Manage to Own. Program
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1 Manage to Own
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3 Manage to Own Overview The Manage to Own is a vehicle for high calibre individuals who ultimately want to own their own franchise, but do not necessarily have the financial capability to do so. Candidates are able to make their dream of business ownership a reality through the route of managing, business leasing, and ultimately purchasing their own franchise. Manage to Own Road Map 3-9 MONTHS Baker/Sales Clerk/ Bakery Manager/ Production Manager/ Sales Manager Training to be a manager and a fully trained Franchisee 6-12 MONTHS Manage a store to specific goals and KPIs with an option to become a Business Lessee once KPIs are met MONTHS Become a Business Lessee for a minimum of 12 months to grow and build your own equity Use Equity built as down payment and combine with bank financing to purchase a bakery 10 Year Franchise Agreement
4 Manage to Own CoBS manage to own Simple 3 Step Plan: Employment Business Leasing Concept Purchase examples of income/benefits at each Step $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 work Lease Buy Buy and grow Sales SteP 1: employment Train to run a COBS Bakery business under our competency based system Continue to develop your leadership skills Obtain all the competencies needed to run a bakery and earn a Certificate Iv in Small Business Franchising (Bakers delight Training ) demonstrate the ability to run a bakery at 5 star standard for a minimum of 6 months takes 6-24 months to complete depending on the applicant, demonstrated ability and available bakery opportunities Earn a salary of $42,000 per annum during your three-month training period Manage to Own Salary increases to $45,000 - $50,000 following the three-month training progam 4
5 Manage to Own Step 2: Business Leasing CONCEPT Run business as a franchise through your own Company We own the assets of the bakery and rent them to you at a fixed fee (lease payment) You have the opportunity to run your own business in a similar fashion to a franchisee without the initial financial outlay of purchasing a bakery You are responsible for: Purchasing ingredients and packaging Fixed and variable costs (including rent, utilities, maintenance, etc.) Hiring and paying staff through the company Payment of royalties, marketing fee and business lease fee The operating profit is yours to retain and save towards your ultimate goal of purchasing a franchise Step 3: PURCHASE You exercise your option as set out in the business lease agreement to purchase the bakery 5
6 Manage to Own Example Bakery - Achieving KPIs $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Business Lease Portion of OP Business Lease Fee Time (months) *All things being equal, business lease opportunity to typically gain $15,000 OP throughout its company over 12 months on top of Salary paid through the bakery, based on hitting the pre-agreed KPIs. KPI Operating Point Example Bakery - Over Achieving Against KPIs $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Business Lease Portion of OP Business Lease Fee Time (months) *Potential growth by growing the OP from $50,000 to $70,000 over the 12 months. Business lessee can gain up to $35,000 of OP through its company, on top of salary. Improved Operating Point KPI Operating Point 6
7 Manage to Own Example Bakery - Not Achieving KPIs $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Business Lease Portion of OP Business Lease Fee Time (months) *All things being equal, business lease opportunity to gain $15,000 OP throughout its company over 12 months on top of Salary paid through the bakery, based on hitting the pre-agreed KPIs. This example shows the potential risk factor should the business lessee not achieve the pre-agreed KPIs. The business lessee still receives a salary, however, does not make much operating profit and ultimately does not gain the right to business lease. KPI Operating Point Break Even 7
8 Success Stories Curtis CHARAN Fox Creek Please describe your background experience. I come from a small town in Trinidad where my family was involved in sugarcane farming. I majored in Agriculture at University, however this was not my true passion. I moved into wholesale Pharmaceutical sales and marketing Management after completing my MBA where I spent most of my career. Joining the COBS family was a major deviation from what I was accustomed to, but it has definitely been very exciting and rewarding. What attracted you to franchising/business ownership? After migrating from Trinidad and working for large corporations for most of my career, my goal was to devote my talents, expertise and passion to doing something I can enjoy and that can be my own. Franchising with COBS has helped me reach that goal of enjoying what I do while working for myself. What attracted you to COBS Bread? It was purely by accident, while surfing the net, that I stumbled upon the opportunity to franchise with COBS through their MTO program. After exploring this opportunity and learning more about the company I thought this is definitely something I can be proud to be a part of. What have you found to be your greatest key to success? Being fully hands-on in the business and working everyday side by side with my staff has resulted in a very dedicated and results-oriented team. Getting to know my customers on an individual basis has also definitely created a strong tie to the community. Emily MIRSKY The Annex How are you involved in your local community? Working within the local community over the three years has been such an important part of our business. We have made strong ties with many local schools, community programs and participated in many local festivals, and events. Getting our product into the community is one of the easiest ways