Security 101 New CEO Speaks About Franchising And Future
Security 101 is best known for its highly atypical franchising business model but now has a new CEO, Greg Daly, who left ADT for Security 101.
In this report, based on an interview with Security 101's executive team, we examine the company's franchising strategy changes, growth target, and competition with nationwide mega integrators.
Executive *******
***** *********** ******* ******* ** ******** revenue ** *** **** *-* *****, the ******* ** ******* ****** *** franchisees ************ ** *** *** **** to ******* ************** **********, *****, *** cadence. **** *********** ** *********** **** new ************ ** **** ******* ** manage **** ************ ****-******** *********** *** could ** **** ********** ** ********* new ***********, ** *** ***** ******** head ** ******** ********* ********* **** IPVM ** *** *********.
Security *** ****** ********* *****
***** ******** *** *** ***** **** a ********* *****, *** ******* **** not *** ********** ********** ** *** foreseeable ******, *** *** **** ****:
**'** *** ***** ** *** *** additional ********** ** *** **** ****. It's *** ** *** *********** ******.
*** ********** *** *** ********* ****'* on *** ***** *** ************* *****, and **'* *** * *** ********.
**'** ******* ** *** ********* *****.
**** ** * ***** ****** *** the *******, ***** ** *** ***** decade *** ******* ** ********* *** making *********** **** ****** ******** ***********
Pausing ** "****** ***********" *** "******* *********** *******"
******** ***'* *** **** **** ********* change *** **** ** ****** ***********, procedures, *** ********* ****** *** ********:
** ***** ** ****** *********** ****** the ********, ** **** ** ******* the ********* **** ** **** *****. We **** ********** ** ********* ****** of *********** *** ********. ** **'** going ** ***** **** *** **** sure ** *********** *** ***** ** helping **** ******** ** **** ***** business *** ***** *** ***** ** call ** ************.
**** ** **** ** ** **** the ****** ** ** ******* * process, ******* * *********, *** ******* an *** ******** ** *** ************** of *** ******.
***** ******* ********* ****** ********* ********** regions, ******** *** *** *********** *** "organizational *******" ****** *** *****, ********* to ****:
**'** *********** * ********** ********* **** gives ** *** ************ ** ***** customers ******* ** ******** ***********, ******* it ** ********** ** **********, [*****] developing **** *********** ***** *** **** operational ******* **** ** *** **** along ** *** ****** ********** ** that ****** **************.
*** **** *** **** ******* **** not **** **** *** ************ *** inconsistent, *** ******* ********** ** ******* stages ****** *****'* "****** ****" **** standards, **** ************:
** *** ********** **** **** ***** early ** ***** *********** *** ****'* had *** *********** ** **** **** standards, ********** *** *****.
** ***** **** *********** **************, *** our ********** *** **** *********** *** problems.
Importance ** ************** **********
*** *********/**** ****** ******** *** ******* the **** ***** ** ******* ****** different *******, **** ****:
**'* * ****** ** ****** **** we **** *** ***** ********* *** SOPs ** ***** ** **** **** that ** ******* ** *** **** way **** ****** ** ******.
**** **** ********** **** *** ************ values ********** *** ********* ** **** enable *** ************ ** ******** ** "solving *** ******" *** "****** ** organization *******" ****** **** **** "****** a *******" ** ***** ***********:
******* ************** **********, *** "*** ****** done" ******** ** **** ***********. *** are ******** ** ******** *** **** is ** *** ***, ******** *** buzzword ** *** ***, *** ******** the *****-**** ***** ***. ** *** have ************** **********, *** *****, *** you **** * *******, **** *** are ******* *** ******, ** ******* to ****** * *******. ***'** ****** an ************ *******.
Support ******** **********
**** **** **** ***** ******** ***'* franchise ****** **** ** "*************** ******," however, *** ******* *** *********** ********** and ********* ****** *** ************:
[**] ***** *** ********* ****** ** have **** *************** ****** **** **** to ** *** *** **** ***** market.
