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Moving the Needle: How to Improve Satisfaction and Engagement to Help Drive Franchisee Performance Moving the Needle: How to Improve Satisfaction and Engagement to Help Drive Franchisee Performance Eric Stites, President and CEO Franchise Business Review Michelle Rowan, COO Franchise Business Review Evan Hackel, President and CEO Ingage Consulting

Satisfaction vs Engagement

Expectations Experience Satisfaction Behavior

Satisfaction Contentment Fulfillment Gratification Meeting / Exceeding Expectations

Satisfaction Contentment Fulfillment Gratification Meeting / Exceeding Expectations Engagement Focused Involved Passion Energy Working together Partnership Responsibility to the Organization

Levels of Franchisee Engagement Engaged:  See themselves as partners  Participate with passion  Execute programs  Feel a deep connection to the organization  Take ownership for success  Support and inspire other members  Are pro-active with ideas Unengaged:  See themselves as more of a customer than a partner  They are not disconnected or disenchanted with the group, but they’re not inspired either  They put the responsibility of their success with management  It takes more effort to communicate with them and to get them to support the coop’s efforts Actively Disengaged:  Exploit or compromise organizational objectives for perceived personal gain  Are cynical of management  They share their negative feelings with others  Undermine the group’s potential  It takes significant effort to get them to support new initiatives  Yet, some of them consider themselves satisfied

Results Behavior

Results Behavior Beliefs

fsi 6 Years of Research 500+ Brands 100,000+ Franchisees

n FSI

Fred Jones Portsmouth, NH

n FSI Breakout by Franchisee Tenure

n FSI Breakout by Franchisee Tenure New Franchisees

n FSI Breakout by Franchisee Tenure New Franchisees Most Senior Franchisees

Breakout by Regional Field Consultant

Industry Benchmarks

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Question: Overall, how would you rate your Franchisor and the Opportunity provided by this franchise system?

Question: Overall, how would you rate Your Performance as a franchisee?

Question: Senior Management Involves Franchisees in important company decisions:

Question: I trust my Franchisor:

Question: Assuming there is no geographic or other territorial conflicts, choose the statement that best describes your discussions with others about this franchise:

Building Satisfaction & Engagement More participation More idea sharing Better performance More referrals Fewer headaches

Developing Franchise Support Ops team needs to know what the Development Team is selling (& promising) Development Team needs to know what happens at Unit Level on a daily basis Training Programs must detail all the DIFFERENT types of support available & don’t just use one

Breakdown of the Field Visit 25% on Operations: Compliance 25% on Financials & Profitability: Review P&L’s, COGS, Labor, Cash Control 50% on Growing the Business: Field Rep competency must be how to attract & retain customers!

ZorZee Alignment of Expectations and Goals

Financial Prosperity Tool

Join our LinkedIn Group… Search Groups for “FBR Performance” and click Join Group!

Moving the Needle: How to Improve Satisfaction and Engagement to Help Drive Franchisee Performance Moving the Needle: How to Improve Satisfaction and Engagement to Help Drive Franchisee Performance Eric Stites, President and CEO Franchise Business Review Michelle Rowan, COO Franchise Business Review Evan Hackel, President and CEO Ingage Consulting