0 ® Profiling. Strategy. Results. Since 1980 All rights reserved. Unauthorized reproduction prohibited. COPYRIGHT 2008 Franchise Architects COPYRIGHT 2008 Franchise Architects © Franchisee Evolution ® Profiling. Strategy. Results.

1 ® Since 1980 The information contained in this presentation is trademarked, copyrighted and highly confidential and cannot be shared, copied, disseminated or distributed to anyone outside of your organization without the prior written approval of Information For You Future, inc. dba Franchise Architects and Franchise Navigator.

2 ® Profiling. Strategy. Results. Since 1980 The Franchise Sales and Development Process …..… Opening Process ………………………………..…………. Hand-off from Development to Operations through to New Franchisee Orientation………………………………. Grand Opening………………………………………………. Co-op Meetings and Activities Related To Advertising Decisions ……………………………………... On-going Visits and Meetings…………………………… ® Profiling. Strategy. Results. SECTION PAGE TABLE OF CONTENTS

3 ® Profiling. Strategy. Results. Since 1980 The Four Behavioral Profiles ACCOMPLISHER INFLUENCER ASSOCIATOR CONTRIBUTOR

4 ® Profiling. Strategy. Results. Since 1980 The Franchise Sales and Development Process

5 ® Profiling. Strategy. Results. Since 1980  Will want broader contact than just the Franchise Sales representative. Will need to see and feel the depth of the organization in order to make a decision,  May have concerns about direct day-to-day involvement  Will have very high expectations of the Franchise Sales representative – a miss in follow-up could kill the deal. ACCOMPLISHER The Franchise Sales Process

6 ® Profiling. Strategy. Results. Since 1980  Is ready to make a decision before process is complete - they are impatient and do things as they please,  Is reluctant to do a lot of ”their” work, contact franchisees, etc.,  Will over commit - will want 20 locations all at once.  Will only focus on the best possible results and develop a biased/ unrealistic financial expectation  Most likely to cancel agreements before units open INFLUENCER The Franchise Sales Process

7 ® Profiling. Strategy. Results. Since 1980  Thrives on and needs constant contact,  Will develop strong relationship with Development Manager or Franchise Representative,  They seek security and will focus on predictability of success,  Their trust could easily be damaged, and  They will love the continuity, the daily mail and will be responsive to the Franchisor. ASSOCIATOR The Franchise Sales Process

8 ® Profiling. Strategy. Results. Since 1980  Will want a lot of information.  Best to link them to existing franchisees with similar backgrounds,  Will appreciate the “variety” of the business and will look at each functional area very closely, and  Will be slow to make a decision. CONTRIBUTOR The Franchise Sales Process

9 ® Profiling. Strategy. Results. Since 1980 Opening Process

10 ® Profiling. Strategy. Results. Since 1980  Will accept feedback on manager selection and hire a solid manager,  Will be diligent in the build-out process. Opening Process ACCOMPLISHER The Opening Process

11 ® Profiling. Strategy. Results. Since 1980  Will hire an enthusiastic manager over all other qualifications  Will miss a lot of details and then wonder what happened  Will change their mind about floor plans, equipment, etc.  Will use checklists and process for notepaper INFLUENCER Opening Process The Opening Process

12 ® Profiling. Strategy. Results. Since 1980  Will hire weak managers due to their own management weakness,  Will need constant communications in the build-out process and will be confused most of the time,  Will follow checklist and processes and will have a hard time with the less tangible, clearly-defined tasks. ASSOCIATOR Opening Process The Opening Process

13 ® Profiling. Strategy. Results. Since 1980  Will interview a lot of candidates and take some time to hire a manager,  Will trust the system and but not move fast enough. CONTRIBUTOR Opening Process The Opening Process

14 ® Profiling. Strategy. Results. Since 1980 Hand-off from Development to Operations through to New Franchisee Orientation

15 ® Profiling. Strategy. Results. Since 1980  Will experience withdrawal and will need constant attention,  Will love all of the training, meetings and gatherings,  Will need to reconfirm expectations on a regular basis,  Will always expect more,  Will follow the steps diligently,  Will be very fearful and will want reassurances. Hand-off From Sales to Operations ASSOCIATOR Development to Operations

16 ® Profiling. Strategy. Results. Since 1980  Will get bored with all of the details,  Will resist attending required training sessions,  Will overstate their financial position and push the outer limits of financial risk,  Will confuse the field staff about what they want.  One day they can handle everything and the next day then will need tons of help. INFLUENCER Hand-off From Sales to Operations Development to Operations

17 ® Profiling. Strategy. Results. Since 1980  Will attend the training sessions and be very inquisitive,  Will expect a high level of competence from every presenter/trainer and staff,  Will provide immediate feedback on how we can change the systems,  Will want to be hands-off to a great degree. ACCOMPLISHER Hand-off From Sales to Operations Development to Operations