**** *** ************* *** **** **** to ** *** *** ***** * business *** ** **** ** ******* that ** *** *** **** ** can, ****** **** [** ****] ********* guidelines.
**** ********** **** ****** *** ********** help ********** **** *** ******* ***** respective *****, **** *****:
***** ********** **** ****** ****** *** hopefully *** ********* ** ***** ********** and ********* *** ***** ******* *** business, *** *****, ***** ********** ***** each ********* ****** ******* **** **** want ** *******.
*** ******* **** **** **** ******** to ******* *** ******** ********** ** whether **** *** ********* ******** ** franchises:
* **** *** ********* ****** * lot ** ******.
*** ********** *** * ******** **** of *** ******** **************. ** **** continue ** ******* *** ********** *** their ******** *********** ** *** ***.
** ******** ** ******* *** ******** that ** **** ** *** ************ today, *****, ******** ** **************.
Growing *********** ** ******* *&*, *** *** **********
*** ******* **** **** *********** ** through ************, *** ****** **********, **** added:
** **** ** ****** ** * different ***, ******* *********** ** *********** third ***** *&*,[****] **** ** ** *******, *** **'** *** ***** ** be ****** *** ********** ********** ****.
*** ******* ******** ** **'** *** adding **********. ** **** ** ******** to ******* *** ********** **** ** do **** ** *** ************ ********* right ***. ** ***** ****** ** do ** *********** *** ******* ***** party *&*.
21 **********, $*** ******* ** ******* *** **,*** ******* ** * *****
******** *** *** *** ** ********* owners ****** ** ********* *** *** corporate-owned *********, **** **** ****, *** the ******* ********* "****** **,*** *******" in *** **** **** *****. ** also ***** **** *** *******'* ******* is ****** *** $***+ ******* *** former ***,***** ******, **** **** ** **** *** continues ** ****:
** *** ********** **** $*** *******. We *** ****** **** ** **** last ****. *** ** *** ** the ****** *****. **'** ******* *** talent. *** **'** ***** ** ** even ****** **** **** *** * year ***** ****. ** ** *** on *** ***** ****.
Growing *********, ******* **** ******** ***********
*** **** ** ******** *** ** to ****** * ****** ********** **** can ******* **** ***** ******** ******** integrators, ** **** **********:
*** ******** ** ** ****** ** be * ****** ********** **** * national *********. ** ****** ** ******* with *** *******, *** ****, *** Securitas, *** *** *** **********, ****-**-** Everon.
** ****** *****, ******** *** ***** to ****** *** ******* ******* ** three ** **** *****:
** ****** ** **** ********* **** the **** ***** ** **** ***** on *** *** ****.
Franchise *.*. ********* - ** ********** *****, **** ***** ******* *******
***** **%-**% ** ******** ***'* ******* comes **** *** ******** ***** ********* and *** ******* **** **********, ********* to ****, ******** *** ***** ********** its **** ** ******** "*** ***** of **********" ** *** *****-********* ******** players *** * "****** *****" ***** it ******** **** **** ********* ******** and **********. ** **** ********** **** the ******* ***** ** **** ***** revenue ******* ** **** ***** ** the ********:
* ***'* *********** **** *** ********** view ** ********* ****** ************. * would **** ** *** ** ****** our ****** ** ***** ******* *******, i.e., ********* ******* ************* *** **** of *** *** ************ **** ***** companies ** ***** * ********* ******* platform. * ***** **** ** *** that, *** *****,I'm ******** ** ** ***** **** ******* ********* ** ****** ****, ** ***** ** * ********* ********, ** ** ***** ** * **** ****** ********. [Emphasis added]
Franchise ***-***** ***** *** *** ** ****
** *** ** ******* ** *** franchises, ******** *** **** ******* * period ** ********* ***-***** ***** *** end ** ****. **** ********** ** how******** ***'* ***** ***** ****, ********* Capital,*** *** **********:
**** *********** **** ***** ***** ** my ******* ***** ** *** *** of ****. **********, ** **** **** of *** ******** ********* ****** *** were **** ** *** ******** *********** strategy **** ********* ********* *** *********** and **** ** *** ******** ***********, [like]**** ********, ***'* *** ** ***** ******** owners.
