CRESTCOM INTERNATIONAL

COMMUNICATIONS AUDIT
APRIL 7, 2016

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TABLE OF CONTENTS
Purpose, Objectives & Methodology
Key Findings & Implications
Next Steps

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Purpose and Objectives
Jan Kelley examined the industry, uncovering current trends, issues,
perceptions, challenges and needs, as well as competitive messaging within
the franchising/business leadership landscape.

Results of the audit will:

Guide the development of a targeted media list
Inform the content strategy
Identify key opportunities to establish Crestcom as a thought leader in the
franchising industry and drive awareness and interest among potential
franchisees.
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Methodology
A number of primary and secondary sources were consulted in order to ensure that insights
and findings were truly reflective of the industry in its current state. Sources included:

Online scanning to gauge the volume, sentiment and topic of conversation in the online
space
Secondary academic sources to ensure that findings were verified with high-quality,
trusted research
Engagement Labs tools
eValue: scores allow for benchmarking against competitors as well as progress over time and
analytics identify top-performing content
eListen: monitors in real time all brand mentions as well as conversations that are happening around
relevant topics and reports

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KEY FINDINGS & IMPLICATIONS

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KEY FINDING #1: A healthier economy in the United States is driving the franchise industry forward;
specifically Chicago, Houston and NYC are home to ideal and potential Crestcom franchisee candidates.

Target Franchisee for Crestcom International:

Years of experience in senior-level management positions
Minimum $75K in liquid assets/capital
Typical past careers of successful franchisees:
Educational services, health care and social assistance
Professional, scientific and management, and administrative and waste management services
2016 was the sixth consecutive year that the growth of franchising was predicted to outpace that of the
U.S. economy as a whole
Business spending will accelerate in 2016, giving a boost to business services franchises
Chicago, Houston and NYC have high numbers of individuals working in management roles with incomes
above $100K

IMPLICATION #1: Target groups of people within NYC, Chicago and Houston that are naturally inclined to
own a business leadership management franchise based on their interests, as well as their working and
financial background.

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KEY FINDING #2: The U.K. shows potential opportunity for Crestcom franchisees.

Service franchises offer a higher probability of success and more opportunity for U.S.
franchise systems
U.S. franchises that have advertised in the U.K. national press have also experienced higher
rates of success
An emerging trend in the market is to spread the initial franchise fee over several years or as
each unit is recruited
UK is often used as a springboard into the rest of Europe

IMPLICATION #2: Out of the English-speaking, 2nd-tier priority countries, focus on U.K. first and
consider a targeted marketing effort to drive awareness and understanding of the opportunity.

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KEY FINDING #3: Multigenerational partnerships, women and minority group franchisees are on
the rise.

Millennials passion, energy and technological savvy is the perfect complement to the baby
boomers experience and financial stability
Millennials will make up 50 percent of new franchisees over the next two years
In 2012, 31.3% of U.S. franchises were owned by women. 15.2% were equally owned by man
and woman
Rohit Aurora, CEO of Biz2Credit, states, Minorities are going to become the majority in the
next five to 10 years in terms of small businesses. They will keep contributing in starting,
buying and growing businesses.
Becoming a franchisee provides appealing benefits regardless of age, gender, or ethnicity

IMPLICATION #3: Tap into the growing opportunity with emerging demographics, recognizing a
one-size fits all approach will not work in connecting with this diverse group of people. Tailored
communication, training and support are required.
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KEY FINDING #4: Training and support along with the freedom to be creative were
consistently cited as top concerns among potential franchisees.

44.58% of franchisees identified creative freedom as their number-one concern

Training and support remains a key concern among franchisees in every stage of their
business and their personal/professional goals
Just 6% of organizations report they have excellent programs in place to develop
millennials

IMPLICATION #4: Bring forward training and support as part of the Crestcom value
proposition to franchisees both through the path to purchase and after.

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KEY FINDING #5: Research shows significant gaps in leadership effectiveness in organizations, yet leadership
management training and business coaching are perceived as non-essential services and are vulnerable to
cutbacks in times of economic hardship.

In response to globalization, businesses increase their use of training services, though this is quickly cut when the
economy falters
86% of all surveyed HR and business leaders cite leadership as one of their most important challenges
Fewer than 50% of C-suite executives feel they are receiving any development at all
Employees are not satisfied with how their leaders communicate
63% believe leaders do not recognize employee achievements
57% believe leaders do not give clear instructions
78% of businesses know leadership is important, yet only 42% feel as though they are ready to take on the issues
Companies that invest, spending 1.5 to 2 times more on leadership, reap results that are triple or quadruple the levels of
their competitors

IMPLICATION #5: Strengthen leadership training in the face of an unpredictable market. Crestcom is well
positioned to drive the critical issue of leadership gaps reflected in the market today and convey the direct
connection to training as an essential organizational initiative.

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KEY FINDING #6: Social media conversation reflects major trends in the business leadership
management industry, demonstrating that key stakeholders are informed, online and
engaged.

5 main social topics stood out

Business
Social media
Women in business
Productivity
Small Business
Employee Development
Business Development
Starting a Business

IMPLICATION #6: While Crestcom and franchising as specific topics arent yet on the radar
in online conversations, identifying and aligning with current relevant topics is a great
opportunity to earn a way into conversations.

