SELLING & AWARDING FRANCHISES

“In sales, it’s not what you say; it’s how they perceive what you say.”
– Jeffrey Gitome
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Franchising, Be Your Own Boss, Venture, Shark Tank, Mark Cuban, Entrepreneur, Gig Society, Side gig, Franchise your Business

SELLING & AWARDING FRANCHISES
By Gary Occhiogrosso – FMM Contributor

Selling on every level is the principal work in any franchise organization in order to grow your franchise business. Whether it’s selling new franchises or creating systems to support your franchisees to grow their sales or selling your goals to investors, there’so business on the planet that exists without sales.

Have you given thought to the logistics? How do you intend to quickly respond to all the incoming calls, make follow-up calls and address all the prospects questions? How will you ever conduct discovery days, tour prospects to operating units or spend the needed hours to address their fears, concerns and objections? How will you manage your CRM, keep past inquirers in the loop or create buzz that may initiate new buyers and motivate past inquirers to take action now.

A consistent, timely sales effort rules the day. That’s our specialty… We sell! We make the initial contact, we qualify the prospect, guide the candidate through the application process, do the store visits, conduct the meetings & the numerous follow-up calls, the discovery day and work with the prospect each step of the way. You, the Franchisor can stay focused on building the operational side of your business.

One of the most important aspects regarding the franchise sales process is to practice timely response time and create value in the system. That comes from totally dedicated time & focus to the sales process, carefully planning a sales funnel that uses decades of experience, successful track record, industry credibility and franchise industry specific “know how”.

The various steps and numerous hours it takes to close a franchise sale are not something any startup or emerging franchisor should even be thinking about doing on their own.

There is no organization like Franchise Growth Solutions that offers not only a franchise consulting program but also earns its keep by selling franchises for you. It’s our “success-based” upside to offset the low fees for all the other services FGS provides.
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About the Author:
Gary Occhiogrosso is the Founder of Franchise Growth Solutions, which is a co-operative based franchise development and sales firm. Their “Coach, Mentor & Grow Program” focuses on helping Franchisors with their franchise development, strategic planning, advertising, selling franchises and guiding franchisors in raising growth capital. Gary started his career in franchising as a franchisee of Dunkin Donuts before launching the Ranch *1 Franchise program with its founders. He is the former President of TRUFOODS, LLC a multi-brand franchisor and former COO of Desert Moon Fresh Mexican Grille. He advises several emerging and growth brands in the franchise industry. Gary was selected as “Top 25 Fast Casual Restaurant Executive in the USA” by Fast Casual Magazine and named “Top 50 CXO’s” by SmartCEO Magazine. In addition, Gary is an adjunct instructor at New York University on the topics of Restaurant Concept & Business Development as well Entrepreneurship. He has published numerous articles on the topics of Franchising, Entrepreneurship, Sales, and Marketing. He was also the host of the “Small Business & Franchise Show” broadcast over AM970 in New York City.
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ABOUT FRANCHISE GROWTH SOLUTIONS, LLC
Franchise Growth Solutions, LLC is a strategic planning, franchise development and sales organization offering franchise sales, brand concept and development, strategic planning, real estate and architectural development, vendor management, lead generation, advertising, marketing and PR including social media. Franchise Growth Solutions’ proven “Coach, Mentor & Grow®” system puts both franchisors and potential franchisees on the fast track to growth. Membership in Franchise Growth Solutions’ client portfolio is by recommendation only. www.frangrow.com
Contact: [email protected]

The Importance of Franchisors Building Relationships With Their Franchisees

The Importance of Franchisors Building Relationships With Their Franchisees…

Photo by rawpixel on Unsplash

“Over my forty-plus years representing franchisors, I have seen too many franchisors fail because they do not realize how important it is for their franchisees to succeed and make money.”

The Importance of Franchisors Building Relationships With Their Franchisees
By Gary Occhiogrosso- Founder of Franchise Growth Solutions, LLC.

When Onboarding new franchisees the franchisor should always remember that a common thread to success is the franchisor’s culture of support, co-operation, communication, education, and profitability with their franchisees. Building an ongoing relationship with its franchise community can mean the difference between growing a restaurant brand to hundreds of units or failing before ever making a mark in the industry.