**** ********** *** ******** ***'* ** ** Operations *** **** *** ***** ** Security ***'* ******* ********* ******. ******** told **** ***** *** ********** **** the ***-****:
* *** **** ** *** ******** platform ********. * *** ** *** initial *** **** *********.
* *** *** ******* *********. * built **, **** ** ** ****, and ****** ** ** *** ***** or ** ** ******** ** **** point ******* * **** ** ********. [We] ******** ** **** **** ** integrate **** *** ********* *****.
No ********* ********
**** ********** **** ******** *** **** not **** * "********" ** *** back ********** *********** *** **** **** do ** **** **** *** "*****":
*** ***-**** ******** ** ** ** ready **** *** ********* ****** *** ready. *****'* ** ******** ******** ** proactively **** * ********* **** * traditional ********* *********.
******** *** **** ** ***** **** a ********* ***** ** *****, **** added:
******** ** *** ****** **************, [**] the ********* ***** [**] ** *** stage ***** **** **** ** ********* a ***-**** ************* **** **'** ***** to ** ***** **** ****'** *****.
Easy ******* **** *** **********
****** ****** ********'* ****, ********** *** have ** "**** ****" ** **** their ********** *** *** ****** ** stay **** *** *********** **** *******, as ***** *** *** ******** *** procedures ** *****. ******** ******** ** this, ****** ** ***** ******** *********** be "*****":
**** **** ** **** **** ** be **** ** **** ***** ******** if **** **** ** ******* *** there's * ****, ********** ** **'* a ******, * *****, *** *** an ******* *&*, *** ***** ****** and ******** *** ********** *** ** place, *** ***** ** **** ** easy **********.
**** **** ** *********** **** ** to ******** ** **** **** *** business ** *'* *** ***** ** ride *** **** *** ******. ****'* a **** ******** ***** **** *** franchisees *** ******, *** * **** with **** *****, ** *** * [can] ******* ** ** ******** ** ready ** **** **** *'* ***** to ****.
Recent ***-**** ** ******* ***********
**** ********, **** *****, ******** *** announced ************** ** *** ******* **********- *** ***********, ***********-***** ******* ******** Integration (***). *** *******'* ******** ** Marketing *** ************* *************** ** **** *** *******'* ********* about "********* * ***** ** ****" for ***********:
******** * ***’* ***** **********, * would ******* **** *** *** *** largest ********** ****** *** ******** *** network ** ** *** **** ***** to **** **** *** **** — and ** **** ******** * ***** for *** *********** ** **** ***** business, **** **** *** ***** ** do **.
***'* ********* ******** ******, *** *** ***** *** ********* for **+ *****. ****** **** "**** in *** ********** **** ** ******* manager *** *** *** ******* *********," according ** *** *******.
Succeeded ** *** ***** ***** ******
**** ****** ******** ***'* ***** ***** ** **** ****, ************** ******, *** *** *** *** **** 15 *****, **** **** *********** *** handling ** *** "***** *****" *** that ** ***** *** **** ***** the **** ** ** *** *** "hit ** ***" **** ******:
I ***** *** **** ******** *** **** ** ******** *** *** ***** *** * *** *** ** ***. As part of the consideration process, Steve and I sat down for a long lunch, he talked about the company. He talked about the history, what he was able to accomplish along with a lot of the people on this phone and really built a a great organization and has a team oriented culture. [Emphasis added]
** *** ******* *** ******* ** come ** *** ****** ***daily *****, being **** ** **** **** ** ***** ****** ***. The grind associated with running an operation and that's my wheelhouse. [Emphasis added]
* **** ******* *** ********** *** what ***** *** **** ** ** and *** **** **** ** ****** me ** *** ******** ** **** the ***** *** *** **** **.
