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DFA Working for Franchisees Advocacy, Membership Benefits and Education to Increase Franchisee Profitability of Domino’s Franchisees THE VOICE FEATURES: Franchisees: Aaron Fox, Susan Graves, Chris Macpherson Issue 3 2016 Going For The Gold In 2016

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Page 1: THE VOICE...Fast Food Fast Casual Family Dining Casual Dining Fine Dining Based on price range, service level expectation and menu options, customers tend to fall into one or two of

DFA Working for FranchiseesAdvocacy, Membership Benefits and Education to Increase Franchisee Profitability

o f D o m i n o ’ s F r a n c h i s e e s

THEVOICE

FEATURES:Franchisees: Aaron Fox, Susan Graves, Chris Macpherson

Issue 3 2016

Going For The Gold In2016

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UpdatesVendor Middleby Marshall 6

Partners Foundation 25Women’s Leadership Forum 46

8 Aaron Fox“You have to surround yourself with a strong team. They have to believe in your vision and believe in you. Your people have to know you care about them.”

20 Susan Graves“Networking is huge to my organization and me. If we want to succeed and not recreate the wheel, this is the best and easiest way. Domino’s Franchisees have so much knowledge along with talent, its only one or two phone calls away to find your answer.”

36 Chris Macpherson“There are so many ways that the DFA helps the entire franchise community, members or not. As a member of the DFA, I not only get the big picture of how I am affected by their influence, but the intimate understanding of how that influence directly impacts my business.

Member Services44 Membership Letter: Ron Perry45 Membership Form47 DFA Board Member Directory49 Vendor Partner’s Directory

Depar tments

FEATURES 4 Ken’s Korner Ken Peebles

12 2016 Legal Updates Brook J. Carroll

13 Taming The TigerVan Carney

16 The Fair Labor Standards Act J. Hagood Tighe & Christina L. Rogers, Fisher and Phillips LLP

28 The Road Less Travelled Mike McDermott

32 Responsibilities Jason Upton

42 The Training RoomDominic Benvenuti

The opinions expressed in this publication do not necessarily represent Domino’s Franchisees, Domino’s Pizza Inc, and/or any of its agents. The Voice is printed quarterly and distributed to the entire Domino’s Franchisee Community.

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Momentum is a great thing to have on your side. Regardless of your favorite team or sport, momentum can either ease your effort if you have it or crush your soul if you are up against it. With the Olympic Games just ending, there were so many examples of positive momentum driving outstanding performances and crushing your opponent’s attempts to overcome it. The very first gold medal at the 2016 Olympics was won by an unknown teenager named Virginia “Ginny” Thrasher on the USA team in one of the lesser popular events, the 10-meter air rifle. Regardless of whom it was and what the event was, that medal was just as valuable and meaningful to the overall team’s success as any of the other gold medals won. What was so special about Ginny’s medal was that it started the USA’s momentum towards winning 121 medals overall including 46 gold. Both of these medal counts were the highest total of any country competing in this year’s Olympics and relatively close to doubling the second place finisher, China who had 70 overall and 26 Gold. Right now, our Brand has incredible momentum and our competitors are scrambling to figure out how to slow it down, neutralize it, and take it over. We all know and understand how hard this business is and how competitive the food industry has become. Not just in our pizza segment, but within the overall food service industry. With our business model having changed significantly over the last 10 years and especially with our focus on the Pizza Theater concept, we now appeal to a wider customer base. They want more options for how they place, receive and enjoy their orders. We have come a long way from the days of being pigeon holed as the guys you pick up the phone and call to have a pizza delivered to your door. When evaluating our current and future business opportunities, I tend to use the following to break down the food service industry: Fast Food Fast Casual Family Dining Casual Dining Fine Dining Based on price range, service level expectation and menu options, customers tend to fall into one or two

of the categories listed above when deciding on where they want to eat. I think, with our wide menu options, fast service, new Pizza Theater style restaurants and competitive pricing, today’s Domino’s can now fall into one of the first three segments of the food service categories listed above, depending on the consumer’s decision of what type of experience they are seeking. For now, our strategic decision to limit our in-store ordering experience away from table service prevents us from falling into either the casual or fine dining experience. And you know what… I am OK with that for now.More and more of our Franchisees are leapfrogging our competitors to becoming the number 1 pizza chain in their neighborhoods, towns and markets… which leads to driving our entire Brand to being the number 1 pizza chain the nation… and then worldwide. I get a rush when a Franchisee calls to tell me Domino’s has taken over the number one ranking in their DMA. In several cases, our Brand had to leapfrog multiple competitors to secure the coveted number 1 position.My contacts at other national chains are always asking me “How are you doing it year after year after year?” My answer always starts with the really bad days back in 2008/2009 when Franchisees and the Brand were struggling to make ends meet in addition to the desperation we felt as our competitors were kicking our butts. Instead of giving in, our Franchisees went back to the basics by cutting costs wherever they could, improved store operations at every level, focused on detailed customer service and drove sales one customer at a time. I tell folks we lost some good operators who decided the battle to regain previous glory days was not worth the hard work and risk, but the ones who pushed all their chips to the center of the table… were all in! It started with dedicating themselves as well as their teams to a daily grind of doing the basic things right… then switched to doing the basics right for a week… then for 30 days… then for 90 days until you started to gain some positive momentum in the trenches.Then in December 2009 as we were entering our 50th year in the business, we announced we were reinventing our Domino’s Pizza Brand by completely changing our core pizza recipe. This was the game changer we needed to accelerate the grass roots momentum we had already started at the store operations level. It was a great combination of getting back to strengthening our core basic store operations and the Brand introducing a national New and Inspired product that captured the interest of the pizza-eating consumer. The timing could not have been better and the momentum boulder started to pick up speed.

Ken’s Kornerupdates | CEO

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Fast forward to today and that momentum boulder continues to move in our favor. Our competitors are where we were 7 or 8 years ago… desperate and dangerous. While it is a great time to be part of the Domino’s Brand, we have to remember just how tough things were for us not so long ago. We, as Franchisees, must continue to focus and expect great execution of the basics when it comes to store operations. Regardless of how far we have come over the last 7 or 8 years, our customers still have options and we cannot give them a reason to go elsewhere. Our competitors are hoping for an opportunity to take one customer at a time in hopes of slowing down, neutralizing, and stealing back the momentum. Even with our current momentum, I realize everything is not rainbows, butterflies and unicorns. Winning is hard work and just because we may be in the lead does not mean we can slow down and rest. Our competitors are throwing a lot of things at us trying to find an opening, which will allow them an opportunity to gain a foothold. All of us are facing higher costs to run our businesses in the form of rising minimum wages, health care costs, increased litigation, recruiting costs, hiring and retaining Team Members, training and the list continues. As bad as these obstacles are, our competitors are facing the same issues. I have to believe the lack of momentum on their part makes these obstacles seem larger and even more daunting than they do for us. Right now, our Brand is cool and people want to be associated with winners. We need to take advantage of our momentum and continue to push hard on the Road to Number 1. Our competitors will continue to slide and increase the gap between first and the pack.This is my first update since the World Wide Rally in June and I have to tell you, the energy at Rally matched the incredible success our Franchisees are experiencing in the field. The attendance at the event was record breaking and forced the event to have additional overflow rooms set up for the main sessions. Wow… just so impressed that so many people were able to attend this event to help celebrate our performance, network with fellow Dominoids, and learn new ways to keep this great momentum moving in our favor. While 2015 set record sales and profits in our stores, 2016 is on course to surpass that according to the quarterly earnings reports already released.During the WWR, on behalf of the DFA Members the DFA donated $25,000 to the Domino’s Partners charity to help push past the threshold of having their endowment fund become fully funded. This will allow 100% of all monies donated to Partners to go directly to aiding Domino’s Team Members in need. Thank you to all of the Franchisees who have been Members of the DFA allowing us to give back to our fellow Team Members. Currently, the DFA has 55% of all domestic Franchisees representing 73% of the stores as dues paying Members. 2016 is another record year for our organization and we could not have done it without our Members and strong

leadership from our Franchisee Board of Directors.Your incredible DFA Board of Directors continues to focus the organization on the following priorities, which will support the current positive momentum within the system:• Sharing Franchisee perspective on Corporate decisions and mandates• Finding and giving support on common Franchisee needs and issues• Tools and programs to help with Franchisee success and profitability• Legislative involvement supporting Franchisee rights• Providing legal strategies and support on general issues facing FranchiseesAs we enter the final quarter of 2016, the DFA is committed to finding ways to maintain our strong momentum and prevent competitors from finding cracks to slow us down, neutralize it or take it away. The DFA wants the Franchisees to use momentum just like our USA team did in the Olympic Games. The USA started off the Olympics with the first gold medal in a relatively unknown event by a relativity unknown athlete. Ginny was not favored to place, let alone win the event. She started out slow and steady concentrating on the basic fundamentals she was taught, which allowed her to make the USA team. Once she started to see she had a chance to make the top eight finishers who move on to the medal round, she focused on just doing her best and let her newfound momentum put pressure on her favored competitors. Her strategy worked and not only did she win first place, she set a new Olympic record in the process. Team USA used Ginny’s gold medal to propel their momentum towards winning the overall Olympic games and in setting countless records along the way. Our USA team finished the Olympics just like it started, by winning a gold medal in the vastly popular men’s Basketball competition, which was the last event of these 2016 Olympics. I see the gold medal performance by the USA men’s basketball team as the crown jewel symbolizing all of the hard work put forth by all of the athletes on the USA Olympic team. How great will it be when we cross the finish line as the number 1 pizza company in the United States… knowing it started with a lot of individual hard work to win gold in each of our neighborhoods, towns and markets along the way?