Without these critical components in place, a restaurant franchisee can quickly go “off the rails” and compromise brand standards. It’s not long before many of these franchisees negatively redefine the brand. Poor service, improperly prepared menu items, lesser quality ingredients and overall appearance and cleanliness of the restaurant are just a few reasons why a healthy relationship with your franchise owner is essential.

It Starts At the Beginning.

Creating the proper franchisor /franchisee relationship builds success for both. This relationship building must begin right from the start. Successful restaurant franchisors know that ramp-up time and getting a new restaurant profitable takes smart planning and hard work by both the franchisor and the franchisee. The training, support, communication and ongoing assistance the franchisee receives early on in the relationship can set the tone for the entire term of the franchise agreement.

One of the most crucial steps a franchisor can take begins when selecting a franchisee. Franchisors should conduct an in-depth interview as part of a thorough vetting process. Along with the obvious discussions such as past management and business experience, time commitment to the operation and funding, franchisors must also explore the core business values of the franchise candidate. Spending this time upfront to examine the candidate’s vision, expectations and the overall business plan goes a long way into understanding if the potential franchisee shares common goals with the franchisor. It is also the first step in building brand value and a robust, lasting business relationship.

Increase Your Communication And Reduce Your Failure

New businesses can fail for a variety of reasons. Although the vast number of restaurant failures are due to undercapitalization, it could also be the result of substandard operations, inefficient marketing, poor location and changing consumer trends. In addition, a failure in a franchised restaurant may be the result of the franchisee working outside the franchisor’s branded system. Franchisees can destroy their business by implementing procedures and introducing products that are counterintuitive to the brand image. Franchise owners often lack the time, experience and money to do proper research on a new product or a new procedure, never realizing that it may disrupt the entire system. Conversely, franchisors must always be aware and teach the idea that “everything touches everything else.” Building a healthy relationship and a clear channel of communication with the franchise owner can often prevent franchise owners from circumventing the system in the first place.

Harold Kestenbaum noted franchise attorney who has specialized in franchise law and other matters relating to franchising since 1977 explains: “Over my forty-plus years representing franchisors, I have seen too many franchisors fail because they do not realize how important it is for their franchisees to succeed and make money. Franchising is a two-way street, and to be a successful franchisor, you, as the franchisor, must understand this and make it happen. Franchisors cannot be successful if they think that it’s only them who should make money. Ray Kroc knew that franchising could only work if the franchisees made money along with the franchisor. Supporting your franchisees from the outset, and not when they are choking is imperative and franchisors need to realize this. One such way to make this collaborative effort work is by creating a franchisee advisory board. Franchisors with more than ten franchisees need to implement this without the franchisees asking for this. A franchisee advisory board will show the franchisees that you are trying to make them be a part of the system and that you want their input. Franchising is not an autocratic method of doing business; it is a collaborative method of doing business.”

Looking in the Mirror Helps

It’s easier to blame the franchisee for failure than franchisors like to admit. Franchisee behavior is often a reflection of the franchisor. Some franchisors are quick to dismiss why proper onboarding, relationship building, creating brand value, and adequate franchise support are vital to the success of the new business. When a franchisee loses confidence in the franchisor, it is complicated to turn back. Franchisees stray or “go rogue” because franchisors fail to supply the “rails” that the franchisee must run on.

An open, working relationship between the franchisor and the franchisee is the most important aspect of brand success. Franchisors must take a very active role in the franchise operation, perhaps more than they want. Supplying great tools, conducting superior training, regular visits to the restaurant to evaluate the goals and progress of the business is a crucial commitment a franchisor must make. Communication, transparency, ongoing coaching and counseling are the essential elements of relationship building. The ROI for these efforts will be opening hundreds or even thousands of franchised restaurants locations.

Building a Trusting, Engaged, and Accountable Workplace Culture

“What is the culture of this company” to a front-line staff member, the receptionist, the janitor, or anyone in between and you will receive a different answer.

Company Culture – What does this Mean?
By Jennifer Cook, Chief Operations Officer
http://www.symbiancehr.net/

When working with our clients we often have the leadership team explain to us what the culture of the organization is. Sometimes it is comprehensive, other times the description is brief, and still other times the culture sounds oddly like a list of core values. Unfortunately, for most organizations, if you ask the same question “What is the culture of this company” to a front-line staff member, the receptionist, the janitor, or anyone in between and you will receive a different answer. It is a discouraging fact, however, it should also be a wake-up call for leadership to consider their efforts to reinforce the desired culture and message the cultural goals so it permeates across the enterprise.