****** ** ***** ** *** *******'* board, *** ** ***** **** **** multiple ***** * *****. **** *****:
* ******** ****** ** ***** *** or ***** ***** * *****, ** not ******.
***** *** ************ ******* *** *** and *** **** *** ** ****, the ******** ** *** *** *** the ******* ** *** ********* ***** signals ** ** **** ***** ******* equity ****** ****** ****** *******.
Experience ******* **** ***
**** ******* ***** *** "***** ****** operations *** ********** **** ******* ******" from *** ****** ********, ***. ** elaborated ** *** ********** ** *** of *** ******* ******** ******** *********** in *** **:
**** * ******* *** ***leadership ************** ****** [and] the ***** ****** ********** *** ********** enable and facilitate growth.
*** *** ***** ** ************ **** appears ** **** * *********** ********* structure, *** **** ********** ****** *** allows ****** ** ********* ******* *** an ************ **** **** ***** *** otherwise ****.
Differentiation **** ***** *********** - *****-********
***** **** ** ***** *** ******** national/multinational *********** ***** *** *********** ***** is * ********** ******, *** ******** 101 ****** ***** ********* ** * "multi-location" ***********:
**********, ******** ** *** ********, *** reason * ***** *** ****** *** support ****** *********** ** ******* ***** or **** ********, *****-******** *********** **** are ** *** *****. **'* ***** a ****** ********** ******.
**********, **** *** *** *********, ******* they're ********** ** ******** ********, ** they *** ** **********,you **** * ******** **** *** ******* **** ** * *****-******** ***********. I think that's what Security 101 brings to the table. [Emphasis added]
Focus ** ********* * ******** **********
*** *******'* ** ** ******** ********,**** ******, ***** ***** *** ******** *** provides * "********" ********** ** *** customers *** *** **** ****** * lot ** ************* ** ******** ****** segments:
**'** ****** ******* ** ******** * boutique **********, [*] ********* **** [**] service ****** [**** **] ******* ** solutions **** ***** ** ** ***** above *** ****** *****.
** ** *****, *** ****, ******** us ** ** **** ****** * little *** *********** **** ***** *********** maybe ****'* ******* ** ******* **, they're *** ******* ** ***** ** a ******** ******. **'* ******* ** to **** **** ******** **** **** very, **** *********** ************* ***** *'** been **** *** *** **** ** months.
******** *** ** ******* ** *** specific ***** ** *********' ******** ********, not **** ******* ****** ********. ****** added:
**'** ******* **** ** ******** ** not ***** ** ** ***, "***, I **** **** ****** ********* *** all ** **** ************* *** *** of **** *******. *** *** ****** that ***'** ******* ** ********** ** your *******."
*******, ** **** ******* ***** ** that ******** ********. **'** *********** **** specific **** ** ***** ******* **** requires *** **** ********* ***** ** feel **** ** **** ** *********** to ** **********.
*** ******** ******** ******* ******** *** to ***** ******** ***** ***** *********** can't, ****** ******:
****** * ****** ******** ** *** specific ***** ****** ***** ******** *******, we **** ** *********** ** ****** through ************ ******** ** ********* ** have ************ [** ***** ********] **** others *** *** **** *****, **** has ******* ** ** ******** ****** differently *** ***** ****** **** *** competitors **** *** **** **** **.
**** ** ******** **** ****** ************* within ******** ********, ****** ****:
*** *** ** ************ **** ** an ***** **** * ****** ** having, *** ******, ********* ***** *** that, *** **** ****** * ******* for ******* ************* ****** **** *******?