Ken Peebles

Ken PeeblesChief Executive [email protected]

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Domino’s Career Path: In 1994, Aaron began as a pizza maker in the Chesapeake Beach, MD store. He started delivering in 1995, was promoted to an assistant manager in 1996 and became a store manager in 1997. As soon as he had completed his first year, Aaron took his first franchise classes. In 1998, he became an approved franchisee, and opened his first store in Marion, SC in March 1999. Aaron continued to build one store per year thereafter. Since 2013, Aaron has bought 8 stores and is continuing to build and buy.

Key Accomplishments: Winning the Gold Frannys

Biggest Mistakes: Listening to other people about building stores in areas I didn’t have a good instinct about.

Formative Influence/Event: Winning the first Gold Franny in 2013 and going to our first World Wide Rally.

Local Organizations Involved In: Harvest Hope Food Bank, Camp Pee Dee Pride, Red Cross, Board of Trustees for The King’s Academy.

Three Highest Priorities in your Life: The Lord, my wife, and kids.

Best memory while running a store? Working with my sister as a GM in MD.

Is there a Franchisee mentor who has attributed to your success as a Franchisee? Franchisee mentor: Peter D’Andrea, Mike Orcutt and Greg Fox have always offered me great advice on how to run my business and balance life.

Best advice: If you aren’t happy with where you are, you aren’t going to be happy with where you are going. Given by Mr. Brady, a local businessman in Marion, SC as I was building my first store.

What does it take to be a successful Franchisee in this day and age? You have to surround yourself with a strong team. They have to believe

Franchisee Name: Aaron Fox

Title: Franchisee

Company: Goodfellas Pizza Inc.

Age: 38

Family: Kelly (Wife), Carter (son 12), Avery (Daughter 6)

Years with DP: 22

Years as Franchisee: 17

# Stores: 24

Store Locations: SC, NC, and TN

# Team Members: 450

Boards: The King’s Academy, Red Cross

Awards/Accolades: 3 Time Gold Franny Recipient

franchisee |

Aaron Fox

Aaron, Gene Walker (GM), Nick Vassalotti (GM), Chris Hamilton(Supervisor), Justin Preister (Supervisor), and Deesco Bethea (Supervisor) celebrating at a manager’s meeting

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Aaron Fox

in your vision and believe in you. Your people have to know you care about them.

During the years you have been with Domino’s, you have managed to successfully use small rural markets to build an organization with 20+ stores. What factors played a part in that? Engaging in the community, making sure my employees know we care, building and buying in areas we love and care about. Living humbly. Not going out and buying extravagant things, never living beyond our means.

What geographic area do your stores cover? What are the obstacles in overseeing such a large geographic area? East coast of SC, Western NC, and East Tennessee.Obstacles- Not being able to be everywhere at once. It is tough to move employees around being so spread out.

REIMAGING

How many stores do you have with the new Pizza Theater image? How many are reimaged? Pizza Theatre: 14 Reimages: 8How many relocated? None yet, we are currently working on 2How many new? 6

MANAGEMENT

As an operator, what are the two most important things you rely on from DPLLC? Top-notch advertising and great products.

What is your management method/style? Open door policy. All my employees know they can call and talk to me anytime.

What has been your greatest challenge? Making sure I am spending enough time with my employees face to face.

How does your Membership with the DFA benefit you? Making me knowledgeable about key legislative issues.

How important is networking with fellow franchisees to you? Extremely important. We can offer advice and

understanding to each other. Everyone does things differently so it is good to see other ways of doing things.

Is there a service/technology that has had the most impact on your profits? Rewards program.

TEAM MEMBERS

What tools are you using for recruiting, hiring, and retention? ATS, Snag-a-job, and radio is working for us with hiring.

How active is your DMA? Are there any specific areas you are networking on together? We are in 6 DMA’s. The most successful ones are when the franchisees come together with a common goal and support each other.

What impact has the connections with other Franchisees in your region made on your organization? The connections make you stronger. You have other people to brainstorm with and make allies. You can call on each other for ideas, help, and support.

What do you consider when recruiting? Who am I targeting and how do I reach the people who I want to be an employee.

Carter & Avery at the WWR

Aaron & Kelly heading to the Gold Franny Dinner at the WWR 2016

Aaron, Kelly, Carter & Avery at the Grand Canyon

Aaron, Kelly, Carter & Avery in Sedona, AZ.

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How do you train and retain? I have empowered my area supervisors and store managers to handle their store training.

How have you handled rising employee costs? Being conservative with money in other areas to make up the difference.

BOTTOM LINE

Overall, 2015 was a very good year for the Domino’s Brand. Are there any obstacles you overcame? Are there any you are facing or have overcome in 2016? We are facing the changes in salaried employees pay.

What is your current greatest need from DPLLC? Support for all the legislative changes going on in the government that affect us as franchisees.

Where do you want to be in 5 years? A 30+ store franchisee who has a strong team behind him and continuing to grow.

franchisee |

Aaron Fox

Aaron & Brian Jacobs, Supervisor

Top: Aaron awarding Justin Preister the “Million Dollar Man Belt” for his store making the Million Dollar Club. Bottom: Aaron, Kelly and Carter at a local event

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Aaron Fox

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The Growing Patchwork of Federal, State and Local Wage and Hour Regulations Increase Risk and Compliance Obligations

In 2016, we have seen a dizzying number of changes in federal, state local employment laws. Below are some selected changes employers should be tracking. Though federal law applies to most employers in every state (with very limited exceptions), each state or municipality may adopt stricter rules that apply to some or your entire workforce. The trend toward local regulation appears to be growing as voters and politicians at the local level are not waiting for states or the federal government to enact employee-friendly rules. Be sure that you are aware of, and are complying with, the specific wage and hour laws applicable in your state, county or city.

FLSA Overtime Rules - Increases for “White Collar” Employees

Over the summer, the Department of Labor issued its final rule changing the regulations for the so-called “white collar” exemptions under the Fair Labor Standards Act (FLSA, the federal overtime and minimum wage law). The new regulations raise the minimum salary for employees to be properly classified as exempt under the executive, administrative, or professional duties tests. The increased salary requirements will take effect on December 1, 2016. The new regulations more than double the minimum salary level for exempt “white collar” employees from $455/week ($23,660/year) to

$913/week ($47,476/year). The rule also raises the highly compensated employee annual salary threshold from $100,000 to $134,004. These minimums adjust every three years. The final rule also permits up to 10 percent of the minimum salary level for non-Highly Compensated Employees to be in the form of non-discretionary bonuses, incentives, or commissions, if these payments are made at least quarterly.

Small and large employers are subject to these new rules (if the employer is subject to the FLSA, and many are). The final rule does not change the “duties” tests for executive, administrative and professional employees. The FLSA exempt duties tests require that a white collar employee generally must: 1) be salaried (paid a predetermined and fixed salary that is not subject to reduction because of variations in the quality or quantity of work performed); and 2) be paid more than $913 per week (the equivalent of $47,476 annually for a full-year worker); and 3) primarily perform executive, administrative, or professional duties, as defined by the law.

Caveat: Many employers who rely on exempt classifications do not adequately analyze the duties tests for each exemption. An employer that misclassifies an employee as exempt is subject to substantial liability if it turns out the employer was wrong. In a lawsuit over misclassification, the employer is required to prove an employee is exempt, not vice-versa. Because the exempt duties tests are fact-intensive and vary by industry, consult with employment counsel before classifying any employee as exempt under federal or state law.

Minimum Wages

The FLSA provides a minimum “floor” that applies to an employer subject to the law in the absence of stricter (i.e. more employee-friendly) state or local requirements. During 2016 in particular, many parts of the country have seen various local governments taking it upon themselves to regulate employers who do business within their city or county limits. All of these local regulations have increased the minimum wages and other benefits that employers must pay in addition to state and federal requirements. For example, many cities and some counties have enacted minimum wage requirements that increase the state minimum or the federal minimum (some more than double). These local laws are sometimes limited to certain classes of employees or specified employers, or sometimes apply to all employers operating in the locality. Even employers who do not have offices in the affected city or county, but require their employees to perform limited work within the geographic limits, are subject to the new rules.