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KEY FINDING #7: Prospective franchisees and business professionals receive their
information from 5 main communication channels when researching, exploring new
opportunities and staying up to date on industry trends.

Potential franchisees are seeking information from:

Associations
Research companies
Consultants and brokers
Government
Publications

IMPLICATION #7: There are many opportunities within these channels, especially business
pubs and trade magazines, that Crestcom can use to demonstrate thought leadership.

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KEY FINDING #8: Crestcoms top competitor, Sandler Training, consistently scores the highest on
Entrepreneurs Franchise 500 ranking, a well-known indicator of franchise success.

Sandler Training is Crestcoms top competitor according to Fortune 500 ranking

Franchise 500 is an indicator of franchise success and stability
All companies are judged by the same objective, quantifiable measures of a franchise
operation, such as: financial strength, growth rate and size
Although Crestcom has won multiple Leadership Excellence Awards, it has not been on the
Fortune 500 list since 2011
However, in order to be included, companies must supply a full Franchise Disclosure Document

IMPLICATION #8: Entrepreneurs Franchise 500 ranking is a flagship industry ranking of objective,
quantifiable measures and reflects the strongest organizations in franchise. Review criteria to
determine how Crestcom can better communicate its strengths to improve overall score and
perceived position in the industry.

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KEY FINDING #1: A healthier economy in the United States is
driving the franchise industry forward; specifically Chicago,
Houston and NYC are home to ideal and potential Crestcom
franchisee candidates.

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 The ideal franchisee does not fit into a box but does share some
common interests and drivers

Common Characteristics Passions Past Occupations

Assertive Sales Executives
High energy and drive Developing people Marketing managers
Higher-than-average dominance Engineers
Focused on results Customer service specialists
Collaborative Accountants
Logical Attorneys
Tough, but fair Teachers
Somewhat sociable Sales managers
Risk taker Entrepreneurs
Ambitious
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Source: http://www.crestcomfranchise.com/why-you, http://www.entrepreneur.com/article/78568
 Following a period where businesses cut back on nonessential expenses,
the business coaching industry in the United States is on the rise

Revenues are projected to increase at an annualized rate of

4.5% between 2015 and 2020

In response to globalization, businesses are increasing their use

of training services, though this is quickly cut when the
economy falters
Largest market: middle and senior management of U.S.
corporations, which leaves it vulnerable to declining
corporate profit

In the future, the adoption of online training is expected to

bolster the industry. This alternative is a more affordable and
flexible option for customers and offers lower operating costs
for training providers, thus enhancing profit margins

Source: IBISWorld 2015 jankelley 16

Source: https://www.entrepreneur.com/article/243849
 2016 was the sixth consecutive year that the growth of franchising
was predicted to outpace that of the U.S. economy as a whole
Business spending will accelerate in 2016, giving a boost to business services
franchises, which are projected to rank first in growth of the number of
establishments and tied for second in employment growth with a 3.3% gain

Estimated that franchise businesses accounted for approximately 3% of U.S. GDP

or a total of $523 billion in 2015

Projected that nominal GDP of the franchise sector will increase by 5.6% to
$552 billion in 2016
This will exceed the growth of total U.S. GDP in nominal dollars, which with moderately low
inflation is projected at only 4.4% in 2016

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Source: http://emarket.franchise.org/FranchiseOutlookJan2016.pdf
 The franchise business market is projected to keep expanding
over the next few years, at an increasing rate
In 2016, the Business Services category of Franchise Businesses will make up
12.4% of all franchise businesses and 11% of all franchise employees

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Source: http://emarket.franchise.org/FranchiseOutlookJan2016.pdf
Houston (TX), Chicago (IL) and NYC represent strong opportunity for growth
among Crestcoms target franchise markets within the U.S.

New York-New York, Buffalo, Rochester, Yonkers, Syracuse

Northern California-San Fran, Sacramento, San Jose
Illinois-Chicago
CRESTCOMS IDEAL
North Carolina-Charlotte/Raleigh FRANCHISEE:
Kansas/MO-Kansas City Industry and company
Texas-San Antonio, Dallas, Houston, Austin dependent
Years of experience in
Wisconsin-Milwaukee senior-level management
New Mexico-Albuquerque positions
Minimum $75K in liquid
Connecticut-Hartford assets/capital

Rhode Island-Providence

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 The majority of Crestcoms U.S. target cities have a high % of individuals
working in industries that are typical/conducive to franchisees
% Of Working Populations in Specific Industries
60.0%

50.0% Typical past careers of

successful franchisees:
40.0%
Executives
30.0% Marketing managers,
20.0%
engineers
Customer service
10.0% specialists
0.0% Accountants
Attorneys
Teachers
Sales managers
Entrepreneurs

Public admin
Educational services, health care and social assistance
Professional, scientific and management, and administrative and waste management services
Finance and insurance, and real estate and rental and leasing
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Source: American Community Survey (2014)
 Chicago, Houston and NYC have high numbers of individuals
working in management roles
4,500,000 % Management,
City (State) Business, Art,
# Management,
Business, Art,
4,000,000 Science Science

3,500,000 Employed Albuquerque (NM) 41%

Austin (TX) 46%
259900
472365
3,000,000 Population (over 16) Buffalo (NY) 32% 108412
Charlotte (NC) 41% 386248
2,500,000 Chicago (IL) 38% 1248499