Serving *** **** ******** ******** *** **** ***-****** *********
******* ****** ******** ********, **** ********* how ******** ***'* ********** *********** *** cost ********* ***** ** ** ******* service ** ***** *** "***** *** afford ********** *********," *** **** ** where *** ****** ** ******* ******, Daly *****:
* ***** **** ******* **** *** improving ********** *** *** **** ********** with *** ********** ****** ** ** be ** ********** ********, ** ********* that ** *** **** ***** ***** not ****** ********** *********.
* ******* ************** **** *** **** integrator *** **** **** ********* ******* to **** **** **** ****** ** midsize ********* **** *** ******* *** an ********** ******** **** *****, *********, and ** *****. **'** ***** ** be **** ** ***** *** **** the **********-***** ********.
Wants ** ** **** *******, ********** ****
** ******* ******** ***'* ******** ******* on ********* ******** ** ************, **** said **** ** ***** *** ******* to ** **** "*******" *** ********* while ************ ** ***** * ***** part ** *** *******, **** * focus ** **********-***** ****:
*'* **** ** *** ** ** more ** *** ******* ****-**** ** experience *** *********.
****** ******* ********** ****** *********, ** the *** *** *********** [**** ** foucs] ** *** ***** ******** *** some ** *** **** **** ** do *** **** ** *** ******** account ********* *** ********* ******** ****** the ********.
***** *** ******** *** ******* **** we *** **** **. **'** **** at *** *** ********. **'** **** at **********-***** ****. ** ******* **** many ********* *************, ** ******* **** subcontractors **** **** ** **** ********** expertise. *** **** ***** ****, *** still **** ** **** **** *** have *** ******** *** *** ****** to ******** *** ******* ******* ** they **** *******.
Security ********* ********* ***********
******** *** ******** ******** ********* ********* (SSN), * *****-***** ********** ******* ** one ** *** **********, ******* **** year ** *****. *** **** *********,***** ***, **** **** *** ** **** to ******** *** ********' *** ***** having ******** *******, *** **** ******** him ** ****** ******* *** ** sell *** ******** **:
** *** * ********* ******* *** a ****** *** ******** ********* [*********], is *** **** ****, *** **** comes **** **** ********* *****, ** get *** ******* ** ******** *** that ***** *** *** ********* ***** being **** ** * ****** ************.
[** ***] ***** **** ***** ***** of ******* *** ******* ****** **** local ***** ** *********** ** ******** to ** ***** ***-****** ******* ***** being **** ** **** ******** ******* in * ******* *****.
*** ********* **** ******** *** ****** his ****** ** ******* *** ****, Security ********* *********, ***** ****** ***** not ********* *** ****:
*** ********, ** *** ******* ****, we **** ******* ******** ******* ** the ******* ****** *** *** ************* local ***********. ***, *** ***** ** able ** **** *** *** ** two ** *** ** *****. **** Security ***, ** *** ** ** and ******* ******** ********* [*********] ** a *****, *** **** *** ****, very **********.
*** **** ** ******* ** * salesperson **** ** ******* *** **** level ** ************ ** ****** *** to ******** ******** ***********:
***** ****** ** ******. *** ********* is ******, *** ********* ** ******, the *********, *********, ***** ****** ** unique *** ******** * ********* ***** of *******. * ******** ** ***** a *********** *** *** ******** **** very ********** ** *** **** *** got ****** *** ** *******. * mean, [**] ********* *** ****** ***. They ******* * *** **** ***** to * ********* ****-**** *********.
******* ******** ******* ** ***** ***** Security *** ** **** *****'* **** control **** *** ******* ** ******* services ** *********:
**** * **** ***** *** **** is *******. * *** ******* **** opportunity. **** [****] ******** **** ***** of ********** ***** ** ****, "***, listen, ** **'** ***** ** ******* someone, ** **'** ***** ** ******* somebody **** ** **** ** ****** two ****, * **** *** ******* to ** **** ** ******* ******* showing ** ****** *** ****.