Some notable minimum wage ordinances have been enacted or have been proposed in: San Francisco City and County (and many surrounding CA Bay Area cities), Los Angeles City and County, multiple cities near Los Angeles, San Diego, Santa Monica, Seattle, Tacoma, New York City, Santa Fe, Albuquerque, Chicago, Louisville (Ky.), Washington D.C., Johnson County (Iowa), Lexington (Ky.), Bangor, Minneapolis, Flagstaff and Kansas City (Mo.). The foregoing list is not exhaustive and will continue to expand as local regulations increasingly take over federal and state employee wage regulation.

Brook J. Carrolupdates |

Summer 2016 Legal Update

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Paid Leaves

Besides increasing minimum wages in state, county or city limits, local wage and hour regulations have also increased many employer’s obligations to pay for certain sick leaves and other qualified leaves. For example, San Francisco requires paid parental leave that obligates certain employers to cover 45% of the cost of parental leave for up to six weeks. San Francisco, Oakland and Los Angeles, among others, have doubled the amount of paid sick time that employees may earn and use. New York State enacted paid family leave that goes into effect in 2018. As with the San Francisco ordinance, the New York state law will be phased in gradually. As of July 18, 2016, five states, 27 cities, and one county across the United States have paid sick time laws on the books. In short, be aware of your wage and leave obligations in your

locality, as these requirements seem to be popping up across the U.S.

Proposed EEO-1 Rule

Finally, many employers are not aware of their EEO-1 reporting requirements. The Equal Employment Opportunity Commission’s (EEOC) proposed rule on EEO-1 reports adds the requirement that employers must include employee W-2 earnings and hours worked broken down by gender and race/ethnicity and across 12 categories. The new rule, if adopted, would apply to EEO-1 reports that are due on September 30, 2017. In July 2016, the EEOC released a revised proposal for further comment, which suggests moving the due date from September 2017 to March 31, 2018, but that would still require the disclosure of earnings and hours across pay categories. The new

reporting obligations will require substantial additional data gathering and analysis by employers. There has been significant employer opposition, but keep informed so that you are not scrambling to gather data that might be required in future EEO-1 reporting.

1 The minimum salary level to the 40th percentile of full-time salaried workers in the lowest income region of the country; and (2) the highly compensated employee threshold to the 90th percentile of full-time salaried workers nationally.

2 For an apparently comprehensive chart of sick leave laws as of July 2016, see: http://www.abetterbalance.org/web/images/stories/Documents/sickdays/factsheet/PSDchart.pdf. The author has not reviewed the underlying sources and does not know if the published list is accurate or up-to-date.

Brook J. CarrollAttorney at Clark*Everson, LLP in Westlake Village, CA

Domino’s Loss Prevention Team hosted a Tiger Theft Detection booth in the corporate neighborhood at the 2016 World Wide Rally. At the booth, Franchisees were coached on best practices and efficient as well as effective use of the Tiger reporting system. Many tips and tricks were shared about how to quickly and easily identify theft opportunities and manipulation of sales and store cash.

In addition, the team conducted business reviews with interested franchisees to identify clear and present opportunities to reduce losses stemming from sales manipulation. The focus of these reviews included the two largest historic areas of opportunity: 1) Abuse of bad orders and 2) Abandoned orders. These reviews uncovered an annualized opportunity that was just under $250,000 in sales ($225,000 bottom line profitability).

The Team continues to work with franchisees on how to enhance operational performance through loss, sales and profit reducing controls. Franchisees at the event expressed their appreciation for making them aware of issues and opportunities. They were also enthusiastic to investigate further. So far, the Team has assisted franchisees with over 500 investigations with an estimated 2.7 million in annualized losses.The Loss Prevention team remains dedicated to assisting franchisees to improve sales and performance while supporting the brand vision to be the number one pizza company in the world and in every neighborhood. https://dlive.dominos.com/group/safety-and-loss-prevention

Domino’s Safety and Loss Prevention Team

updates |

Taming the TigerVan Carney

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Once again, the law is changing and franchisees need to start now to be sure they are in compliance. The most typical issue raised related to these changes is how to pay General Managers after December 1, 2016. Under the current federal law, General Managers often qualify as “exempt.” All other store employees are typically non-exempt. But, with these changes, your General Managers may no longer be exempt.

What is the “White Collar” Exemption?

The Department of Labor recently updated its regulations governing the “white collar” exemptions under the Fair Labor Standards Act (“FLSA”). Do not confuse “salaried” with being “exempt.” Just because an employee is paid a salary does not mean they are exempt from overtime. “Exempt” refers to those employees who are not subject to one or more FLSA requirements, such as overtime requirements and minimum-wage requirements. Under the FLSA, every employee is considered “non-exempt.” Usually this means hourly, unless a specific exemption applies.

The newly revised regulations affect most “white collar” exemptions. In order for an employee to be considered exempt as a “white collar” worker, the employee must be paid on a salary basis of at least a certain minimum amount (“salary-basis test”) and must perform certain kinds of work (“duties test”).

What Provisions Have Changed?

The new regulations only impact the salary basis of an employee, not the duties of an employee.

Minimum Salary Threshold: As of December 1, 2016, the minimum salary threshold will increase from $455 to $913 per week (paid on a “salary basis”). This requirement still applies each pay period and is not an annualized calculation.

“Highly Compensated Employees”: Effective December 1, 2016, the total-annual-compensation threshold for the “highly compensated employee” exemption will increase from $100,000 to $134,004.

The new regulations provide that these thresholds will be automatically updated every three years, with 150 days’ notice.

What Should I Do With My General Manager?

Because the primary duties of General Managers normally include managing a portion of the business and supervising at least two other full-time employees, they are usually subject the “white collar” executive exemption under the FLSA. Therefore, assuming the General Manager satisfies the duties test, there are two basic options moving forward:

1. Increase the Salary of the General Manager: The first option is to increase the salary of the General Manager to ensure the minimum weekly threshold of $913 is met. Employers are allowed to satisfy up to 10% of the salary threshold

from “non-discretionary bonuses and incentive payments.” However, only bonuses paid quarterly or more frequently count towards this portion of the salary. This bonus structure is not allowed when calculating the salary of a General Manager who is treated as exempt under the “highly compensated” exception. Additionally, you should be aware that even if the employee does not earn the bonus, you will be required to pay enough of it each quarter to ensure the employee earns, on average, at least $913 per week.

2. Pay the General Manager on a Non-Exempt (Hourly) Basis: The second option is to pay the General Manager on an hourly basis. This can be structured in different ways. But basically, you are paying them a base hourly rate, plus overtime, for all hours worked in excess of 40 each week. If you elect to pay your General Manager on an hourly basis, there are several pitfalls to avoid:• You must pay the employee for all time worked. This includes time spent “off the clock” checking e-mails, answering telephone calls, etc.• Capture the hours worked accurately by implementing a time system and train General Managers to follow it.• Train upper management to enforce Company policies and systems to ensure compliance by General Managers.• Periodically see whether the time records appear to be accurate.• Bear in mind that non-discretionary bonuses and incentive payments for non-exempt employees must be accounted for in overtime calculations.

J. Hagood Tigheupdates |

The Fair Labor Standards Act: Exemption Changes May Impact GM Compensation

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What Are the Consequences for Failing to Comply?

Remember that failing to comply with these new standards can be costly to your business. Affected employees could be entitled to back wages, plus an equal amount of liquidated damages, and reasonable attorney’s fees and costs. Additionally, civil monetary penalties may be assessed against the company of up to $1,100 per person. There is also the potential for criminal penalties, as well as individual liability.

The best course of action is to evaluate the pay plan for General Managers now. Doing so will allow you to determine any changes necessary for compliance with the new standards, including developing pay plans for General Managers who have been treated as “exempt,” but who no longer will be.

Hagood Tighe and Christy Rogers, attorneys with Fisher Phillips, concentrate their practice exclusively in the labor and employment area, representing Domino’s franchisees across the country. Hagood Tighe can be reached at [email protected] or (803) 255-0000. Christy Rogers can be reached at [email protected] or (803) 255-0000.

Fisher & Phillips, founded in 1943, is one of the oldest and largest labor and employment law firms concentrating its practice exclusively upon representation of employers. For more information, please visit our website at www.fisherphillips.com

Christina L. [email protected]

J. Hagood [email protected]

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Domino’s Career Path: In 1991, I started working with my husband, Bill Graves. Every Sunday night, we worked in the office together gathering the weekly numbers and completing paperwork for Domino’s. As part of my training, I attended the Corporation’s Pizza Prep School in Ann Arbor to gain a better understanding of how they were training their teams on store operations. I eventually started doing all of the internal OER’s for our stores in the Minneapolis/St. Paul DMA as well as for other neighboring Franchisees. When I was 8 months pregnant with our 4th child, I stepped away from the day to day operations. Since 1991, I have attended WWR’s, Forum Meetings as well as DFA Meetings to keep current with the Brand and my fellow franchisees.