Remember, culture is simple terms can be defined as the actions and behavioral norms of the organization. Therefore, regardless of what you think the culture is, or what you desire it to be, if you do not influence and impact the behaviors of the workforce to model and demonstrate the desired culture it will not exist.
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It is important that all employees within your business work together and share accountability. Employees who work together towards the same overall goal to help their workplace to become more accountable, in turn, make the business more productive and successful.

The Impact of Failed Accountability
By Laura Goad, HCM Consultant

Great leaders know that positive accountability creates a culture of trust, engagement, and excellent performance. The impact of failed accountability can be detrimental to your business. When employees do not have a system of accountability in place, things can quickly fall apart. Lack of accountability causes a culture problem within your business. When no one trusts each other at work to do what they are assigned to do, employee morale suffers. Employees feel like they can’t trust their supervisor. They feel undervalued, and when employees aren’t feeling valued, they are less likely to be engaged with their work.

Lack of accountability in the workplace often stems from ineffective leadership practices. To achieve the goals of your business, it is important that all employees within your business work together and share accountability. Employees who work together towards the same overall goal to help their workplace to become more accountable, in turn, make the business more productive and successful.

Change your workplace culture so that accountability is included. Lead by example. Make sure employees know that they’ll be accountable for their work by creating guidelines about how you’ll monitor their productivity. Set weekly goals and deliverables, which will in return motivate employees to complete takes on a regular basis. Finally, praise them when you find them doing things right.
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About SymbianceHR
The seasoned professionals that make up the SymbianceHR Team bring to the table over 40 years of hands on experience in all areas of Human Capital Management.

Small and medium sized business seem to be placed in an area where they find themselves either too small to have an in-house Human Resources department (HR) or not large enough to have the resources necessary to keep the in-house HR staff up to date on recent modifications, additions and new policies.

In essence, a large portion of the small to medium sized business are operating out of compliance, or in an ineffective, and costly manner. Much in part to the fact that they have either not exercised discipline in the area of Human Resources or have mistakenly seen it as an expenditure entry as opposed to a cost reduction source.

With an abundance of resources, our Team stands ready when our clients, or potential clients, need us most. Whether that is for covering questions or concerns pertaining to: hiring, firing, benefits, employee retention, compliance, or lack thereof, regulatory updates, and recordkeeping or a quick study of current policies and procedures for conformity.

One of a business’s greatest assets is their employee base (Human Capital), however with that great asset comes, at times, great challenges. We work with our clients to guide them through the challenging times as well as the not-so-challenging, assisting them toward accomplishing their goals, while often saving them time, money and stress in the process.
http://www.symbiancehr.net/
SymbianceHR – Your Challenges. Our Solutions. A Successful Relationship.

PEOPLE HAVE TO EAT, DON’T THEY? – WHAT’S HAPPENING ON MAIN STREET?

We have pointed out many times that the restaurant industry is a great leading indicator for the economy as a whole. If that theory prevails, there is no boom ahead.

RESTAURANT INDUSTRY – PEOPLE HAVE TO EAT, DON’T THEY? – WHAT’S HAPPENING ON MAIN STREET?
By Roger Lipton

While the restaurant stocks mark time this summer, at historically high valuations, it is a good time to consider the major trends within the group.

There has been little specific news, since quarterly earnings reports for the period ending 6/30 or 7/31 have yet to be released. However, we can surmise what’s happening in a general sense, and consider whether there have been any major “inflection points” that we can take advantage of. In short, though the general economy, as reported by our “business friendly” administration, is picking up steam, there is little in the hospitality sector, including restaurants and retail, that indicates there is any growing momentum.

To be sure, there is more comfort and confidence by consumers as well as restaurant operators than there was a few years ago and especially back in ’08 and ’09. The public is more secure in their employment, though wage increases are still lagging the numerical employment statistics. The general economy may be on the verge of 4% real GDP growth in Q2, but same store sales and traffic are showing very modest progress.

According to Miller Pulse, Fast Food (QSR) same store sales were up 2.2% in June, the same as May, up just modestly from 1.6% in April and an average of about 0.8% in Q1 which was negatively affected by winter weather. Traffic has improved from a negative 2.7% in Q1, but is still negative every month in Q2, by an average of 0.8%.
It is the same story in Casual Dining, with traffic improving from an average of about 1.8% in Q1 but still negative every month in Q2, and down about 1.0% for the quarter. Same store sales were up about 0.8% in Q2, barely up from a positive 0.4% in Q1.

