedrock of my leadership, and I draw most of my skills from my formal academic education. I have found the experience of getting an academic degree prepares one for the skills needed to be a great leader. Drawing on experience from past roles also is critical. I have found that I can draw on my experience as an editor (my past professional life), even though I’m in a completely different industry now. What about attitude and mindset? Attitude and mindset set the stage for success, always. Was there a time when things didn’t turn out as planned? How did you bounce back? Many times things didn’t go as planned. This is why I always try to be open to outcome, even if that outcome isn’t what I had in mind. It can often be better and more beneficial in the long run. I usually bounce back most quickly when this happens by going to the leaders on my team, founder Mike Gould in particular. He is always great at highlighting things I may not have thought about and seeing things from a different perspective. For me, getting out of my own head helps me to strategize better. What’s the most important leadership lesson you’ve learned, and how has it proven invaluable? Share your real vision with employees so they feel they are a part of something bigger. Great employees aren’t here for just the paycheck. They want to be a part of a journey and a culture, and the more you lead with that the stronger that thread is throughout the whole company. Why is it so important to give back to the next generation of leaders? The next generation is our future. The long-term success of our companies is in the hands of the next generation! We should all have a vested interest in investing in that collectively. 

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Brand: Teriyaki Madness Title: Chief Marketing Officer Age: 45 Years in franchising: 23 No. of units system-wide: 105

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Female Leaders Raising Up the Next Generation – Jodi Boyce What do you wish you had known before taking your first management role? Managing people and growing their skills takes a lot of time and energy! However, it’s worth it if you can grow a strong team!

leaders seem eager to be recognized, but if she can give credit to her team, and if she has a positive track record of accomplishing what she committed to, the allies should come naturally and there will be more mutual respect.

Which leadership skills were most difficult to develop? Delegating to the team to allow time to think higher-level and more strategically, especially in a smaller company like ours. I’m a doer as well as a planner, so it was difficult for me to pass along projects and take the time to teach others how to do them rather than doing them myself.

How do aspiring female leaders balance patience and perseverance? Although I’d love for the work to speak for itself when looking for a raise or promotion, it doesn’t always work that way. Let your career goals be known early with your boss—not as a demand, but to set goals and manage expectations, theirs and yours.

Who helped you on the way to the top? I’ve had several great bosses and leaders above me along the way. Jennifer Sanning was one when we were at Quiznos. She and another VP were at the same level (same age, similar experience and background), yet she was more respected and was paid more than the other VP. She taught me that if you don’t ask for it and present your case, you may not get it (when it comes to raises, promotions, or even approval on projects and budgets). Michael Haith, my current boss and CEO of Teriyaki Madness, continues to push me to delegate more to allow myself more time for strategy and planning. Another is Arjun Sen, owner of ZenMango. Although I didn’t work at the same company, I’ve worked with him on many projects over the years. He saw potential in me 15-plus years ago and has given me great advice over the years on resumes and networking. What was the best advice you ever got? Give credit to your team and recognize their efforts. And, if you don’t ask for it, you may not get it. Is that different than the advice you give? No. I try to pass those along to my team. How do you mentor, and what advice do you give those you mentor? I try to lead by example. I’m always willing to jump in to help the team accomplish projects. I also try to carve out time to teach my team how to do a project they’ve never done before. I find that even though hours in the day are scarce, it’s worth taking the time to answer their questions first, so they aren’t slowed down on accomplishing what they need to get done to achieve the larger goals at hand. What skill sets do you think are imperative for young women leaders? Speaking up and sharing opinions (backed up by facts and data). However, there’s a way to do this with assertiveness and confidence without being arrogant or aggressive. Flexibility is imperative. Know when to pick your battles and when to go with the flow. What are your leadership do’s and don’ts? Do: Lead by example. Don’t: Ask your team to do something you’re not willing to do yourself. How did you learn to embrace risk-taking? Have the data to back up a risky decision. Evaluate the pros and cons, and if the data supports the risk, go for it. It also helps that Teriyaki Madness is a very forgiving environment. As long as we take accountability, we do not overreact to occasional mistakes or bad decisions. We assess it, learn from it, and move on. How should aspiring female leaders build allies? Give credit to those who did the work or came up with the idea. Some female

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What roles do education and experience play in leadership development? I had a great education (University of Colorado Boulder–Leeds School of Business). However, my best education came from real-life experience, mainly being involved in competitive sports through high school and attending, as well as being employed by, a kid’s outdoor camp in Tahoe for years. Both taught me invaluable leadership and teamwork skills that aren’t necessarily taught in a classroom. What about attitude and mindset? I have found over the years that having a flexible attitude is key to your sanity. Only worry about the things you can control. Was there a time when things didn’t turn out as planned? How did you bounce back? Two stories. After I left one of my positions about 10 years ago, I tried something completely new: working for an ad agency remotely, with me in Denver and the agency in Richmond, Virginia. Part of my role was to bring on new clients. It was very challenging and not for me. My confidence took a hit. I didn’t have a lot of work for about a year, and I didn’t feel part of a team (this was pre-Zoom!). Because I’d made great connections over the years, I had an old colleague reach out and recommend me for a position at The Integer Group, an agency in Denver where I would represent the Einstein Bros. Bagels account. It turned out to be a great move for me, as I was in the right place at the right time. Before Teriyaki Madness, I was at Smashburger. There was a change of ownership, and in June 2016 they let 8 out of 11 of our marketing team go, including me. It was a blow to my confidence, but also the best thing that’s happened! I found the Teriyaki Madness position immediately once I started looking, fell in love with the food, the brand, and the excitement of the opportunity to grow the company. I’ve now been here more than 5 years. What’s the most important leadership lesson you’ve learned, and how has it proven invaluable? Don’t sweat the small stuff (or sometimes the big stuff). In my earlier years, I took a lot of pride and ownership in my role and what I was responsible for. Although that did lead to a lot of productive work, it also led to overreacting to change and taking things too personally. Change is a constant part of this business, and once I learned to separate personal feelings from business decisions I excelled in my role and at being a leader. Why is it so important to give back to the next generation of leaders? Some leaders need a little push or encouragement to get to the next level. Great things can happen when someone is given a chance to succeed. For the larger good of a company’s growth, it’s important to pass along what you’ve learned to the next generation so they can start leading with confidence and know that someone has their back. 

Brand: Any Lab Test Now Title: CEO Age: 60 Years in franchising: 14 No. of units system-wide: 201

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Female Leaders Raising Up the Next Generation – Clarissa Bradstock

What do you wish you had known before taking your first management role? Trust yourself and allow yourself to make mistakes. Which leadership skills were most difficult to develop? Delegation. One of the hardest things to do when you are a firsttime manager is to delegate and let others learn from their mistakes. Who helped you on the way to the top? My first mentor, Jim Whitmire, who taught me to trust myself and take chances, and Rich Simeone for supporting me through the challenges and successes with Any Lab Test Now. What was the best advice you ever got? Leadership is an opportunity to serve others.

How did you learn to embrace risk-taking? By asking myself, “What is the worst that could happen?” Once you recognize the worst-case scenario, it is easier to make difficult choices. How should aspiring female leaders build allies? Engage and be present. For example, I became very involved in the franchise community and took leadership roles. Through these opportunities, I was able to meet some amazing people who are fantastic leadership role models. How do aspiring female leaders balance patience and perseverance? My mantra is “incremental improvements,” which is a combination of patience and perseverance. Leading a franchise company takes patience because you have franchisees at various levels of experience with the brand, and you have to progress at a pace in which franchisees have an opportunity to engage and embrace. What roles do education and experience play in leadership development? I think it is important to provide team members the opportunity for continuous education, while exposing them to other aspects of operating a business. What about attitude and mindset? Having a positive attitude and mindset helps team members and franchisees visualize success. Once they can visualize it, they are more likely to attain their goals. Was there a time when things didn’t turn out as planned? I was with a company going through difficult times and I was downsized. That was my first position, I was immature, and I took it personally. Now when I have a friend or associate in a similar situation, I offer to have them work on special projects because it is important to engage in productive tasks while seeking new opportunities. What’s the most important leadership lesson you’ve learned, and how has it proven invaluable? Allow team members to fail, and then guide them on ways to do it better going forward. Why is it so important to give back to the next generation of leaders? Mentoring others is a way of giving back and leaning into the future, and is one of the most rewarding aspects of being a leader. 

Is that different than the advice you give? Although compensation is important, make sure you are taking advantage of opportunities to learn and grow. How do you mentor, and what advice do you give those you mentor? Have fun. Take chances. Have faith. What skill set do you think is imperative for young women leaders? Confidence. What are your leadership do’s and don’ts? Do: Look for incremental improvements. Schedule biweekly meetings with each subordinate. Schedule time for strategic planning. Listen to inspiring podcasts. Give back to the community. Build a collaborative team. Take a step back before responding to challenging emails. Don’t: Expect perfection. Micromanage. Take yourself too seriously.

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What do you wish you had known before taking your first management role? I was in my late 20s when I had my first management role. I was young and perhaps a bit intimidated since I was managing some team members who were older than I was. I would pretend to know more than I actually did. I learned early on that this was not a good idea. Members of my team caught on pretty quickly and lost a bit of respect for me. Luckily, I was able to earn back their respect and trust. My team respected me more for being human, for admitting when I needed them, and for asking for their help. Which leadership skills were most difficult to develop? Earlier in my career, it was difficult for me to effectively delegate. Delegation is such an important leadership skill, but, unfortunately, I held on to the “It’s just easier if I do it myself ” attitude longer than I should have. Although I still struggle with this from time to time, I recognize the importance of delegation at this stage of my career. Who helped you on the way to the top? I’ve been very blessed to have many mentors and tons of support throughout my career. My family, including my parents, brother, and sister, have always been incredibly supportive of my endeavors. From my passing a series of exams to become a credentialed actuary in my 20s, to starting Snapology in my late 30s, they’ve always had my back. I also had some fantastic mentors in my actuarial career and in franchising. What was the best advice you ever got? When I was in high school looking at colleges and careers, my father gave me the advice, “Do what you love and the success will follow.” I know now that he stole that quote from someone else. Nonetheless, it was very meaningful to me—and great advice. It took me years beyond college to truly follow his advice, but ultimately I have chosen two careers so far that I have loved. Is that different than the advice you give? I have given this same advice to both of my sons as they approached this same point in their lives. I similarly tell franchise prospects not to just buy “another job,” but to choose a business they love.

Brand: Snapology Title: Co-Founder & CEO Age: 50 Years in franchising: 18, including my time as a franchisee No. of units system-wide: 146

How do you mentor, and what advice do you give those you mentor? I approach each person on an individual basis based on their specific needs and where they are in their business or career. For some, my advice comes in the form of getting them to dig deeper or gain clarity on the issues they are facing. For others, I try to pull them into my network to help them benefit from different perspectives. The key is to develop a supportive relationship where we can share ideas, offer encouragement, and drive results. What I love about mentorship is that it’s always a two-way street. Even when I’m the one providing most of the advice and encouragement, I find that my mentees have so much to offer me in return. What skill sets do you think are imperative for young women leaders? I think the skill sets imperative for leadership are identical for women and men, with the exception that women often need to overcome gender bias. Unfortunately, because more men have been in leadership roles for so long, the characteristics most often associated with strong leaders are often considered masculine. Generally speaking, it is not viewed as positively when a woman exhibits the same traits as her strong male leader counterparts. Therefore, as women develop leadership skills—including taking risks, analytical decision-making, delegating, and communicating effectively—we FRANCHISEUpdate

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Female Leaders Raising Up the Next Generation — Laura Coe

must be cognizant that these biases can occur and be prepared to stand firm in our leadership capabilities. No apologies are needed.

there will be failures and the mindset to “fail forward” is what truly leads to long-term success.

What are your leadership do’s and don’ts? I would say that the key do’s are leading by example, maintaining a positive environment, and giving credit where credit is due. The biggest don’ts are ignoring feedback and blaming others.

What roles do education and experience play in leadership development? I find that leaders generally look at education as more than just a degree that you earn, and instead embrace all opportunities to learn. I have a robust love for learning. I thrive in an environment where I can constantly absorb the knowledge of those around me. It’s what drives me to constantly improve myself, my business, and to innovate. In terms of leadership development, I believe that experience and education frequently go together, but experience often drives stronger development. Your experiences provide more meaningful positive or negative feedback to emulate or avoid as you progress. Education is very important to development, but sometimes there is a delay in the practical use of your formal education. Your work experiences can be more impactful, and often more timely. Ultimately, every great leader needs a balance of both education and experience.

How did you learn to embrace risk-taking? Through an exercise in weighing the risk of not doing something against actually taking the risk. In the end, there are very few risks you take in life that can’t be undone or fixed in some way. I’ve learned that risk is not as black-and-white as it can seem initially. In approaching risk with this mindset, I’ve found it easier to have the confidence to take risks and, in some cases, the confidence to fail. How should aspiring female leaders build allies? Seeking mentors and allies throughout your career can be a critical component of your success. It’s important to look outside of your inner circle or those you are most comfortable with to develop allies with different perspectives. It’s natural to seek and find mentors who think like you, but the true value is in finding someone who challenges your thinking and provides an alternative perspective. Allies and mentors are everywhere. Never be afraid to ask for someone’s help or guidance. Most people are flattered and thrilled to help.

What about attitude and mindset? The right attitude and mindset are the keys to becoming an effective leader. Leaders must have mindsets that are positive, agile, growth-oriented, and inclusive. Having a healthy mindset is essential to developing confidence and self-esteem. Our mindset influences our behavior and shapes our belief in accomplishing goals, which is essential to achieving success. Was there a time when things didn’t turn out as planned? How did you bounce back? One word: Covid. Need I say more? Covid showed no mercy on my company, Snapology. We never anticipated that schools would close, that kids wouldn’t be able to leave their houses to attend our programs. When the first school closed in the U.S. in Seattle, my company was affected, but we had a plan already in place. My leadership team had devised a full marketing strategy and had converted 60 hours of our programs to online before that school closed it doors. We were able to deploy a successful strategy to keep our 100 franchisees in business throughout Covid. I attribute our success to effective leadership driven by efficient problem-solving, decisive and swift action, collaboration, and teamwork.

How do aspiring female leaders balance patience and perseverance? In the sense that patience comes from a need to balance immediate gratification with longer-term goals, I view patience and perseverance as going hand in hand. Perseverance is a critical leadership skill and essential to entrepreneurship. It’s often not a skill that is learned, but one that is rather innate. It can be nurtured over time, but takes effort and practice as it involves the ability to learn from failures and keep trying. Many people think that success comes from avoiding failures. But the willingness to anticipate that

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What’s the most important leadership lesson you’ve learned, and how has it proven invaluable? I found that there are generally two types of leaders: 1) those who surround themselves with others just like them because they think their skill set is optimal; and 2) those who understand their strengths and surround themselves with people who possess differing strengths that complement the team. It’s been invaluable to me to surround myself with a diverse team that possesses differing skill sets from mine. This structure has created my most highly effective teams and has led to accelerated business growth. Why is it so important to give back to the next generation of leaders? The easy answer is because I’d like to retire and leave my business in good hands. However, I also believe in the “pay it forward” concept. If those ahead of me hadn’t been willing to mentor me, I wouldn’t be where I am today. I think it’s incumbent upon us all to give back at some point in our careers. 

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What do you wish you had known before taking your first management role? The primary things are to be even more assertive, set boundaries, and remain firm. I was so concerned about disagreeing with a person and not to be seen as problematic or unlikeable. I felt this need to be over-accommodating and be seen as a people pleaser. I was always saying yes to extra work versus delegating and providing the opportunity to train and mentor my subordinates. Which leadership skills were most difficult to develop? The most challenging one was coping with the fear of failure, learning to work through the moments of self-doubt, and getting comfortable with the uncomfortable. Another one was finding the balance between thick skin and thin skin. Today I lead with a soft heart when needed, but have thick skin to guard it as well. Who helped you on the way to the top? I have a couple of special people in my life who I can attribute my rise and success to. It’s hard for me to name one individual. I have been blessed to have had strong role models, advocates, mentors, and sponsors in my personal life, business, and education. I am grateful they believed in me enough to fuel my growth and lift me along the way; particularly, franchisees have opened many doors for my thought and have been the cornerstone of my success. What was the best advice you ever got? Don’t be afraid to ask. At times, I didn’t want to impose on people or seem that I didn’t belong at the table. Throughout my career, I have been very fortunate to surround myself, work with, and be mentored by some of the most talented, successful, and competent leaders in the industry. Each has common skills (e.g., asking many questions, seeking advice, and asking for help). One of the most memorable and best pieces of advice I received was, “Do not have a knower mindset; instead, have a learner mindset. The learner mindset is more vulnerable and accepts the fact that you may not know all the answers.” Additionally, it demonstrates a willingness to learn from others and build relationships. Is that different than the advice you give? No. How do you mentor, and what advice do you give those you mentor? One of my most significant pieces of advice is to surround yourself with people who want to see you succeed. Of course, it’s essential to have mentors, but it’s also vital to have sponsors willing to cash their personal, social, and political capital to open the door for you or help you move up. They are people who believe in you, people you’ve built credibility with.