When Bill passed away in a plane accident in February of 2015, I leaned heavily on the great team he had built as I began to study and learn the detailed “ins and outs” of owning and operating our organization. After working closely with my leadership team and being responsible for our company’s performance for the last 18 months, I officially became the Franchisee of record at the start of this year’s WWR.

Key Accomplishments: Becoming a Wife, Mother and now a Domino’s Franchisee.

Biggest Mistakes: Not having deep conversations about Bill’s wants and desires for his company. He wanted to discuss these things, but I always thought I would die first. Not taking more risks, being more confident, thinking there will be a tomorrow.

Local Organization involved in: Youth For Christ, Destination Playground Willmar

Three Highest Priorities in Your Life: Faith, Family & Work

Is there a Franchisee mentor who has attributed to your success as a Franchisee: To be completely honest, there have been a lot. I wouldn’t be where I am without their support and belief in me, that I could do this. Tareq Hishmeh, Reece Arroyve, Alan Murph, Osman Qasim, Brian Edler, Robert Gavitt, Parry Zielinski, Dick Hafner & Joe Romano. The person who has not only given me advice, but I also look up to her, is Mary Lynn Carraway. She has been there for me since day one in business and personally. The DFA board has also been a big support for my family and me.

What is the best advice given to you? Do what is best for you and your company…

How would your childhood friends describe you during your “early days”? Crazy, outgoing, loves to dance and have fun.

Would they be surprised by your success as a Franchisee? Yes, I was never the person who talked about running their own business. I was in DECA. I loved that class and the competition.

What does it take to be a successful Franchisee in this day and age? Dedication, passion and willingness to give it your all.

During the years you have been with Domino’s, what experience/event made the greatest impact on your life? I would have to say, Bill’s Celebration of Life. When I saw all the people who flew in with the

Name: Susan Graves

Title: CEO

Company: Team Honey Badger

Age: 45

Family: 6 children: Blake (23), Brooke (18), Grace (17), Carter (11), Noah (8) and Dalton (7)

Years with DP: 28 years along side of Bill

Years as Franchisee: 2 months

#Stores: 102

Store Location: 9 different states

#Team Members: Approx 2,500

Boards: None

Awards/Accolades: 6 Gold Frannys, 2015 Cornerstone Award

Key Accomplishments: Becoming a Franchisee

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Susan Graves

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Susan Graves

temperature at -30 degrees from all over, on last minute notice. I wish I could express how that felt and meant. They showered my family and me with love and support. That not only had an impact on my family and me, but also the community of Willmar, MN.

REIMAGING

How many stores do you have with the new Pizza theater image? 79

How many are reimaged? 68

How many relocated? 12

How many new? 5 new builds this year

If you had to do it all over again, what would you do differently?: When I look back to when I first met Bill, he had two stores. I wouldn’t change it, maybe improve it by being more supportive in my words and actions. Domino’s has given my family and I more than I could ever possibly imagined.

Any tricks you can pass on to help your fellow Franchisee?: Not yet, but when I do, I would love to share it with my fellow Franchisees just like so many did for me.

MANAGEMENT

As an operator, what are the two most important things you rely on from DPLLC? I check Pulse throughout the day. So, I would say Pulse would be the number one thing. Followed by our product from the commissary.

What is your management method/style?: I want my people to know they are part of a family and what they do makes a difference. They are important, needed and appreciated. I am their biggest fan.

What has been your greatest challenge as a Franchisee? We face the same challenges like everyone else, just on different levels. Healthcare, store hours, robberies, leases and the new wage increase.

How do you find capital for expansion? We have been very blessed with a local bank in Minnesota.

Is there a specific best practice you have implemented you would like to share with fellow Franchisees? We are only a month into the new training program, so I want for us to have numbers and results before I share that.

Are there any new safety procedures you have recently implemented in your stores? We have really looked at each individual store, the lighting, parking, back doors and new cameras to try and minimize risk for our employees.

How does your membership with the DFA benefit you? The DFA has been a huge part of our support.

Not only Ken and the board, but the Franchisees who are members as well. The DFA speaks when we feel DPLLC isn’t hearing our need or wants. The last meeting we had in Vegas brought incredible value to my partners and me.

How important is networking with fellow Franchisees to you? Networking is huge to my organization and I. If we want to succeed and not recreate the wheel, this is the best and easiest way. Domino’s Franchisees have so much knowledge along with talent, its only one or two phone calls away to find your answer.

TEAM MEMBERS

With business growing across the country, what are you seeing in your market? I really have two markets; the Minnesota market has kept up with the positive trend. W.V./Ohio has seen a slight decrease due to the coal and oil industries.

What tools are you using for recruiting, hiring and retention? We use Survey Monkey, ATS and local advertising. We did just start a three day on-board training for Minnesota stores. It is too new to know if this is the answer.

How active is your DMA?: We are in several DMA’s and it ranges quite a bit.

Are they any specific areas you are networking on together? The MSP DMA was one of the first ones to test the carry out promotion while still embracing our local advertising.

What impact has the connection with other Franchisees in your region made on your organization? Connection between one Franchisee to another is a huge part of our organization. My partners are awesome in how they reach out to others to find out what their needs are.

What do you consider when recruiting? You can always teach people the job. What you can’t teach them is kindness, self-motivation, passion and desire.

Susan, Blake, Brooke, Grace, Carter, Noah, & Dalton

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How do you train and retain? Since we are in 9 states, we don’t have one system just yet, but we are currently working on creating one that incorporates the best.

How have you handled rising employee costs? I think this a huge battle, but we have a Franchisee out there right now dealing with it. This is where networking is huge to us, we can look to them to see what is working and what’s not.

BOTTOM LINE

Overall, 2015 was a very good year for the Domino’s Brand. Are there any obstacles you overcame? I can’t say we have overcame the obstacles; we deal with them each day. These obstacles didn’t happen overnight and they won’t be fixed overnight.

Are there any you are facing or have overcome in 2016? I believe we all have the same obstacles in our business, working together will allow us to become better, stronger in overcoming these obstacles together.

How do you measure your growth? The growth part is hard, since we get new line items each period, they might not be big line items, but at the end of the year, they make a huge impact on our bottom line.

What is your current greatest need from DPLLC? I want them to listen to our needs and treat us like customers.

Where do you want to be in 5 years? I want Domino’s Pizza to be #1 in every market, every neighborhood and in the world. Most of all, I want to be number one in my family’s life.

Is there anything else you want others to know about you, either personally or professionally? First, I want to formally welcome my son Blake to the team. He is running the real estate side of the company and he is doing a great job and brings a lot of support and knowledge to this team.

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Susan Graves

Angel & Dave Randall and Heidi & Randy Halberg

Dennis Denman & Dave Randall

Dennis & Carrie Denman

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Susan GravesI think there are so many who know of me or heard about Bill’s accident. What people need to know about me is that life isn’t fair, but we all knew that. We all endure trials in life, but how we get through the trials either breaks us or makes us stronger. I am blessed with 6 beautiful children, who are adjusting to their mother going from a “stay at home” mom to a working mom. Trying to find balance between work and family (haven’t completely figured it out just yet). Team Honey Badger has been so encouraging, supporting and loving to my family and me. There are two people key to me, my partners Dave and Dennis. Dave is currently working with 74 stores in 5 states; Dennis is in 4 states with 28 stores. Without my partners, I would not have been able to move forward. They are my backbone in this organization. I can call on them anytime and they are always willing to help or give me direction. Both of them have great leadership skills, communication, passion, desire and are trustworthy men with beautiful wives whom have hearts of gold. Their wives are so supportive to the entire team, I am grateful. Bill left behind an incredible team. My office staff in Willmar where we still do all our accounting in house, they are amazing.

The lives of all the people who are involved in Team Honey Badger changed on February 4, 2015, but they pushed forward despite the odds. We are stronger today because of the trial we all endured. I want people to know that Team Honey Badger has trustworthy, motivated leaders working with passionate people to become #1 in EVERYTHING they do...

Dave Randall & Winston Jory Bulthuis & Dave Randall

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“Two roads diverged in a wood, and I, I took the one less traveled by, and that has made all the difference.” Robert Frost

The Tampa Bay DMA has recently taken the road that only one company can take and it is the road to number one in market share! We are finally on the list with a growing number of DMAs who are number one. As you well know, Domino’s Pizza is on a strong sales climb, which is nothing less than amazing. We have had quarter after quarter of positive sales growth and the momentum seems to be continuing. Our competitors must be feeling our presence and are contemplating a strategy to end our reign.