2,000,000 Management, Dallas (TX) 33%

Hartford City (CT) 24%
585867
48185
1,500,000 business, science, Houston (TX) 34% 1038350
Kansas (KS) 23% 62989
1,000,000 and arts occupations Milwaukee (WI) 30% 257610

500,000 NYC (NY) 39%

Providence (RI) 32%
3847245
79380
0 Raleigh (NC) 47% 217259

South San
Rochester (NY) 33% 86813

Rochester (NY)

San Jose (CA)

Charlotte (NC)

Kansas (KS)
Milwaukee (WI)
NYC (NY)

Syracuse (NY)
Albuquerque (NM)
Austin (TX)

Chicago (IL)
Dallas (TX)

Houston (TX)

Raleigh (NC)

Sacramento (CA)
Buffalo (NY)

Providence (RI)

San Antonio (TX)

San Francisco (CA)
Hartford City (CT) Sacramento (CA) 38% 204746
San Antonio (TX) 33% 621915
San Francisco (CA) 52% 466640
South San
Francisco (CA) 35% 33297
San Jose (CA) 43% 473132
Syracuse (NY) 35% 56820

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Source: American Community Survey (2014)
 Chicago, Houston and NYC also show a higher level of households that make
an income that would be beneficial in supporting a franchise endeavor
City (State) % Total Households
1,200,000 Albuquerque (NM) 30.6% 222868
Austin (TX) 36.8% 344289
1,000,000 Buffalo (NY) 17.4% 111444
800,000 Charlotte (NC) 34.6% 298815
Chicago (IL) 32.3% 1028829
600,000 Dallas (TX) 27.5% 467501
Hartford city (CT) 15.3% 45801
400,000 Houston (TX) 30.3% 792763
Kansas (KS) 19.7% 53802
200,000 Milwaukee (WI) 19.4% 230181
NYC (NY) 36.7% 3095931
0 Providence (RI) 24.4% 60967
Raleigh (NC) 36.0% 165732
Rochester (NY) 16.0% 86025
Sacramento (CA) 32.1% 177578
San Antonio (TX) 28.2% 484219
San Francisco
51.6% 348832
(CA)
South San
52.1% 21470
Francisco (CA)
San Jose (CA) 54.6% 310584
Syracuse (NY) 18.2% 55279
$75,000 to $99,999 $100,000 to $149,999
$150,000 to $199,999 $200,000 or more

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Source: American Community Survey (2014)
 IMPLICATION #1: Target groups of people within NYC,
Chicago and Houston that are naturally inclined to own a
business leadership management franchise based on their
interests, as well as their working and financial background.

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KEY FINDING #2: The U.K. shows potential
opportunity for Crestcom franchisees.

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Out of the non-U.S. English-speaking franchise markets identified
by Crestcom, the U.K. showed the most promise
1. Canada
2. Australia
3. New Zealand
4. United Kingdom

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 Franchising in the United Kingdom is growing both by
market size and number of franchise systems

Service franchises offer a higher probability of success and more opportunity for
U.S. franchise systems
When seeking a U.K. master licensee, systems with a specific, targetable
candidate profile will have a better chance of success

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Source: http://www.franchise.org/sites/default/files/ek-pdfs/html_page/UK_Franchising_Market_June2014_1.pdf
 Although entering the U.K. market can be a challenge,
companies that remain committed and do their due diligence
are likely to succeed
UK market is mature, sophisticated, and in many areas saturated. To succeed here, a
franchise must offer a concept that is truly unique

U.S. franchises that have advertised in the UK national press have also experienced
higher rates of success, as they have reached a larger potential candidate audience.
Due to the high cost of recruiting unit franchisees, high cost master franchise licenses
are likely to fail.

To support and encourage master franchisees, an emerging trend in the market is to

spread the initial franchise fee over several years or as each unit is recruited. High
upfront costs will deter investors and will negatively impact a master franchisees ability
to enter the market and grow the brand.

UK is often used as a springboard into the rest of Europe

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Source: http://www.franchise.org/sites/default/files/ek-pdfs/html_page/UK_Franchising_Market_June2014_1.pdf
IMPLICATION #2: Out of the English-speaking, 2nd-
tier priority countries, focus on U.K. first and
consider a targeted marketing effort to drive
awareness and understanding of the opportunity.

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KEY FINDING #3: Multigenerational partnerships, women and
minority group franchisees are on the rise.

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 The combined strengths of millennials and baby boomers are
creating successful franchisee partnerships

Boomers Millennials Multigenerational

The group with the highest High number of new
index for new entrepreneurial entrepreneurs nearly 30
Partnerships
activity is in the sector of percent are aged 20-34, Pairing the millennial and the
individuals 45-54 years of age, accounting for 270 new baby boomer has led to many
reflecting the aging population companies per 100,000 U.S. successful partnerships within
and their increasing adults every month. franchising, because the
interest (or outright millennials' passion,
need) to become energy and
entrepreneurs. technological
The new savvy is the
mid-life crisis perfect
complement to
the baby boomers
experience and
financial stability.

