Growing a Family Business David & Maureen Grimaud Enterprises, Inc.

David Grimaud - President  Education — BSEE ‘83, Louisiana State University, Baton Rouge, LA — ½ way to MBA ‘91, University of S.Carolina, Columbia, SC  Work History — Electrical Engineer (’84 – ’86) — UTC Mostek and Rockwell-Collins, Dallas, TX — Grimaud Enterprises, Inc. — Vice President (‘87 – ’91) — President (‘91 – present)

 Education — 1983, BS Business Admin., Minnesota State University, Mankato, MN  Work History — Sales Person at Dunn & Bradstreet (‘83 – ’85), Austin/Dallas, TX — Insurance Adjuster (‘85 – ’86), Farmers, Irving TX — Grimaud Enterprises, Inc. — Part-time Bookkeeper and Administrater (’87 – ’07) — Fulltime Executive Assistant (‘07 – ’12) — Director of Finance (’13 to present) Maureen Grimaud – Director of Finance

We’re Second Generation Franchisees

 Biblical Principles are Good for Business — Better to give than to receive... (Acts 20:35) — The Golden Rule (Matthew 7:12)  Stay Focused! — Stick to the knitting. — We only do one franchise concept.  Share the wealth. — Through partners. Business Philosophy

Role Models

The Chick-fil-A Has Similar Principles

 If we’re not growing, we’re dying.  We grow through people by sharing the wealth.  We take risks to grow; but we grow profitably! Our Growth Philosophy

Sharing the Wealth How we grew to 92 units.

About Our Franchise

The FranchisorArea DevelopersFranchisees Our Franchise System: Three Tiers

Corporate Staff (Admin & Accounting) Partner GroupsInterim FranchisesOther Franchisees Franchise Operations Staff Task Force The Grimaud Enterprises Organization

Randy Scott – Director of Operations Frank Cox – Areas 64, 109Jon Pike – Areas 56, 107Cindy Gerhardt – Areas 21, 24, 25 Franchise Operations Support

David Grimaud - President Randy Scott – Director of OperationsMaureen Grimaud – Director of Finance Task Force

Grimaud Enterprises (92 stores) Family Owned Franchises (53 stores) Partner Groups (45 stores) Interim (8 stores) Other Franchises (39 stores) Our Umbrella

A Shift Toward Store Ownership

 The business model became expensive and complicated. — The tune-up went away. — We had to expand services.  The franchisor almost failed twice during that time. — Joe Grimaud salvaged it from 1991 – — Lou Brown and Robert Falconi salvaged it in  Franchise leads have dropped off. — But we still have contracts to develop! Why the Shift Over 25 Years?

 We sell only service. — It’s not about a product or secret recipe. — It’s less about the comfort of the visit. — There’s a big do-it-yourself market.  We’re like the dentist. — And the franchisee is the dentist.  Therein lies the challenge. How Do You Grow Auto Service Units?

How do you get beyond one store? Graphic borrowed from yo-yoeatingnomore.blogspot.com

How did Dad add units?

One partner at a time.

Single StoreDistrictRegion The Partner/Franchisee Evolution

Decatur, GA Chaz Moore Conyers, GA Ronnie Moore Single Store Partners

Jeremy Moss 5 stores Oklahoma Rick Martin 4 stores Birmingham, AL District Level Partners

Scott Gerhardt (5) Jerry Taylor (4) Dale Grider (3) Randy Saucier (3) Kyle Weitala (3) Daniel Scott (3) Jerry Anson (2) Mike Scott (22 stores) Bob Hollis (7) John Moffit (5) Mark Hall (12 stores) Regional Level Partners

 Each Store is an S-Corp or LLC  Three Agreements — Shareholders’ Agreement — Employment Agreement — Franchise Agreement  Monthly Financial Review — Distributions to Owners — What if there are problems? The Details!

People are the Essential Element to Growth

GROWING BEYOND 50 UNITS

People, the Essential Element of Growth

AQUA KNOX

GROWING BEYOND 50 UNITS People, the Essential Element of Growth P.P.S.F

P.P.S.F.

AQUA KNOX

GROWING BEYOND 50 UNITS People, the Essential Element of Growth Get the First 50 Right * The Model - PLAN (CORE VALUES, CULTURE, BALANCE, IMPLEMENTING CHANGE) *The Brands * THE PEOPLE P.P.S.F

ORG CHARTS

GROWING BEYOND 50 UNITS People, the Essential Element of Growth Get the First 50 Right * The Model – PLAN (CORE VALUES, CULTURE, BALANCE, IMPLEMENTING CHANGE) * The Brands * THE PEOPLE P.P.S.F – Focus on People P’s

PERSONEL Process

DETAILS BUDGETS STATEMENTS BY LOCATION AND DEPARTMENTS PLANNED MEASURED

GROWING BEYOND 50 UNITS People, the Essential Element of Growth Get the First 50 Right * The Model – PLAN (CORE VALUES, CULTURE, BALANCE, IMPLEMENTING CHANGE) * The Brands * THE PEOPLE P.P.S.F – Focus on People P’s- Mind Them Q’s- Questions THANK YOU FOR YOUR TIME !!