1. Retail
Franchise
Knowledge
Series
July,16 &17, 2013
The Lalit Mumbai
GREAT BRANDS +
GREAT FRANCHISE PARTNERS =
FRANCHISE PARTNER PROFITABILITY
Leadership
Growth . Direction

2. Today –Here and now
• DAY 01
• RETAIL FRANCHISING
ANSWERING THE CRITICAL QUESTION
TO FRANCHISE OR NOT TO FRANCHISE
TRANSFORMATION FROM 'A BUSINESS PLAN' TO
'FRANCHISE GROWTH PLAN'
BUILDING THE RETAIL FRANCHISE BRAND
M

3. Tomorrow – The Answer lies within you TNK
• DAY 02
• RETAIL FRANCHISING
CREATING AND ACHIEVING A MULTI-UNIT
FRANCHISE NETWORK
EXECUTING CORPORATE ASPIRATIONS AT THE
FRANCHISEE LEVEL
REFRANCHISING – CONVERTING COMPANYOWNED
STORES TO FRANCHISE STORES

4. Completion Backwards Principle
It is all about You
Leadership
Growth . Direction
•Tell me about yourself and your Brand
•What Knowledge are you seeking ?
•What are your main Goals/Focus ?
•What Blockage/ Roadblock is stopping you
from achieving your Goals ?
•Lets share our knowledge

5. Completion Backwards Principle
Something about my Journey
Brumby's Bakeries Holdings Limited and Controlled Entities
Revenue ($'000's)
11,000
10,000
Revenue ($'000's)
9,000
8,000
7,000
6,000
Leadership
Growth . Direction
5,000
2002
2003
2004
Year Ended 30 June
2005
2006

6. Some of my Clients
Leadership
Growth . Direction

7. 1975-1980
Short History – Lessons
Learnt (1-8)
Leadership
Growth . Direction

8. 1981 to 1987
Queensland Move & Franchising (8-17)
Lessons Learnt
Leadership
Growth . Direction

9. 1985 to 1987
Brumby’s - Boom & Bust (17-76)
Receivers strip Company
SOLD
-Company Stores
-Banjo’s
-NSW Stores
-USA Stores
-Sold Stores – 76 to 54
Leadership
Growth . Direction
Brumby’s & Banjo’s Café Concept Stores
USA

10. 1991 to 1999
Phoenix Rises From The Ashes (54-239)
Growth then stagnation
•
•
40 franchisees /Management & Supplier
•
•
•
Leadership
Growth . Direction
Consortium buys Company
$0.01 Share Value $1.7 M
8 other bidders – inc Bakers Delight
Failed to plan

12. ANSWERING THE CRITICAL QUESTIONTO
FRANCHISE OR NOT TO FRANCHISE
Chapter 11
 How can your Retail model be replicated?
Is the brand franchisable: A feasibility analysis.
Analysing your business strengths and
scalability options.
 How to combine product and service franchising?
 Attaching importance of human attributes
risk-taking, leadership, motivation and an ability to
resolve crises - to your retail brand.
How can we start building retail brand equity by
leveraging on franchising?
(D 1 S 1)

13. The Owner’s Eye
Viewing the business from the owner’s
perspective and acting accordingly

14. TRANSFORMATION - FROM 'A BUSINESS PLAN'
TO
'FRANCHISE GROWTH PLAN’
Chapters 3, 4 And 5
 Preparing a blue print for franchise format
determining the Franchise fee, product margins at
sale to non-sale period, stock turnover, stock
correction, EOSS road map, organisational structure
and roll out.
 Defining the organisation production/logistics
capability (viz. number of retail touch points)
including the average stock production
time/production-to-delivery cycle.
 Determining a win-win Franchise Business
Model and its ROI.
 Determining economic viability in terms of stock
transfer and stock correction.
(D 1 S 2)

15. “if you fail to plan you plan to fail “
or
“we can’t fail , we don’t have a plan”

17. 2003 to 2007
8 Step plan
•
•
•
Leadership
Growth . Direction
(272-321)
Past research
Spectrum Demographics
Julie Dang – Usage and Attitude Survey