We have pointed out many times that the restaurant industry is a great leading indicator for the economy as a whole. If that theory prevails, there is no boom ahead. Though some industry observers are touting the better trends, we continue to hear the country western refrain: “Down so long, it looks like up to me”.

Anecdotally, we hear that consumers are feeling better, but still spending carefully, just as the reported sales and traffic results indicate. Job security may be better, but exposure (if not actual expenses) for health care is a substantial financial burden for many families. The housing and auto industries are increasingly sluggish as interest rates rise, and these are important portions of the economy. Gasoline prices are higher again than a couple of years ago and also help to absorb the discretionary spending from slightly higher wages. Restaurant operators are feeling better because sales have stabilized at least, but higher wage, occupancy and even commodity costs are conspiring to keep profits subdued even if sales are firming by point or two. Very few operators are building new stores, preferring to renovate and/or expand current facilities or acquire other operators. Quite a few chains, Jack in the Box, Dunkin Donuts and Chili’s have difficulty meeting return on investment hurdle rates with real estate costs so high, even though interest rates are historically so low. As interest rates rise, more operators will find themselves in the same boat, unable to afford new locations.

Among the restaurant companies that are doing relatively well, we can point to McDonald’s, Wingstop, Domino’s, the Darden concepts, Del Taco, and Texas Roadhouse. Companies that are “holding their own”, with varying degrees of difficulty, include Wendy’s, Burger King, Denny’s, Popeye’s, Cheesecake Factory, Chuy’s, Starbucks, Dunkin Donuts, and Bloomin Brands. There are quite a few companies, more than the few listed first above, that are re-inventing themselves to some degree, including Bojangles, Jack in the Box, Habit, Famous Dave’s, Sonic, Dave & Buster’s, Red Robin, Papa Murphy’s, Buffalo Wild Wings, Tim Horton’s, Applebee’s, Ihop, Chipotle, and Zoe’s, and others. You can read about almost all of these companies at the “corporate description” site on this website, accessed from our Home Page. None of the above listings are meant to be all inclusive, and managements are encouraged to give us a call if we have mis-categorized someone. These listing are meant to illustrate that there are more chains that are currently challenged than are firing on all cylinders.

Earnings reports will start to come in for Q2 ending 6/30 in a couple of weeks. Based upon the apparently still sluggish trends, we see no reason why July and early August numbers will give management a reason to risk the prediction of a strong fall season. There is just no reason to stick their neck out. Guidance will likely be conservative, leaving room to UPOD (under promise and over deliver). We will do our best to read between the lines and report to you the “reality” rather than the “story”.

Learn more about Roger Lipton at: http://www.liptonfinancialservices.com

Inclusion used to Create a Competitive Advantage

In various work activities and in the execution of job duties, there is a myriad of opportunities to leverage the existing diversity of the organization to enhance the development of solutions to solve everyday business challenges.


Inclusion used to Create a Competitive Advantage
By Warren Cook

Over the past few decades, organizations have repeatedly asked me to “bring them diversity” and help them improve how they are viewed by the workforce and rest of the world. The request is fundamentally wrong and the strategy to enhance the workforce and create both ROI and a competitive advantage remain in an inclusion strategy.

Inclusion is the act of being inclusive, to include others. In various work activities and in the execution of job duties, there is a myriad of opportunities to leverage the existing diversity of the organization to enhance the development of solutions to solve everyday business challenges.

I encourage business leaders and human resource professionals to step back and analyze their current practices and approach to Diversity & Inclusion, and instead formulate a new strategy that does not focus on creating the diversity that already exists, but instead focuses on the development of programs that involve and include members of the workforce in creative and innovative ways to use their diverse characteristics as a competitive advantage.