*** **** ********** **** ***** ******/*********' promise ** ** ******* ***** ************ were ********* *** **** *** ******* they **** ******* "****** * ******** mess":
* *** ******** ******* *** ******** the **** *****. "***, ******, **** on *****. *******'* ***** ******. **'* not * *** ****. **** ** gonna ** * ***** ************ *** you ** ** **** ** ****."
*** ***** ***** **** ******** [***** an ***********] ** ***** ***** ** system *** ******, ***** ******** **** thrown ***, ***** ********* *******. ** created * ******** **** ****** *** organization.
** ******* ** ***** ******, ******** 101 ******** *** **** ***** **** be ** ******* * **** **** the ***********, *** ***** **** ** evaluation *** ********** **** *******/********** *** made:
*** ** *** ****** **** ******** 101 *** ** **** **** **'** not ***** ** ****** ******** *** the ***** ****.
***** **** ** ******* ******* ** makes ***** ** ** **** ** migrate *** ** **** ** *** benefits ** *** ******** *** ****** than **** ********. *** ** **** to **** **** **** ** ******** excellence ****** **** ************. [*** ********* will] ******** **** *** **** *** doing, ******** **** **'** *****, *** then ** **** ** ***, "****, let's **** * **** ** ** makes ***** *** ** ** ******* this ** ****."
A ***** *** ******** ****** *********** ***** ******* ******** ******* ** "**** ***"
******** *** **** ***** **** ****** to ******* ******* **** **** **** but **** ****** ***** *********,******* ******, ******** ***'* *********, ****:
** **** * ******* ***** ** allow ***** ******* ** ******* ** [ways] **** **** *** ****, *** standardize ***** ******** *** ********, **** as "*** ** *** **** * job?"
**** ***** **** ***** ***** ** blending ******** *** ********** ********* *** also ***** ** ******** ** ** acquired ** ******** ***:
** *****'* ** ********** *** ***** that ** *********** * **** **** should ******** ******** *** ******* ** are **** ***** ** ******** ******** and ****** **** ** ****** * growth-oriented ********.
*** ***** ***** ** ***** ** exponential *********** ** ****** ***** ********* whether **** ********** ** * ********** vertical, [**] ** * ********** ********.
** *** **** ***** **** ********. We *** **** ***** *********. ** can **** ***** ********* *** ******** the ********* *** *** ****** **** we **** ****** *** ******* ** do ********* ******* ********.
******* ** ******** *** ** ** exit **** *** ******** **** ***** better ****** ***** *** *** ********** employees, **** *****:
*********** **** *** ***** ********* ** even ***** ******** *********, ***** **** of * ****** ************, ** **** exit ***** ***** **** ** ***** team ******* ** **** **** ** organization **** ****** ****** *************. ***'* not ****** **** ** *** ********* and *** **** ******* *** *********** have **** ** ****'** ***** ** exit, **** **** ****** **** *** on ***** ***** **** *** ***** become **** ** * ****** ************.
Acquiring ******** ****** **** ***********
******* ***********, **** **** ********** ** Security ***'* **** ******** **** ******* at ********* *********** *******:
**'** ************ ************ ** **** ********* types ** ********** **** *** *** necessarily ***********. **'** ****** ******* *** opportunities ** ****** *** ******** *********. We're ****** ******* ** ****** ******, so * ***'* **** ******** ** just ** ***********. * ***** **** to ****** ** ** **** ** acquisition.
** ***** *** ********* **** *** up **** ***** ******* ******** ** the ******* *** ** *** ******, then **'** ****** ********* ****.
** ****** ** ***** ** *** target ****** *** ******** **** *** target ***** **.
*******
** *** ******* ** *** *** Security *** ******** ** ******** *** CEO *** ******* *** ********* ***** shows ********** ****** *** ********. *** next *** ***** **** ** ********* to *** *** **** (** ***) the ******* **********.