Source: http://www.forbes.com/sites/kevinharrington/2013/10/31/the-biggest-trends-in-franchising/#55edd7a358b0
Source: http://www.businessreviewusa.com/top10/5031/Top-10-trends-in-franchising-today jankelley 30
Source: http://www.entrepreneur.com/article/243849, http://aspfranchising.com/franchising-trends-the-entrepreneur/
 Millennials are eager to make a name for themselves,
on their own terms

"I predict there is going to be a resurgence

in small business formation as Americans
get back to their entrepreneurial spirit. In home-based and low-cost
Millennials, in particular, are going to franchises, Millennials will make up 50
embrace owning their own business as percent of new franchisees over the
they realize the freedom it offers and reject next two years.
the more stringent corporate world [to]
create their own wealth." Paul Segreto,
CEO of the Franchise Foundry
Cody Gunn, president,
Gunn Capital Management

Source: http://d2mtr37y39tpbu.cloudfront.net/wp-content/uploads/2015/08/DUP_GlobalHumanCapitalTrends2015.pdf jankelley 31

Source: http://www.entrepreneur.com/article/243072
 Franchise ownership rates are growing among minorities and
women

WOMEN ETHNIC
Currently male 39.8% of the nations
entrepreneurs outnumber current 11.5 million
females by a ratio of 2 to 1 entrepreneurs belong to
Women own 36% of all non-Caucasian ethnicities;
businesses, according to 22.9% are Latino
the 2012 U.S. Census a In 2007, 20.5% of
jump of 30% over 2007 franchises were owned by
Female ownership of minorities
franchise businesses Minority ownership of
declined while joint franchise businesses Minorities are going to become
ownership (male/female) increased by 1.2 the majority in the next five to
increased by 7.3 percentage points, from 10 years in terms of small
percentage points from 19.3% in 2002 to 20.5% in businesses. They will keep
17.1% to 24.4% (an 2007, an increase of 6.2 contributing in starting, buying
increase of 42.7%) percent and growing businesses.
- Rohit Aurora,
CEO, Biz2Credit
Source: www.forbes.com/sites/geristengel/2016/01/06/why-the-force-will-be-with-women-entrepreneurs-in-2016/#5f656a6b4ce2
Source: http://emarket.franchise.org/MinorityReport2011.pdf jankelley 32
Source: http://www.businessreviewusa.com/top10/5031/Top-10-trends-in-franchising-today
 Becoming a franchisee provides appealing benefits
regardless of age, gender or ethnicity
1. Being part of a successful franchise company (with a proven business model).
2. Being your own boss setting your own targets and schedule.
3. Strong brand of franchise company that already has value in the eyes of customers.
4. Training programs that give you successful methods on how to run the business.
5. Operational support for franchisees, with a wealth of experience.
6. Marketing assistance for attracting and retaining customers.
7. Purchasing power (if applicable).
8. Low-risk entrepreneurial opportunity with a significantly lesser probability of failure.
9. Bridge to retirement.

Source: http://www.entrepreneur.com/article/188452
Source: http://money.usnews.com/money/personal-finance/articles/2013/02/27/reasons-you-should-buy-a-franchise-and-reasons-you-shouldnt?page=2 jankelley 33
Source: http://www.allbusiness.com/40-reasons-to-buy-a-franchise-15467928-1.html
 IMPLICATION #3: Tap into the growing opportunity with
emerging demographics recognizing a one-size-fits-all
approach will not work in connecting with this diverse group
of people. Tailored communication, training and support
are required.

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 KEY FINDING #4: Training and support along with
the freedom to be creative were consistently cited
as top concerns among potential franchisees.

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 Creative freedom was identified as the number-one
concern among franchisees
50 OTHER CHALLENGES

40 44.58 Tight operating parameters. Franchises build their

37.35 success on providing a consistent product.
30
Risk of potential brand devaluation. This will
20
significantly reduce the benefits of franchising that
10 brand for the operators.
12.05
6.02
0 Relationship with the franchisor may be strained.
Concerns/Challenges Among Franchisees (%) Little high-level strategic decision-making power,
the brand is in the franchisees control.
Inability to be as creative as they want
False expectations Financing is not cheap. Franchises require up-front
capital to purchase the business, the recurring
The risk license payments are often linked to revenue and
I've had nothing but a positive experience with franchising often have extremely tight profit margins.

Source: http://smartblogs.com/food-and-beverage/2010/11/09/what-challenges-do-franchisees-face/ jankelley 36

Source: http://www.imgroup.com/top-5-challenges-faced-franchisees/
 The concerns of franchisees differ based on stage of the
business and their personal/professional goals but training
and support remains key
Innovation: What are the franchises you are considering doing to further develop their service
or product, maintain their creative edge and stay relevant to their customer base?
Adaptability: How will the franchise be able to weather shifts such as changes in the minimum
wage, healthcare requirements or the economy that could impact your business?
Market customization: Can you customize your franchises offerings to your marketplace to
ensure a sustainable revenue stream?
Customer retention: What will the franchise do to help you keep customers coming back?
Training & support: What training and support will the franchise provide? Strong initial and
ongoing training and support programs will be crucial for your success and help ensure
your franchise brand stays strong

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Source: http://franchisebusinessreview.com/franchise-reports/top-franchises-2015/
 Training and support is key, especially for millennials who
may not have the life experience or resources to hit the
ground running
Just 6% of organizations report they have excellent programs in place to
develop millennials
This is despite the fact that 53% of millennials aspire to become the leader or
senior executive of their own organization
Some franchisors are setting up financial programs to attract millennials,
who often lack the funding to buy a franchise otherwise.
To attract millennials, Hao Lam, owner of Best in Class Education Center, made
some concessions. Because so many younger franchisees are saddled with student
debt, may have been unemployed for a long time and lack a nest egg, he set up
several programs to help them financially. The companys Teacher Incentive offers a
$3,000 discount off franchise fees and waives royalties for three months.