If after reading this short article on this topic you are asking yourself “How can we turn inclusion into ROI and a competitive advantage”, then it is time to call me to schedule training for you and your leadership team on Creating ROI from Diversity and Inclusion. You can reach me at 302.276.3302 or via email at [email protected]

Restaurant Operators, Franchisors and Franchisees – Benefits of an Inventory and Theoretical Program

Today’s post is written by recognized restaurant operations expert Fred Kirvan. I’ve had the privilege of working with Fred (almost 20 years) on various projects building scores of franchised Fast Casual restaurants. Today Fred discusses the importance of creating an accurate, detailed and evolving inventory and theoretical Cost of Goods program. Franchised as well and independent restaurant operations should take the time to learn how to build an use such a program. It will not only help you save money but more importantly will create a better system for overall results with or without your daily participation in the operation.
– Gary Occhiogrosso
Founder and Manager – Franchise Growth Solutions, LLC. #howtofranchise
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Performing regular inventories will serve to organize your stores as attempting to perform an inventory in a disorganized store will take twice the amount of time. As part of the integration of this program, we will teach managers and franchisees how to perform accurate and effective inventories.

Benefits of an Inventory and Theoretical Program

By Fred J. Kirvan
Founder FK Consulting
Cooperative Member – Franchise Growth Solutions, LLC

I deal with numerous franchisors and restaurant operators and still can’t understand why so many do not employ a good inventory system. In fact, the sad truth is some don’t even conduct a weekly or monthly inventory…Instead, they use purchases to somehow (and inaccurately) calculate their Cost of Goods (COG’s).
Today I will attempt to explain why it is critical for professional restaurant management that you have a detailed Inventory and Theoretical COG’s Program. A 3%-5% saving in COG’s can add up to tens of thousands of dollars. Remember, this saving goes directly to your bottom line, not to mention the increase in accountability of your operation whether you participate in the day to day operation or not.

Here are just a few benefits of using such a program

1. Provides the ability to conduct a monthly audit on your purchases when the program’s Master Inventory Sheet is updated each month by you or someone in your organization. These audits should be updated internally.

2. The process of developing this program serves to streamline your order guide by having to determine which products you will use moving forward as they are now tied to menu and recipes within the program. What that means is your order guide gets cleaned up by removing duplicate or unnecessary items.

3. In addition to a Theoretical Food Costing Program, it will also include Inventory Sheets for performing accurate physical inventories.

a. Performing regular inventories will serve to organize your stores as attempting to perform an inventory in a disorganized store will take twice the amount of time. As part of the integration of this program, we will teach managers and franchisees how to perform accurate and effective inventories.

b. By having theoretical and physical inventory in one program we can immediately identify down to the penny, the difference which should be accounted for discounts, employee meals, and waste. The unaccounted-for amount is then either over portioning, shrinkage or theft. Without this information your operating blind.

4. This process will streamline your Recipes, portioning must be solidified to achieve costing which serves to assist with the consistency of menu offering as well.

5. This process will streamline your Plate Builds, portioning must be solidified to achieve costing which serves to assist with the consistency of menu offering as well.

6. Once the program is completed:

a. You’ll immediately be able to identify higher and lower costed menu items.

*** i. With that information, you may elect to change the portioning and/or pricing to remedy the issue having an immediate impact on your costs.

*** ii. Additionally, repositioning lower cost items on the menu will also serve to immediately lower costs as well.

b. You’ll be able to see the immediate impact on your overall food cost as a percentage and dollar amount by changing costs from your distributor.

c. You’ll be able to see the immediate impact on your overall food cost as a percentage and dollar amount by changing portions on menu items.

d. You’ll be able to see the immediate impact on your overall food cost as a percentage and overall dollar amount by changing prices on your menu items.

Quite simply, no professionally managed restaurant group can or should operate without this level of information – certainly not having this level of detail on your menu offering will heavily impact your ability to recruit multi-unit franchisees in the future.

For more information on building and using an Inventory and Theoretical Program and for a FREE Consultation please contact [email protected] or call (917) 991-2465
Visit www.frangrow.com
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About the Author:
FRED KIRVAN
Founder FK Consulting

Fred started in the franchise business in 1991. Working with the founder of Desert Moon Fresh Mexican Grille he developed the operating systems and grew the company from a single unit into a multi state, 30 unit franchised brand. In 2008 he became President of Desert Moon remaining in that role until 2013

Mr. Kirvan was then recruited as the Chief Operating Officer for TRUFOODS, LLC. a 100 unit, multi brand franchise company that included Pudgie’s, Wall Street Deli, Ritter’s Frozen Custard and Arthur Treacher’s Fish and Chips.

Upon leaving TRUFOODS he became VP of Operations for Energy Kitchen; a NYC based fast casual chain which pioneered the “healthy alternative” space before leaving to launch an early learning & play center business “Moozie’s Play Cafe” with his wife.