18 ® Profiling. Strategy. Results. Since 1980  Will enjoy and value the training experience, the team and the quality of people,  Will have high expectations of all presenters,  Will move slowly and diligently and won’t be rushed,  Will not need a lot of contact as they are too busy with other things. CONTRIBUTOR Hand-off From Sales to Operations Development to Operations

19 ® Profiling. Strategy. Results. Since 1980 Grand Opening

20 ® Profiling. Strategy. Results. Since 1980  Will question the Grand Opening strategy,  Will want clear, concrete information regarding the profit/financial side of the Grand Opening,  May react negatively to direction from the franchisor. Grand Opening ACCOMPLISHER Grand Opening

21 ® Profiling. Strategy. Results. Since 1980  Will be aggressive in the Grand Opening if it gains him/her visibility,  May change directions often and short cut the process. INFLUENCER Grand Opening

22 ® Profiling. Strategy. Results. Since 1980  Will complete the plan as requested,  Will panic early on if things don’t work,  Very fearful of cash flow and the risk of an aggressive Grand Opening. ASSOCIATOR Grand Opening

23 ® Profiling. Strategy. Results. Since 1980  Will be concerned about staff impact on Grand Opening,  Will follow the grand Opening clearly if he/she has been given the time to process information and if they feel like they have made the decision. CONTRIBUTOR Grand Opening

24 ® Profiling. Strategy. Results. Since 1980 Co-op Meetings and Activities Related To Advertising Decisions

25 ® Profiling. Strategy. Results. Since 1980  Will assume a leadership role after he/she sees the Co-op struggle,  Will become frustrated and impatient with the weak franchisees,  Will push for decisions and conclusions. Co-op and Advertising Activities ACCOMPLISHER Co-op Meetings and Advertising Decisions

26 ® Profiling. Strategy. Results. Since 1980  Will become a leader due to influence skills,  Will not be effective due to distractions and their tendency to over-promise,  Will leave the meeting frequently to make calls and deal with other more important things. INFLUENCER Co-op and Advertising Activities Co-op Meetings and Advertising Decisions

27 ® Profiling. Strategy. Results. Since 1980  Will be the first one there and the last one to leave,  Will never miss a meeting,  Will develop overly strong friendships in the group,  Will attend everything and will be a part of every event, activity, etc.. ASSOCIATOR Co-op and Advertising Activities Co-op Meetings and Advertising Decisions

28 ® Profiling. Strategy. Results. Since 1980  Strong team leader, but will be reluctant to become a leader unless they see a serious concern,  Great contributor to meetings, often a positive influence,  Erratic attendance at meetings. CONTRIBUTOR Co-op and Advertising Activities Co-op Meetings and Advertising Decisions

29 ® Profiling. Strategy. Results. Since 1980 On-going Visits and Meetings

30 ® Profiling. Strategy. Results. Since 1980  Will challenge field staff processes, forms, etc. to gain a sense of confidence in the process,  Will have very high expectations of field staff,  Will view the visits as insignificant if they don’t provide solid, effective information,  Would be fine with one visit per year,  Will challenge the policies that are impacted by the visits. On-going Meetings and Visits ACCOMPLISHER On-going Visits and Meetings

31 ® Profiling. Strategy. Results. Since 1980  Will view the field staff as weak – and will wonder why they are telling them what to do,  Wants to change things, make them “better,”  They want a sense of control,  Will overreact on warnings or violations,  Will be somewhat unpredictable in the response,  Eventually will ignore required forms totally. INFLUENCER On-going Meetings and Visits On-going Visits and Meetings

32 ® Profiling. Strategy. Results. Since 1980  Will want and need many ongoing visits,  Expects franchisor to manage their location,  Believes that the franchisor should take more responsibility for their business,  Will bad mouth franchisor to their staff if relationship is weak,  Will be devastated by the warning and restriction process and will challenge field visit audits. ASSOCIATOR On-going Meetings and Visits On-going Visits and Meetings

33 ® Profiling. Strategy. Results. Since 1980  Will view the field visits and forms from his staff’s perspective,  Will be seeking a balance of good and constructive feedback,  Will challenge the process if it damages his team,  Initially will be very supportive and involved in processes, but that will wane as the newness of the business wears off. CONTRIBUTOR On-going Meetings and Visits On-going Visits and Meetings

34 ® Profiling. Strategy. Results. Since 1980 Copyright © 2008 Franchise Architects. ALL RIGHTS RESERVEDwww.franchisenavigator.com The information contained in this presentation is trademarked, copyrighted and highly confidential and cannot be shared, copied, disseminated or distributed to anyone outside of your organization without the prior written approval of Information For You Future, inc. dba Franchise Architects and Franchise Navigator.