Source: http://d2mtr37y39tpbu.cloudfront.net/wp-content/uploads/2015/08/DUP_GlobalHumanCapitalTrends2015.pdf jankelley 38

Source: http://www.entrepreneur.com/article/243072
 While financing is not cheap, there are options that
can make it easier
FINANCING
THROUGH
FRANCHISOR

EXPRESS
CROWD- HELP WITH SMALL
FUNDING BUSINESS
FINANCING ADMIN

MICRO SBA

Source: http://www.businessreviewusa.com/top10/5031/Top-10-trends-in-franchising-today jankelley 39

Source: http://www.entrepreneur.com/article/243849
IMPLICATION #4: Bring forward training and support
as part of the Crestcom value proposition to
franchisees both through the path to
purchase and after.

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 KEY FINDING #5: Research shows significant gaps in
leadership effectiveness in organizations, yet leadership
management training and business coaching are perceived as
non-essential services and are vulnerable to cutbacks in
times of economic hardship.

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 Difficult but vital leadership development is the top
trend in the 2015 Global Human Capital Trends report
Organizations around the world are struggling to strengthen their leadership
pipelines, yet over the past year businesses fell further behind, particularly in their
ability to develop millennial leaders
86% of all surveyed HR and business leaders cite leadership as one of their most
important challenges
Companies are struggling to develop leaders at all levels and are investing in new
and accelerated leadership models
Companies are actively exploring new approaches to learning and development as
they confront increasing skills gaps

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Source: dupress.com/articles/developing-leaders-perennial-issue-human-capital-trends-2015/?id=us:2el:3dc:dup1130:eng:cons:hct15
 Leadership development and management programs
are seen as one-offs vs. a long-term investment
Fewer than 50% of C-suite executives feel they are receiving any
development at all
Leadership training programs are funded one year, but not the next
Organizations often believe they can simply buy a solution to
develop leaders
Off-the-shelf leadership development solutions are fragmented and of
inconsistent quality
Companies that invest, spending 1.5 to 2 times more on leadership,
reap results that are triple or quadruple the levels of their
competitors
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Source: http://d2mtr37y39tpbu.cloudfront.net/wp-content/uploads/2015/08/DUP_GlobalHumanCapitalTrends2015.pdf
 Employees are not satisfied with how their leaders communicate. The
data shows that the vast majority of leaders are not engaging in crucial
moments that could help employees see them as trustworthy.

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Source: https://hbr.org/2015/06/the-top-complaints-from-employees-about-their-leaders
 Shortage of management talent will take place for some time as economic growth
outstrips home-grown talent in emerging markets and managers in advanced
countries choose entrepreneurship in increasing numbers

jankelley 45
Source: cdns3.trainingindustry.com/media/15448385/7_leadership_development_trends.pdf
 Providing training is the #1 strategy used to overcome
talent shortage

jankelley 46
Source: cdns3.trainingindustry.com/media/15448385/7_leadership_development_trends.pdf
 Businesses understand the global importance of leadership; however,
readiness to undertake these issues is well below the level of importance
and this gap is only getting bigger each year

jankelley 47
Source: dupress.com/articles/developing-leaders-perennial-issue-human-capital-trends-2015/?id=us:2el:3dc:dup1130:eng:cons:hct15
 The four trends that are emerging for the future of leadership
development focus on purpose and a collaborative approach

Current Focus Future Focus

The what and how of
The what of leadership
development

Horizontal development Horizontal and vertical development

HR/training companies, own

Each person owns development
development
Leadership resides in individual Collective leadership is spread
managers throughout the network

jankelley 48
Source: http://insights.ccl.org/wp-content/uploads/2015/04/futureTrends.pdf
IMPLICATION #5: Strengthen leadership training in the face
of an unpredictable market. Crestcom is well positioned to
drive the critical issue of leadership gaps reflected in the
market today and convey the direct connection to training as
an essential organizational initiative.

jankelley 49
KEY FINDING #6: Social media conversation reflects major
trends in the business leadership management industry,
demonstrating that key stakeholders are informed, online
and engaged.

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 A number of industry keywords were used to identify topics of
conversation in relation to Crestcom and leadership
management between January 1st and March 31st

Crestcom Leadership management

Crestcom franchise Leadership and management
Crestcom Leadership management training
and training Corporate training
Franchise Business training
Franchise owner Entrepreneur
Franchisee Business development
Franchisee development Productivity
Business Employee development
Business franchise(s) Professional training business
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The word cloud, generated by the key search terms, shows that
there are six specific topics standing out in online conversation

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Upon manual review, we noticed three main topics in
relation to business that stood out

SMALL
BUSINESS
WOMEN IN
BUSINESS

SOCIAL EMPLOYEE
MEDIA BUSINESS WHAT ARE DEVELOPMENT

PEOPLE
PRODUCTIVITY
TALKING
ABOUT?

