Organizing An Effective FAC - Michael Gornet, Mr. Handyman of California & Florida Mary Kennedy Thompson, President Mr. Rooter Raj Ghosh, FAC ...

Organizing An Effective FAC

Michael Gornet, Mr. Handyman of California & Florida
  Mary Kennedy Thompson, President Mr. Rooter
 Raj Ghosh, FAC Member, Pretzel Time Franchisee
     Todd Recknagel, President Mr. Handyman
                    International

Organizing an Effective FAC

    Mary Kennedy Thompson
              President
        Mr. Rooter Corporation

What will a FAC do for the system?

• Provide feedback from the field on
  operational matters
• Help communicate new programs
• Provide early adopters for new systems
• Help leadership keep an ear to the ground
• Ferret out potential problems before they
  grow

What will a FAC do for the system?

• Keep franchisor and franchisees
  communicating in tough times
• Gives franchisees another avenue for
  sending in feedback
• Can be a test group
• Mentoring

Do’s and Don’ts in FAC Organization
             Structure
• Do create regions for representation
• Do have elections
• Do keep the number of franchisees
  represented under 50 per rep
• Do create by laws
• Do begin each meeting reviewing code of
  conduct

Do’s and Don’ts in FAC Organization
             Structure
• Don’t allow franchisees in system less than
  two years to run for FAC
• Don’t allow franchisees not in compliance to
  run for FAC
• Don’t create a voting entity
• Don’t allow non franchisees to run

Do’s and Don’ts in FAC Organization
             Continuity
• Do stagger the terms
• Do keep minutes
• Do conduct a mid term election if a member
  must leave his post
• Don’t allow FAC Reps to hold more than two
  terms consecutively
• Do a new FAC member orientation

Do’s and Don’ts in FAC Organization
            Relationship
• Do communicate the purpose of the FAC at
  each and every meeting
• Do conduct at least one meeting a year in
  person
• Do regularly scheduled conference calls
• Do use this group as a sounding board
• Do maintain communication after a person
  leaves the FAC

Do’s and Don’ts in FAC Organization
            Relationship
• Don’t expect secrecy to be kept
• Don’t talk about other franchisees with FAC
• Don’t make the FAC your only communication
  tool
• Do listen – and often
• Do be transparent on your decisions

Do’s and Don’ts in FAC Organization
             Expenses
• Do pay for travel, meals, and lodging
• Do require receipts and expense reporting
• Do set standards for expenses (same as
  corporate standards)
• Don’t travel to exotic locations for FAC
  meetings
• Do explain all before elections

How to best use your FAC
• Advisory capacity
• Create task forces for short term issues
• Cultivate a relationship that includes sincere
  listening on both sides
• Convention regional meetings
• Help with communication to field (how and
  when)

How to best use your FAC

    Lessons learned

13

Organizing an Effective FAC

          Raj Ghosh

       Franchisee/FAC Member

            Pretzel Time

14

What will an FAC do for your
brand?
• Better communication
• Better understanding of the issues and
  solutions that your franchisees face
• Leading to a stronger relationship between
  the franchisee and franchisor

15

Structure Do’s
• Your FAC members are the leaders of your
  brand
• Develop committees that are critical to your
  brand’s success
• Develop a set of bylaws that include eligibility,
  termination, hierarchy designations and roles

16

Structure Don’ts
• The FAC is not a rubber stamp of approval
• FAC members should not be selected due to
  geographic location
• FAC meetings are not a complaint forum
• Committees that no longer have a purpose,
  should be removed

17

Continuity Do’s
• Stagger the term limits
• Hierarchy rules should be followed

Continuity Don’ts
• Don’t be short sighted with the
maximum number of terms

18

Relationship Do’s
• Maintain professionalism from all members
• Develop a process for decision making

Relationship Don’ts
• No favoritism or special privileges
to FAC members

19

Expenses Do’s
• Reimburse travel and hotel only

Expenses Don’ts
• No compensation for their time
or services

20

Ways to Make Effective Use of the
FAC
• Elected Representation - Hold elections
  based on bylaws
• Visibility of the FAC - FAC members give
  presentations at convention

21

Communication for the FAC
• Broadcast emails detailing periodic
  committee work
• Intranet chat lines
• Develop a committee based geographically to
  work with the FAC and the franchisees

Organizing an Effective FAC

       Todd Recknagel
              President
      Mr. Handyman International

What will an FAC do for me?
• Why an FAC will benefit your System &
  Franchisees
      - Variations in Mr. Handyman’s System
      - Setup before problems occur

Do’s and Don’ts in Organizing an FAC

•   Structure
•   Continuity
•   Relationship
•   Expenses

Ways to make the most effective use of
your FAC
•   Elected Representation
•   Perspective
•   Visibility
•   Communication

Mr. Handyman FAC Agenda
9:00 am    Welcome                                     Todd
           -Convention Agenda
9:15 am    Operations Update                           Chris
              -Convention Review
              -Tech Certification – update progress     Mike
              -Commercial focus for 2008
              -Territory Penetration – completed        Ryan
              -Business Advisor Program – update        Chris
              -Field Training Centers -                 Chris
              -Make up of successful franchises –
                 research proposed
              -New RSM assignments                      Carl

10:15 am   Marketing Update                            John / Anne
             -Convention Review
             -Creative
             -Public Relations
             -National Programs
             -Internet – National & Local strategies

11:00 am   Toolbox Update                              Dave
              -CSR limited access to team site

Mr. Handyman FAC Agenda cont.

11:20 pm   FAC Update                                                                 Neils
                -Election/FAC Breakfast
                -2007 Accomplishments
                -2008 Priorities
                -Make up of successful franchises
                -Posting of schedule, agenda and minutes

Noon       Working Lunch

12:15 pm       Issues brought up by Owners/FAC members                                   Neils
                   -Toolbox.net strategy – future
                       Survey
                       New tech committee
                   -Business strategies/marketing in a challenging economy
                   -Location closings, almost closed, re-sales and transfer 2008
                   -Product / Service vendors we form relationships with
                   -Washington DC trip
                   -Franchise Individual Sales and the effect of multiple territory
   ownership
                   -Detailed Agenda vs. Results only Agenda
                   -Local Marketers vs. home office internet – conflicts – additions - plans

Sharing a Border
Average 2006 Sales for Owners with Neighbors
             Sharing a Border
              (Includes all active owners)

                                              $498,467
                 $375,003
         $305,680
   $257,710

         0           1            2          3+
         # of Neighboring Owners Sharing a Border

Critical Metrics
                                  CSR Training                                                     6 week average of
                                                                                                  $1400/week above
                                                                                                    the system after
                                                                                                        training
                       Average Weekly Sales for the dates of August 6th - November 19th

$10,000

 $9,500

 $9,000                                      CSR TRAINING
 $8,500

 $8,000

 $7,500                                                                                      Entire System
 $7,000
          6 week average of
 $6,500
          $600/week above                                                                    Locations participating in
                                                                                             the CSR Training
          the system before
 $6,000
           8/6
               training
               8/13 8/20 8/27 9/3   9/10   9/17   9/24   10/1   10/8   10/15 10/22 10/29   11/5   11/12 11/19
                                            TW    TW      TW     TW

New Face of Mr. Handyman

National TV cable broadcast fall of 2008

           Richard Karn
             Tool Time

Panel Q & A
• Thank you for Attending