I am sure there are many analysts, financial advisors and, quite frankly, a lot of franchisees who are still not sure how this company has been so successful the last few years. We have been up year after year. It is actually quite exciting what we have accomplished nationwide. Domino’s will be talked about in college business classes for years. I am glad I was able to participate in this sales growth. I just wish I had more stock. I know, in my little world of my three stores, we have performed better than I could have imagined. Of course, our Florida stores had and still have a lot more potential than PA. Lewistown has been more than double the DMA average for 10 plus years, so I can’t expect that

much more from their little town. With that said, Matt (my brother), the manager, is still not satisfied and strives every day to be better.

I have always believed the stores who consistently provided a great customer experience, coupled with fair pricing, would achieve consistent sales increases. I am an old school Domino’s guy who still remembers Tom Monaghan preaching the importance of PSI and handling the rush at our rallys. I think these are timeless nuggets of insight, which are still as relevant today as they were in the 80s. OK, I know, I’m old… this philosophy has continued with me forever. I know it is not glamorous or exciting, but running exceptional shifts every day, day in and day out, year in and year out, is what produces a winning store.

Tampa has not always been on the leading edge of sales. Though I have only been in the market for a little over 5 years, the Tampa DMA has a history of ups and downs, as I assume most of the country has had. The Tampa area started out as a corporate market. One of my stores actually has the old logo painted on the wall like they did in the 80s. That wall is now part of a storage area, but it is a reminder of the store’s heritage. Around 1993, the area was sold off to franchisee Tom Bean. The area at the time averaged less than $5,000 a week. Tom began selling stores around 1998 to other franchisees. Two of those franchisees were Steve and Jerry Longen. Both brothers are still in the area and have accomplished much from the $11,000 sales average they had when they bought their stores.

Florida was one of the markets hit the worst in the housing bubble. Jerry reports that his stores were down an average of 20% - 25% during late 2007. This time really hurt the area franchisees. They were on a path to become a strong profitable area when the bubble burst. Jerry says his struggles during that time helped him to become the successful franchisee he is now. With two young children at the time, he, as well as the rest of the area, pulled themselved up by their bootstraps and did what it took to stay in business and build the foundation that remains today.

In 2010, New and Inspired was the catalyst the area needed. Jerry states “ With New and Inspired, they smashed down the negative perceptions and allowed the customer to look at us again with an open mind.” This was a huge turning point for the area and the nation. I am sure we all remember the double digit increases during early 2010. It seemed we were doing all we could do just to hang on. That was the first hint Domino’s was on a trajectory straight up. This was felt in the Tampa area and the rest of the country. I am a big proponent that my success depends mainly on how my team takes care of the customer, but it is really nice when a national marketing campaign makes such a difference to our brand as a whole. Once that customer gives us another try, it is incumbent upon ourselves to make sure they keep coming back. This is where the retention and conversion graphs on PWR are so helpful.

There have been other factors in the area’s rise. Eric Ortiz was put in place as our Area Leader in 2013. He is a strong leader

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Mike McDermott

The Road Less Travelled

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who helped to instill a new level of passion in our area. He also facilitated the exit of some franchisees that maybe were not the best for the area. That is hard to say, but sometimes it is the best path for the area. Then, what you are left with is the franchisees who are really in it for the long haul. Eric established manager rallies to recognize our top performing managers. He started a leadership group of franchisees to help steer the direction of the DMA and started to build the cohesive team we have today. Our current corporate leadership remains strong even after his departure to bigger and better things. Our Area Leader, Sarah Hieber and our marketing leader, Casey Barile, both have the credentials and commitment to provide a great support system for us.

I did not buy into the whole Road to Number 1 until they added “in every neighborhood.” That small addition really put the importance on each individual

store. It is much more impactful to me to be striving to be number one in the neighborhood where my stores are located. I realize I am part of a much bigger picture and that is very important, but if each and every one of us become number 1 in our individual areas, well... the rest takes care of itself. I want the whole system to do well, but I also don’t want to be the one left behind.

When it comes down to it though, our franchisees, managers and our team members who are making and taking pizzas every day are the ones who made it happen. The economy grows and recedes and competition comes and goes. The one constant we have is the enthusiasm and passion we put into our stores. We have a good group in our area. We don’t always agree on everything, but I think we all share the feeling that we are here 100% to build our brand and we will not stop until we are number 1 in every neighborhood.

Tampa was always a strong market for Pizza Hut, which does make the fact that we are number 1 all the sweeter. We know we can’t stop now. Our franchisees have signed up to build multiple stores over the next few years helping to bring our store count closer to Pizza Hut’s. We are not slowing down or resting on our laurels. Our area is continuing to push ahead. I remember seeing a graph at the World Wide Rally about the stores in Australia. Once they hit number 1, it seemed their market share shot up at an even more rapid pace. It was like the competition just gave up. While I am hoping that holds true for us, I don’t think any of us are counting on it. We are instead counting on our own determination to be the best and to stay there.

The Tampa DMA is just one area on the list of number 1 market share DMAs. We are not special. We are just like the countless other franchisees out there who are pushing their stores every day. I think our system has the best franchisees of all the national pizza chains. We are excited that we made the list and will be waiting with open arms for the rest of the DMAs to arrive. As the old Motel 6 ads go, “We’ll leave the light on for you.”

Mike McDermottFranchisee: PA, FL

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As a Domino’s franchisee, you have many responsibilities on a daily basis. Some of these are related to making and delivering pizzas, while others are administrative roles. One responsibility that can get over-looked is protecting your business from lawsuits and liability pitfalls in today’s litigious climate. While every business has risk involved, such as a customer falling or an employee getting injured while working, a Domino’s franchisee faces more risk than a normal business. Delivery exposure is without question the single biggest threat to your company success. Why? It comes down to a legal concept known as Negligent Entrustment. Negligent Entrustment is defined as “a cause of action in tort law that arises where one party (the Entrustor) is held liable for negligence because they negligently provided another party (the Entrustee) with a dangerous instrumentality, and the entrusted party caused injury to a third party with that instrumentality.”

Many of your eyes glazed over as you read that paragraph, and I don’t blame you! It sounds dry and boring, but it can have serious implications for your stores. Why does it matter to you? As the employer, you are the Entrustor. Your driver is the Entrustee, and the Dangerous Instrument is the vehicle that they are driving. As an employer, you have a responsibility to vet drivers, and know if they have a propensity to be dangerous. You can’t plead ignorance here, because the law says that you should have known. Having said all of this, let me step back and make an observation

from my experience as a Domino’s franchisee for 17 years, plus the 6 years that I have spent as an insurance agent helping to protect hundreds of Domino’s franchisees around the nation. As a franchisee, I never experienced an auto claim with one of my drivers. Many of you have had similar experience. You may have seen a minor accident or two, but most of you have not experienced the horrific accidents that result in multi-million dollar claims. It is easy to think of those types of events as something that will happen to someone else, but will never happen to me. I don’t want to overstate the risk involved in a delivery operation, but you should be aware of what can happen if you fail to take steps to minimize the exposure of negligent entrustment. While we don’t like to think about it, unfortunately, someone dies in an automobile accident involving a Domino’s driver every year. Multiple injuries, some of which are very serious, occur annually as a result of accidents involving Domino’s drivers. Many times, the franchisees that experience these events have not had a history of previous incidents.

There are a couple of things that I want you to think about regarding your delivery operations. First, you have legal exposure because you have delivery drivers. Second, accidents will happen, and your drivers are not immune from causing an accident and seriously injuring or even killing someone. Given these facts, the only logical question is “how do I limit my exposure to these types of events?” You must understand that there is no way to completely eliminate this exposure. You face these risks because you engage in a food delivery business; there is no way around that fact,

but there are steps you can take to reduce the exposure and also limit the damages when an accident occurs. The survival of your business may depend upon limiting your liability.

Based on my experience as a franchisee and an insurance agent who has seen a wide range of problems and successes, here are the steps that I recommend every franchisee should include in their loss control program:

1. Order and grade MVR’s on all perspective drivers or any person who may ever operate a motor vehicle even if they are not designated as a driver. It is not enough to simply order and grade MVR’s. You must review each and every MVR and make a determination if this driving history demonstrates that the driver may have a propensity to operate a vehicle in an unsafe and dangerous manner. It is not enough to accept the MVR provider’s rating of “Meets Standards.” Remember, they are not liable if this driver causes an accident. You are liable if this driver causes an accident! While Domino’s has minimum standards, those standards are only a minimum. You are free to apply a higher degree of scrutiny to your prospective drivers.

2. Re-order MVR’s on a periodic basis for your current employees.

The current standard is to run new MVR’s every six months. You can choose to do this on a more regular basis. Depending on the driver’s history, they may be very close to failing to meet the minimum standard and one ticket, accident, or incident may push them over

Jason Uptonupdates |

Responsibilities

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the line. If you have drivers like this, you may want a shorter period between MVR’s. Remember, the law says that you have the burden of knowing whether your driver is safe; ignorance does not protect you!