STARTING A BUSINESS
BUSINESS DEVELOPMENT

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 BUSINESS SOCIAL MEDIA
PRODUCTIVITY

WOMEN IN
BUSINESS

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BUSINESS DEVELOPMENT EMPLOYEE DEVELOPMENT

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SMALL BUSINESS STARTING A BUSINESS

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 IMPLICATION #6: While Crestcom and franchising as specific
topics arent yet on the radar in online conversations,
identifying and aligning with current relevant topics is a great
opportunity to earn a way into conversations.

jankelley 57
 KEY FINDING #7: Prospective franchisees and
business professionals receive their information
from 5 main communication channels when
researching, exploring new opportunities and
staying up to date on industry trends.

jankelley 58
 In addition to franchisor websites, potential franchisees are
seeking information from a number of sources

ASSOCIATIONS

RESEARCH
PUBLICATIONS
COMPANIES

COMMUNICATION
CHANNELS

CONSULTANTS
GOVERNMENT
AND BROKERS

jankelley 59
Source: www.franchising.com/howtofranchiseguide/researching_a_franchise_online.html
 Associations have a wealth of knowledge for all
ASSOCIATIONS
aspects of franchising such as opportunities, about,
events and multiple resources.

International Franchising Association

American Association of Franchisees & Dealers (AAFD)
American Franchisee Association (AFA)

Source: Associations websites jankelley 60

Source: www.franchising.com/howtofranchiseguide/researching_a_franchise_online.html
 Franchise consultants are using social media campaigns to attract the
emerging demographic. Specifically, The International Franchise Association
launched a program called NextGen in Franchising to educate millennials

jankelley 61
Sources: Company website and Next Gens social media
 Business pubs have essential information and articles for
PUBLICATIONS
those interested in franchising. Entrepreneur.com is a great
source because it seems to cover every franchising topic, up
to date.
Leadership Excellence Essentials
Entrepreneur.com
International Business Times
USA Today
Inc.

Source: Pubs websites jankelley 62

Source: www.franchising.com/howtofranchiseguide/researching_a_franchise_online.htm
 Trade Magazines provide in-depth information about franchising.
PUBLICATIONS Franchising World is a valuable source because it is owned by the IFA,
which is considered a thought leader in the industry.

FranchiseUPDATE
Multi-Unit Franchisee
Franchising World (from IFA)
Franchise Times

Source: Pubs websites jankelley 63

Source: www.franchising.com/howtofranchiseguide/researching_a_franchise_online.htm
 Details regarding the law and regulations governing
GOVERNMENT
franchises can be found on government sites. These sites
also provide an objective voice.

Small Business Administration

Federal Trade Commission

Source: Governments websites jankelley 64

Source: www.franchising.com/howtofranchiseguide/researching_a_franchise_online.htm
 Consultants and brokers provide expert advice for a
CONSULTANTS
AND BROKERS fee. However, their knowledge is often limited and
they work from a list of their franchisor clients.

FranchiseExpo.com
FranChoice
FranMogul
FranNet

Source: Consultant and brokers websites jankelley 65

Source: www.franchising.com/howtofranchiseguide/researching_a_franchise_online.htm
 Research companies measure franchisee satisfaction, study
RESEARCH
COMPANIES and promote stands of excellence, and supply objective
analyses of the franchising industry.

Franchise Business Review

Franchise Research Institute
FRANdata

Source: Research companies websites jankelley 66

Source: www.franchising.com/howtofranchiseguide/researching_a_franchise_online.htm
 IMPLICATION #7: There are many opportunities
within these channels, especially business pubs and
trade magazines, that Crestcom can use to
demonstrate thought leadership.

jankelley 67
KEY FINDING #8: Crestcoms top competitor, Sandler Training,
consistently scores the highest on Entrepreneurs Franchise
500 ranking, a well-known indicator of franchise success.

jankelley 68
 Competitive Overview
POSITIONING TRAINING COMMUNICATION COLLATERAL
CHANNELS
CRESTCOM Own a professional Bullet Proof Manager Training Website Initial Investment $85,345 -
training business that Prospective Franchisees: Blog $101,699
delivers real leadership Briefing video Social Media
results Field training *Almost all accounts lead
Life is too short 3-day business training class to franchising website
Take control For franchisees:
Tools to succeed 24 modules
Ready to launch 6-step sales team learning
Unlimited Expert international video faculty
prospects Fast Start Coach
Franchising Portal
SANDLER Now is the time to 8-day initial training Website Initial Investment: $91,525 -
TRAINING capitalize on your Personal business coach Social Media $108,500
sales and sales Site visits from corporate coaches Blog
management 3 conferences per year
experience with
Sandler

jankelley 69
Sources: Company websites
 Competitive Overview
POSITIONING TRAINING COMMUNICATION WEBSITE/COLLATERAL
CHANNELS
Dale Carnegie Be a part of the most Onboarding Promises: Commitment to provide 6- Website Initial Investment:
widely recognized name week training and administrative support Brochures $19,700 - $174,500
in the human Two-tiered franchising model Social media
development space.

