In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the Crestcom franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Crestcom franchise, based on Item 7 of the company’s 2019 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Crestcom franchise, based on Items 5 and 6 of the company’s 2019 FDD
- Section IV – Number of franchised and company-owned Crestcom outlets at the start of the year and the end of the year for 2016, 2017, and 2018, based on Item 20 of the company’s 2019 FDD
- Section V – Presentation and analysis of Crestcom’s financial performance representations, based on Item 19 of the company’s 2019 FDD, including information on the:
- recommended retail price, cost of materials, fees, estimated shipping, total costs, and gross revenue margin related to franchisees’ sales of materials for and enrollments of participants in The Bullet Proof Manager program
- 2018 average, median, high, and low gross revenues for the top 1/3, middle 1/3, bottom 1/3, and all 70 U.S. and international franchisees that were active on a full-time basis during the fiscal year January 1, 2018 through December 31, 2018
Section I – Background Information
19 Things You Need to Know About the Crestcom Franchise
Announces Winner of Global Leadership Award
1. In early March 2019, Crestcom announced the recipient of this year’s Global Leadership Growth Award, the Liebherr Group. The Global Leadership Growth Award is given to just one company or organization each year that demonstrates an extraordinary commitment to talent and leadership development.
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3. Tammy Berberick, president and CEO of Crestcom, said, “Liebherr’s commitment to developing their team is truly inspirational. I am honored to name Liebherr and the team as the winner of this year’s Global Leadership Growth Award.”
4. Vicki Wishon, Liebherr’s HR manager, explained why she chose Crestcom: “The 12-month format was a good fit for us. It breaks the learning into bite-size pieces and allows a supervisor or manager to learn new concepts, have 30 days to put it to work and then have a follow up. The subject matter changes over time and benefits people in that group or people with aspirations to be [in that group], and even experienced managers and leaders find good takeaways from the program.”
5. Liebherr has accomplished an incredible level of growth through their investment in developing their leadership team using Crestcom’s internationally-renowned Bullet Proof Manager training program, a 12-month leadership development course.
6. Within the last two years, Liebherr has enrolled 160 participants in Virginia, Texas, Michigan, Florida, and California. Using the leadership skills they developed through Bullet Proof Manager training, Liebherr managers have led their team to become more productive and effective in driving real business results.
Area Representative Delivers Presentation at 2019 ATD International Leadership Conference
7. At the end of November 2018, Crestcom announced that Ram Ramesh, area representative for Crestcom International, LLC for the Caribbean and Central America and executive chairman of Caribbean Centre for Leadership Development Ltd., was set to appear at the 2019 ATD International Conference, “How to Inspire Innovation in Your Teams.”
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible — saving you months of wasted research.8. Crestcom also said that it would have a booth at the 2019 conference for attendees to learn more about the bottom-line impact of leadership development for their organization. This is the third year in a row that the ATD International Conference has chosen Ramesh to speak at their annual conference. He presented on other topics in both 2017 and 2018.
9. Ramesh has been a part of the Crestcom global network for six years and has a strong following of individuals who are driven to create impact within an organization. He has saved his clients approximately $4.3 million in costs, and they have increased team productivity by over 125,000 hours with Crestcom’s program.
10. Ramesh said, “According to a recent Gallup Poll, only 31% of the world’s workforce is truly engaged with their work. This is a huge loss for humanity, and leaders have a crucial role to play in influencing workforce engagement. And our work, through our leadership development programs, provides the tools and techniques necessary for a manager to become a leader, and improve workforce engagement that leads to better productivity and improved profitability for all. Everyone can benefit from Learning and Development – the employees, their families, the employers, shareholders, government, and even the wider society – everyone benefits when we all learn and develop.”
Newest Franchisee
11. At the end of March 2019, Crestcom introduced its newest franchisee, Alan Clark, who had joined the Crestcom network as a franchisee delivering leadership development programs in Northern California. With a strong background in technology, Clark worked with Honeywell and Seagate during most of his career. Clark served a vital role in overseeing and leading teams focused on customer service, including customer analytics, reverse and forward supply chain, repair operations, and call centers.
12. With his experience leading teams, Clark gained a passion for developing others and creating professional growth opportunities. For Clark, leadership defines the ability to adapt to change, adopt right behaviors, and always drive for success.
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14. Since Clark has had first-hand experience with being thrown into a leadership position without prior training, he strongly believes good training does not simply derive from being managed. Clark was immediately drawn to Crestcom after discovering the company’s approach to measured leadership development.
Company History
15. Crestcom was founded in 1987 and provides management, leadership, and sales training solutions worldwide. The company offers management training programs in the areas of communication, developing people, managing change, problem solving, strategic thinking, customer service, leadership, negotiation, raising productivity, and team building. It also provides accelerated training solutions for new sales associates.
16. Crestcom delivers interactive learning experiences that help people produce real business results. This results-based learning helps managers become great leaders.
17. Crestcom’s signature program, The Bullet Proof Manager, is one of the training industry’s widely-used management and leadership development programs among Fortune magazine’s Top 100 Companies. Each month, thousands of business professionals from across six continents participate in the Crestcom Bullet Proof Manager training.
18. The Crestcom franchise model gives franchise owners the support, training, and tools needed to operate their own businesses providing the brand’s world-renowned training. Crestcom has been franchising since the early 1990s and now has locations around the world.
Entrepreneur’s Franchise 500
19. Crestcom ranked No. 419 on Entrepreneur’s 2019 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Crestcom franchise costs, based on Item 7 of the company’s 2019 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Crestcom’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2019 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
Franchised
2016
- Outlets at the Start of the Year: 190
- Outlets at the End of the Year: 193
- Net Change: +3
2017
- Outlets at the Start of the Year: 193
- Outlets at the End of the Year: 192
- Net Change: -1
2018
- Outlets at the Start of the Year: 192
- Outlets at the End of the Year: 185
- Net Change: -7
Company-Owned
2016
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2017
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2018
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
Section V – Financial Performance Representations (Item 19, 2019 FDD) and Analysis
Part 1 – Estimate of Gross Revenue Margins Before Expenses
- Below is a chart showing Crestcom’s estimate of gross revenue margins before expenses related to the sale or marketing of Materials for Crestcom’s U.S. franchisees.
- This chart has not been prepared in accordance with the statement on Standards for Accountant’s Services on Prospective Financial Information.
Gross Margin Per Participant Attending The Bullet Proof Manager Program
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