Working in a variety of capacities in food and non food business’ Mr. Kirvan’s experience in systems development, writing manuals, brand connectivity, purchasing and construction project management have proven invaluable assets to start up & emerging brands.

Currently FK Consulting works to develop a full suite of Confidential Franchise Manuals which include Operations, Managing the Business, C&D and other critical Job Aids and Training Tools necessary to grow and enhance the process of devloping successful franchisees.

Small Franchise Systems Can Go International Too

He also signed a development agreement for 10 locations in Saudi Arabia. After his success in the Middle East, he decided to target Western Europe where he had already exhibited in France and Spain.

Small Franchise Systems Can Go International Too

By Ed Teixeira
Chief Operating Officer of Franchise Grade

Just because a franchisor operates a small or emerging franchise network, it shouldn’t exclude them from exporting their franchise brand to other countries, providing they meet certain basic requirements. In fact, there are large franchisors that based upon their performance and product are unqualified for international expansion. In some cases, a small franchise system may find the market in the U.S. so competitive, it might be in their interest to consider expanding into foreign markets. There are certain attributes that qualify a franchisor for international expansion but size alone shouldn’t be the determining factor.
Russo’s Restaurant Franchise

To gain some perspective on this subject, I spoke with Chef Anthony Russo, CEO of Russo’s New York Pizzeria and Russo’s Coal Fired Italian Kitchen. Based in Houston, Texas Russo’s began franchising in 1998 and operates 30 franchise locations in Texas, Oklahoma, Arkansas, Tennessee, Florida and Hawaii.

I asked CEO Anthony Russo, how he came to take his franchise overseas. He explained that true New York style pizza wasn’t available in many U.S. markets and foreign countries. He told me how the two restaurant concepts have built their reputations on being undeniably authentic in every way. While still franchising in the United States, Anthony started his foray in other countries by engaging the services of a broker. After one year, without success from the broker, he decided to personally exhibit at a franchise show in the Middle East, where he presented his pizza. He received a great response and currently has seven franchise units in Dubai with two more under construction. He also signed a development agreement for 10 locations in Saudi Arabia. After his success in the Middle East, he decided to target Western Europe where he had already exhibited in France and Spain. Unlike other franchisors, he uses a development agreement franchise model in each country rather than a Master Franchise agreement. He feels this approach is less costly for the franchisee and he doesn’t risk giving up franchise rights to an entire country. As Anthony works on international expansion, he continues to franchise in the U.S.
I asked Anthony Russo what he considers the most important requirements for a smaller franchise to go International. His response: “Minimum 20 locations, a good system, strong corporate staff and sufficient working capital.”

Regardless of size, the following are important qualifying factors for international expansion:
• Suitable financial resources for an international project.
• The franchise has a successful operation in the U.S.
• Strong potential for expansion in other countries.
• Franchisor staff is available and capable of training, servicing and supporting a franchisee in another country.
• Franchisor leadership is engaged and committed to international expansion.
• The franchisor can provide the operational and marketing knowhow
• Operations and marketing manuals are current and up to date and marketing materials that can be adapted and translated for use in other countries.
• The franchisor acquires or has familiarity with target countries.

When a franchisor considers taking their franchise concept to other countries, an important factor to consider is whether their franchise is qualified to expand to other countries. One factor, that should not disqualify a franchisor, is its’ size. This doesn’t mean that any franchisor regardless of system size is qualified to go overseas, but rather that smaller franchisors shouldn’t rule out going international simply because of their size.

About the Author

Ed Teixeira is Chief Operating Officer of Franchise Grade and is the founder and President of FranchiseKnowHow, L.L.C. a franchise consulting firm. Ed has over 35 years’ experience as a Senior Executive for franchisors in the retail, healthcare, manufacturing and software industries and was also a franchisee. Ed has consulted clients to franchise their existing business and those seeking strategic solutions to operational, marketing and franchise relations issues. He has transacted international licensing in Europe, Asia and South America. Ed is the author of Franchising from the Inside Out and The Franchise Buyers Manual and has spoken at a number of venues including the International Franchise Expo and the Chinese Franchise Association in Shanghai, China. He has conducted seminars, written numerous articles on the subject of franchising and has been interviewed on TV and radio and has testified as an expert witness on franchising.

Strategies for Effective Performance Management

When establishing the goals for a position, you need to make sure your people leaders have what they need to clearly communicate and review the goals and expectations of the position to the employee. This should include job descriptions, policies, procedures, and performance program documentation.