The Do what you love. Own 8-day intensive training course Webinar series Initial Investment:
Alternative your own business. 8-day in-field support where the franchise is launched Website $41,261 - $91,696
Board (TAB) Achieve financial Support for six months to keep you focused on Social Media
rewards. member recruitment Blog
Monthly peer board meetings with your fellow
franchise owners to share experience and knowledge
Weekly member acquisition and member retention
group coaching calls
Annual international TAB franchise owner conference
Leadership Be the most effective 2 days onsite Website Initial Investment
Management resource worldwide for 2 days at headquarters Social media $20,000 - $27,500
Inc. leadership and Teleconferences Journal
organizational Field Operations
development.

jankelley 70
Sources: Company websites
 Competitor ranking on the Franchise 500 chart shows that
Sandler Training is consistently the highest-ranked franchiseits
highest placing was at 184 in 2010.
500 Criteria includes objective,
quantifiable measures of a
450
franchise operation such
400 as:
350 - Financial strength and
300 stability
Ranking

- Growth rate
250 - Size of the system
200 - Number of years a
150 company has been in
business
100 - Length of time company
50 has been franchising
0 - Startup costs
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 - Litigation
- Percentage of
Year terminations
- Whether the company
Crestcom Sandler Dale TAB Leadership provides financing

jankelley 71
Source: https://www.entrepreneur.com/franchise500
 Crestcom Digital Assets

Source: Company website jankelley 72

Source: Companys social media
 Sandler uses media coverage to establish company as
sales experts

Source: http://www.forbes.com/sites/kathycaprino/2013/05/03/10-essential-selling-principles-most-salespeople-get-wrong/#5be3369a6a4c jankelley 73

Source: http://www.franchiseinfo.ca/features/sandler-training-franchisee-flexes-his-sales-muscles/
 Sandler Digital Assets

Source: Company website jankelley 74

Source: Companys social media
 Dale Carnegie Digital Assets

Source: Company website jankelley 75

Source: Companys social media
 The Alterative Board (TAB) provides pubs with many
articles that showcase it as a leader in small business
expertise

jankelley 76
Source: Company website
 TAB Digital Assets

jankelley 77
Source: Company website
 Leadership Management Inc. Digital Assets

Source: Company website jankelley 78

Source: Companys social media
 IMPLICATION #8: Entrepreneurs Franchise 500 ranking is a
flagship industry ranking of objective, quantifiable measures
and reflects the strongest organizations in franchise. Review
criteria to determine how Crestcom can better communicate
its strengths to improve overall score and perceived position
in the industry.

jankelley 79
NEXT STEPS

jankelley 80
 Next Steps
ACTIVITY DETAILS TIMING
Media list development Audit results to guide the development
of a targeted media list

March April 2016

Content review and strategy Bringing together research and insights
to create strategic content foundation

Developing media-ready content Working with Crestcom to edit content

and outreach for media consumption and monthly
May December 2016
outreach to media and influencers

NOTE: The development of original content scoped separately

jankelley 81
APPENDIX

jankelley 82
TRENDS

jankelley 83
 Certain trends are apparent among the
types of franchises being opened
Franchising in faster than fast food
Franchising in fast casual restaurants
Energy-related or green businesses continue to expand
Even in poor economies, franchises in these fields tend to remain successful (which is reassuring for people wanting to
be a part of a franchise)
Hair cutting, tax preparation, accounting, shipping and packaging, child and pet care and services, auto maintenance and repair, home repair and renovation, computer-
related services, real estate, and staffing and employment
Health and fitness franchises are becoming more popular as people want to live better and as baby boomers realize
they want to live longer
With the youngest members of the so-called Baby Boomer segment of the population hitting their 50s, theres a growing demand for companion
care, assisted living, in-home care and transportation. Franchisers are hustling to fill this void.
Its an aging population. People want to live longer and live better. Thats why youre seeing franchises pop up for 24-hour fitness, massage and
more. The Baby Boomers are starting to take care of themselves now. And that makes for a healthier marketplace for franchisors.
Multi-brand franchisees are on the rise
These franchisees often have maxed out their territory for their first brand and must take on a second or third
brand to continue to grow.
Others are seeking additional brands to provide cash flow for different day parts, or to diversify their risk by
creating a hedge against market cycles, changing consumer tastes and shifts in the economy.

Source: http://www.businessreviewusa.com/top10/5031/Top-10-trends-in-franchising-today
Source: http://www.franchising.com/howtofranchiseguide/current_trends_in_franchising.html jankelley 84
Source: http://www.forbes.com/sites/kevinharrington/2013/10/31/the-biggest-trends-in-franchising/#55edd7a358b0
 Trend: Technology
The ubiquity of mobile
There are more mobile users than desktop users, making mobile marketing a key for all
businesses, including franchises.
Increased use of technology
Software services hosted in cloud, or simply, software thats not installed on a computer, but
instead resides on the web
The Internet plays a critical role in the success of a franchise
Many franchisors use the Internet to communicate with franchise owners and suppliers and to
share critical information and expertise
The Internet is also a great place to advertise to customers. Some franchisors find they get more
sales leads from the Internet than from any other source
The emphasis on community
Its those business owners who take time to respond to online reviews, offer loyal fans timely
deals via social media and promote online the ways in which they give back to the community
who are winning -- and winning big
Source: http://www.forbes.com/sites/kevinharrington/2013/10/31/the-biggest-trends-in-franchising/#55edd7a358b0
Source: http://www.businessreviewusa.com/top10/5031/Top-10-trends-in-franchising-today
Source: http://www.entrepreneur.com/article/243849 jankelley 85
Source: http://aspfranchising.com/franchising-trends-the-entrepreneur/
COMPETITORS