3. Conduct mandatory drug tests for all drivers.

You should institute a pre-employment drug screening policy and a random drug testing program. If a driver has an accident while under the influence of drugs or alcohol, the absence of a screening program can be detrimental to your defense. Since states and municipalities may have different laws about drug testing programs, please consult a local, qualified attorney.

4. Develop and implement a written safety program.

This should include the MVR standards and drug screening program as well as safety training for all drivers. Everything must be documented and kept in the employee file. You must be able to prove that you conducted the training in the event that an accident occurs. By having safety trainings and being able to document them, you demonstrate your efforts to prevent accidents and create a culture of safety. It is critical that you follow your procedures and enforce them at all times. One exception or failure to follow procedures can undo months or years of effort.

5. Create a culture of safety in your organization.

This commitment must be made by you and your management and should filter down throughout your entire organization. Without a commitment to the daily execution

of safety procedures, they will fall by the wayside. You must talk regularly about the importance of safety guidelines and the need to follow them.

There is one final way to think about this issue. Imagine that you get a phone call one night with the tragic news that one of your drivers was at fault in an accident that caused a fatality. The next morning, a local television station comes by your store for comment about the accident and asks what you did to prevent this accident from occurring. What would you say? If that question makes you squirm, you may want to re-consider your safety program and the way that you hire and manage your drivers.

Jason UptonPresidentThe Upton Group, LLC

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Domino’s Career Path: In 1994, I started at Domino’s Pizza bouncing between Driver and MIT until late 1996 when I was convinced by a friend there were greener pastures elsewhere. Five years later, in 2001, I realized the error of my ways and came back to Domino’s Pizza. I worked as a GM for Douglas Delisle from 2001 to 2005 and a supervisor in the same franchise from 2005 until the day I franchised in 2007. I operated as a two store franchisee in the Springfield, MA DMA, serving as DMA President in my final year. In 2014, I began to envision growing my company and realized there was nowhere to grow in Western MA. So, I decided to sell everything I had in MA and uproot my company and family to central New York. After having my original deal fall through and then my back-up plan fall through, I finally got off the ground and running in New York by buying a single store in Cortland with an AWUS just under 10K and haven’t looked back. We are currently a three store franchise. We will be adding two more stores in September, and just signed a development deal with Domino’s to open 3 stores with an option for 2 more. Our company is up 17% in sales for 2016, and the combined OER scores are up from 2.67 before we took over to 3.75 for all visits since.

Biggest Mistakes: When I started as a franchisee, I had no idea how little I actually knew. To this day, I sometimes wonder how I made it through the first couple of years.

Best memory while running a store? Closing on Halloween 2015 when I realized we had just done more in sales for a single day than I had ever done before, and it was flawless.

Is there a Franchisee mentor who has attributed to your success as a Franchisee? I worked for Doug Delisle for a lot of years. I’d have to say that many of the lessons I live by and pass down to my own teams came from his mentorship. I know I would not be where I am today without his influence.

What is the best advice given to you? Good enough is not good and every pizza is a rush.

You have been a 2 store Franchisee owner during most of the years you have been with Domino’s. Two years ago you made the decision to sell your stores in MA and move to upstate rural New York and are now on your way to 8 stores. What factors played a part in your decision to change directions? In MA, I found myself boxed in and knew it would

Franchisee Name: Chris MacPherson

Title: Sole-Member

Company: MacPherson Pizza NY, LLC

Age: 43

Family: Wife Laurie, Daughter Abigail 6, Daughter Evelyn 3

Years with DP: 17

Years as Franchisee: 8

# Stores: 3 today, acquiring 2 in September, Development contract for 3 with 2 more optional by 2020.

Store Locations: NY

#Team Members: 50+

Awards/Accolades: Former Springfield, MA DMA PresidentCertified TrainerBest Dad Ever (according to my girls)

franchisee |

Chris Macpherson

Chris Macpherson

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Chris Macpherson

be very difficult, if not impossible to grow there. Personally, my oldest daughter was about to start school and we were not happy with the prospects where we were. I found an opportunity in the Syracuse DMA and after convincing my wife it was a good move (she hates the cold), we went for it. We now have a flourishing company and my children get to grow up in a country setting instead of the inner city. In hindsight, it was a little crazy, but it has turned out okay.

What are the biggest hurdles you’ve had to overcome with your decision to increase your stores? It becomes harder to imprint my own Vision and Culture with each growth spurt the company makes. We have had to redesign and re-emphasize our company Culture and Vision in order to keep it consistent as we move ahead. It also becomes a lot harder to personally mentor GM’s as we continue to grow. We have found Sam Fauser and Fauser Consulting invaluable in filling in the training gaps that are created.

What have you learned from being a successful small Franchisee to grow in to a multi-unit Franchisee? The most important thing I have learned is how to run a company instead of a store. It is very difficult to shape the direction of a company while trying to be the GM of one of your stores. Hire good people, train them to do a good job then, let them succeed.

What are the biggest differences between operating in NY vs. MA? For me, the biggest difference was going from urban to rural communities. The approach to community involvement and customer interaction is completely different. At the end of the day, though, making a pizza is making a pizza. REIMAGING

How many stores do you have with the new Pizza Theater image? How many are reimaged? How many relocated? How many new? Currently, we have two of our three stores reimaged with the third about to begin. One of the two stores we are acquiring is a 3,000 sq. foot relocation. It is absolutely

beautiful and I am very excited to soon be its proud owner. We have begun site negotiations for our first build. I’m sure there will be many new learning experiences along that journey.

If you had to do it all over again, what would you do differently? I would definitely have begun each project sooner. Deadlines creep up on you faster than you realize.

MANAGEMENT

As an operator, what are the two most important things you rely on from DPLLC? I would consider the brand exposure to be paramount. It’s something we tend to take for granted. The other would be the massive amount of data they provide. You cannot run a successful business without knowing your numbers.

What is your management method/style? Professional relationships are important in leadership. Without respect and a connection to the people you lead, they will only do what is mandatory to get the job done, not what is necessary for the success of the team.

What has been your greatest challenge? Finding balance: as a leader, as a father, as a husband, as a store operator and as the head of a company. Finding balance in all of those areas was very difficult, but also absolutely necessary for me to be where I am today. On a lighter note: I am a terrible negotiator and have had to push myself very hard to get better at it.

How do you find capital for expansion? There are many companies looking to finance Domino’s Franchisees and their projects right now. Find someone with whom you can have a good relationship. Just pay attention to the details of what they are offering you.

Is there a specific best practice you have implemented you would like to share with fellow Franchisees? “If you have to decide whether or not it is good enough to sell. IT ISN’T.”

How does your Membership with the DFA benefit you? There are so many ways the DFA helps the entire franchise community, members or not. As a member of the DFA, I not only get

Chris, Laurie, Abigail & Evelyn

Chris and his daughters at the zoo

Chris and his daughter giving away free pizza

Chris’ daughters Abigail & Evelyn

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the big picture of how I am affected by their influence, but the intimate understanding of how that influence directly impacts my business.

TEAM MEMBERS

With business growing across the country, what are you seeing in your market? What tools are you using for recruiting, hiring, and retention? When used correctly, the tools in place are fantastic for hiring and retention. ATS and HPU are designed to make those areas function perfectly. It is recruitment that varies from market to market. Having two campus stores, the schools themselves are a great place to find potential employees.

The goal for anyone, especially in a rural market, is to become the place where people go. That means not only to eat, but to work as well.

What impact has the connections with other Franchisees in your region made on your organization? Coming from a different area, I’ve had to reach out to other Franchisees for advice on a number of occasions. The franchise community is a valuable resource.

How have you handled rising employee costs? Being in New York, a future $15 minimum wage is a fact with which we have to contend. Constant improvements in operations along with streamlining the other costs associated with doing business are the most effective ways to go. It is going to happen, we can either be proactive or reactive.

BOTTOM LINE

Overall, 2015 was a very good year for the Domino’s Brand. Are there any obstacles you overcame? Are there any you are facing or have overcome in 2016? For my company, the biggest obstacle is maintaining a strong foundation while moving forward. Whether it be financially or operationally, each time we take a step forward we have to make sure we maintain the same standards throughout our whole company.

How do you measure your growth? I set crazy goals and try to reach them. It may sound trite, but; when you reach for the moon even if you fall short you still end up amongst the stars. I have heard people advise not to set goals you can’t possibly attain because it’s self-defeating. I guess I believe I can attain whatever goal I set. If I wake up energized and go to bed satisfied, then I am growing personally, professionally and spiritually and there is no reason to slow down.

What is your current greatest need from DPLLC? With the upcoming build being a first for the company and me, I will be relying on the insights and guidance of the DPDLLC development team for the next year.

Where do you want to be in 5 years? In five years, we will have completed our development deal and be a 10 store franchise. I would like to create a centralized office and training location sometime in that period as well. In 2012, I went to my first Rally and made it a goal to win a Gold Franny by 2016. I did not accomplish that goal. Check back in 5 years because we’re on our way.