Brand: Au Bon Pain Café & Bakery Title: President/CEO Age: 46 Years in franchising: 16 No. of units systemwide: 175 worldwide

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What skill sets do you think are imperative for young women leaders? Young women leaders must be true to their authentic selves and find their voice as women in business. It has been proven that women leaders bring higher collaboration to companies, often bring better problem-solving skills because they are more inclusive in the process, have superior softer skills, can be more effective communicating or managing the nuances of a complex situation, and are often greater advocates for diversity and creating opportunities for other marginalized groups. What are your leadership do’s and don’ts? There are many, but here are a few. Do’s: Keep my word and follow through on my commitments (integrity). Demonstrate a willingness to get close to the business

Female Leaders Raising Up the Next Generation – Ericka Garza

and understand the roles. I want my team to know they can depend on me to do a fair share of work and follow through, supporting them through tough times. Be accessible. I always want to be a leader who hears feedback, is an active listener, and builds meaningful working relationships up, down, and across the organization. Stay committed to my personal development and the development of others. I want to keep growing and learning, and I also want to help team members find ways to develop new skills. Don’ts: Compromise my values and ethics, always think I am right, or lose being open to others’ ideas and creativity. There is more than one right way to do things, and some of the people closest to the work will always have better ideas or see a clearer solution. How did you learn to embrace risk-taking? I would say that most of my career and personal life have been based on a series of risk-taking opportunities and taking many leaps of faith. I would also add that the risk decisions I’ve made and the steps I took to get to where I am today have become some of the proudest moments that contributed to my success, as well as to my biggest failures. As a woman of color, and at the time a single mom, and not having a business degree from an Ivy League university, I felt the odds and obstacles were greater for me. Therefore, it was too risky for me not to take chances when given to me. Notably, in a world that’s constantly changing quickly, the only strategy guaranteed to fail is not taking risks. Therefore, I have always been driven to do something different without testing the waters, persevere through it, and have a willingness to gamble, take risks, and the willingness to risk rejection or failure. Throughout my experiences, I can personally share that when you are genuinely passionate about something, taking risks to achieve it becomes second nature. How should aspiring female leaders build allies? By building relationships with peers and critical stakeholders. Seek input early in the process to hear points of view, collaborate, and build alliances. Sharing in creating a strategy, idea, or solving a problem creates a partnership that can be lasting. Also, demonstrate a willingness to add value and help colleagues when needed. It is gratifying to help a colleague in need. You build equity and trust along the way, while helping someone else be successful. How do aspiring female leaders balance patience and perseverance? Today’s business world is filled with uncertainty, and uncertainty creates distractions, stress, exhaustion, and obstacles. Leaders must have the grace to listen to their people and understand the risk/reward in rushing ahead or having the patience to let circumstances play out. Unfortunately, there are numerous examples of leaders who stubbornly forged ahead on a business strategy that no longer made sense. What roles do education and experience play in leadership development? I never stop learning and have a strong combination of both education and experience. Earlier I talked about continuous improvement and achievements. I commit to constant learning by reading, participating in various educational conferences and webinars, and last year I finished an executive education program at Cornell University. I understand that you can never be too educated, especially if you’re in a leadership position. I want to be an example to employees and young women. Continuing education can enable anyone to make smarter decisions, be a better leader, and become valuable within the industry. It’s imperative to continue

sharpening our skills and developing new ones. I bring those types of learning each day to my job. But I am also a big believer in rolling up my sleeves and doing the work. I have had a range of responsibilities working for companies like 7-Eleven and Yum Brands, which prepared me for what I am doing today. What about attitude and mindset? I am an eternal optimist. I see opportunity in everything. My father was an entrepreneur and owned small businesses. My mother, to this day, is self-employed and works six days a week. Together, they taught me life lessons I’ve used to get to where I am today. My mother taught me the value of hard work, preparedness, rebounding and rebuilding, failures, setbacks, courage, having a voice, and standing up for others. My father talked to me about “stereotypes and breakthroughs,” and from a very young age made me aware that I looked different and spoke differently from everybody else; therefore, I would most likely always be walking into a world that makes prejudgments about my gender and race. Those lessons instilled in me a need to work harder and prove myself. It was important to find a way to stand apart from the crowd. These are the things that make me who I am. In life, how you react to what happens defines you as a person. And that if I did the right things, I could accomplish anything. I have carried that mindset with me today. Was there a time when things didn’t turn out as planned? How did you bounce back? I have experienced multiple situations that didn’t turn out as planned. I have been rejected from a promotion, I have lost business accounts, recessions, Covid, etc. However, as I said, I am an eternal optimist. Even when things go wrong, I see it as an opportunity to learn, grow, and get better. We often learn more from failure than we do from success. I don’t believe failure is fatal unless you give in to it and stop. One of my favorite quotes comes from Matty Mullens: “The only person you should try to do better than is the person you were yesterday.” What’s the most important leadership lesson you’ve learned, and how has it proven invaluable? One of the things I feel I’ve been wise enough to learn throughout the years is that you never know everything. No matter how many experiences, lessons, or how much education you go through, you still have many to learn. I’m currently, and will always be, a student within my industry, in my surroundings. Loving to learn different things and taking from those experiences has been invaluable to me. Why is it so important to give back to the next generation of leaders? Paying success forward to a new generation of entrepreneurs, leaders, and innovators, particularly women of color, is vital to me. True success is opening doors for others and expanding opportunities for all women and minorities. I consider it a privilege to have the opportunity to invest in people. What motivates me is helping the next generation reach even greater heights than we ever dreamed. Although we all have different ways of advocating, I advocate by sharing my personal experiences, failures, and triumphs, particularly for people who look like me. 

FRANCHISEUpdate

ISSUE 1, 2022

What do you wish you had known before taking your first management role? I wish I knew it was okay to not have all the answers. I used to hear the word “strategy” and think it was this untapped piece of code I had not yet been gifted. The reality is that a strategy is a plan. Some plans succeed and others fail. You increase your chances of succeeding with data and informed insight, but it may not work, and that is okay. The only true failure is not trying or speaking up in the first place. Which leadership skills were most difficult to develop? Patience. This is something I will always need to work on, and it’s incredibly important. I frequently have an impulse to act quickly. I drive for answers, resolution, and results. I must remind myself to pause, establish facts, and work to understand situations before catapulting into action. Who helped you on the way to the top? There have been countless people who have influenced my career, and I owe so much to my mentors and friends. This is a long list because I believe everyone I have worked with and connect with has helped me in some way. Even negative experiences or strained relationships have helped me to determine the type of leader I want to be. I am forever grateful to those in franchising who have provided so much guidance, support, and friendship. I am also grateful for the leadership at MassageLuXe. Our CEO, Mark Otter, has created an opportunity for me that I adore and work to do my best in. What was the best advice you ever got? At an early age, my grandpa wrote a book to help high schoolers understand the importance of soft skills in the workplace. He taught me how to develop skill advantages such as teamwork, communication, and a solid work ethic to gain a competitive edge. He said, “Your ability to compete is the single most important factor in determining the success you will have in your work life.” While initially I took this advice as the need to compete with others, which is true at times, I now wake up asking how I can compete with myself. I want to wake up every day being better than I was yesterday. Is that different than the advice you give? It’s not. I hope I teach and inspire the team to wake up better than they were yesterday. You should never be done making yourself better. How do you mentor, and what advice do you give those you mentor? I am very passionate about education and mentorship. I work to give back to the franchise community. Along with my involvement in franchising, I spent several years as an adjunct professor at the University of Wisconsin–River Falls with the goal of making an impact on today’s youth. I also serve as a board member for the Flaherty Family Foundation, which is dedicated to mentoring and providing scholarships to high-achieving students with economic need. Through the foundation, I speak to scholars in large group workshops and in one-on-one settings to give insight on how developing soft skills has helped me in my career. I often tell aspiring leaders that it’s okay to not have all the answers in every given situation. You can’t be afraid to put in the work and give it your best shot.

Brand: MassageLuXe Title: Chief Growth Officer Age: 31 Years in franchising: 10 No. of units system-wide: 70

FRANCHISEUpdate

What skill sets do you think are imperative for young women leaders? 1) Communication: Your ability to communicate is a key characteristic of a good leader. Not only must you be good at listening and gathering feedback, it is also crucial to express ideas ISSUE 1, 2022

Female Leaders Raising Up the Next Generation – Kristen Pechacek

and share information with a variety of audiences. Along with verbal communication, work to find experience in communicating in multiple ways, such as writing and presenting. 2) Resilience: It’s imperative to recover quickly from setbacks, remain calm under pressure, and radiate persistence. Every business has adversity, and your team needs you to have a healthy balance of positivity and realism. 3) Influence: This is arguably the most important. You need to be able to build and maintain trust with your colleagues and network. You must find the right level of self-promotion and be able to rally a group around your belief or cause. This is all about your ability to build credibility and connections.

moments in your leadership and reexamine them. Ask yourself what you would do differently. What about attitude and mindset? Your mindset is incredibly important. You don’t go into a sports game thinking you are going to lose the game. If you do, you will. Lead with conviction. Identify the purpose behind what you are doing and stay strong and decisive to fulfill that purpose. Believe in your instinct, pull your shoulders back, and never shy away from the challenge that sits in front of you.

What are your leadership do’s and don’ts? Do: Have a plan; rally your people toward goals and the path to get there. Create an environment where it’s okay to fail; if your team is afraid to fail, they will stop innovating. Make time to think; quality thinking leads to quality actions. Roll up your sleeves and get on the front lines with your team; it’s not enough to just set a strategy, you must be a coach and a player. Don’t: Talk more than you listen; show that you value the opinions of your team. Micromanage; give clear boundaries and expectations, but let your team put their creativity and innovation to work to bring something to life. Place blame; when people feel safe, they build trust, cooperate, and take ownership. How did you learn to embrace risk-taking? You must create an environment where it’s okay to fail. I recently read about a 70-2010 approach: 70% of the time you are suggested to focus on things you know are very core to your business; 20% is where you try to push the boundaries and get into the known unknowns; and the last 10% is for the crazy, experimental stuff. Try the uncomfortable things that may lead to failure more often than success. When you do have success, it likely turns into a competitive advantage. I love this approach. How should aspiring female leaders build allies? Be proactive. No one is going to pave the path for you in your career. It is up to you to set a goal and stick to it. Fight for yourself and what you’re capable of. The same goes for building your network. Proactively reach out to people to hear their story and share yours. Industry events are a great place to jump-start your network. How do aspiring female leaders balance patience and perseverance? To me, this is one of the hardest things to accomplish. As a leader you will start to pick up on areas of opportunity. A good leader focuses on being aware of those opportunities daily. Whether it’s a Post-it note on your screen, a sign on your desk, or a conscious thought at the beginning of the day, work to be aware of what the appropriate balance is of patience and drive. Recognize the big picture and understand that sometimes having patience enables you to become more aware. This can lead to breakthroughs that will advance your business. What roles do education and experience play in leadership development? I am a big believer that most of your learning and development comes from on-the-job experience. That doesn’t necessarily mean you need decades under your belt. Surround yourself with leaders who can share their on-the-job experience with you, and build your bank of experiences through other people, along with your own. Also, make sure you are taking everything you can from the experiences you do have. Take time to reflect on pivotal

Was there a time when things didn’t turn out as planned? How did you bounce back? Of course! If you aren’t looking back at what you have done in the past and reflecting on what you would have done differently, you aren’t learning. Things don’t turn out as planned too many times for me to count. The important thing is how you react, adapt, and reflect on those things. Make recap and reflection meetings a standard practice in your business. Just because a project is complete doesn’t mean the learning is done. Force the conversations with your teams as to what should have been done differently. What’s the most important leadership lesson you’ve learned, and how has it proven invaluable? Don’t get too comfortable. You must be flexible. If you are flexible, you will learn to embrace change, work with many different types of people, and you will be open to ideas that may advance your business. You can anticipate change and adapt in real time to match the reality of a given situation. This can happen on a macro scale when something unexpected comes up in your business, but I also use this in everyday conversations with the people I work with. A good leader flexes to the personalities, moods, and people around them. As nothing in business stays stagnant, it’s worth your time to focus on being a more flexible leader. Why is it so important to give back to the next generation of leaders? The future of business and franchising depends on future generations, and we can’t take that lightly. The list of people who have helped to coach and mentor me is long and I want to be able to pay it forward. The more we give back, the brighter the future will look. 

FRANCHISEUpdate

ISSUE 1, 2022

Brand: On The Border Restaurants Title: Chief Marketing Officer Years in franchising: 25+ No. of units system-wide: 125 restaurants in 31 states and Asia

FRANCHISEUpdate

ISSUE 1, 2022

Female Leaders Raising Up the Next Generation – Edithann Ramey

What do you wish you had known before taking your first management role? Don’t be the manager you want for yourself. Be the manager your people want and need. Understanding your team’s needs and flexing your leadership style is critical not only in working with a team, but also in collaborating with your colleagues. Which leadership skills were most difficult to develop? Learning to presell and seeking input before finalizing a recommendation. You may think you have all the information you need, but you must stop and remember that others will have incredibly smart points of view. Seek input, alignment, and support before any big meeting to set yourself up for success. Who helped you on the way to the top? Individuals who were honest and gave me true feedback. Giving people feedback is not easy at all. But there were several key people along the way who took me aside and said, “You do this really well, but when it comes to this, here is some feedback on how you can improve.” Those moments were critical to my success. At On The Border, there has been only one other female C-level executive, Diane Sanford, and she has been instrumental to my success as a newly promoted chief marketing officer and C-level executive. Why? Because she helps me prepare for meetings, gives me feedback post-meeting, and is that one person who tells you when there is a stain on your shirt. You need those allies and friends who help you to the top by looking out for you, cheering you, and being your best feedback coaches. What was the best advice you ever got? Don’t make a long list of activities and then feel like you “got it all done” when you cross them all off. Choose the activities that drive the desired results. This was a game changer for my career. There are some things that are great to do, but if they don’t deliver the results you need, don’t do them! My “to-do” list was forever changed, and my ability to focus and deliver results was much improved. Is that different than the advice you give? No. Do the activities that drive the desired results is my mantra—to my team, to my kids, and to myself. How do you mentor, and what advice do you give those you mentor? So much of success is driven by the ability to try something new, get out of your comfort zone, and lean in. So when I mentor young executives just starting out, I often just remind them to be brave and strong. If you don’t succeed, the fact that you took a risk, tried it, and had conviction in an idea is so much more powerful than focusing on a win. What skill sets do you think are imperative for young women leaders? Looking out for other women. When I first started, it was not like that. Over time, as we’ve realized, “Hey, we all can have a chance at success and growth,” this has gotten so much better. I also think speaking up, daring to be outspoken and hold your own, is key. For many reasons, this does not come easily to women, but it’s key and necessary to being in a boardroom and talking about your business. What are your leadership do’s and don’ts? Do: Lead by example. Proofread everything you write, even emails. Be optimistic. Champion others. Don’t: Ignore other people’s feelings, or the impact of the decisions you make. Talk more than you listen. Take credit for what others say. Show up unprepared. How did you learn to embrace risk-taking? After the first time I failed and realized, “Hey, I didn’t get fired.” I failed. I knew I’d tried my best and that was appreciated within the organization. After that I was not afraid to keep taking risks.

How should aspiring female leaders build allies? Pick people you would be friends with outside of work. You spend too much time at work with co-workers not to choose allies you like and appreciate spending time with. Pick someone you can stop by and chat with about your personal life as well as your professional life; they are so intertwined. It’s nice to have someone you can connect with when things are crazy at home or at work! How do aspiring female leaders balance patience and perseverance? 1) By focusing on the purpose. Always know your “why.” If you have that clear purpose, you will persevere even when it’s extremely tough. 2) You must really want it, so you will work hard enough to obtain it. That desire will keep you going even when your patience is truly taxed! 3) Goal-setting is key. If you don’t know where you are going, how will you get there? 4) Willpower is so important. Delays, capacity, timelines, and budgets will affect you, but exercise your power to continue, to evolve, and to do it and you will get what you want. What roles do education and experience play in leadership development? For me, they have been so critical. My graduate degree in crisis communications really helped me prepare for the significant amount of writing, conflict resolution, and pressure that has been at the heart of my career. Focused experience—meaning 20-plus years in the restaurant industry—really does pay off now, as companies seek to benefit from years of marketing in a tough industry, an industry that seeks to bring people together for a great experience. What about attitude and mindset? Attitude and mindset are critical as a leader. I once read about how prisoners of war who survived terrible hardship were the ones who were optimistic, who had hope and focus. Survival did not depend on special survival skills or experience. I’ve never forgotten that, even in the toughest of times, stress, pressure, etc. Attitude and a positive, focused mindset will be most important to succeed, even more than whatever skills I might have. In another business book I never forgot (by Patrick Lencioni), I learned about being kind to your employees and giving them a positive experience with a great attitude as a leader. The thinking was that happy employees go home and have happy families and great lives. I have the power to make others’ lives better just from my attitude and mindset. I never forget that, and I exercise that power every day. Was there a time when things didn’t turn out as planned? How did you bounce back? Yes. Whether it’s the promotion I didn’t get, the project that didn’t succeed, or that one team member who left despite much development, disappointment is tough. I always remind myself that I gave it my best, I was brave and strong, and as long as there are no regrets, I can quickly rebound. What’s the most important leadership lesson you’ve learned, and how has it proven invaluable? That self-awareness is essential. Not easy, as you have to be aware of your weaknesses and constantly be addressing them. It also helps to know this, because you can hire against your weaknesses and truly build a strong team. Why is it so important to give back to the next generation of leaders? With an entire shift in office culture post-pandemic, supporting future leaders is key in moving businesses forward. Companies that harness future leaders will be better positioned for the future. When you combine experience with new ideas, you can achieve extraordinary things! 

