Communicating for Success: Fostering Positive Franchisor/ Franchisee Relationships

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Communicating for Success: Fostering Positive Franchisor/ Franchisee Relationships Steve Hockett Great Clips, Inc. Catherine Monson FASTSIGNS Intl. Jeff Jervik Fitness Together Holdings, Inc. Susan Black-Beth Beth Super Wash, Inc. Steve Hockett VP of Operations Great Clips, Inc.

Great Clips System 2,800 salons 980 franchisees 100% franchised 30,000 stylists 100 field employees 135 open markets Communication Challenges Partnership Triangle GCI Franchisees Salons (stylists) Cost vs. Efficiency vs. Relevancy Technology: Reality and Affordability Partnership Culture Consistent Messaging Connectivity to Brand Relevant Messaging Appropriate Tools

Communication Creates Partnership Franchisee/Salon Mailings... Emails Brand Document Web Properties Corporate Intranet Franchisee Intranet Franchise Development Data Sharing/Comparison Franchisee Training Partnership Reinforces Culture Franchisee Elected Council Task Force Groups Convention/Zone Meetings Market Co-op op Meetings Franchisee Educational Seminars Partnership Reinforces Culture Manager/Franchisee Meetings Business Reviews with Franchisees Store Visits/Audits Facility Reviews

Overcoming Obstacles Expand web properties Tie compliance to connectivity Reinforce communication & Brand Aggressively adopt Social Media Interactive Space Franchisees, Salon Staff, Corporate Staff Brand Reputation Management Facebook, LinkedIn, Yammer, YouTube, Texting, Viral marketing, Twitter Social Media is the next communications frontier A true communications culture builds strong relationships with all facets of your system.

Steve Hockett VP of Operations Great Clips, Inc. Catherine Monson CEO, FASTSIGNS International Infusing the Personal Touch to Build and Cement Relationships Lots of Face-to to-face time with Franchisees Town Halls Center Visits Conference Calls Decentralized (Field-Based) Business Consultants Proactive Outgoing Calls

Infusing the Personal Touch to Build and Cement Relationships High Tech Increases the Need for High Touch Personal Handwritten Notes Greeting Cards Anniversary Banners signed by all staff Wedding, Baby Gifts The personal touch,, even in a video Motivating (Communicating with) Your System Using All Available Mediums Think of it like a thorough marketing plan : multiple contacts through multiple media Different people are receptive to different mediums/methods Have a consistent message across all mediums/methods Editorial Board that focuses on all mediums Motivating (Communicating with) Your System Using All Available Mediums Printed Newsletter Email Newsletter Email Communications: daily, weekly, monthly Support Site (Intranet) Folders/Forums/Message Board Conference Calls

Motivating (Communicating with) Your System Using All Available Mediums Webinars Field Team Proactive Calls Call Blitz Text Messaging/Twitter Use every arrow in your quiver and test new ones as they are discovered Catherine Monson CEO, FASTSIGNS International Jeff Jervik President & CEO Fitness Together Holdings, Inc.

Communicating For Success Purpose: To become actively involved in supporting our franchisees adding value by gaining and maintaining their attention and trust thru effective communication Goal: Aligned with our vision, develop goals & strategies based on the feedback from our internal and external customers which in turn will drive results in our studios Communication Cascade FSC Executive Team FSC. Area Directors Franchise Owners One Message, One Voice, One Process Area Directors Franchise Owners Studio Staff Clients Studio Staff Annual Operating Plan Vision Goals Strategic Priorities 2010 Tactics Aligned Studios Feedback / Communication Profits/Margin Make Money Focus: Unit Economics Better Understanding / Education / Grow Active Client Base Net Profit Cash Balance Absolute Leader in the Fitness and Wellness Industry, Improving our World, One Client at a Time Staff Retention Client Retention Sales Build Great Teams Run Great Studios Grow FT (Active Client Base) Personal Touch Field Visits Town Hall Meetings Teleconference Series Coaching Calls Franchise University Nutrition Fitness / Pilates Specialty Programs MBO Enhancements BDP s Quarterly Marketing Plans BDP s Sandler Sales Staff Retention HQSC Score Active Clients Gained / Lost Earned Revenue Client Frequency # Leads # New Clients Gross Revenue Newsletter CEO Blog Social Media Regional Meetings AD Meetings Leadership Council Field Visits Town Hall Meetings Teleconference Series Grow FTHI Franchise Sales Transfers Re-opens # Leads # Conversations # D-Day # Sales Coaching Calls

Communicating For Success Jeff Jervik President & CEO Fitness Together Holdings, Inc. Communicating for Success Steve Hockett Great Clips, Inc. Catherine Monson FASTSIGNS Intl. Jeff Jervik Fitness Together Holdings, Inc. Susan Black-Beth Beth Super Wash, Inc.