Performance Management Avoidance

There is a plethora of reasons performance management programs are less than successful in meeting their intended outcomes. One significant factor contributing to this problem is the reluctance or hesitation of people leaders in conducting the performance review. Over time we have observed a variety of contributing variables that inhibit a people leader from engaging the employee to provide feedback.

Supervisors who:
• were never properly trained to deliver feedback
• are new and lack both the training and experience
• are unclear of what the expectations of the employee and position are
• inherently are uncomfortable with conflict
• have a personal relationship with the employee
• don’t want to upset the employee
• would rather do the work themselves compare to holding the employee accountable

As a business owner or leader, it is critical to understand these challenges of your people leaders and develop training programs, guidance documents, clear job descriptions and position goals to prepare these individuals for success. Give your people leaders the tools, resources and support to measure, manage, and improve the workforce effectively.

Five Key Factors to Effective Performance Management

Once your people leaders have been properly prepared to execute performance management in your organization, there are five key factors that lead to success for the workforce that we are going to review here.

1. Setting the Right Expectations from the Start

When establishing the goals for a position, you need to make sure your people leaders have what they need to clearly communicate and review the goals and expectations of the position to the employee. This should include job descriptions, policies, procedures, and performance program documentation.
Do not neglect other key components in this process that go well beyond paper. This includes your company culture (the actions and behavioral norms of the organization), the work environment, and the modeled behavior of the managers and leadership team.

2. Crucial Conversations

Recognize that discussions about performance are often challenging and require patience, trust, and mutual respect. Establishing a comfortable environment where honest feedback can take place and is received as a tool to support the employee’s success is easier said than done. Special attention should be given in the training and support of your people leaders to have crucial conversation with their staff to achieve success.

3. Listening as a Powerful Tool

Here is your chance to demonstrate diversity of thought and an inclusive behavior. If you do all the talking it is not a conversation, it is a lecture. Think about how you could possibly demonstrate care for the employee if you refuse to listen to their thoughts and ideas, as well as their feedback. You can be confident in knowing that you will learn something from the employee if you only take the time to listen. Empower the employee to provide you feedback, and this means teaching them how to share with you what they need from youin order to be successful in their respective roles.

4. Accountability is not Punitive

If the only time you provide an employee feedback is when they do something wrong, the entire system of performance management will be perceived as punitive. Instead, ensure your conversations are consistent and relay constructive feedback regarding when the employee if both meeting or falling short of established expectations. If you are building trust and engagement with the employee, you must be sincere in your communication about performance. Positive accountability leads to improved performance, professional development, the closure of skill gaps, and enhancement of capabilities. Even your best employee has room to develop and grow, and you should take advantage of your performance management program to support their continued success in this manner.

5. Recognizing the ROI of a Successful Performance Management Program

How does the business benefit from building and executing an effective performance management program? Of primary importance should be the validation that you as an employer are getting what you pay for. If employees are not meeting expectations, you are not getting what you pay them to do. That, alone, should motivate any employer to take performance management seriously. Other benefits for the business are increases productivity, maximizing workforce capabilities to deliver your products and services, improved trust and engagement with management, effective communication, professional development, and opportunity for succession planning. When executed well the organization is also informed as to the creation of effective training and development programs for the workforce.

Why is the Employee’s Perspective of
Performance Management is Important?

In creating a workforce in which communication is effective and mutually beneficial, resulting in trust and engagement, an employee must believe confidently that the business has their best interest at heart in achieving success.

When an employee doesn’t trust their supervisor cares about their success in the company, engagement breaks down as does communication and job performance. Employees are observing the behaviors of the management team all the time.

When they see actions not matching words, they lose faith in the leadership of the company and can become disengaged and they lose trust in those guiding the business.

If the employee is only receiving feedback when something is wrong, they will perceive the program as punitive and avoid sharing their ideas for the business. The environment will become disconnected and morale will deteriorate, leading to gossiping and lack of engagement.

Ensure your people leaders are trained effectively to engage their staff, build trust, and communicate all forms of feedback in a consistent and fair manner to establish positive relationships with the workforce.

Are you looking for Capital or Deal Flow in the franchising space??

This session will consist of a panel discussion covering how to position your franchise company for Private Equity investment and what PE firms look for in a Franchise company acquisition or strategic partnership.