FRANCHISEUpdate

ISSUE 1, 2022

Brand: Yum Brands Title: Head of Global Franchising Years in franchising: 7 No. of units system-wide: 51,000 (franchise units, Q3 2021)

FRANCHISEUpdate

ISSUE 1, 2022

Female Leaders Raising Up the Next Generation – Wanda Williams

What do you wish you had known before taking your first management role? I probably should have asked more questions about the dynamics of the environment I was walking into—across my team, my leaders, and the other divisions I needed to work with. I think sometimes when you apply for a job, you think, “Oh, I’m just coming in and doing this job.” But it’s essential to go into it knowing how those around you will affect your work. Which leadership skill was most difficult to develop? I think a lot of leaders have had to work on developing patience at some point in their careers. For me, patience is critically tied to active listening. Often when we speak and when we listen, we’re actually trying to get to that next answer before somebody else can complete their sentence. However, if you have the right amount of patience and you’re really able to actively listen, you can better understand people’s perspectives, better navigate difficult situations, and come to more effective solutions. Who helped you on the way to the top? Two people have been the most helpful in my career journey, and in completely different ways. The first is my father, who is not at all involved in Corporate America, but just has a really good sense of how to collaborate with people, how to shut out distracting, self-sabotaging behaviors, and the importance of staying focused on the job at hand. The other person is my former boss Kim Harris, who always guided me through difficult situations and had great perspectives on working with people, seeing different sides of a story, and the connection between patience and active listening. What was the best advice you ever got? My father always told me, “Focus on the results, and the rest will come.” In other words, if you just focus on doing your work every day, you don’t need to be too concerned about accomplishments or praise or recognition. Those things will naturally arrive in time if you just get your work done and do it well. How do you mentor, and what advice do you give those you mentor? Within Yum Brands, I’ve been doing a lot of mentoring with under-represented people of color, specifically African American, Hispanic, and Latina women. In these relationships, I make it a point to actively listen and understand the concerns of my mentees so we can partner together to develop solutions. I believe that we can all win with a more collaborative mentality and approach— because, as I’ve learned in my personal career journey, it really does take a village to help you grow and thrive.

to learn and grow. Give people opportunities to stretch their skills and learn outside their core discipline. Don’t strictly stick to what is on their goal sheet. How did you learn to embrace risk-taking? One thing my dad used to tell me was, “There’s no novel idea in this world.” Meaning, almost everything has been previously thought about, expressed, or created, but maybe there were gaps in making it successful. So when taking risks, focus on how to refine an existing idea and figure out what didn’t go right the first time. Risk-taking is about filling those gaps to build on a previous approach. How should aspiring female leaders build allies? Start by building allies within your teams, the people you meet with day to day. Once you solidify those relationships, your network of allies will grow organically. It can sometimes be a slow and steady race, but it will be authentic and lead to more trust. In addition, always be ready with your 30-second elevator speech, because you never know when you’ll have an opportunity to share your story, ideas, or business impact with a senior leader and activate their allyship. What’s the most important leadership lesson you’ve learned, and how has it proven invaluable? I will always advocate the importance of servant leadership. It’s crucial to understand when to be a coach and when to be a player. You can’t be afraid to work with your team, get your hands dirty, and sift through the details—all while making sure you’re serving the needs of your team. This also ties into knowing how to delegate effectively, because it allows you to let your team shine and experience challenges so they can grow. Why is it so important to give back to the next generation of leaders? People who are more established in their careers have an incredible opportunity to help advance the next generation of leaders at a faster pace. Imagine all the things you could have accomplished if you had entered your career with a running start and the knowledge your predecessors had to gain through years of experience. That’s why I’m so passionate about the Yum! Center for Global Franchise Excellence, which is the first business program of its kind at a public university to provide existing and potential franchisees with multiple levels of education focused on the franchising model across industries. The center also focuses on recruiting and educating under-represented people of color and women on the possibilities of franchising as a pathway to entrepreneurship, which I believe is a gap in the industry that needs immediate attention. 

What skill sets do you think are imperative for young women leaders? I had a lot of sales experience before joining Yum Brands, and one thing we used to joke about is how sometimes a no is really just a delayed yes. It’s the idea that you may not have the right elements to support an idea at the beginning, but if you really believe in it and you think it can be a game changer for your business, then keep refining it until that initial no could ultimately become a yes. I think this perseverance mindset is important for women in business. What are your leadership do’s and don’ts? When I was vice president of operations at Pizza Hut U.S., I would always tell my team, “If you do the work, then you present the work.” I firmly believe that if you want to be a solid leader, you should give your people the platform to speak upward. Never try to limit someone’s ability FRANCHISEUpdate

ISSUE 1, 2022

HANDHELD HAPPINESS

Delivering a “Wetz in a lifetime” experience Written by KERRY PIPES

JENNIFER SCHULER, CEO Company: Wetzel’s Pretzels Units: 350 Age: 45

Years in franchising: 26 Years in current position: 3

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ennifer Schuler has a unique distinction at Wetzel’s Pretzels: She is only the second CEO the brand has ever had. She replaced co-founder Bill Phelps when he stepped down after 25 years in 2019. Schuler was first hired as the company’s chief marketing officer in 2014, promoted to brand president in 2017, and in 2019 named CEO. She understands marketing and strategic leadership and is familiar with the brand and its operations from top to bottom. “There are a million different ways we can grow and improve this business,” she says about leading the 350-unit brand. “But when we find the ways that are at the intersection of where our people want to grow, or where they have passion or expertise, I find we generate better results more easily.” Schuler casts a dynamic presence tempered by a strategic mindset, and understands that the teams around her are critical to the organization’s success. That’s why she works so hard to inspire them to collaborate and think critically to problem-solve. “Creating opportunities for people, whether my team members or franchisees, to grow and succeed brings me the greatest joy,” she says. Despite the havoc Covid has wreaked on businesses in the past 2 years, Schuler says Wetzel’s Pretzels has thrived. The company’s EBIDTA increased threefold from 2020 to 2021.

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CEO Profile—Jennifer Schuler “In times of turbulence, people are seeking things that are predictable and nostalgic,” she says. “Consumers are looking for something that brings comfort and joy, going back to a time when things were simpler. Wetzel’s has been filling that void.” LEADERSHIP What is your role as CEO? A lot of my job, above and beyond the core responsibilities of financial and strategic direction, is focused on reframing people’s mindsets to move toward a learning and growth mode—really homing in on what is possible and what is limiting individuals as a belief, instead of a true limitation. From there, it’s my job to provide the resources needed to achieve big goals and eliminate obstacles. Three days a week, I have a leadership team huddle. Each huddle has a specific focus area: core business, new growth, and people. Problem-solving in the core business could easily consume our focus, but by setting aside dedicated time each week we are equally focused on finding new growth for the company and supporting the growth of our people. How has Covid-19 affected the way you have led your brand? Never before had we burned down the field of commerce like we did in 2020. And as scary as it was, when you burn down a field it creates fertile ground for new growth and new ideas. When the pandemic began, we worked to move our mindset from fear to learning, and from learning to growth. We wanted the work we did at Wetzel’s to be a bright spot in our teams’ lives. As we hunkered down, we developed new and creative ways the business could re-emerge and thrive. This translated into astonishing financial results. Our EBIDTA was three times more in 2021 than it was in 2020. The pretzel-eating occasion has deep emotional ties. People remember having a pretzel at the ballpark, at the mall shopping with friends, or at an amusement park. Pretzels bring back good memories and joy from childhood. In these times of uncertainty, people seek out small pleasures that bring a sense of comfort and nostalgia. I believe Wetzel’s does that for people. We are happy to deliver “handheld happiness” to families in troubled times. Describe your leadership style. As a leader, it is important to try to see the whole person and the value they bring to the team. The fact that our employees are electing to spend their time and energy with our organization is not taken for granted. We want to make sure their time and energy are well spent. It is important for people to find work meaningful as it is just a branch on the tree of life, not the trunk. Delivering for shareholders is of utmost importance. But we cast the net wider to consider all the stakeholders in our business and how we can use this business to benefit all of them. We recently debuted an award-winning float in the 2022 Rose Parade. Our goal was to involve and engage as many of our stakeholders as possible throughout the process, and to give everyone a chance at a “Wetz in a lifetime experience.” This included flying crew members and franchisees across the country to ride the float, bringing the whole corporate team out to decorate the float, and delivering hot pretzels on a cold New Year’s Eve night to our fans who slept along the parade route. The experience brought a great deal of joy by being inclusive of our stakeholders. What has inspired your leadership style? In college, I ran track and played soccer and was captain of both teams. My leadership style started as fulfilling that captain’s role and continued to evolve. There’s nothing I love more than winning as a team. I find the U.S. Women’s national soccer so inspirational. They are a great

FRANCHISEUpdate

ISSUE 1, 2022

example of a team that knows how to celebrate a win, no matter how many times they have done it before. Winning is fun, but high-fiving your team members and seeing their exhilaration is even better. Additionally, my parents left a mark on my leadership style. My mom was a teacher and principal and really instilled a passion for lifelong learning in me. I tend to get curious, ask a lot of questions, and seek to learn and understand first. My father was an executive in human resources for large global companies, and I saw his tireless effort to do best by the people in his organization. He also taught me about work/life balance. He was always there to coach my soccer team, even if he came late in his business suit! What is your biggest leadership challenge? One of my biggest challenges as a leader is balancing having a vision, looking ahead and seeing what is possible, and circling back to bring the team along. As a leader, you need to paint a clear picture of the future that is possible, then constantly loop back and shepherd from behind. Otherwise, you can run too far out ahead of your team and they lose sight of you and the goals of the organization. How do you transmit your culture from your office to frontline employees? 1) Keep it simple; keep your operations simple and your communications even simpler! And wherever possible, make it visual. 2) Actions must align with values; what they see us do has to align with the values we set in place. 3) Use multiple channels of communication. If you feel you already said it three times in an email, then present it in a meeting and say it again in your 1:1 meetings. Repetition of the message helps it stick. How can a CEO help their CMO develop and grow? Start by understanding, as early in the interview process as possible, questions such as: Where is your CMO headed? What experiences are they looking for? Are they working to become a brand president or CEO? Try to craft the role in such a way that it maximizes their skill, while also helping them accomplish personal growth goals. Balance a grounding in company history with an openness to new solutions; ground the CMO in the history of the brand. Share what the brand has done, the results and takeaways. But be open to change. Sometimes CEOs can see their brand as their baby, and no one wants to hear that their baby needs to change. Be open to seeing the brand through fresh eyes, open to allowing it to evolve. Last, help the team understand the confidence you have in the individual in the CMO role. Highlight their early accomplishments so the team has the same confidence in that person as you do. Where is the best place to prepare for leadership: an MBA school or OTJ? Business school provides a great foundation for basic business functions and frameworks for making data-based decisions. But before you can be a leader, you need to be a content expert respected by your team as a thoughtful, experienced decision-maker. In my opinion, the strongest leaders have a backbone of wisdom both learned in school and through experience. Are tough decisions best taken by one person? How do you make tough decisions? When tough decisions arise, I normally work with my leadership team to gain alignment. The more we are able to build alignment within the leadership team, the better the execution of any decision goes. We are all emotional beings trying to make rational decisions, so the foundation of any tough decision is gathering information—sifting opinion from fact, both inside the organization and outside. Through that process, a best course of action often will organically emerge. Do you want to be liked or respected? To be respected is non-negotiable, but liked is nice.

CEO Profile—Jennifer Schuler Advice to CEO wannabes: Ask yourself questions. Is it what you want? Are you ready for a role where you are solely accountable for all aspects of the business and its results? Study your past professional experiences. When were you the happiest and most in the flow when good results came easy? Get a career coach to help craft a path for your future success. MANAGEMENT Describe your management style: Acceptance, play, and humor are important for creating a culture where people can be honest, straightforward, and offer new ideas. If I ever hear myself saying, “Why don’t we just...” I try to catch myself and instead ask, “Tell me more about.…” When I start from a place of curiosity, the team can co-create better solutions. What does your management team look like? The management team is made up of a chief marketing officer, chief financial officer, chief development officer, and chief operating officer. The team’s tenure varies from 17 years to 3 months, but each executive has a strong food and restaurant background. With three of the five leaders women, we are doing well with gender equity in the C-suite. How does your management team help you lead? Our long-tenured leaders bring a deep history with the brand and strong relationships with franchisees and vendors. Our newer leaders provide a fresh way of thinking, offering new ways of doing things and cross-pollinating ideas from their previous organizations. Favorite management gurus: Do you read management books? The Infinite Game by Simon Sinek, and Essentialism by Greg McKeown. What makes you say, “Yes, now that’s why I do what I do!”? I love seeing the team win and feeling that I had a positive impact on their lives—and seeing individuals stretch themselves and find success. OPERATIONS What trends are you seeing with consumer spending habits in your stores? Malls are back, and they are busy! We are currently seeing more traffic in malls as people are looking for experiences and interactions, and that is supporting the baseline health of the business. Wetzel’s Pretzels provides a nostalgic feeling and moment of joy to people. Millennials and Gen Z are eating more mini-meals on the go and our menu is primed perfectly for that. We are seeing sales increases of products like Dog Bites and Pizza Bitz that are a great grab-and-go mini-meal option. We will tap into this trend by expanding and opening more locations on the street, inside convenience stores, and by using food trucks. How is the economy driving consumer behavior in your system? Savings rates pre-holiday were quite high. Individuals had healthier bank accounts and wanted to bring Christmas back by splurging and treating families. When people have more money in savings and are comfortable spending, we tend to see a higher check. What are you expecting from your market in the next 12 months? Continued healthy growth. 2021 was an incredible performance year for us, and we expect that momentum to continue. Are your franchisees bullish or bearish about growth and adding units? Our franchisees are definitely bullish. Our business has been resilient and has grown a tremendous amount in a fairly short time. Interest in the brand from new franchisees is at an all-time high. Are commodity/supply costs any cause for concern in your system? No, at this time we are seeing normal increases. When you incubate something and it blooms into something greater than expected, that is success.

PERSONAL What time do you like to be at your desk? I get the kids out the door to school, squeeze in some morning movement, and tend to get to my desk around 9:30 a.m. Exercise in the morning? Wine with lunch? Yes, I work out in the morning a few times a week, and I’d take a walk at lunch over wine! Do you socialize with your team after work/outside the office? At this time, our team is still remote. Because we have limited inperson interaction, we use Zoom for a myriad of fun team events. We’ve done everything from “Family Feud” to magic shows to painting and yoga classes. Each month a different team member hosts a “fun Zoom”! Last two books read: In the Country of Women by Susan Straight, and Heart Earth by Ivan Doig. What technology do you take on the road? My Bose headphones (rose gold and noise canceling) and some great podcasts. How do you relax/balance life and work? I started horseback riding again. When you are out on the trail with your horse, you have to be completely focused on your surroundings, watching out for what your horse might spook at next! Being out in nature and having total focus is a meditative practice. Favorite vacation destinations: Somewhere off the grid, anywhere new that we haven’t been before, and out of the country. Favorite occasions to send employees notes: I really enjoy passing along compliments about employees they haven’t heard before that may have come from an outside vendor or franchisee. Favorite company product/service: Currently, my Peloton bike. BOTTOM LINE What are your long-term goals for the company? This is the most engaged and passionate team of people I’ve ever worked with. People feel a sense of connection and safety and are willing to take risks. As part of the team, I look forward to really pushing the brand to the next level with growth through multiple franchising platforms and innovation. Where can capital be found these days? SBA loans are available. It is a capital-rich environment and it’s out there. I’m excited to see how capital gets repurposed. Capitalism can play a powerful role in social justice when it is allocated to women and people of color, helping them create generational wealth. How do you measure success? I’m competitive and I love winning, but I love winning as a team. When you take something, incubate it, and it blooms into something greater than expected, that is success. What has been your greatest success? Stewarding the company through a very tremulous time by staying cool-headed and reacting quickly to ensure the company survives and thrives. Any regrets? I regret thinking about decisions as final. Every decision is a door, and it doesn’t mean you can’t walk back through it, or that it doesn’t link to another. Not thinking about every decision as final would definitely have taken pressure off and helped me move more quickly. What can we expect from your company in the next 12 to 18 months? We look forward to continuing to leverage the brand love we saw on display at the Rose Parade, and to being more playful and bolder with a super-powered, amped-up team. We also look forward to staying in tune with the current trends around eating habits, and experimenting more with our products.  FRANCHISEUpdate

ISSUE 1, 2022

CHIEF MOTIVATOR!

