Joe Bourdow President, CFE Valpak Direct Marketing Systems, Inc

1
(No Transcript)
2
Joe Bourdow President, CFE Valpak Direct
Marketing Systems, Inc
3
Catherine Monson President CEO FASTSIGNS
International, Inc.
4
How To Assist Franchisees Undergoing Financial
Stress

• The economy is cyclical this has occurred before
• Focus is key
• Motivation and inspiration we all need it
• Franchisees enemies are busy-ness, distractions
  and denial

5
How to Assist Franchisees Undergoing Financial
Stress
Crafting the message to franchisees A
multi-touch, multi-channel communications and
action plan -one-on-one coaching -group
coaching (in the field, online or
both) -newsletters, intranet, all staff, all
messaging and communication Help
franchisees create a focused, proactive plan to
implement help them adjust the plan as
needed Accountability is key
6
Whats Important Now (WIN)

• Manage cash and expenses get financial house in
  order
• Step up (or at least maintain) marketing and
  outside sales
• Customer retention and customer development is
  critical
• Train and Develop staff
• Inform and involve staff

7
Manage Cash and Expenses get financial house in
order

• Create a short term cash budget
• Think big and think small in areas of cost
  control
• Keep in conversation with your banker
• Line up a back-up bank
• Focus on collecting receivables
• Eliminate poor (and average) performing staff
• look to upgrade

8
Step up (or at least maintain) marketing and
outside sales
Study after study shows Companies that
maintain their advertising and marketing emerge
from a downturn ahead of the competition
9

• When competitors reduce their advertising and
  marketing, by maintaining yours you get increased
  exposure your marketing message has a better
  opportunity to get through
• Contact past clients
• Consider referral programs and
  incentives

10

• During tough times, it is even more critical to
  get new leads and new customers
• What customers and prospects look for during
  tough times may be different than in
• good times modify your offering as
  appropriate
• Consider money saving coupons, promotions,
  etc.
• Customer Retention and Customer Development is
  Critical

11
David Davoudpour Chairman/CEO Shoneys
12
Steps a Franchisor Can Take When Facing Financial
Woes
13
A Little Background PerspectiveMy Journey

• Serial Entrepreneur
• Operator
• Business Developer
• Franchisee
• Franchisor

14
Why Shoneys?

• Strong Brand Name
• Rich History
• Good Bones
• Experience with Underdogs
• Right Time/Right Place/Right Position
• Bruised and bleeding, but not broken

15
Going the Distance

• There is no substitute for hard work
• There will be casualties along the way
• When in the line of fire, stay focused on your
  goal
• Know when to turn it up a notch

16
CSFs Commitment Can Make All the Difference

• Get in 100...99-1/2 just wont do
• Move quickly to do what is required
• Make decisions based on the good of the System
• Establish which relationships are vital and
  protect them
• Promote bold goals for yourself and your
  franchise System
• Run a lean corporate office

17
Takeaways

• Determine what must be done and stay focused
• Move quickly
• Visit your business (or units?)
• Make decisions
• Accept key casualties
• Be bold (but deliberate)
• Run a lean operation and surround yourself with
  winners

18
Harvey H.H. Homsey
Vice President Franchise Systems, Express
Employment Professionals
19
Rolling Out New CampaignsDuring Recessionary
TimesTo Roll or Not to RollThat is Your
Question
20
Product/Service vs. TalkWhat is Your
Product/Service?

• Review your current product/service
• What do clients/prospects really looking for
  during recessionary times?
• Needs vs. Wants
• The Clients Needs vs. Your Wants
• Your offering in good times may be different
  than what you offer in recessionary times

21
What Do Clients NOT Want?

• Put yourself in your clients/prospects shoes
• Funds and Budgets
• Do you want a gimmick or something you can
  really use?
• Stuff vs. service
• What campaign would you want?
• Show me the money
• The best campaign during recessionary times may
  be the one you dont offer

22
What Do We Offer In Good Times

• Your product/service
• What is it?
• What do you stand behind/guarantee?
• 100
• What is your support system?
• Are you there?
• What is the competition?

23
Why Would Service Ever Change?

• Who do you buy from?
• Clients do the same
• Who do you trust?
• Do your clients trust you?
• Are they loyal to you?
• Are they loyal to the solution you say you
  offer?
• What matters to you?
• Clients have the same needs
• Dont ever stop servicing!

24
Its All AboutSelling and Servicing

• Basic, good ole, customer service
• Be where you are needed
• Be there always
• Your competition will stop selling/servicing
• You better not ever stop
• What matters to your clients?
• Dont ever stop selling or servicing!

25
What Do You OfferIn Recessionary Times?

• Selling
• Dont stop
• Servicing
• Make it better!
• Being where you are needed
• Always!
• Your BEST product/service EVER
• YOU!

26
Know Before You Roll

• Review your product/service
• Remember what clients dont want
• Compare your good and recessionary offerings
• Dont change your service
• Dont stop selling

27
The Best?

• The best campaign to roll is
• YOU

28
Doug PendergastEVP Chief Franchise Officer
Churchs Chicken
29
Navigating Troubled WatersPreparing for tough
times everyday
30
Key priorities

• Build formal informal communications
• Monitor key metrics
• Establish expectations
• Maintain discipline urgency

31
Communications

• Frequent dialog with key players (before a
  crisis)
• Habit of open, frank discussion
• Relative and absolute performance
• Successes and failures

32
Metrics - margins
33
Metrics - scorecard
34
Metrics watch list
35
Establish expectations

• Create follow issue resolution process
• Clear
• Consistent
• Transparent
• Set explain boundaries
• Clarify hierarchy
• Manage investor expectations

36
Discipline urgency

• Dont relax standards
• Build balance sheets
• Relentlessly improve unit FCF, ROIC
• Hope for best, prepare for worst