to hook people on to it. We believe in what we do, and if people see and taste it, they will too! How do you stay motivated? Motivation is driven by so many factors, and over time I have found what motivates me changes. In the beginning learning the business motivated me. I wanted to know all the ins and outs of the baking process, and how to manage situations in the bakery. Now that I am comfortable with those things I am motivated by numbers. I strive to achieve sales targets that are better than last year. Those sales are achieved by getting the right staff in the bakery and motivating them, by building relationships in the community and baking the best product each and everyday. How do you maintain work-life balance? It is something you have to work at. I believe that anyone who is serious about owning a business is somewhat of a workaholic. As a workaholic you need to actively plan your time off, and believe the world is not going to end if you are away from your business. Over time, this gets easier. You find the right people to work in your business and you trust them when you are away. You plan vacations, take your days off and make sure you are as productive as you possibly can be in an 8 hour day. What benefits have you seen to your lifestyle since becoming a COBS Bread franchisee? My now husband and I, took over the business together and were able to get married during our second year of business. As odd as this may seem, we believe this can be listed as a benefit to our lifestyle. Before working at COBS we had worked together but not as a team, like we do now. Being able to spend so much time with the person you love is fantastic and this has been a pretty awesome benefit to our lifestyle. What have you found to be your greatest key to success? In my experience forming relationships with everyone in your business is the greatest key to success. Forming relationships with staff helps you to better understand their needs, which, in turn, impacts your needs. Forming relationships with the community helps build your sales. 8
9 Success Stories KYLE NARZT Aspen Landing Please describe your background experience. My background experience includes work in a variety of fields from lifeguarding to audit work, but most of my background is in retail management. I have a Bachelor of Business Administration with a double major in Marketing and New Venture Creation, and a minor in Environmental Economics and Sustainable Development. What attracted you to COBS Bread? I saw COBS Bread and the MTO program in particular as an opportunity to own my own business, a goal I had set for myself while attending the School of Business and Economics at Thompson Rivers University. COBS corporate culture of giving and being an active participant in the community was a huge draw for me I wanted to know that my efforts would be helping grow a company that I believed in. How are you involved in your local community? Like all COBS bakeries we donate all of our unsold product to local charities at the end of each day. It feels great to know that we re doing such a huge amount of giving people cannot believe how much bread we donate every year when I tell them! Beyond our end-of-day giving program, our bakery regularly does guided bakery tours for Sparks/ Girl Guides/ Brownie groups, sponsors and supports community events, sporting events, and fundraisers including the annual Motorcycle Ride for Dad, which raises funds for prostate cancer research. What have you found to be your greatest key to success? The support of the people around me. It would be easy to take all the credit and claim it was nothing but hard work and smart strategic planning that got me to where I am today, but honestly, the support of my family and loved ones has been instrumental in my success. Specifically, my Mother Candy, Brother Greg, and now fiancée (and business partner) Maryflor have kept me sane by providing the emotional support I needed to navigate through the MTO program. The support of COBS employees has also been invaluable. Every person in the system from bakers at corporate locations who can help out if your staff call in sick, area managers, regional directors, right up to the top with Roger and Lesley Gillespie. Every single person in the system is working together to build something better. The feeling of community and family within this company is unlike anything I ve ever experienced. I felt that I always had someone in my corner looking out for me and my interests, no matter what happened. I can share my success with every single person who has been part of this journey. Ryan KLASSEN Sunwood Square What networking opportunities are available to you (with other franchisees)? I ve had a lot of great connections with other Franchisees and corporate Managers. We often compare results, difficulties and successes, and there is always someone who has tried something that may work for you, so I am very pleased about the openness of all the operators. How are you involved in your local community? We work hard to stay involved in the community. We participate in a lot of local events, and do our best to help the community that shops with us. A lot of people are so happy to hear that we will help them with product, which helps them add a lot of interest to their events. How do you maintain work-life balance? The biggest key is to be aware of your own needs, and then make sure that you can fulfill them. The bakery can be very flexible in that way, if you are willing to train your staff to be responsible, so that you know it s in good hands when you are not around. What future opportunities do you see for yourself? I m looking forward to many more years of growth in the bakery I m in right now, but I m also always looking for the opportunity for another location! 9
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