“We had a phenomenal year of growth” Written by KERRY PIPES

KIM GUBERA, PRESIDENT & CEO Company: Pirtek USA Units: 115 units in 28 states Age: 55

Years in franchising: 22 Years in current position: 3

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im Gubera understands that as president and CEO of Pirtek USA, a brand with 128 units in 28 states, she’s expected to lead, implement strategy, and keep a close eye on the company’s bottom line. “My main role is Chief Motivator,” she says, “to keep our corporate employees and our franchisees working together with focus to achieve our shared goals.” Gubera oversees the U.S. and Canadian operations of Pirtek USA, the hydraulic hose replacement and industrial hose repair service brand that offers onsite mobile and service centers. She is tasked with developing and delivering industrial services and solutions, making sure franchisees get the support they need—and, of course, driving growth and revenue for the brand. Leadership has been a part of Gubera’s resume for more than two decades. Early in her career she was an accountant who worked her way up to director of finance at U.S. Lawns. In 2016, she joined Pirtek USA as corporate controller, giving her the opportunity to expand her responsibilities and knowledge outside the world of finance and accounting. Two years later, she was promoted to chief financial officer and in 2019 became president and CEO. As fate would have it, she arrived at the top position just as Covid was about to release a once-in-a-hundred-years pandemic on the world. However, she says, this provided her with the opportunity

CEO Profile-Kim Gubera to build even closer relationships with the brand’s franchisees. Communication became more focused, frequent, and motivational. “That continues to be our strategy today,” she says. “I believe we are much more intimately involved with our franchisees than we were before.” As businesses continue to juggle Covid challenges and opportunities in early 2022, Gubera says Pirtek USA is optimistically looking to continue its growth, hoping to enter all 50 states and continuing to create happy, profitable franchisees. LEADERSHIP What is your role as CEO? Most would say that the role is to develop strategy and oversee the performance of the company. Those things are correct. However, I would say my main role is “Chief Motivator.” It is my job to keep our corporate employees and our franchisees working together fervently and with specific focus to achieve our shared goals, which will result in our shared success! How has Covid-19 affected the way you have led your brand? I would say the most noticeable strategy we changed was our communication with our franchise network and employees. In 2020, our communication became more focused, frequent, motivational, and virtual for all the obvious reasons. That continues to be our strategy today. Equally though, I believe we are much more intimately involved with our franchisees than we were before. After all we have endured and experienced together through the pandemic—money issues, illnesses, deaths, personal challenges, and concerns over employee hiring and retention—we developed a closer bond with our owners. Once you have shared these types of experiences with each other, there is greater trust and a deeper relationship. I focus on relationships more than I did pre-Covid. Describe your leadership style. This is one of the most difficult questions to answer. I believe my style is a mixture of transformational, democratic, and servant, and probably somewhat situational. What has inspired your leadership style? I have had the privilege of working with some phenomenal business people and outstanding role models. I want to emulate the best attributes of each one. What is your biggest leadership challenge? To be honest, imposter syndrome. How do you transmit your culture from your office to frontline employees? Repetition, but not through just an email or company meeting speech. I get out there and talk to them… reminding them of what our culture embodies and why we do what we do. We have focused on this a lot in the last few months, because with our exponential growth I do not want our culture to erode. Our culture is what has transformed our business over the last few years. How can a CEO help their CMO develop and grow? We do not have a CMO. However, our senior brand manager is very experienced and self-sufficient. The primary way I attempt to “help” is by exposing her to other aspects of our business and to allow her to attend training courses and seminars to help her to stay relevant. Where is the best place to prepare for leadership: an MBA school or OTJ? I have an MBA and it has helped me in some areas, but let’s face it, nothing is more effective than OTJ experience, especially if you couple that with mentors. I would have never made it to this point in my career without several key people who invested in me. At present I have two primary mentors. One is Glenn Duncan, Pirtek’s executive chairman, and the other is Ken Hutcheson, president of U.S. Lawns, where I worked before Pirtek. In my 16 years at U.S. Lawns, Ken taught me almost everything I know about

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ISSUE 1, 2022

franchising, and Glenn has taught me all about the Pirtek brand. Are tough decisions best taken by one person? How do you make tough decisions? For tough decisions, I believe it is smart to consider multiple opinions. There is a proverb that says, “In the multitude of counselors, there is safety,” meaning that if you listen to many opinions you should be able to make the right decision. I really believe that. In addition, if possible, I like to give myself time to really think through the issue. I have become better at making quick decisions and then being ready to pivot if needed, because time is not always an option. And I have my mentors to call on if I really get stuck. Do you want to be liked or respected? I really want both. However, I fully understand that being respected is more important. Advice to CEO wannabes: (Not in any order.) 1) Pay attention to the soft skills. 2) Listen. 3) Stay relevant. 4) Surround yourself with a team who share your vision and level of passion. Then support them and help them become better leaders. I believe it is our responsibility to help those under our leadership become the best versions of themselves. 5) Be ready to give everything you have. MANAGEMENT Describe your management style: I am very involved in day-today operations. It’s not because I don’t trust my team, but rather so I can continue to learn and grow. I also want employees to feel I am available to them when they need a sounding board, guidance, or assistance. What does your management team look like? They are a team of highly effective, passionate, and driven individuals who are the ones that keep our business moving. I am thankful for them every day. How does your management team help you lead? I involve our management team in most of our decisions. We have an environment where they know it is okay to have a different idea or to disagree. I welcome that because it is more important that we get it right than for me to be right. Favorite management gurus: Do you read management books? I do not really have a favorite, as I do not believe there is one business leader or book out there that provides all the answers. I prefer a multitude of opinions and perspectives. I would consider Simon Sinek, John Maxwell, and Peter Drucker at the top of my list, but I read a variety of authors. What makes you say, “Yes, now that’s why I do what I do!”? I just had a fitting example of this happen recently. One of our Tier 2 owners, which is our “mobile only” franchise model, called me to share his annual revenue for 2021. He has been in business a couple of years and had some struggles, especially during Covid, but he hit a major milestone and was excited to share it with me right away. That made my day because he knew we wanted him to succeed! It’s those moments that drive our team every day! OPERATIONS What are you expecting from your market in the next 12 months? I wish I knew. We thought we had 2021 planned out really well with the expected resurgence, etc., but it totally surprised us—and in a positive way. We had a phenomenal year of growth, beating our revenue budget by 10%. We are planning on that trend continuing in 2022 and will pivot if needed. Are your franchisees bullish or bearish about growth and adding units? As in most franchise systems, we have many differing opinions. However, I would say that the majority are bullish, especially after the results of 2021.

CEO Profile-Kim Gubera Are commodity/supply costs any cause for concern in your system? I don’t believe anyone could answer no to this question. Raw material shortages and freight costs in particular are extremely concerning to us. So far, we have been able to leverage the power of our international brand, coupled with our strong vendor relationships, to mitigate this as much as possible. In what ways are political/global issues affecting the market and your brand? Obviously, the supply chain and freight issues again. In addition, the travel restrictions between countries have proven to be challenging at times. We have some franchise candidates for Canada who have been trying for months to come to our discovery day. Each time we get close, a new protocol goes into effect, making it impossible. PERSONAL What time do you like to be at your desk? I am an early riser, so I usually work for a while at home before going into the office. I am normally at my desk in the office by 8. Exercise in the morning? Wine with lunch? Yes to exercise. No to wine. Do you socialize with your team after work/outside the office? Sometimes, but everyone has families to focus on. Plus Covid restrictions have nixed some of our plans. Last two books read: The E-Myth Revisited by Michael Gerber to remind me of the challenges of a small-business owner, and Personality Isn’t Permanent by Benjamin Hardy, recommended to me by a franchisee who said it changed their life. What technology do you take on the road? iPhone and iPad. I love lists, and my director of finance recently introduced me to GoodNotes, so I have ditched the Day-Timer. I received an Apple Pencil for Christmas and now my iPad is my central piece of technology. How do you relax/balance life and work? Truthfully, I am not the best at this. I do enjoy traveling, and my family loves Disney. I call it my “happy place.” Favorite vacation destinations: Europe, followed closely by cruising in the Caribbean.

Favorite occasions to send employees notes: Most years, at yearend, I handwrite a note to each employee. During the year, I try to be very conscious of acknowledging both exceptional and consistent contributions by team members. Those happen mostly by email. We do have a management team text group where I acknowledge birthdays, holidays, and milestone work anniversaries. More important than frequency, I believe it is necessary to be specific. Tell them specifically what you appreciate, not just a “Thank You.” Favorite company product/service: First would be Pirtek , of course. Right after that would be Zappos. I love shoes and they make it easy to browse thousands of pairs (right down to the size and heel height). Then they deliver them in 2 days, offer free shipping (even on returns), have the easiest app to navigate, and provide fantastic customer service. BOTTOM LINE What are your long-term goals for the company? Expand the Pirtek brand into all 50 states (plus Canada), and to have happy and profitable franchisees. If we can achieve that second part, I believe everything else will come into alignment. How has the economy changed your goals for your company? It has accelerated them. How do you measure success? That’s a tough one. I have high standards and there are a lot of facets to my answer. As simply as I can put it, if I can look myself in the mirror each day and know that I have acted with integrity, that I have treated all people well, and that the brand is achieving its goals, that is success. What has been your greatest success? My greatest personal success would be raising my child to be a productive member of society and all-around good person. Any regrets? Of course. However, I try to not dwell on them or it paralyzes me. What can we expect from your company in the next 12 to 18 months? More growth. We will continue to aggressively expand our footprint across the U.S. and focus on assisting our owners with growing their individual businesses. 

FRANCHISEUpdate

ISSUE 1, 2022

Anatomy of a Brand

Top Dog

Hot Dog on a Stick is a cultural phenomenon

including Ben Affleck, Drew Barrymore, Leonardo DiCaprio, Spike Lee, Lucy Liu, Mario Lopez, Neil Patrick Harris, John Stamos, and John Travolta. Many of these pictures can be found on our website.

Written By JENN JOHNSTON

ow many 76-year-old brands get a request from an influential, trendsetting celebrity to wear one of their uniforms as a Halloween costume? Returning Hollywood calls is a regular occurrence for Hot Dog on a Stick, a brand founded in 1946 by David Barham, who wanted locals to have a delicious, on-the-go food and drink experience, steps away from the beach. The original location in Santa Monica, California, is an LA-area landmark now undergoing a facelift after decades of serving beachgoers. Hot Dog on a Stick is, of course, known for just what the name denotes. However, when customers are asked what they think about the brand, what should never be changed, or what is special about it, the number-one answer to all of the above is the lemonade. Our signature lemonade has only four ingredients: water/ice, Ventura County lemons, sugar, and a secret ingredient, all of which is hand-stomped in front of the guest by a smiling Hotdogger—what we call our employees. Hotdoggers are the heart and soul of the brand. They truly embody the “When life gives you lemons, make lemonade” spirit of optimism and enthusiasm. Hotdoggers are known for being bubbly, energetic, and always encouraging guests to “stick a smile on their face.” Not everyone is a fit for the position, but that doesn’t stop the influx of applicants. Even some celebrities can boast about holding the sought-after position, including the likes of Eva Mendes. The best part of being a Hotdogger is wearing our bright, eye-catching striped uniform. It has evolved over the years, but continues to be one of the most well-recognized restaurant uniforms: “red, white, and blue with a splash of lemonade.” And, of course, there are the hats. The hats are so coveted they are never supposed to leave the store. Throughout the years, the brand has accumulated hundreds of pictures of celebrities smiling with Hotdoggers in uniform,

Perhaps this is why the brand has earned a place as Hollywood’s darling. When Hollywood calls, we are always there to lend uniforms, provide design plans to build a location on set, close a store for filming, or cater an important event. We bring the Hotdogger spirit and sunshine. Our film and television credits include “Charlie’s Angels,” “The Big Bang Theory,” and “Stranger Things.” The brand was featured in Billie Eilish’s “Therefore I Am” music video, and some credit the Hotdogger uniform as the inspiration for Katy Perry’s “California Gurls” Super Bowl outfit. The celebrity requesting the Hotdogger Halloween costume? The fashionable Kourtney Kardashian. Our love for Hollywood is on par with our love for fresh lemonade. As a brand-building company, our job is to protect everything that makes the brand special, which is why we start with market research to ensure we’re protecting what the consumer values most. Then, we want to amplify our presence in the marketplace in an authentic way. We have expanded in a very strategic fashion, not rushing to open units that don’t align with the long-term vision of the brand. That is imperative with a unique concept like ours. While many of

our locations are in malls, where the brand truly shines is in sunny spaces and entertaining places: beachfronts, boardwalks, amusement parks, fairs, and entertainment venues. Our next phase of brand expansion involves working closely with national venues to bring this pop culture phenomenon to life in their park experiences. A new co-branding collaboration that will come into play in the near future is tied to the 2021 acquisition of Hot Dog on a Stick by Fat Brands. Two of that company’s existing portfolio brands, Fatburger and Johnny Rockets, both also founded in Los Angeles, have that same strong cultural element. The menus are complementary, and we see great value in incorporating items such as our fresh, made-to-order hot dogs or craveable Cheese on a Stick with a freshstomped lemonade into their product mix. On the menu development front, our primary culinary focus is around lemonade innovation, developing new flavors that fit today’s consumer tastes, while still offering tried-and-true favorites like cherry and lime. We recently got crafty and teamed up with a leading local independent brewer, Santa Monica Brew Works, to release a 310 Stomped Shandy, a beach-brewed, hand-stomped hard lemonade shandy, to commemorate our favorite holiday of the year, National Lemonade Day (first Sunday in May). Similar to our strategy with lemonade menu development, our food innovation is focused on forging strong partnerships with brands that have a like-minded personality and pop culture following, like Cheetos Flamin’ Hot. When we launched our Hot Dog on a Stick topped with Cheetos Flamin’ Hot and chipotle aioli, fans flocked to locations to try this unique snack combination. The future is bright for Hot Dog on a Stick, with tremendous expansion on the horizon, more movie and television cameos ahead, our own merchandise line, and an online clothing line with Hot Topic. We are ready to show the world that age is just a number, especially when you have a fresh, Hollywood glow like ours!  Jenn Johnston, president of the QSR division at Fat Brands, is responsible for managing multiple strategic brand teams that oversee marketing, operations, research and development, training, communications, and customer service activities for Hot Dog on a Stick, Great American Cookies, Marble Slab Creamery, Pretzelmaker, and Round Table Pizza. Hot Dog on a Stick has more than 50 locations in 5 states across the U.S.

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ISSUE 1, 2022

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SHARE YOUR STORY

As franchise local businesses, we are part of something bigger than ourselves. We are rising to our community’s challenges. Together, we are Open for Opportunity.

www.openforopportunity.com

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Protecting the franchise business model Written By MATT HALLER

A x 2.2x

s franchisees look at opportunities in 2022, it’s important to assess the preceding legislative environment to understand what might be coming to a legislature near you this year. Legislative challenges to the franchise hises business model are a standard occurore rence—one that the team at the IFA is ed Black-owned well-equipped franchisesto address on your behalf. But as we look to the future, every franchiesses earn 2.2see times more of every size—whether a single-shingle Black-owned franchises than Black-owned or a multi-unit, regional franchisee—needs toearn engage share more why franchising is one independent businesses 2.2andtimes of the most dynamic and widely used busion average than Black-owned ness growth strategies in the modern era. independent businesses Throughout 2021, the IFA fought hard average for theon franchise business model, developing a first-ever “Franchise Coalition” composed of numerous brands and trades to f ight franchise-specif ic battles in Washington, D.C., and around the country, including the Protect the Right to Organize (PRO) Act, wage issues, vaccine requirements, and more. Across the states, the IFA addressed a variety of policy proposals broadly related to worker classification and franchise relationships. Public policy that would harm franchising if turned into law was seen across California, Illinois, New Jersey, New York, and Oregon. And, as is often the case in state policy, when a bad idea is turned into law in one state, copycat versions of bad bills quickly appear in other states. Such was the case in 2021 when derivatives of California Assembly Bill 5 related to worker classification and joint-employer issues were introduced—and defeated—in New York, New Jersey, and Illinois. Recent public opinion and empirical research on the value of franchising fielded by the IFA highlights the need for franchisees to get involved and share their stories and community commitments more

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broadly. Franchising is an important aspect of the U.S. economy. In 2019, the economic output of franchise establishments in the U.S. reached nearly $787.5 billion, representing 3% of the country’s total GDP. Contributing to this activity were about 8.4 million people who worked for a franchise business. Franchising is an enabler of entrepreneurship for anyone with the grit and determination to succeed. Research indicates that in the small-business ownership realm, franchisees of color and female owners are represented at disproportionately high rates, thanks to the assistance the franchise business format affords. Team member wages and benefits at franchised establishments also exceed those offered by non-franchise businesses. Additionally, it is common in our circles for entry-level associates to work their way up to management and become franchisees themselves—creating generational wealth and positively affecting the communities they serve. But there’s a disconnect. Among the general public, trust in franchise businesses is slightly lower than for non-franchise businesses. However, favorability toward franchise businesses increases dramatically when people learn more. The reality is that most people’s understanding of a franchise is at the point where service is rendered. They don’t know what goes into making the local business work, or how opportunity is achieved by having a good job with benefits and upward mobility. Public perception has an impact on public policy, and it’s likely that the raft of bills challenging the franchise business model in

recent years is directly related to the public’s lack of knowledge of the industry as a whole. As an entrepreneurial movement, we can seize this public education opportunity. We can share our story through the eyes of opportunity seekers and achievers across franchising. In September 2021, the IFA launched Open for Opportunity—a campaign to highlight the benefits found and opportunities achieved through the eyes and in the voices of franchisees themselves. Open for Opportunity highlights franchising’s many benefits for the workforce generally, for multicultural and veteran communities specifically, and for the communities they serve. In 2022 and beyond, the Open for Opportunity road show will be coming to a town near you to engage the public, influencers, decision-makers, and elected officials to make sure they know what you and I have known for a very long time: Franchising opens doors to opportunity. And I want you to be involved. You can put Open for Opportunity stickers in your franchise windows to signal your community commitment to your customers, attend or host a road show event, or—most importantly—share your story at OpenforOpportunity.com. With more than 8 million Americans engaged in franchising, we have quite a story to tell. In 2022, are you open for opportunity?  Matt Haller is president and CEO of the International Franchise Association.