jankelley 86
 Crestcom Training:
Bullet Proof Manager Training
Positioning: Own a professional training business that Prospective franchisees
delivers real leadership results Briefing video
Life is too short Field training
Take control 3-day business training class
For franchisees
Tools to succeed
24 modules
Ready to launch 6-step sales team learning
Unlimited prospects Expert international video faculty
Fast Start Coach
Points of Differentiation: Crestcom has a unique Franchising Portal
training process for prospective buyers for BEFORE they
Collateral:
decide and the ability to train great leaders because
Initial Investment: $85,345 - $101,699
they are a leadership training franchise.
Net-worth Requirement: $100,000 - $1,000,000
Liquid Cash Requirement: $85,000 - $1,000,000
Channels: Social media, website, blog Initial Franchise Fee: $55,000 - $75,000
Almost all social media platforms link to Ongoing Royalty Fee: 1.5%
Crestcoms franchising website Veteran Incentives: 10% off franchise fee

Source: Company website jankelley 87

Source: Social media
 Sandler Training
Positioning: Now is the time to capitalize on your sales
and sales management experience with Sandler.
Points of Differentiation: Offers great continued
support after the franchise is opened and were ranked
#1 training franchise nine times by Franchise 500.
Franchise to go to if you have a sales background.
Channels: Social media, website, blog
Training:
8-day initial training
Personal business coach
Site visits from corporate coaches
3 conferences per year
Collateral:
Initial Investment: $91,525 - $108,500
Net-worth Requirement: $200,000
Liquid Cash Requirement: $88,150 - $105,750
Initial Franchise Fee: $73,000
Ongoing Royalty Fee: $1.2K/mo.
Ad Royalty Fee: $400/mo.
Veteran Incentives: $5,000 off franchise fee

Source: Company website jankelley 88

Source: Social media
 Dale Carnegie
Positioning: Be a part of the most widely recognized
name in the human development space.
Points of Differentiation: Offers two ways to own a
training business: owner/operator or multi-brand
portfolio.
Channels: Social media, website, brochures
Source: Company website
Source: Social media
Training:
Onboarding Promises: Commitment to provide
6-week training and administrative support
Trainer Certification program
Offer marketing programs
Ongoing coaching from Field Executive
Collateral:
Initial Investment: $19,700 - $174,500
Net-worth Requirement: $250,000
Liquid Cash Requirement: $50,000 - $200,000
Initial Franchise Fee: $5,000 - $30,000
Ongoing Royalty Fee: 12%
Ad Royalty Fee: 3%
Veteran Incentives: 50% off franchise fee
jankelley 89
 The Alternative Board (TAB)
Training:
Positioning: Do What You Love. Own Your Own
Business. Achieve Financial Rewards.
Points of Differentiation: Extensively shares benefits
of TAB with prospective franchisees (income, day-in-
the-life-of, support). Company is about supporting
business owners, so they take supporting their
franchisees to another level.
Channels: Social media, website, webinars, blogs
Collateral:
Source: Company website
Source: Social media
8-day intensive training course
8-day in-field support where the franchise is
launched
Telephone support daily for the first two weeks to
reinforce the process
Support for six months to keep you focused on
member recruitment
Monthly peer board meetings with your fellow
franchise owners to share experience and knowledge
Weekly member acquisition and member retention
group coaching calls
Annual international TAB franchise owner conference
Initial Investment: $41,261 - $91,696
Net-worth Requirement: $300,000
Liquid Cash Requirement: $70,000
Initial Franchise Fee: $9,450 - $44,000
Ongoing Royalty Fee: 10-50%
Ad Royalty Fee: Varies
jankelley 90
 Leadership Management Inc.

Brand Positioning: Be the most effective resource Training:

worldwide for leadership and organizational 2 days onsite
development. 2 days at headquarters
Teleconferences
Field Operations
Points of Differentiation: Has a unique method for
developing leaders. Absentee ownership allowed. Collateral:
Initial Investment: $20,000 - $27,500
Channels: Social media, website, journal Initial Franchise Fee: $15,000
Ongoing Royalty Fee: 6%
Veteran Incentives: 10% off franchise fee

Source: Company website jankelley 91

Source: Social media
 Sandler Training: Franchisee Recruitment

Key Messaging to Potential Franchisees:

Directly targets successful professionals

Work/life balance afforded by self-employment
Ability to leverage success of Sandler system

jankelley 92
Source: Company website
 Sandler Training

jankelley 93
Sources: http://www.entrepreneur.com/franchises/sandlertraining/282773
 Dale Carnegie Training

jankelley 94
Source: www.entrepreneur.com/franchises/dalecarnegietraining/312069
 Leadership Management Inc.

jankelley 95
Source: https://www.entrepreneur.com/franchises/leadershipmanagementinc/282523
 Dale Carnegie Onboarding Promises: Commitment to
provide 6-week training and administrative support

jankelley 96
Source: Company website
 Dale Carnegie Training: 2-tiered franchising model

jankelley 97
Source: Company website
 Dale Carnegie Franchising Process

jankelley 98
Source: Company website
 jankelley 99
Source: emarket.franchise.org/MinorityReport2011.pdf