Is there anything else you want others to know about you, either personally or professionally? Nothing is impossible.

franchisee |

Chris and his team

Chris in his pizza costume

Welcome to New York!

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Chris’ daugh-

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Sales are booming, salads are here; things show no sign of slowing down!

With so many good things happening, what’s the bad? Staffing!

We simply do not have enough people to handle the business. Even as our staff grows, our sales seem to exceed that. A good problem to have? Perhaps, but a problem nonetheless.

This article is devoted to staffing and retention. I am in the camp that feels we do not have a staffing issue but more a retention issue. Want to know where you stand? Try this; toss turnover out the window and track NEW HIRE turnover. Never heard of it? That’s because no one does it. Think about your short staffed stores or your stores with high turnover. Is there a common denominator? There is, it is the veteran drivers. Ever walk into a short staffed store and notice that, even though they are short staffed, you see the same faces over and over again? If you never thought about it, try it now. Your managers ARE hiring. People are just not staying. Why not? We are a great place to work once you know what you are doing. In the past, I have written about how overwhelmed our managers are and with all that’s happening, that has not changed. So, several scenarios play out. First, a manager short cuts training so new hires don’t feel prepared to do their jobs. Second, even if training takes place, as soon as a driver is trained the manager’s mentality is to toss them into the fray. They treat a two week driver like a two year vet. This quickly leads to frustration and new hires feel like this job is too stressful. We must change the mindset about how we treat a new hire.

Before I go further, lets talk about new hire turnover. Try this; take all the people your company has hired year to date and divide by how many are still with you. In some cases, the number will amaze you… 200 to 300 %. How can we fix this?

Dave Melton shared something called the 5 Firsts with me. It is the 5 times we or a supervisor should make contact with a new hire to make sure they are okay. 1. First Hour: A call from you or a supervisor one hour into training. It ensures training is happening properly and they are ok with it. It creates a bond.2. First Day: Have them call you back at the end of day one and see how it went; this shows your commitment to them.3. First Week: Circling back at the end of week one can address any frustrations a new hire has and can ensure the manager is keeping a good eye on them.4. First Check: Celebrate wins and congratulate them on their first check.5. First Month: You will be amazed at the report you get after one month.

This is a powerful program for creating retention. If we train our managers to treat new hires gently at the same time, we will lose less people.

Consider using welcome packets. We send everyone a welcome letter from the franchisee along with a gift certificate and a business card with my phone number on it. On the back of the card, it says “If you ever have any issues that cause you to question your employment with Boston Pie, please call me and let me make it right for you.” We have also introduced a new hire turnover incentive for managers so they are invested in keeping every new person.

Here are some ideas for what I call blitz recruiting. First, set a staffing goal for each store and update it every week. Make it higher than necessary to account for lost people and higher sales. Make staffing numbers part of your weekly key indicators because it is truly a key!

I have spoken to the few franchisees that are not short staffed. They are doing a bit more of a comprehensive approach than we are. Here are some examples:

training |

Dominic Benvenuti

Training Room

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1. They log into brass ring and check apps 2 times a day. People who apply want jobs ASAP so they must be called within hours of applying... we wait days or weeks.2. All short staffed stores place a Craigslist and an Indeed ad. Staffed stores do what we can to always funnel people to other stores.3. Answer the phones as follows... “Great things happen to people who work at Dominos! We are now hiring... how can I help you?” People who need jobs will ask what we are hiring for. Train the team members to say whatever positions we need AND manager trainees. Be sure they know how to tell a person to apply!! Use scripts. 4. Call, interview and hire within 3 days... take a photo of license, registration and insurance at the interview if they make a job offer. SS card as well if the applicant has it.5. Now Hiring Boxtops in ALL stores. 6. Use banners that advertise the potential to earn up to $20 per hour.

The key here is you have to do it all at once. The company with the best people wins.

As always, feedback is welcome and appreciated.

Train Hard Fight Easy

Dominic BenvenutiVice PresidentBoston Pie, [email protected]

Dominic Benvenuti

Training Room

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As I look back on my first year with the DFA, I am reminded of the incredible effort and commitment put forth by your Board Members. They work tirelessly to support you as well as the Brand on a daily basis while simultaneously running their own businesses.

During my time as an AL with DPLLC, I was aware of the DFA but not entirely cognoscente of who they were and what they did. This past year has been a real eye-opener for me as I witnessed firsthand how the DFA operates plus the numerous issues that arise needing a solution. The DFA conducts weekly conference calls with the Board and there are always pertinent topics to discuss. I am impressed by the participation of each Board Member. Each one brings their own unique point of view to the discussions as well as taking the opinions of others prior to casting their vote to move issues forward. The process is often robust with passionate debate and looking at the issue from all angles with the end result of a majority vote, which is intended to help the Membership at large.

For those unfamiliar with the DFA, it is an advocacy organization with franchisee members who elect a Board of Directors. The BOD consists of 15 Franchisees who volunteer their time and energy to support and promote the DFA Members. Three Members in each of the four regions; Midwest Chapter, North Chapter, South Chapter and West Chapter as well as two Forum Representatives and a Board Appointed representative

also represent the Franchisees. I would encourage Members and Non-Members to get to know your Regional representative, as they are eager to hear from you and understand your concerns as Domino’s Franchisees. The DFA is always trying to keep

their finger on the pulse of what is going on in your communities and stores. Sharing your thoughts and opinions with your representative will go a long way in providing us with current issues and concerns that can be discussed during our weekly conference calls. During my conversations with new and current Members, I often hear their reluctance about going to Corporate with their concerns. Isn’t it a relief to know you can go to your Regional Board Member or DFA Staff Member for assistance and guidance? The DFA Staff who oversees the day-to-day operations include Ken Peebles our Chief Executive Officer, Amy Villastrigo the Operations Manager and myself, the Director of Operations.

At the DFA, we strive to keep you up to date and informed about current events and issues we are working on through email so it is important that you designate our email address as an approved sender. If our emails are going to your junk email account simply click on it and hit “not junk”. Recently, we have sent emails regarding Legislative Updates, Extended Hours, Mileage Reimbursement, Labor & Employment Law Webinars and information on the DFA offering Crime Prevention Workshops. We hope you are receiving these updates and find them informative. We would appreciate any feedback you may have in regards to topics or content. Your DFA Board of Directors is committed to ensuring you are kept well informed regarding the issues and activities taking place on your behalf.

Some of the current issues the Board is reviewing are:

• Mileage Reimbursement • FLSA- Fair Labor Standards Act• Safety and Security Seminars • Extended Hours• Profit Sharing as part of the SFA

The DFA is also working closely with several potential new Vendor Partners who are excited to provide quality products and services that will benefit and enhance your operations. All vendors must go through a detailed vetting process to ensure they are the best of the best before they receive the DFA’s “Good Housekeeping Seal of Approval.” I have personally been reaching out to numerous potential vendors looking for the right fit who will also meet the Board’s approval and provide our Members with value. I look forward to sharing with you some new Vendor Partners in the near future.

The DFA continues to grow. Current Membership is close to 55% of all Domestic Franchisees representing over 73% of all Domestic Franchisee stores in the system. The strength and influence the DFA has can only improve with increased participation and Membership. I would therefore encourage those of you who have not yet considered becoming Members to reach out to your Chapter Representative and discuss the possibilities. You can find their contact information at the back of this magazine. For those who are currently Members, we greatly appreciate your support and welcome your input and suggestions to make us better as we travel down the R2N1.

Ron Perryupdates |

Ron PerryDirector Of Operations

210.845.1072 ext. 7 (office)[email protected]

DFA Membership Letter

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After a whirlwind successful first year in the USA as the franchise owner of

24 stores in Charleston, Augusta & Myrtle Beach and South Carolina… Kerri Saunders was awarded the 2015 DPLLC Woman of the Year at the World Wide Rally in Las Vegas on June 22, 2016. Kerri runs her 24 stores with her husband Ben Saunders, and her children… they are Family Ventures, with 588 team members strong.

Kerri had a newborn baby and a young pre-teenager in town when she bought her stores in South Carolina. The Saunders relocated from the United Kingdom in 2014 to begin their American journey. Kerri served as Operations Director for the Domino’s Pizza Franchise Group and oversaw the operations of stores in England, Scotland, Ireland and Wales. She landed in the UK after a very successful career with Domino’s Pizza Enterprises in Australia.