FRANCHISEUpdate

ISSUE 1, 2022

Selling Buy-In Involving franchisees in your marketing programs Written By HELEN BOND

alancing both sides of the franchise consumer marketing dynamic can be tricky, calling for well-defined central strategies, robust tech-driven tools, and a forum for good old-fashioned collaboration that builds trust and advocacy across the system. As franchisors roll out new technologies and programs to promote their brand, a comprehensive view of marketing guidelines based on transparency, communication, and owner input is critical to secure franchisee buy-in to a brand’s marketing spend. After all, a good chunk of that spend comes from the franchisees. “It’s all about setting up your franchisees for success,” says Michelle Luchansky, vice president of marketing at Property Management Inc. (PMI). “Even though there is no one-size-fits-all approach to certain challenges when it comes to marketing, there are systems and processes we can put in place with marketing operations that can help drive a business. The goals are to be strategic with that and make sure everything ladders up to the parent brand.” The events of the past 2 years have reinforced the value of strong partnerships as Covid turned the marketing playbook on its head, pushing brands to work with outside firms for digital marketing and technologies to power online engagement and to deliver their goods and services to homebound consumers during the pandemic. “What we set out to focus on in early 2020 was a very different place than we are in today,” says Nicole Salla, chief marketing officer at Kiddie Academy. “The pandemic’s impact on marketing was truly an opportunity for us to launch into new ways of thinking, find ways to be more flexible, react in real time to consumers’ quickly changing attitudes, and look at other ways to get to the end goal.” The marketing fund With marketing fees typically ranging from 2% to 5% of a franchisee’s gross revenue, owners want to ensure they get what they are paying for.

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At Sola Salon Studios, Jennie Wolff didn’t have a job description when she was approached about signing on with the brand in 2013 as its only marketing executive. Wolff, with a background in events and integrated marketing, listened and learned from key franchisees as she built the marketing vision and budget for the brand. Today, as Sola’s CMO, Wolff’s seven-member marketing team supports the marketing efforts of more than 600 franchise locations and some 18,000 independent stylists. Sola’s national marketing fund covers the brand’s digital presence, social media strategy, media relations, traditional and nontraditional marketing campaigns, and innovative educational programs for stylists who have positioned the company as the industry leader. Wolff devotes the most significant chunk of the marketing budget to acquisitions through digital marketing and other strategies designed to drive tenant leads to local franchisees, who operate the shared salon facilities across the U.S. Along with a national approach, the brand’s local team supports franchisees with a playbook and marketing toolkit featuring vendor tools, resources, materials, and how-to guides to drive awareness and execute lead activations in their markets. With growth comes the need for transparency. In the past year, Wolff has reorganized the brand’s marketing budget into a tighter, more straightforward format focused on pillars instead of tactics. “I don’t want everyone in hundreds and hundreds of lines of budget detail,” she says. “We needed to roll it all up into a digestible format that would allow people to know what kinds of questions to ask, and to feel they have enough level of detail to understand how the money is being spent.” Demonstrating ROI isn’t always easy. For Sola, measurable cost-per-acquisition data comes only from the

Feature – Franchisee Buy-In brand’s digital marketing. But that alone won’t fill a studio, which is where Sola’s events, programs, apps, and tools—which make the lives of stylists and franchisees easier and more profitable—come into play, says Wolff. “It can be challenging to prove all of that out,” she says. “But the proof is in the pudding. Happy customers call their friends. And that’s where a lot of our referrals come from.” As stewards of the marketing fund, it’s vital for CMOs and other marketing leaders to help franchisees understand how the investment in marketing builds the brand, says Salla. Kiddie Academy’s Brand Building Committee consists of four franchisees from various regions of the country. Members serve two- or four-year terms and work closely with corporate to share ideas, review results, and provide feedback on new and ongoing marketing plans. “We believe in transparency about how the Brand Building Fund is invested with our franchisees,” Salla says. “We develop annual reports showing how it was invested and the KPIs achieved. We also meet annually with our Brand Building Committee so they can advise on key initiatives, provide their insights and thoughts, and then serve as advocates among their fellow franchisees for our marketing initiatives.” Getting franchisees involved Collaborating with star franchisees is a best practice to build trust, formalize communication, and garner feedback about campaigns. Running initiatives by the franchise advisory council or board is commonplace these days. Many franchisors are taking it further, adding marketing advisory councils or national marketing committees.

As Sola’s marketing budget has expanded, so have the brand’s efforts to formalize and broaden systemwide marketing buy-in from its franchisees. In early 2021, Wolff relaunched the marketing committee, rolled up through the franchise advisory board, accompanied by a new set of bylaws, charter, and loads of open dialogue. “It’s important when you are building a marketing committee to get different viewpoints,” she says. The committee, which initially met quarterly to coincide with the gathering of the franchise advisory board, now comes together six to eight times a year to keep up with the ongoing changes in consumers’ marketing preferences. Franchisees who might have been bored by the thought of more budget talk are now invested in the process. This is a good thing… to a point, says Wolff. “Now they feel very strongly about the budget and want to have input. I think you have to be careful on how much time goes into that budget review because at some point you have to put pencils down and say, ‘This is the plan, and it’s time for us to execute. We can’t keep going around, and around, and around on every dollar.’” Communicating the process When communicating new programs and initiatives systemwide, marketing executives emphasize the need for continuous, consistent touchpoints. Information is currency, says PMI’s Luchansky. Using every method available to share the news with busy franchisees can only add up to more goodwill—and buy-in—with your franchisee base. “Nobody likes to be the last person to find out a piece of information,” she says. “When we roll out information, we try to do it in a way that allows for everyone to grasp it at the same time. We also provide other opportunities to

Jennie Wolff

Michelle Luchansky

Rich Hope FRANCHISEUpdate

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Feature – Franchisee Buy-In drip the information and continue to educate. The more frequently we communicate, whether things are going well or things are not going well, the better people feel about whatever is being launched or communicated.” It also helps to listen. Some of the best marketing ideas come from the franchisees out in the field. About 6 months ago, Luchansky noticed a communication gap after a franchisee suggested holding a monthly marketing meeting, open to all, that would include marketing tips. The regular marketing session, created in response, has morphed into an invaluable marketing roundtable and an ideal forum to highlight franchisees whose marketing efforts shine.

“If someone was asking my advice, it would be this: Talk to your franchisees. Keep them in the loop. Let them know what’s going on. Allow them to offer feedback. Because it’s only going to make what you do better.” As PMI prepares to launch a new website, Luchansky says the open format has served as an anchor point, taking on some of the heavy lifting to share news about the new site, as well as providing franchises with national content calendar information and strategies for using content in individual markets. It wasn’t the first time Luchansky, who previously worked with franchisees at McDonald’s and Fazoli’s, spotted a game-changing idea. When she joined PMI in 2021, she was charged with tapping into her 20 years of marketing expertise to create “next level” brand building for the 13-year-old property management company. Assuming franchisees would be looking for a big, flashy campaign, Luchansky came prepared for her first national marketing committee meeting armed with a comprehensive proposal of ideas. “Gracious” committee

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members were impressed with the presentation, but she says they wanted to talk fundamentals, specifically about strengthening the brand’s messaging. “They called out a few of the things that, honestly, had been bothering me,” she recalls. “It was a good opportunity for us to tighten up our messaging. They found that approach to be more valuable in the initial short term, and then look at those bigger, splashy things for the long term. It was such a win, because I learned from them and they learned from me. We were able to put together something amazing, and now there is much more excitement in the field.” No matter the marketing or buy-in strategy, Luchansky circles back to the notion of communication. “I just cannot stress it enough,” she says. “If someone was asking my advice, it would be this: Talk to your franchisees. Keep them in the loop. Let them know what’s going on. Allow them to offer feedback. Because it’s only going to make what you do better.” Building bridges Avoiding dissent with franchisees over marketing practices or fees is more or less unavoidable. Kiddie Academy’s Salla says it can be challenging to get everyone on the same page every time. Also a proponent of frequent communication with franchisees, she recommends putting as much time and effort into launching your internal communications with franchisees as you do for any external marketing campaign (see next page). When franchisees are part of the solution, she says, everyone wins. “It might be tempting to launch a campaign or program as soon as it’s ready and assume your franchise system will automatically be as excited and bought-in as you are,” she says. “You’ve been very close to it for some time and saw it through every stage of development, evolution, refinement, and delivery. Many people are seeing only the end result.” Holding conversations with franchisees one-on-one or in small groups also can help the marketing team understand and address concerns and result in a more informed, well-rounded outcome, she says. However, creating a collaborative culture doesn’t mean being “creative by committee,” she adds. “We think of critical, large-scale strategies and how we can involve key franchisees in the discussion, starting even before conception,” says Salla. “We ask for their perspectives and needs and involve them in discussions as we are formulating a solution. Then we tap on a few more people during development for their feedback and thoughts on the concept—and we aren’t afraid to ask for more feedback after something is live. We can always refine it as we go.” In addition, says Wolff, when gathering input, don’t forget to include the customer. She created Faces of Sola, an ambassador group to gather feedback from stylists. The ambassador group, the marketing committee, and the home office all vote on campaigns. Says Salla, “We may all sit around and say, ‘Wow, this is the greatest idea ever!’ But if it doesn’t make sense to a hairdresser, is it really a good idea?” 

Sales Success

Happy Franchisees

Happy franchisees make marketing buy-in a much smoother process. “When sales grow in virtually every store—and volume has gone up dramatically over the last year—there are very few objections,” says Rich Hope, Jersey Mike’s chief marketing officer. “If anything, recently, some of our franchisees have said, ‘Can we slow down the marketing a little bit because of the hiring crisis and getting staffing up?’” Hope is the architect of the brand’s digitally driven marketing vision for its more than 2,100 stores (more than 2,500 if you include those under development), where sales have increased 35% over the past 2 years. Digital, print, and television advertising at Jersey Mike’s is now all national, with local and regional marketing orchestrated through the corporate office. “We present all our marketing to our franchisees. They understand where and how we are spending the money—if they want to,” he says. “Some of them don’t really care as long as people are coming through the doors.” It also helps to have franchisees on board to help the marketing team innovate and implement strategies. Early on, for instance, when franchisees balked at the idea of third-party delivery because of concerns it would eat into their profits, some forward-thinking franchisees stepped up to showcase the potential of the opportunity. A group of franchisees in Orlando embraced the technology, offering to track costs and ROI for the brand and their fellow franchisees across the country. Senior leadership, marketing, IT, and area directors quickly jumped on board and made it easy for everyone to integrate this new business model into their day-to-day operation. “We have many innovative franchisees who are certainly willing to try new things and be on the forefront of the changing marketing environment,” he says. For Hope, who first worked with Jersey Mike’s as an ad agency owner when the brand had only 30 locations, the approach is about adding layers to the brand’s marketing foundation as the local neighborhood sandwich shop. The most significant buy-in—from both franchisees and customers—comes from Jersey Mike’s annual Month of Giving, where locations accept donations throughout the month, leading up to the brand’s highly popular Day of Giving each March 31. Over the past couple of years, he says, every shop has participated in the voluntary program, donating 100% of their proceeds from that day to a charity chosen by the local market. As the popularity of the campaign continues to grow from year to year, the numbers speak for themselves. In 2021, Jersey Mike’s franchisees and customers donated $15 million to 200 charities nationwide—which more than doubled the amount raised in 2019 when the company donated $7.3 million to local charities across the U.S. (Covid canceled the March 2020 campaign). Recipients included hospitals, youth organizations, food banks, and more. Since 2011, Jersey Mike’s has raised more than $47 million for local charities across the U.S. through its annual Month of Giving. 

Selling Buy-In at Kiddie Academy Investing time in your internal messaging and communications strategy will go a long way to ensure that your franchisees embrace major marketing initiatives “faster, easier, and with more excitement and understanding,” says Nicole Salla, Kiddie Academy’s CMO. When Kiddie Academy launched its new national advertising campaign, “Learn On,” it was a “stark, creative change” that came with fresh delivery tactics, she says. Although the previous campaign was well-liked and wellused, from a marketing standpoint it did not wholly represent the brand story of the eduNicole Salla cational childcare franchise. With more than 20 years of marketing experience under her belt, Salla knew she had to be prepared to explain the change to the brand’s hundreds of franchisees. So she created a comprehensive internal communication plan and multi-channel approach that focused on the bottom line, i.e., how the new messaging and assets would strengthen the business of the brand’s franchisees. Data collected before the campaign—and shared at various points during the launch—highlighted marketing decisions based on metrics. The company turned to every channel at its disposal to disseminate the plan, including a launch webinar event that resulted in record-breaking viewership. Salla’s thoughtful approach to ensure buy-in from the fast-growing franchisee base paid off. The campaign significantly boosted brand momentum and awareness, testing higher than previous ads. Behind-the-scenes involvement of key franchisees to gather feedback and insight before, during, and after the launch of a new marketing program is critical to the success of large-scale (or any new) strategies, says Salla, who shares her favorite best practices for achieving buy-in across the system. • Always focus on WIIFM. “What’s in it for me” focuses on drilling down into what is most important to your audience. Address all marketing and communications strategies with consideration of how your marketing campaign or program will improve the franchisees’ business results. • Show data and research.

• Be hyper-conscious of your audience and mold your communications to them. • Think of every communication channel you have access to and create a comprehensive plan of clear, transparent communication that opens the door for conversation. • Make sure your franchisees know where to go for questions and support.

• Create a “wow” factor. Do something to break through and catch the attention of your franchisees to get them excited about the new approach. • Amplify your voice. Identify your system’s key influencers and brand advocates and give them a sneak peek of your new marketing approach. They may have great ideas on how to enhance the launch, as well as the campaign itself.

“Once you have gotten franchisee buy-in, it’s really about them granting you trust. That’s a gift, and it carries a responsibility,” says Salla. “Be sure to keep them updated on progress, results, evolutions, and more. This provides a payoff for taking the leap with you into new territory.”  FRANCHISEUpdate

ISSUE 1, 2022

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Ending Employee Roulette

6 ways to create a consistent customer experience Written By JOHN DIJULIUS

oes the level of experience your customers receive depend on which employee they encounter? Are there certain employees on your team you hope your best clients will interact with? If so, then you have what is known as employee roulette. Employee roulette is a problem most organizations have. There is good news: You can significantly improve your customer experience with your existing group of employees. Here are six ways to do it. 1. Tie your employees’ job to the overall purpose If I asked 25 different employees what your Customer Service Vision Statement

(CSVS) is, how many different answers would I get? Two is too many. You must create a crystal-clear North Star that every team member can articulate in their sleep. A great exercise in helping develop your CSVS is to ask your team members the following two questions: After encountering you, how do you want your customers to feel emotionally every time? How do you want customers to describe their interaction with you? 2. Remove personal interpretation If you tell 50 employees to deliver genuine hospitality, you will get 50 interpretations based on their life and past work experiences. You must remove personal interpretations in all aspects of your customer experience deliverables. For instance, clearly define what you mean by the following: • Genuine hospitality = The Five E’s – Eye contact, Enthusiastic greeting, Ear-toear smile, Engage, and Educate • Service recovery = LEAST – Listen, Empathize, Apologize, Solve, and Thank • Make a connection = FORD – Family, Occupation, Recreation, and Dreams 3. Create a signature experience A signature experience is a distinct customer experience your customers can receive consistently only from you. It must be realistically achievable, manageable, and affordable to be delivered consistently. To create a signature experience you need non-negotiable standards at every stage of your customer journey to ensure that every team member is delivering your signature experience every time, no excuses. You must also create a “Never and Always” list that ensures anyone who represents your brand knows there are certain actions you never do or always do when those situations occur. 4. Train and re-train Everything launched to existing employees also must be put into new-employee orientation. Employees must be trained repeatedly on what your signature experience is, and why it is so critical that it is delivered consistently. Every story has a villain and a hero. The villain is what’s wrong with the way it is currently being done. The villain may be the competition, the status quo, price cutters, or the pain customers are experiencing. The hero is easy: the hero is your initiative

and how it will change the company, the industry, your customers’ lives, and solve their problems. You must be able to sell the purpose of your initiative to all your employees and get them to rally around it, to rise up to defeat the villain. You also must make sure 100% of your employees partake in the launch, either at the live presentation or by watching it online within a certain time frame. 5. Certify Just because your employees attended live or watched the presentation online doesn’t mean they retained anything. There must be a certification component. It is important to test each employee to ensure they learned and retained the information. There are many ways you can do this. One of my favorites is gamifying it, making it a competition between teams, departments, or locations. This makes it fun and a team-building activity. 6. Audit and measure the execution Just as the project leader needs to lose sleep at night over its success, now every department, manager, and employee must know the key metric that measures the success of this initiative (e.g., retention rate, number of referrals, resign rate, closing ratio, conversion rate, customer satisfaction score, or Net Promoter Score). Not only must they know what the key metric is, but also what it has to be – and they must see it daily and know exactly what affects it. Management and employees need to obsess over this metric. The ones hitting the goal need to be celebrated loudly. The ones who are underperforming must be coached and convinced that this is the way you are operating now and forever. Live it, love it, or leave it. • Measure who is doing it consistently and recognizing and coaching it until it is 100% consistently being executed. • Measure that it has an impact on the customer. Do they recognize the value and is it affecting satisfaction levels and the key metrics?  John R. DiJulius III, author of The Customer Service Revolution, is president of The DiJulius Group, a customer service consulting firm that works with companies including Starbucks, Chickfil-A, Ritz-Carlton, Nestle, PwC, Lexus, and many more. Contact him at 216-839-1430 or info@ thedijuliusgroup.com.