18. 2003 to 2007
8 Step Plan (272-321)
•
•
•
•
•
•
Leadership
Growth . Direction
2.5% levy introduced
Sell more bread
No 282 strategy
TVC x 3
PR
Charity Focus

19. BUILDING THE RETAIL FRANCHISE BRAND
Chapters 6 , 7 and 8
Financial Implications on Developing a Franchise
System
Cost of development and anticipated return-on investment for
the company.
Organisational requirements headquarters and field.
Building Operation Manuals and Training Programs
What they should contain.
How they can be used to manage change.
Risky issues you should consider when creating
manual and training program content.
The use of web-based training and operating manuals in Franchise
systems
.
(D 1 S 3)

20. 2003 to 2007
8 Step plan (272-321)
Company Culture
Board of Directors
Managing Director
General Manager
BBL - Operations
VIC
Leadership
Growth . Direction
Corporate
Franchising
Procurement
Training
Bakery
QLD/
NNSW
NSW/
ACT
Finance &
Administration
Masters - Operations
WA/
NT
Information
Technology
FNQ/
NZ
SA
Franchise
Development
Property
Marketing
Overseas
Development

21. 2003 to 2007
8 Step Plan
•
•
•
•
•
•
Leadership
Growth . Direction
(272-321)
Reward and benchmark
BHAG
Replace underperformers –Heard
Golden Handcuffs
Owners eye
¼ Meetings and Weekly stand-up Meetings

22. 2003 to 2007
8 Step Plan
Stand up meetings
1. What's up ?
2. Focus
3. Blockages
4. Intelligence/ideas
Leadership
Growth . Direction
5. Sign off
(272-321)

23. 2003 to 2007
8 Step Plan
Leadership
Growth . Direction
(272-321)
(D 1 S 3)End

24. MANAGING EXPANSION STRATEGIES;
UNDERSTANDING THE WHEN AND HOW OF USAGE
- Single unit franchising
- Area development and multi-unit franchising
- Area representation franchising
- Master franchising
- Putting together a quality franchise agreement

25. Day 2
Recap – Helicopter v Trench view
• It is all about T.E.A.M.
• Re focus on your goals
• Blockages/ Bottlenecks /CC Issues
• Completion Backwards principle

26. DAY 02
CREATING AND ACHIEVING A MULTI-UNIT FRANCHISE
NETWORK
Chapters 2 and 5
How to build the multi-unit franchise business network.
How to increase the new store development pipeline with
in the existing franchise
Building corporate structure at franchise level
1)
(D 2 S

27. CREATING AND ACHIEVING A MULTI-UNIT FRANCHISE
NETWORK

28. CREATING AND ACHIEVING A MULTI-UNIT FRANCHISE
NETWORK

29. CREATING AND ACHIEVING A MULTI-UNIT FRANCHISE
NETWORK

30. Day 02
EXECUTING CORPORATE ASPIRATIONS AT THE
FRANCHISEE LEVEL
Chapters 6 and 9
How to maximise your Franchisee 'relational'
capital?
Benefits of an open channel of communication
between the headquarters and field offices (Support
Office).
'Franchisee talk' sessions for understanding
concerns and reuniting them with organisational
goals.
Role of Franchisees and Partners in the yearly
growth plan for ongoing growth.
(D 2 S 2)

31. Leadership
Growth . Direction

32. CC & SPC

33. EXECUTING CORPORATE ASPIRATIONS AT THE
FRANCHISEE LEVEL

34. EXECUTING CORPORATE ASPIRATIONS AT
THE FRANCHISEE LEVEL

35. CRM

36. Handling Complaints

37. PR

38. Day 02
REFRANCHISING - CONVERTING COMPANY OWNED
STORES TO FRANCHISE STORES
oDetermining what assets or markets should be sold.
o How to value the existing store for franchising ?
o Who should control the lease until it's time for renewal?
o Is franchising a loss-making company-owned store a good
idea?
oWhose job is to create or train M&A for the success of the
program?
(D 2 S 3)

39. Leadership
Growth . Direction

40. How will you create
transformational shift
“Last car to pass, here I go” Golden Earring
The Helicopter view V The Trench view


List your top 3 actions
Identify your biggest roadblock that will

Jumpshift! your business
Follow the steps

41. Last comments -next steps ?
Leadership
Growth . Direction