Kerri was a teenage prodigy for the Domino’s Pizza delivery business. She rose to be a General Manager in Australia as a teenager, where she worked for her brother, master-franchisee, Don Meij. Kerri moved up to State Manager, International Supervisor of the Year in 2005, and excelled at every level she was promoted… eventually to Corporate National Operations Director. She developed people into teams of 20-30 team members to open new stores, made record profits and was a finalist for Businesswoman of the Year in Queensland on two lists from 2005-2007. Her Queensland Group became the 2nd largest corporate team in Domino’s worldwide growing to 69 stores. Domino’s became the #1 brand in Australia, (her corporate stores grew to 150) with Kerri at the helm. She sought a new challenge, becoming a Franchisee in Australia. However, when the master franchisee of the UK & Ireland found out Kerri was looking to make a change, she was ready to shift her path to take over their operations in 2010.

The highlight of her four years in England was 4 Gold Frannys. As Operations Director in the UK and Ireland, Kerri’s team achieved the highest OER audit scores of any major market within the Domino’s system. The busiest store in the world was one of her markets and it was also the busiest store to operate in the history of Domino’s. Seventeen out of twenty of the highest sales stores in the world were operated in the UK at that time. The highest international record sales store was also in

the UK as was the fastest pizza maker in the world. Kerri’s Training Department head won International Trainer of the Year and she had two Managers of the Year, one Supervisor of the Year, one EMEA Supervisor of the Year plus three Rookie Managers of the Year for international during her time with the Domino’s Pizza Group.

Now that she is stateside, she has taken off in her usual style of trying to win it all for her customers in South Carolina! And what I love about her is she is proud of her team and what they have done in such a short time!

Here is the list from 2015:• Not a single insurance claim• 10 out of 10 robbery arrests• Sales $21,777,917.41• $18867.15 AWUS PCYA 18.10% YTD• 5 group record weeks• 1 store over $40k AWUS• 2 stores over $30K AWUS• 5 stores over $25K AWUS• 7 stores over $20K AWUS• 19 Sales challenges achieved• 1 week of $61K at 8881- top 11 store in the USA• 1 week of $62K at 8881• 1 week at $68K 8881- top 6 store in the USA• 48 individual store record weeks broken• 4 Rolex watches- 5659 x 2, 8881, 5656• Augusta 3 market records• Charleston 5 market records• 2 new stores open- 8765,8766• 1 relocation 5654• 2 oven upgrades- 5654, 5656Eyes of the customer evaluations- 6 Platinum, 11 Gold

Kerri has big plans for 2016, she is committed to winning a Gold Franny, and hopefully it will be soon, very soon! Family Ventures lays out their path to the Gold Franny like this:

F our Star OERR etain, Hire & TrainA chieve 15% Sales GrowthN o Orders on the RackN umber 1 in Safety & SecurityY our Path to Success

Her team coaches their values every visit and opportunity. Kerri truly is Domino’s and driven every minute to be #1 and well deserves to be the DPZ Woman of the Year!

WLFupdates |

Kerri Saunders DPLLC, Woman of the Year 2015

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Kerri Saunders DPLLC, Woman of the Year 2015

Chris Reisch 7 Stores in KY

502.867.7087 (office)502.316.3456 (cell)[email protected]

Steve GfellDFA Board Vice Chair

20 Stores in OH419.706.8571 (cell)

[email protected]

Your DFA Board MembersFor complete Board Member bios, terms of service and election process, please log onto dominosdfa.com.

Rob Jonas1 Store in NJ

609.846.6872 (cell)[email protected]

M i d w e s t C h a p t e r

Brent Medders22 Stores in AR

501.753.4111 (office)[email protected]

S o u t h C h a p t e r

Alan Murph73 Stores in TX & TNDFA Board Treasurer210.657.4043 (office)512.844.4594 (cell)

[email protected]

Mike Brown 9 Stores in SeattleDFA Board Officer

253.474.4831 (office)253.468.8557 (cell)

[email protected]

Jim Gerety16 Stores in TX

DFA Board Chairman432.570.1990 (office)

432.967.3030 (cell)[email protected]

W e s t C h a p t e r

N o r t h C h a p t e r

Tareq Hishmeh84 Stores in AZ & CA

805.901.7407 (cell)[email protected]

Peter D’Andrea29 Stores in TN, VA, AR, & AL

704.905.9220 (cell)[email protected]

John B. Glass29 Stores in OH

513.886.2639 (office)[email protected]

Art Hurteau15 Stores in MO

417.353.1726 (cell)[email protected]

Osmin Qasim37 Stores in NC704.223.1440

[email protected]

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Follow DFA on Facebook

F o r u m R e p re s e nt a t i ve

Mack Patterson42 Stores in NC

704.516.8856 (cell)[email protected]

Pam Tobie6 Stores in CA

619.339.3236 (cell)[email protected]

B o a rd A p p o i nte d

Your DFA Staff

Ken PeeblesChief Executive Officer

210.845.1072 ext. 1 (office)[email protected]

Jamie ReamsThe Voice Editor & Designer210.845.1072 ext. 4 (office)[email protected]

Amy VillastrigoOperations Manager

210.845.1072 ext. 2 (office)[email protected]

Page Advertiser

50 Ansira/Connect Marketing

23 Ascentium Capital

14 Cintas

39 CIT Franchise Finance

2 Coca-Cola

34 Ecolab

41 Equipment & Supply

35 First Franchise Capital

40 GDP

30 Gnich Architecture

24 Helm

19 Horne

35 HTG

Page Advertiser

29 Lloyd Pans

11 MaSSCorp

6,7 Middleby Marshall

26,27 My Domino’s Insurance

33 Paychex

17 PLI

52 Ross4Marketing

31 Sprint

18 Sterling

15 The Bottom Line (TBL)

51 XLT Ovens

dominosdfa.comBookmark our website

for up-to-date news and information!

Advertisers Index

Ron PerryDirector Of Operations

210.845.1072 ext. 7 (office)[email protected]

Daniel Dain9 Stores in TX

361.438.7686 (cell)[email protected]

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DFA 49

Plasticard-Locktech Intl (PLI)Tracy Morris | 800-752-1017 ext.1299

Supplies & Products

Middleby Marshall OvenJason Bireta & Larry Bireta248-302-1199

SBM TechnologyRafael Lee | 855-726-4685

Hightech Grafix/dpReportingBR TechnologiesBryan Nichols | 817-268-4040

Technology

Ross4MarketingEileen Bromwell | 800-421-1684

Marketing Services

Fisher & Phillips, LLP Hagood Tighe | 803-255-0000

Labor Lawyers

XLT OvensNick Roths | 316-719-3722

Coca-ColaMidwest: Lisa Mayer | 248-318-7630 Northeast: Jennifer Goodyear | 410-330-4434 Southeast: Ryan Cochell | 404-676-6093 West: Stephanie Somenek | 480-797-4527

Cable, Internet & Phone-Services

Accounting & Tax

Horne, LLP Michael Sassano | 866-281-3950

The Bottom Line (TBL)Marnie Feinour | 800-237-0704

Human Resources

Finance & Lending

Vendor Partner DirectoryLog onto dominosdfa.com for the most current list of partners.

Sterling Info SystemsVirginia Griffith | 800-353-3228

SFV-LLGC, LLC Arthur Rosen or Tim Rhode800-630-1021

My Dominos Insurance (MDI)Jason Upton | 800-251-7407 | 256-738-6752

Insurance [Business]

MaSSCorpJeff Murphy | 800-766-5677

PaychexJenny Blake | 844-846-7824

Renaissance DentalTom Dimmer | 517-381-4222

Background Checks

Ovens

Cleaning Products

Ecolab / SSDCPhilip Perry | 859-312-4041

Cintas CorporationMarc Friend | 513-701-2014

Is your company interested in

partnering with the DFA?

Log onto dominosdfa.com and visit the Vendor section

for information about:

• Partnerships• Advertising• Sponsorship

or contactAmy Villastrigo

210-845-1072 ext. [email protected]

CapitalSourceMichelle Ternus | 402-993-2569

Wizardline TechnologiesShawn Brunelle | 978-423-0875

First Franchise Capital Karen Johnson | 402-562-5111

Ansira Engagement MarketingLauraliisa Gudgeon | 972-663-1162

Construction & Facilities Management

Ascentium Capital LLCAngela C. Anderson | 281-902-1972

Gnich Architecture StudioJason Gnich | 503-552-9079

GDP AdvisorsJohn Powter | 800-473-8697

National Custom, Inc. Peter Thomas | 770-441-1660 ext. 203

Streamline/DirecTVMartin Hornek | 877-780-8385

SprintStephanie Showich | 248-249-0954

CIT Franchise FinanceMatthew Goyette | 603-501-0788

Walton SignageCesar Cordova | 210-325-3612

Whaley Parts and SupplyJeff Quattlebaum | 800-877-2662 x7103

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Please call or email for information or to place an order

1-800-421-1684 fax (303) 286-8515

www.Ross4Marketing.comLIKE USON FACEBOOKwww.facebook.com/Rossprintmarketing

Eileen Bromwell [email protected]

Jasmine Ross [email protected]

Lisa Niesen [email protected]

Giselle Rowe [email protected]

2012

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