FRANCHISEUpdate

ISSUE 1, 2022

CHANGE AGENT Lisa Dimson talks disruption, technology, and innovation Written By KERRY PIPES

ords like disruption and change are regular parts of Lisa Dimson’s vocabulary. The CMO of fast-casual pizza brand Your Pie believes that her job is to be a change agent who leads the brand’s marketing team to reach customers and drive results. “Whether it’s innovation in our go-to-market approach or creating new experiences that the customer embraces, we seek ways to bring new products or experiences forward,” she says. Dimson had 15 years of experience in marketing and related positions when she joined Your Pie in October 2019. Before that, she had served in leadership positions with Yum! Brands, Arby’s, and Tropical Smoothie Cafe. At Your Pie, she wasted no time retooling the company’s marketing strategy and brand development and homed in on leveraging technological innovation to raise brand awareness and increase sales. “We are always looking for the best ways to connect and build relationships with our consumers,” she says. “Maximizing first-party data gives us the best lens for understanding their needs and experiences, allowing us to enhance how we serve our guests.” For Dimson, the customer is king. “If the entire organization isn’t focused on the customer, we won’t be the brand of choice for consumers,” she says. “Whether they choose to join us around the table or crave the convenience of online ordering, pickup, or delivery, we want them to choose the experience that’s right for them in the moment.” Describe your role as CMO. My role as the CMO is in great transition. I’m a change agent, charged to scale our strategic marketing efforts to drive results. Leading the brand strategy requires a new level of alertness because of the fast-changing marketplace that has propelled dynamic opportunities. While I lead brand strategy, media, digital/ecommerce, social, creative, PR, and customer acquisition and retention, the role demands how we do business to rapidly evolve with our guests. This requires agility and cross-functional synergy to accelerate business growth. The marketing spirit is to challenge the status quo in our highly disrupted environment and move quickly to analyze new strategies and tactics. Ultimately, we want to be your local go-to for customers desiring delicious pizza and great service. What’s the most challenging part of being a CMO today? Serving is what we do, whether it’s delicious pizza, a great customer

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experience, or making a difference in our communities. Our ability to tell our stories is a necessity. We have to ensure we’re creating engagement and experiences that reflect our culture, values, and of course our craft, while influencing how we fit into today’s consumer lifestyle. And while we yearn for a return to normalcy, the reality of uncertainty is always top of mind. Recovery and resilience in an industry that was strongly affected by Covid has not been easy. It requires listening and analyzing our evolving customer need states, which has led to rebuilding our marketing engine. The pandemic advanced our future planned go-to-market strategies into “now” strategies, and the speed to deliver required grit and hustle. How has Covid-19 affected how you have led your brand’s marketing efforts? Consumers are socializing, engaging, and behaving differently than ever before. Rapidly evolving new customer journeys require resource shifts to support new consumer behaviors. Disruption forced rethinking the budget to maximize effectiveness in key channels with heightened attention on technology and digital transformation. We are using data in smarter ways to help problem-solve and to improve how we answer the questions consumers have when selecting a meal solution. The Great Resignation affected all areas of our business: our restaurant teams, supply chain, partner resources, and support teams. Our teams and restaurants have worked hard over the last few years. Consumers have also gone through so much change and uncertainty. Through storytelling and enhancing our brand experience, marketing continues to seek ways to inspire and look for ways to bring back the “fun” in pizza and perhaps make that moment in time better. What are the 3 most important keys to being an effective CMO leader today? 1) Connection. We serve our guests and communities every day. The ability to connect and care about all facets of your ecosystem is critical. These interactions ultimately translate to connecting with your customer in providing a great experience and results. 2) Business IQ. The push-and-pull of business requires a leader who understands how to set and meet business objectives and goals to drive profitable shareholder value. Understanding how to measure, analyze, and affect results is key to achieving success. 3) Catalyst for change. It’s exciting to be a change agent! Whether it’s innovation in our go-to-market approach or creating new experiences the customer embraces, we continue to seek new ways to bring new products or experiences forward. Staying relevant is the baseline; pushing forward is a must to being effective. How do you prepare a marketing plan and execute the strategies? The marketing plan supports the brand’s overall business operating plan and goals. We use key data to inform the marketing plan and customer journeys. To monitor performance, we set road maps and review key metrics to measure results. How do you measure marketing results and effectiveness? By their ability to hit strategic business objectives and goals that drive growth and profitability. From a marketing perspective, the key areas of measurement are those that drive an audience outcome leading to transactions and sales. They are rooted in awareness, engagement, conversion, and customer experience. Discuss your core consumer marketing strategies and objectives. We focus on attracting and retaining customer loyalty in our growing digital spaces, as well as on providing the best in-store experience. Understanding the customer journey and seeking ways to intersect in their micro-moments is core to our marketing strategy. It’s in those micro-moments that we increase awareness and influence engagement, while ultimately trying to incorporate positive disruption into their daily lives. In addition, we assess how

CMO Q&A – Lisa Dimson we can reduce friction in their journey. The reduction of friction can be achieved only by a system that embraces a vision using the voice of the consumer and data to guide change. When you can remove friction, the overall experience for the customer is better. Consumers remember great experiences and frequent places that can deliver them. How do you go about creating a customer-centric marketing and brand philosophy? Our go-to-market strategy is always anchored through the lens of the consumer. The filter that fuels decision-making is greatly aligned with the guest in mind. If we aren’t meeting them where they are, the effort is not worth the investment. Describe your marketing team and the role each plays. Over the last few years, the marketing team has evolved in all areas to allow us to anchor in our go-to-market approach. Key areas of growth have been made in innovation, digital strategy and activation, CRM and loyalty platforms, off-premise services and third-party partners, etc. In addition, we have expanded our team through business partners to extend our knowledge, productivity, and effectiveness. Finally, our teams thrive when they can engage in more purposeful work, when they feel they are making a positive impact. Exposing our team members to new opportunities or asking them to think differently to accelerate our business is putting renewed energy into growth and manifesting strong initiatives to accelerate growth. Why is it so important for the marketing department to have a personal touch when it comes to helping the brand connect with franchise prospects? Each franchise prospect is seeking the right business that aligns with their values, interests, and goals. Our ability to tell our story and share how we, the franchisor, can partner with them to reach their goals is of utmost importance. Prospects want to know what to expect and how our experience and knowledge will support them as they pursue their personal vision for their restaurant business and their communities. We make every step of the journey personal because our business and our success together is personal. How does this help your franchise sales and development effort? Brand storytelling is woven throughout the prospect journey. Every interaction answers the prospect’s questions and reveals important aspects of our business to inform their decision. Lead generation and targeting are developed with the intent to generate quality leads and, ultimately, prospects who share our vision. To generate quality leads and prospects, we are continuously optimizing channels to create a streamlined but informative sales process. What ways/tools do you rely on to do this? Many of our franchisees were originally brand fans. We find that our restaurants are the strongest source of development, as our owners inspire and create great experiences prospects are drawn to. As we seek ways to expand into new communities, awareness is ignited by our digital channels. These include CRM, search, website, social, and paid digital strategies. Do today’s prospects expect more from the franchise marketing department? What, and how do you provide it? One of the great benefits for an owner entering into a franchise system is to gain access to things such as brand properties, logos and signage, marketing programs, and name recognition. In today’s crowded landscape, franchisees look to use these marketing programs to give them an advantage over their competition. Our dedicated teams guide prospects through an extensive process to learn about the company before they invest—everything from what to expect through business financials, development, operations, training, technology, and marketing.

How is today’s consumer and marketing data helping you finetune your marketing initiatives? The data we leverage is based on consumer interactions on our platforms and in our restaurants. Whether it’s through experiential reviews and feedback sources or through various social channels and third-party platforms, we digest this data to prescribe and enhance experiences in our restaurants and digital platforms. We also can strengthen brand awareness and messaging by using digital marketing’s data sets to A/B test various creative executions to engage and optimize efforts with smart intention. Reviewing the data allows us to target a qualified audience and their preferred purchase behavior to influence conversion. A push for first-party data collection in our restaurants and digitally is key. However, we leverage third-party data for retargeting capabilities, which allows us to incorporate our brand into a greater universe of consumers at various stages of the customer journey. Describe the evolving role of social media in your brand’s marketing efforts. Incorporating our brand in consumers’ lifestyles in a genuine and authentic approach allows us to add value to their needs. Where we have found the most engagement is through user-generated content. The experiences, imagery, and recommendations from our fans outweigh our best creative. Also, creating positive disruption in consumers’ feeds (leading them to think about delicious pizza when they are considering meal options) creates engagement and potential conversions. Using the right creative at the right time to capture attention influences future purchase behaviors. How do you work with other internal departments, and does technology help? The pandemic caused us to work remotely and forced us to be more efficient with communications by leveraging virtual channels to stay connected. We used existing platforms, including Teams and Zoom. Do you see vendors as business partners? Why/why not? Yes, our business partners are critical relationships. Every vendor is vetted to ensure they are a business and cultural fit before any engagement. They are valued as an extension of our team, which allows greater access to knowledge and resources to optimize processes and programs to inform decision-making and strengthen our business. How have marketing strategies/tools changed over the past decade? How have you adapted? While there have been many changes during the past decade, the greatest change has really happened in the last 2 years. The advance of digital transformation throughout the restaurant industry has created new levels of accessibility and convenience for consumers. To be resilient, restaurants had to compete by quickly adapting to new consumer purchase behaviors by embracing new technology and profoundly shifting how they operate. While we adapted over the last few years, the personal connections in our restaurants and the experiences they serve every day with our guests continue to be vital. The way for our business to continue to transcend is to humanize our digital channels to a level mirroring personal experiences for the guests using those channels. What advice would you offer to aspiring CMO executives? I like to think of the role of the CMO as the connection hub of the business. Your relationships with your customers, your franchisees, your teams, and your business partners are essential to thrive. To be successful, your ability to connect with others is core to fueling results. Personally, connecting together is how we can make a difference for our guests. After all, we serve the greatest food ever, pizza! Pizza makes everything better! 

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CMO Roundtable

What are some examples of how your marketing programs benefit your franchisees?

ur corporate marketing team takes seriously our responsibility to create marketing programs that help our franchisees be successful. We never lose sight of the fact that franchisor marketing teams have a dual role: high-level brand building coupled with the provision of tools, assets, and support for franchisees to use in their local markets. In location-based businesses, brands come to life most poignantly through interactions between franchisees and members of their communities.

JOSH COLE Chief Marketing and Digital Officer Title Boxing Club

FRANCHISEUpdate

One of my team’s most important initiatives is the creation of monthly local marketing playbooks. These playbooks include member engagement and new-member acquisition programs that franchisees can implement. To make implementation easy, each program is accompanied by creative assets, social and email calendars, and execution guides. These aren’t required, but we see very high usage rates because of the success of past programs and turnkey execution. Email marketing is a foundational tool for our franchisees because it allows them to share news, events, and tips with their members cost-effectively. Engaged members visit more often and enjoy their memberships more. My team dedicates significant effort to providing an effective email marketing program, including the creation and maintenance of numerous

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customer segments within each franchisee’s account. We also distribute email templates each month, from promotional messages to brand-building content such as a recent email featuring Halle Berry sporting Title gear in her hit Netflix movie, “Bruised.” Public relations is another of our key initiatives as we’re firm believers in the power of publicity. We further build our brand through secured stories with national publications and local media. When we run a network-wide program, such as a coordinated event to raise funds for a cause, we secure stories in local markets so franchisees can introduce the event to their communities. To maintain a flow of information, my team hosts a live monthly webinar for the network. Constructive feedback helps us constantly increase the effectiveness of our programs, so we open the floor to Q&A and comments about the marketing playbooks. In addition, we actively encourage participants to share best practices. Everyone loves learning from the success of peers in the network. Last, to ensure smooth rollouts, we work to ensure our marketing programs are launched in synch with our operations and training teams. A franchisor must provide programs that not only generate good results, but also that make life easier for franchisees. 

CMO Roundtable

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Constructive feedback helps us constantly increase the effectiveness of our programs, so we open the floor to Q&A and comments about the marketing playbooks. In addition, we actively encourage participants to share best practices. Everyone loves learning from the success of peers in the network.

CHERI TENNILL Chief Marketing Officer Pure Barre

or 20 years, Pure Barre has been leading the way in the boutique fitness industry, with more than 600 locations in 47 states. One driving force behind the brand’s continued growth and success is its challenges for members. While other fitness brands rely on selling memberships because of high attrition, our strategy is different, turning almost all of our members into “super users” through unique challenges throughout the year. Over the past 5 years, they have become a cornerstone of the brand and will continue to be a longstanding tradition to help franchisees grow membership, as well as retain members. The challenges can range from 30 days up to a year. Some are nationally promoted, and almost every location always has one active on the local level. In 2021, the brand executed several challenges on a national level, including one annual challenge, two 1- to 2-month challenges, and six mini (2-week) challenges. The corporate team provides franchisees with marketing assets to promote these challenges and execute them without a lot of hassle. Woven into these challenges are collaborations with brands such as Apple Watch and Free People Movement to amplify engagement and help owners uncover more local prospects. For example, our Fall Fit Challenge of 2019, which tasked members with taking 30 classes in 60 days, was completed by

20,755 people who took a total of 767,917 classes. In 2021, the brand saw more than 30,000 members join one of our monthly challenges. Challenges such as these have helped our owners stay active throughout the pandemic, and have helped people return to their studios and keep them coming back—during a time many fitness lovers are still skeptical about returning to in-person classes. To further heighten the sense of community and help franchisees create even more of a localized feeling in their studios, the corporate team empowers owners to execute their own challenges alongside our national ones. It is far easier to keep a customer than to attract a new one, which is why our franchise partners love the friendly competition and accountability these challenges provide. We intend to continue this marketing initiative this year, starting with the Lift Tone Burn Challenge in January, during which each studio is assigned to one of three teams (Team Lift, Team Tone, or Team Burn). Members are tasked with completing classes, referring friends, and posting on social media to earn points for their studio and feel a sense of pride in their workout. 

FRANCHISEUpdate

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Social Media

TikTok and Meta Time The future is here – are you? Written By JACK MONSON

here are two massive marketingrelated issues that will have an impact on your franchise brand throughout the rest of the year. They exist in digital spaces where your brand’s customers and future franchisees are living now, or will be in the near future. For both issues, we’ll discuss why it is important, and what you can do now to mitigate risk or optimize opportunities. It’s time for TikTok The most downloaded app in 2021 was TikTok. More importantly, consumers are spending far more screen time here than on any other platform. TikTok is already beating Google, Facebook, and every other site! Even more compelling are the age and demographics of users. Just a year or two ago, many people joked that TikTok was just for kids, and that Gen Z would move on to something else in no time. On the contrary, TikTok has become mainstream and wildly popular with customers of all ages. Brands can no longer ignore the

potential opportunity to reach new audiences here. I’m not suggesting that you throw a large amount of ad spend at TikTok (yet!). But you should consider using a very small portion of your budget on this or other new areas and see what pays off. At some point, every brand moved a few newspaper ad dollars to television, traditional ad dollars to Facebook, etc. Set aside a small portion of your marketing resources and some time to experiment with TikTok. If you’re not ready to dedicate dollars yet, start by simply setting up your brand on the platform, claim your brand’s name/ account, and see what leading brands in your category are doing. Unlike the direct targeted advertising you’ve been doing on other social media channels, TikTok is a raw form of storytelling where influencers in your space, and possibly your own team members, can be more compelling than traditional paid ads. Your to-do list includes the following. • Setting up your brand on the platform

• Setting aside a small portion of your marketing resources for experimentation

• Searching for and following other franchise professionals and brands The Metaverse is here Facebook rebranded its parent company as Meta in late 2021. It’s more than just a PR move. Facebook is going all in. The company sees social media as just a starting point for consumers to spend lots of time on their devices. The augmented reality world, including the Metaverse, is where users will

soon be found. If your brand is to remain relevant, users must find you there as well. Your brand, regardless of what you sell, is about to become digitized and present in the Metaverse. If this feels too far out for you and your brand, think about this: Four years ago, would you believe how important Instagram or TikTok would become for many of your customers? Twelve years ago, who at your brand forecasted the importance of Facebook to your current marketing plans? Or the same for the Internet 25 years ago? Some CEOs are already saying it will be a long time before their customers will put on Oculus or other VR headsets. Perhaps. But once they do, will they take them off? If you’re not there when mass numbers of potential customers are exploring, you will miss this virtual boat. You don’t have to be first to the game, but being early in your category may introduce some consumers to you before your competitors do. Facebook and its sister platforms, as well as the other tech giants, are committed to this direction. Likewise, consumer brands are lined up to take advantage of this new universe. Here’s how to make the most of this potential opportunity this year. • Pull together your current team now to explore, learn together, and prepare your brand. • Invest in your future team. Acquire talent who already understand or are interested in learning about AR and VR environments. • Automate as many day-to-day marketing tasks as possible now to spend more time in the future learning and planning.

