Published in The Hamilton Spectator - February, 1995

Stories By JOHN BURMAN
The Spectator

Fred Berni believes he has a better way.

His company, Dynamic Performance Systems, provides franchisors with a tool to find out what their franchise candidates strengths are and what potentially weak areas could use more attention during training before a franchise is obtained, he says.

Mr. Berni, president, says that Dynamic started six years ago with "$16 in rolled pennies" and his experience working with the psychologist who designed assessment tools he developed a new tool tailored to the franchise industry.

Among its clients, the firm boasts Midas Canada Inc., Color Your World Corp. and others.

Midas Canada uses the profiles to tailor its training programs to its candidates, says company spokesman Dan Hopkins. "We can customize our training process to specific needs because we know what people's strengths are," he says.

Mr. Hopkins believes Midas does attract candidates from the corporate world who are looking to be their own boss, face new horizons and perhaps participate in an industry that interests them with reduced risk because it is a strong company with a proven record.

"(Midas') key to success for an initial franchisee is that it is a strong system," he says. "The synergy of size helps the franchisee."

Mr. Berni says there really is no single `hot' franchise everybody wants because individuals and companies are different. Most of his clients use his services as a selection rather than a rejection tool, using the information to tailor a candidate to the best situation for him to succeed. "It is important for a franchisor to find out if (candidates) are entrepreneurial or not, will they follow systems?"

People with strong entrepreneurial character tend to select service franchises such as lawn care because they have to get out there and sell, he says.

Candidates who are intrapreneurs - those who can work within a system and put their own stamp on it at the same time - head for retail franchises such as Tim Hortons, he says.

Then there's the employee type Mr. Berni says is quite happy to work as part of a large chain with everything laid out.

The trick, and this is where the profiles come in - is to find out what kind of a person a candidate is. This provides the franchisor with an idea where the person will fit best and gives the candidate insights into the directions he or she should seek, he says.

Franchisors love intrapreneurs, says Mr. Berni.

"They love structure but they like to put their own stamp on things. That is what most franchisors are looking for. That's the ideal candidate they want."

In reality, franchisors who want their company’s to grow need all three, he says.

For the first 15 to 20 outlets the franchisor needs entrepreneurs, aggressive sellers to build business, he says. Then comes the need for intrapreneurs once systems are worked out and up and running because at that time the entrepreneurs are likely to want to move on to new challenges and many of them do.

"I've seen some retail store franchises get to 15 or 20 stores and then growth stalls," says Mr. Berni. "The franchisor goes with what has been successful and sets out looking for more entrepreneurs when what he should be looking for is intrapreneurs to cut down on franchise turnovers.

'Good Fit'

"With large franchises with hundreds of outlets what is needed is the employee type of franchisee. "Everything is laid out and there's no room for creativity" says Mr. Berni. "Everyone knows exactly how many seconds it takes to flip the burger".

Above all, franchisors must find "a good fit" between a candidate and their own operation, says Mr. Berni."

"There's a lot at stake in a franchise," he says. "People stand to lose their investment, homes, sometimes marriages et cetera; not to mention lost time, effort and money for the franchisor".

Mr. Berni says he prefers modern candidate selection methods to the old "take them on as long as they have money and are breathing" approach.

People have to come first, he says. "To be successful themselves, franchisors have to do everything to help people succeed, even if it means telling a well-financed candidate they just aren't cut out for a certain type of franchise.

Where would you fit in? So, where would you fit into the franchise game? Fred Berni of Dynamic Performance Systems can give you an idea using one of the tests he provides for clients. Mr. Berni's profiles find three types of franchisees and he uses the analogy of a new employee arriving at a new job to explain them: THE EMPLOYEE TYPE: "You take them to the office, open the door to their work area and everything is laid out for them. You tell them not to move things around at all and they go in and do the job and they are happy. THE INTRAPRENEUR: You take them to the office, walk them down the hall to a pile of furniture and supplies piled up outside the door Unlock the door and tell them to go in and set things up the way they want, to use some creativity within a structure and they are happy" THE ENTREPRENEUR: "You walk them over to your vacant lot and tell them to build the office building and they are happy"

With files from Southam News