Are you looking for Capital to build your Franchise Company???
– OR –
Is your Investment Firm looking for deal flow in the franchising space??

By Gary Occhiogrosso
Founder of Franchise Growth Solutions, LLC.

On Friday, June 1st, I will be moderating a panel at the IFE in NYC. It will be comprised of Franchisors and Private Equity associates. Please see below for details and please let me know if you’d like to attend the meeting. If so, contact me here or at [email protected] & I’ll send you a FREE PASS to the Expo.

10:00 AM – 11:30 AM
+/- Private Equity Investing and Franchising
Room: 1B05
Moderated by: Gary Occhiogrosso, Managing Partner, Franchise Growth Solutions
Panelists: Roger Lipton, President, Lipton Financial Services; Grant Marcks, Vice President, Head of Business Development, Atlantic Street Capital; Kirk McLaren, MBA, CTP, CPA, Georgetown University
This session will consist of a panel discussion covering how to position your franchise company for Private Equity investment and what PE firms look for in a Franchise company acquisition or strategic partnership. In addition, there will be plenty of “networking” time for both Franchisors and Private Equity attendees to meet & network. This is a great opportunity for Investors and Franchisors to meet face to face and discuss current and future opportunities.
Sponsored by Franchise Growth Solutions, LLC. www.frangrow.com

FREE PASS To the International Franchise Expo in NYC
USE PROMO CODE FGS at: https://r1.events-registration.com/IFE2018/?source=FGS
YOU ARE INVITED BY
Franchise Growth Solutions
Booth #340
USE PROMO CODE FGS

This session will consist of a panel discussion covering how to position your franchise company for Private Equity investment and what PE firms look for in a Franchise company acquisition or strategic partnership. In addition, there will be plenty of “networking” time for both Franchisors and Private Equity attendees to meet & network. This is a great opportunity for Investors and Franchisors to meet face to face and discuss current and future opportunities.

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Employee Engagement Strategies

A realistic goal is to ensure all points of engagement that are appropriate are done in an effective manner so that the exchange is mutually beneficial to the employee and the business. Once an employee loses that desire to go to work each day, you are fighting a losing battle if behaviors of the supervisors do not change.

Employee Engagement Strategies
Article by Jennifer Cook, Director of Operations – Used with permission- Symbiance HR

This edition of our newsletter is dedicated to addressing Employee Engagement using a Three Phase Strategic approach. All three (3) strategies are included in this month’s newsletter.

We are confident you will find value in this information. If you do, please forward this email on to those who you believe could also benefit from the content. Have an HR topic you would like to see in an upcoming newsletter, send us an email with your request and we will be happy to consider the topic for future communications.

There’s Trouble when Engagement is Lost!

It would be unrealistic to expect 100% engagement in any workforce, or even 100% engagement from any individual employee. There will always be conflicting priorities that your employee experiences including family, health, education, community, and income opportunities. Organizations compete with these realities daily, and sometimes ignore the fact that forcing an employee to ignore other priorities in life often is experienced negatively by the employee.

A realistic goal is to ensure all points of engagement that are appropriate are done in an effective manner so that the exchange is mutually beneficial to the employee and the business. Once an employee loses that desire to go to work each day, you are fighting a losing battle if behaviors of the supervisors do not change. Countless times we hear how employees are not focused, performance is dropping, communication has disappeared, and the individual has checked out. This is not uncommon, and many of you reading this right now have experienced this very thing in your own lives. What I encourage is you reflect on those past experiences and focus on what you expected from your employer to change how you felt.

A company that fails to spend the time and resources on their human capital, their greatest asset which is the workforce, will see engagement slowly but surely disappear. All the promises and commitments in the world will not make the employees engaged, nor will throwing money at them. The negativity you might experience in managing a disengaged workforce pales in comparison to what your customers and clients are feeling when they interact with these employees. Your business can experience significant setbacks and loss of revenue if engagement isn’t handled effectively.

I urge you to take this month’s articles on engagement to heart. Take from them the nuggets of gold that will help you improve your strategies and tactics in your organization to produce a more productive workforce and an engaging culture in which your employees enjoy coming to work every day.

Article by Jennifer Cook, Director of Operations

We can help you with these programs and would like to speak with you today about developing your strategy to accomplish eengagement in your workplace. Contact Jennifer Cook, Director of Operations, by calling 888-343-7340 or by email at [email protected] Visit:http://www.symbiancehr.net/