We’re all in it now We’re all learning these things together as we go. That’s an advantage we have in the franchise space. We can share marketing challenges and solutions virtually or at in-person events such as this June’s Franchise Marketing Leadership Conference. See you in Atlanta! (And thanks to my digital tribe members Kristen Pechacek and Mike McDowell for your input on the issues covered in this article.)  Jack Monson is the host of the Social Geek Radio Network, home of the number-one podcasts in franchising, including “The Franchise News Podcast.” He has been helping franchisors and franchisees with digital marketing for 13 years and recently joined the team at Eulerity.

FRANCHISEUpdate

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TRAINING THE NEXT FRANCHISE GENERATION T H E TI TUS CE NTER FOR F R A N C H I SI NG AT PAL M BE AC H AT L A N TI C U NI VERS ITY OFF E RS A C O N C EN TRATI ON IN F RANC HIS ING. The Center’s distinctive features include: •

Four college courses with a franchise internship that lead to a Concentration in Franchising

•

Franchise professionals who visit campus frequently to speak with students

•

A 60-member Advisory Board that provides ongoing student coaching

•

Scholarships specifically dedicated to franchising students

•

The Kobel Challenge, which provides substantial funds to help graduates buy franchises

LEARN M O R E :

TitusCenterforFranchising.com

LEFT: DAVID WILD, DIRECTOR OF FRANCHISING, SLOAN’S ICE CREAM RIGHT: MICHAEL SCALIA, FRANCHISING INTERN

Going Broker? Frandev pros on their pros and cons in 2022 Written By SARA WYKES

Without question, brokers are a significant element in franchise growth. Last year, 69 percent of the brands surveyed in Franchise Update’s Annual Franchise Development Report paid to be in a broker network. Seven in 10 of the brands that used any form of broker said they’d closed a deal through a broker in the previous 12 months.

Tom Monaghan

Tori Jones Bermond

Charles Kowanetz

FRANCHISEUpdate

Samir Daoud

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Freeman Lance

Terri Harof

Feature – Franchise Brokers If you’re considering whether to use a broker, certain caveats apply. “Be sure that you are working with the right person,” says Tori Jones Bermond, franchise development manager at PJ’s Coffee. For the potential franchisee, she says, “You want your broker to introduce every brand that could be a match for you—not just the brands with a high referral fee. I believe, however, that most of them do a great job of providing their clients with options, regardless of fees.” For the franchisor, says Tom Monaghan, senior vice president of franchise development at CertaPro Painters, “You have to be willing to build long-term relationships with brokers, individually and as groups. You also have to be direct about what you want and what you don’t want.” And while franchisors must trust the brokers they choose to work with, “Brokers have to trust you, too,” says Monaghan. Lance Freeman, president of franchise development at Xponential Fitness, agrees. “We have fantastic, longstanding relationships with a number of brokerages and networks of brokers. The brokers who provide a premium experience are really engaged with our brands and their growth. They stay up to speed with each of our brands’ growth and performance, which means a client is able to make the most informed decision based on the most relevant and current information. This kind of dedication and skill set is great to look for when determining which broker to work with.” Working with brokers requires making sure they understand as much as possible about your brand, says Charles Kowanetz, senior director of franchise sales at My Eyelab. “Franchisors who have the most success working with franchise brokers are frequently educating them on their business model, their FDD elements, unit economics, and markets of interest. With all of the franchise opportunities available today, it is crucial to educate them on the advantages your brand offers a potential franchisee.” To broker or not to broker? For those unfamiliar with the ins and outs of working closely with franchise brokers (see the next article), there’s a lot to learn. While the benefits can be significant, so can the cost. But culture also can play a large role in finding the right broker for your brand. That’s the case for Samir Daoud, franchise director at Gold Star Chili, which in 2017 acquired Tom & Chee as part of

its long-term plan to expand by offering multiple franchise brands. Both brands are family-run and based in Cincinnati. The company is now ready to reach beyond its original Midwestern scope, says Daoud, and he’s made sure both brands are ready with updated websites and financials. He wants to grow, and is eager to understand all the available options of broker types, fees, and how brokers work. “I don’t know yet what I don’t know,” he says. “We are very ingrained in our culture. Our brands are based in family culture. I will need someone who gets what we are.” Terri Harof, director of franchise development at Workout Anytime, has always used brokers, but she’s found another source of strong franchisee candidates. “I am getting a ton of leads from our members,” she says, which may have something to do with the pandemic. “People know now, more than ever, the importance of health and wellness. It seems like everyone wants to own a gym. From a franchise sale and membership standpoint, last year was our best ever.” Harof says she’s observed the pandemic taking a toll on broker activity, noting that some of the broker networks she works with seem to have slowed down a bit. “It seems that some people may have hit pause because of Covid,” she says. Harof says she also missed connecting with brokers at the industry conferences that made it easy to easy to sit down sit down with them faceto-face. “A Zoom call is just not the same.” The money thing “One drawback to using franchise brokers would be the cost. Many broker organizations have a monthly franchisor fee associated with the organization. Most brokers also collect a percentage of the franchise fee,” he says. At My Eyelab, “We pay a broker $20,000 on a successful placement off of the franchise fee of $34,900.” For anyone exploring which franchise to select as an investment, however, the market could not be better, nor the choices more—and brokers can make a big difference in the selection process. “There are more franchise concepts out there, and the market is more competitive in terms of brands,” says Freeman. “However, this has created an opportunity for the brands that are performing well as they are standing out among the others even more so now.” Brokers also can be an important part of the educational process for someone new to franchising, says Freeman. “There are a

number of deciding factors to help determine what franchise to invest in, including industries you’re interested in, areas of passion within an industry, start-up budget, and level of franchisor support provided,” he says. “If it’s too difficult to figure out these areas alone, a franchise consultant or broker can certainly help guide you through all of this to help you narrow down what franchise options fit your criteria and the specific brands available to you.” For prospective franchisees, adds PJ’s Coffee’s Jones Bermond, “Brokers bring options and can be very efficient. They can weed out the brands that may not be the best fit.” And for opportunity seekers, she says, “There are no real drawbacks as their services are usually free.” Success breeds competition Today’s competitive franchise market can make a broker even more important to a franchisor’s survival. Monaghan says the recent success of home service brands, including his own (CertaPro, a 30-yearold brand, grew almost 30 percent last year), has attracted competitor brands. This means heightened competition for the best franchisees and raises the value of a lead likely to end in a signing. He might pay a daunting sum for a broker-sourced franchisee, but he knows the cost can be amortized over time. “Ultimately,” he says, “it’s about building the brand. And we’d be negligent if we didn’t use that resource.” In the ongoing quest by franchise development teams to continuously improve their recruitment process, brokers can be an important part of the mix for many brands. At My Eyelab, Kowanetz works hard for recruits, and one way among many to find good ones is to keep his brand in play with brokers. “Broker referrals typically make up 10 to 20 percent of our new franchise sales per year,” he says. “Broker leads should not be the only source a franchisor uses for franchisee recruitment, but they definitely should be a portion of the strategy.” Monaghan, too, along with using brokers, has his own recruiters making calls, along with a robust social media presence and print visibility. As for brokers and their performance, says Jones Bermond, “I have seen a recent change for the better in the programs. They seem to be much more involved in the process and truly know their clients,” she says. “Most of them want to join every discovery call and be there for the client every step of the way—which is great!” 

FRANCHISEUpdate

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Brokers for Beginners Are franchise brokers right for your emerging brand? Written By ANDREW SEID

At the outset of a franchise brand’s growth, franchise brokers can seem like the perfect solution. They can help get your brand in front of a larger group of potential franchisee candidates, and often can lend an air of professionalism and competency to an otherwise inexperienced operation. In the right situation, they can help take your brand to a level it may not have reached otherwise. In many situations, however, the use of franchise brokers might not be the most effective or advisable strategy. They often are incredibly costly. They may not fully understand your brand or your culture. And they may not have the desire to spend the time and effort required to represent your brand appropriately.

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Brokers for Beginners While they can get your brand in front of a lot of eyeballs, those might not be the right candidates for your company or your culture, and you still must have the ability to close those deals on your own. There are a lot of variables to consider when determining whether or not to use broker networks. Emerging franchisors in particular must take the time to fully evaluate what works best for them. What brokers do—and don’t Brokers can be a very effective tool in franchisee recruitment, but it’s important to have a full understanding of what they provide and what they don’t. Every broker, whether as part of a network or as an independent, has their own particular set of terms for each engagement, and this article is in no way meant to advise on the particular operations of any broker or broker network. As with any business relationship, you must fully read and comprehend the agreement you are signing. We review our clients’ broker agreements and always advise them to have legal counsel also review them. You want to fully understand not only what specific services the broker or network is providing, but how they are being compensated for those services. The simplest and most common broker relationship involves simply putting your brand in front of a broker’s or a broker network’s stable of potential candidates, explaining the concept, answering some basic questions, and then referring interested candidates to you to take them the rest of the way. They’ve provided you a warm lead—an admittedly very valuable thing!—but it is now on you and your development team to process them through your recruitment process and close the deal. Some brokers may have a larger role in guiding the candidates through different stages of your recruitment process, but ultimately it still will likely fall on your team to close the deal in the end. For emerging brands, this role often falls to the founder, or to a member of management who has some experience in sales. Some brands will hire a salesperson specifically to close franchise deals, which can get costly. What do brokers cost? This answer also will vary from broker to broker, network to network, and really from agreement to agreement. Brokers will very often have different terms with different clients, which can have an effect on which client gets a broker’s higher priority.

Typically, brokers will take a percentage of the initial franchise fee for each deal they close. This percentage can range from as low as 10% to more than 100% of the franchise fee in some networks and situations. There are circumstances in which it makes clear financial and organizational sense for a brand to pay a broker more than it is receiving as a franchise fee in order to grow their franchisee network, although those situations are rare and very specific. As with any strategic decision a franchisor makes, it must be tailored to their individual brand, their specific situation, and their particular goals. For most emerging franchisors, the money that comes in as the initial franchise fee is crucial to the survival of the brand as a whole, as there is not yet a robust network of franchisees paying royalties into the system. As part of our process in developing a franchisee recruitment strategy, we run a full economic analysis of what level of revenue our franchisor clients need to be bringing in to effectively support their franchise network. This analysis plays a crucial part in our determination of whether to use brokers, and at what level of compensation. Franchisors always must keep in mind the balance between growing their franchisee network and their internal ability to support that network. Some broker networks require compensation through a percentage of the ongoing royalty payments franchisees make to the franchisor. It’s very rare, if ever, that we recommend a client enter into this type of arrangement. Royalty payments are the lifeblood of a franchise system, and the moment you start cutting into that on an ongoing basis you put your ability to properly grow and support your franchise system in serious jeopardy. Some brokers may serve an additional support role going forward with franchisees they bring into the system. In those cases, it may be appropriate to tie a portion of their compensation to the continued success of the unit. But in most other situations, keep your royalty stream away from your broker network. How to allocate your limited resources The most common concern in all emerging franchise brands is limited resources in finances, manpower, and available time. Franchise brokers can be a great solution to some limited resources problems. If you don’t have enough understanding of your ideal franchisee profile, the market in

which to find them, and how best to attract them, franchise brokers might be worth the cost. The best broker networks also will help you develop a general understanding and baseline knowledge of the franchisee recruitment process that may enable you to eventually take over more of the process internally. As discussed, it is crucial to do a full economic analysis of what incoming revenue you need as a franchisor to best support your franchisee network so you have a thorough understanding of where you can set various fees and costs. When we are designing franchise systems, a major element of how we decide where to set the initial franchise fee comes from what the total cost is to fully recruit and sign a new franchisee. If you are using brokers, that will significantly affect where you’ll want to set your initial franchise fee, which clearly will have an impact on your marketability. If you have to bring on an additional person to close every deal the brokers bring to you, that’s an additional cost that must be allocated somewhere. It all has to make sense together. Each individual decision has a ripple effect across your entire franchise system. When to use brokers There are many instances when emerging franchisors can benefit from the use of franchise brokers. If the goal of the brand is to grow quickly, brokers may be more valuable. Once an emerging franchisor has exhausted its initial network of customers, friends, and other “low-hanging fruit” opportunities, brokers can be very useful in taking that next step. Identify which broker networks might have a track record of success with your target franchisee profile, or that mesh particularly well with your company culture. For emerging brands that have little to no experience in the franchise space, find brokers who can help guide and train you so that you can gain some self-sufficiency in the franchisee recruitment process. Always remember that you can, and usually should, be using a variety of franchisee recruitment tactics. Try to avoid putting all of your eggs in one basket. As with every aspect of your franchise development, take the time to tailor your franchisee recruitment strategy to your brand and your goals.  Andrew Seid is a senior consultant at MSA Worldwide. Contact him at aseid@msaworldwide. com or 860-523-4257.

FRANCHISEUpdate

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Challenge the Pros

How has Covid changed your 2022 franchisee recruitment strategy and tactics?

hroughout the pandemic, we took the opportunity to reevaluate all aspects of the franchise recruitment sales process, including taking a hard look at our candidate persona. The pandemic showed us that people all over the world demonstrated compassion for their local communities. As a result, Covid revealed a new persona that matches our ideal candidate: a servant leader who cares about making a lasting impact.

SCOTT SCHUBIGER Chief Development Officer Massage Heights

FRANCHISEUpdate

We’re targeting burned-out nurses, hospital providers, and first responders who still want to help people, but who are now seeking more support and balance. That caring mentality and hands-on approach to helping others within their communities is a key success factor for our franchisees. This aligns beautifully with our business model, which is designed to flourish with daily human connection to our members, massage therapists, retreat directors, and estheticians. Over the past few months, we have added support members, partnered with lead-generation companies, reengaged top broker networks, updated the franchise development website, and added vendors to help with real estate analytics, credit checks, and increased publicity efforts. We are prioritizing 3- to 5-packs for effective marketing in newer territories and to colonize the high DMA markets available, while ensuring there is nearby franchise field support.

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For some owners nearing retirement, Covid has accelerated their time horizon, affording new candidates a terrific resell opportunity to take over legacy locations. This is attractive for multi-unit candidates who can leverage an existing turnkey location as their launch in their coveted market. We’re also exploring the opportunity to recruit existing franchise owners already in the wellness and fitness category who may be looking to diversify their portfolio and leverage their customer base. Multi-unit and multi-brand owners with locations in a shopping center know the value of having additional concepts that fall within their current customers’ “to do list,” whether that’s catching a boutique fitness class or getting a massage and facial. Additionally, we have perfected a same-day callback and quick qualification process, as well as FDD review and franchisee validation. We’re back to full in-person discovery days for candidates to meet the senior leadership team and visit our HQ support center to educate them on all that is available to equip them for opening and beyond. 

Challenge the Pros

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During Covid, our team has held ourselves more accountable than ever to our values of growing brands with integrity. We have remained laser-focused on providing atypical efforts and services, not only to ensure that we sell franchises responsibly, but also open them with the tools that will ensure our franchisees’ growth and longevity.

JOSH SKOLNICK CEO and Co-founder Horse Power Brands

he pandemic has led to some interesting discoveries and strategy shifts in franchisee recruitment for our portfolio companies. One area would be the recruitment of more women as franchisees. An increasing number of women became involved in the Mighty Dog Roofing franchise system during Covid, either on their own or through husband-and-wife franchisee teams, and are motivated to recruit more women into the home services industry. It’s not so much that they have a passion or extensive experience in roofing. Rather, these women want to empower other like-minded women to get into what has traditionally been a male-dominated field. Seeing this trend, we created an internal group—Mighty Women in Roofing—an organization of women dedicated to educating and inspiring the future generation of female entrepreneurs. They are focused on spreading the word that trades and roofing are acceptable career choices for women. Additional franchisee recruitment themes during Covid are an increased focus on our already stringent franchisee selection process, and providing newly signed franchisees with robust tools to ensure strong openings and long-term growth for their new locations.

It became clear during Covid that franchise lead generation was not going to be a problem. The service industry experienced significant spikes in demand, in large part because consumers are spending more time at home and finally getting around to needed repairs and upgrades. This was particularly true for Mighty Dog Roofing. Because of the housing boom that occurred in the early 2000s, a large number of homeowners now find themselves in need of their first-ever roof replacement. Additionally, winter storms across the country have wreaked havoc on homes, further driving demand not only to repair damages, but also to install better roofing systems to prepare for the future. The combination of these factors has led to an abundance of franchise prospects interested in opening a service franchise. The standard practice in franchising has become a race to 100 units sold, often without sensible offerings or a clear vision of how to actually open all 100 locations. During Covid, our team has held ourselves more accountable than ever to our values of growing brands with integrity. We have remained laser-focused on providing atypical efforts and services, not only to ensure that we sell franchises responsibly, but also open them with the tools that will ensure our franchisees’ growth and longevity. 

FRANCHISEUpdate

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Market Trends

Time for an Alignment? Reevaluating your offering model Written By DARRELL JOHNSON

ome of our recent research for franchisors is helping us understand how changes in behavior resulting from the pandemic are translating into the altered execution of the franchise business model. We all have an inner desire to have things return to the way they were because we understood them. Now we realize some changes aren’t going away, even though they were crisis-driven. Consumers become accustomed to change the longer they live with it. When you see behavior changing, you must evaluate your model, because it likely needs adjusting. I’ve written before about some of the consumer behavior changes franchisors are recognizing as significant as they look at their offering models. A good example is how quickly we embraced online calls with our medical care providers. We found the convenience and time-saving benefits of a significant range of medical appointments online that just a couple years ago we infrequently (if at all) were willing to consider—despite the technology being offered, even encouraged, by the medical profession. This compressed timeline for adoption is important to keep in mind as we evaluate how the pandemic has altered the consumer journey. This article focuses on some of the many functional responsibilities of the franchisor. Franchisors are now asking us to help them better understand how consumer behavior trends might inform a better approach to franchisee interaction. The connection between today’s changing consumer behaviors and modifications in franchisor services is influenced by industry, by the complexity of a brand’s offering, and by several other factors. However, some general conclusions can be drawn.

FRANCHISEUpdate

Franchisee training programs sit in the middle, between development and eventual outcomes. To a significant extent, the type of prospects the development function brings in and the system performance outcomes that result are inf luenced by the effectiveness of the training program. The past 2 years have forced training programs online. Clients have asked us what they should prepare for when the pandemic is in the rearview mirror. They were focusing mostly on the question of online versus in-person. As we looked into it, we found that wasn’t the only question—and often not even the most important one. I’ll share some general observations here. Aligning with today’s candidates Most training program content has not changed much over the past few years, except in relation to joint employer considerations. The pandemic did change the way training programs were being delivered, but that’s about it. Yet, have you considered how the type of prospects coming in and their expectations have changed? Our research work in this area often starts with a client’s prospect screening and skills evaluation. We have found that training modules often were slow to adjust, if they did at all, to how prospects look today. We have two new generations of candidates in Millennials and Gen Zers. Is there alignment between prospect skills and training programs? We’ve learned a lot about these new generations from our franchisor interactions. One thing we’ve found is that this alignment is essential before the method of training delivery is considered. We then found it is important to look at the outcome of current training: How quickly do franchisees hit their stride, and

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how do they do over time? Our work in this area has shown that training often has not adapted, and operations must step in to pick up any training gaps. When training is evaluated with this type of data analysis, content can be adjusted. Aligning prospect screening and training might mean, for example, changing screening instead of training to emphasize certain skills that training is not addressing or not addressing well. Turning to the means of training delivery, we know that most franchisors put great value in face-to-face interaction and want to return to that model as soon as possible. However, the pandemic might be changing what prospects want. The question is how effective the interim has been for franchisors. In other words, is a preference for face-to-face necessary to get the same outcomes? Our research is finding that the answer is not as simple as pick one or the other, but often a blend of the two. Understanding what the franchisee wants, as well as needs, will guide franchisors toward an answer to online versus in-person. One of the higher values of good research is separating biases from reality. We frequently find that what a client or a research target wants is not what they need. The example I’ve used in this article, of clients asking for best practices of online versus in-person training, isn’t always what is needed. The former can lead down a technology path that seems like a good solution, but it can easily end up unused or not solving the issue… because it was not addressing the right question.  Darrell Johnson is CEO of FRANdata, an independent research company supplying information and analysis for the franchising sector since 1989. He can be reached at 703-740-4700 or djohnson@frandata.com.

Sales Smarts

Getting to No In sales, no is actually a fantastic answer! Written By EVAN HACKEL

s a salesperson, of course you want to hear yes, and you’re a little afraid of no. No is failure. Who wants to fail? Certainly not me. The fear of failure, though, causes you as a salesperson to play small. You don’t ask the questions you need to ask because you’re afraid of no. No is actually a fantastic answer. When you hear it, it frees you up to focus on a prospect and do the work that can lead to a yes later on. But what about hearing maybe? Too many of us love maybe because it isn’t an outright rejection. It isn’t no. And prospective clients can feel better when they say maybe. Why? Because they can tell themselves, “At least I didn’t say no.” Chances are your prospects like you. You have good people skills and something worthwhile to offer, plus you have spent time with them. So maybe they say maybe to not hurt your feelings. Everybody might feel better because they got to maybe instead of no. But if you get to maybe, all you really got was a colossal waste of time. An amazing amount of time and productivity are wasted, simply because people try to get to maybe.

Ask tough questions early Here’s the point. Ask the tough questions and bring up the tough issues early, and don’t be afraid. Getting to an early no (and of course, an early yes) is preferable in every way to investing too much time to only arrive at maybe. Here are some of the tough questions to ask. “Do you know how much work this is going to be?” Give prospects a realistic understanding of your brand’s expectations of them, and what the work will be like every day if they buy what you are selling. While discussing these issues might not be fun, it’s better to do it sooner, rather than later. And it offers a more time-efficient way to sell.

“Have we discussed how much this is going to cost?” Many salespeople don’t like to talk about money at the beginning of a sales effort. They assume it’s better to sell prospects on the concept first and then talk about the cost. But how much sense does that make? If you talk about money at the beginning and they don’t have enough, you can get to no really quickly. It doesn’t matter how much they love your concept if they can’t afford to buy it. “Do you have the people, technology, and other resources to successfully implement what we are talking about?” Many salespeople avoid asking questions like this because they are afraid of killing a sale before it has gotten due consideration. But stop and think. Any prospect at some point is going to think about those issues. You don’t want to hear at the last minute, “We’re sold on what you’re offering, but we lack the ability to do it.” You want to hear about those problems early so you can address them, solve them, or get to that early no. And remember… No is also not always no. It often is an opportunity to start a new conversation and overcome objections you might not hear otherwise. Many times, in my experience, no is the start of a valuable conversation. If you hear no, start digging into the issues at hand. Be careful, though: If the no is really a no, let it stand. So stop and review your sales process. Are there questions in it that you put off because you’re afraid of turning off a prospect? My advice: Move those tough questions up front. If you’re going to disqualify a customer, it’s best to do it early. You don’t have to wait until the fourth or fifth conversation to get into the more difficult questions. You can ask them in your first conversation. And, like everything, this is a skill you must learn and practice.  Evan Hackel, a 35-year franchising veteran, is CEO of Tortal Training, a leading training development company, and principal and founder of Ingage Consulting. He is a speaker, author of Ingaging Leadership, and host of “Training Unleashed,” a podcast covering training for business. Contact him at evanspeaksfranchising.com, follow him at @ehackel, or call 781-820-7609.

FRANCHISEUpdate

ISSUE 1, 2022

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International

Going International? Taking your U.S. FDD abroad Written By WILLIAM EDWARDS

oday’s international franchisees are often successful companies seeking a new brand to develop a business segment in their country where they see a niche to fill. Or they may be a “MUMBO” (a multi-unit, multi-brand operator) of more than one brand in their country already. In both cases, the franchisee candidate will be sophisticated and will want to know the details of the franchise on offer. Often this means they want to analyze and understand your business using your published U.S. Franchise Disclosure Document (FDD). They likely will already know what an FDD is. Based on my experience as a master franchisee in five countries, a franchisor executive leading an international operations and development department, and working with more than 40 franchises over

FRANCHISEUpdate

the past 20 years in more than 35 countries franchise fees, the franchisee candidate and cultures, here are the FDD sections wants to see if what you charge is in the I have found international candidates are normal range, and what they might be able most interested in, the ones that will most to charge in their countries should they be affect their investment decision. allowed to sub-franchise your brand. The franchisor and any parents, preEstimated Initial Unit Investment. decessors, and affiliates. The corporate This section of the U.S. FDD gives the background is important for the candidate international franchisee candidate a range to understand the legal entity’s history they of unit start-up costs in relation to the U.S. will be making an agreement with. market. Construction costs, utilities, permits, and insurance vary widely across the Business Experience. The franchisee globe. But the U.S. FDD gives the intercandidate wants to know that the owners national franchisee candidate company a and senior executives have the background guide to help build their own estimated to operate and grow the business. This is unit start-up cost. “Additional Funds” or important because they want to see you “Working Capital” in a U.S. FDD most have more knowledge of the sector than always refers to a single unit and usually they do of the business. If the franchise does not directly correlate to starting has recently had an ownership change, the up a new country license. Their costs for franchisee candidate wants to know that the construction, furnishings, equipment, core knowledge of the brand is still in place. insurance, and similar investments will Litigation. Companies from other coundiffer, but the U.S. costs help them plan tries are often worried about the litigious for their country units. nature of the U.S. legal system and busiTraining. The training that the interness environment. If they see more than national franchisee’s management and a few litigation cases, they may worry the operations team will receive, both in the franchise has problems with its franchisees U.S. before opening in their country and that could carry over to international franongoing training, is key to their seeing chisees. value in acquiring your brand. Both classInitial and Other Fees. Of course, a room and on-the-job training are key. They major reason for wanting to review the will also want to see your operations manU.S. FDD is to find out what all the initial ual. We have found it is helpful to put a fees, royalties, technology fees, marketing detailed table of contents of this manual fees, etc., are. Although the initial franchiin your FDD. see fees can be different than the U.S. unit

ISSUE 1, 2022

International Marks. Although you will need to register your marks and URLs in each country where you do business, it is important to international franchisee candidates to see that your marks are fully registered in your home country. Please do not start marketing for a franchisee in a country until you have filed for registration of your marks and URLs in that country. Otherwise, you may find someone has filed “for you,” and it can be expensive getting them back. Item 19. This is a very important section of your U.S. FDD for international franchisee candidates. Of course, they want to see all the details of your units’ P&Ls. Eventually you will have to share basic information on the range of top-line unit revenues, the associated expense categories, and expense percentages for them to build a viable financial model for their country and understand the overall investment they need to succeed with your brand in their country. Your U.S. FDD Item 19 is just a start. Units open and closed. An international franchisee candidate would like to see the growth pattern of your franchise over time. A track record of growth with few closures is best, of course. In any case, be prepared to explain the growth trajectory of your brand. Franchise audited f inancials. A potential franchisee wants to see that the franchise is viable financially. They will look at your revenues from franchise sales,

royalties, product sales (if any), and other revenue sources. They will also look at your cost of sales. Do you need to share your U.S. FDD? If the international franchisee candidate asks for your U.S. FDD, do you need to share it? Some U.S. states make franchisor FDDs available online. So if you refuse to share your FDD it will not be seen as positive by the candidate as they can probably get it from a U.S. state. A sophisticated candidate will understand some of the information in the U.S. FDD is not germane to international business. One solution I have seen is to use your U.S. FDD to create a general international FDD with the sections that are most useful for an international franchisee. They would receive such a document once they sign an NDA. It is worth the time and investment to create such a document that can be used in multiple countries. What other countries require FDDs? FDDs are becoming common in many franchise countries. The U.S. has exported the need for an FDD! In most cases, the local country FDD will be a subset of the franchisor’s U.S. FDD. Here are the countries that required a franchise disclosure document in 2021, compliments of DLA Piper: Albania, Argentina, Australia, Azerbaijan, Belgium, Brazil, Canada, China, France, Georgia, Indonesia, Italy, Japan, Latvia, Malaysia, Mexico, Moldova, Mongolia,

Romania, Saudi Arabia, South Africa, South Korea, Spain, Sweden, Taiwan, Tunisia, Turkmenistan, and Vietnam. Bottom line Your U.S. FDD can be an excellent international license marketing tool. Go over your U.S. FDD with an international license candidate in detail so they understand what will be similar and what will be different in their country.  William Edwards is CEO of Edwards Global Services (EGS) and a global advisor to CEOs. From initial global market research and country prioritization to developing new international markets and providing operational support around the world, EGS offers a complete international operations and development solution for franchisors based on experience, knowledge, a team on the ground in more than 40 countries, and trademarked processes based on decades of problem-solving. Contact him at bedwards@ edwardsglobal.com or +1-949-224-3896. Read his latest biweekly global business newsletter at www.geowizard.biz.

FRANCHISEUpdate

ISSUE 1, 2022

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It's Closing Time

Blinded by Success?

Attention franchise recruiters: How good are you? Written By ART COLEY

good at something and you are not.) Blind spots in franchise recruitment are dangerous for your brand and for your future. Let us say you have a lot of natural talent to connect and build rapport with people. You have personal experience as a small-business owner or franchisee, which gets you a long way in collaborating with a candidate. It is possible that your performance might be average or better than average with little to no practice, continuing education, or coaching. You show up, climb on the phone (or Zoom), and get signings.

re you striving for excellence in helping individuals explore your brand? How well do you educate individuals on everything involved with small-business ownership and franchising? If you have chosen franchise recruitment as your profession or “calling,” you should want to be world-class at what you do. Ask yourself: Is the success I’ve experienced with recruiting new franchisees because of practice and skill development, or am I just lucky? I am asking you to get real and consider the root cause of your success. It might be one or more of these reasons.

• High-quality brand. It has amazing unit economics, good financing options, excellent validation, powerful lead generation, good press, and a solid, proven business model. • Hot industry. Over the years at various times, certain industry segments boom with growth regardless of recruiter skill level. Anyone can go out and recruit 20 new franchisees.

• Dynamic economy. Depending on the brand and industry, economic conditions can create “good times” for signing new franchisees.

• Necessity. More adults today must consider small-business ownership for self-sufficiency and to have a chance at fulfilling their goals and dreams. Regular long-term employment in a company is not the solution for an increasing number of working adults. If any version of these root causes might apply to your success, no need to apologize. You are the one who decided to be with that brand. What I am trying to get you to consider here is the possibility of a “blind spot.” (Blind spot definition: thinking you are

I have met franchise recruiters who make significant six-figure annual incomes who do not have a clue about the true skills, process, science, and metrics of being a professional franchise recruiter. They are blinded by success and believe they are better than they are. Typically, this gets exposed when conditions and circumstances change with the brand, industry, economy, and/or lead generation. The path to world-class So, you may be asking, “How do I know if my signing results are based on my skill, circumstances, or luck?” Check yourself against the following. Weekly practice and skill development. Malcolm Gladwell, in his book Outliers, talks about the 10,000-hour rule. His research uncovered that it takes about 10,000 hours of intensive practice to achieve proficiency in complex skills and materials. If you invested 3 hours daily toward practice and skill development, the rule says you might be at mastery level in a

decade. Gladwell gets real about the 10,000 hours and what it means in a brief, raw, and no-spin video. It’s 4 minutes long and you can see it on YouTube (“Malcolm Gladwell Demystifies 10,000 Hours Rule”). Talent is not enough to be a world-class recruiter. Talent is what we show up with. Talent is more about our natural abilities and strengths. To be world-class requires continuous training and education. Carl Lewis, the most decorated male track and field athlete in history, is fast. He has natural speed. No one taught or coached him to acquire that natural ability. That is talent. But being an expert-level sprinter and many times Olympic and World Champion… the difference came from practice and education. Mastery level at sprinting was 100% the result of intense practice, skill development, and study for hours each day over years. Why did it matter? Because all the other top sprinters were born fast, too. Sometimes, natural talent can hold you back from being great. Does it really have to take 10,000 hours and a decade? Mastery can happen faster. Here is what you need to do. 1. Practice in a deliberately intensive manner with the right curriculum and content. 2. Use metric and data-based gap analysis for skills and behaviors. 3. Get a coach providing guidance and accountability. 4. Join a peer group with others wanting to improve. 5. Have a daily commitment with fanatical quality and focus. If you already have all your bases covered to become world-class, congratulations! Keep at it every day. If you are realizing gaps in your career growth, now you know what you need to do. Let’s go to work! 

Art Coley is CEO of CGI Franchise. CGIF was founded in 2015 with a mission to help franchise companies implement and execute repeatable and sustainable recruitment systems using the Recruitment Operating System. His team is based in Temple, Texas, and works with brands worldwide. Contact him at 281-658-9409 or acoley@cgifranchise.com.

FRANCHISEUpdate

ISSUE 1, 2022

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