Franklin Covey Stock

Franklin Covey Co., a global company, focuses on organizational performance improvement.

Services and Offerings

The company's services and products are designed to help its clients succeed in four key areas: develop exceptional leaders at every level; instill habits of effectiveness in every individual; build an inclusive, high-trust culture; and use a common execution framework to pursue their most important goals.

The company's content, which is based on timeless principles of human effectiveness, is designed to help people change both their mindset and behavior.

The company seeks to combine the best content, delivery and coaching experts, and technology to help the company's clients achieve results at scale-which may extend across an entire organization. The combination of powerful content, teams of experts, a dynamic behavior change platform, and key metrics can guide leaders and teams through solutions that will deliver exceptional results again and again.

The company's services and products are primarily delivered through the company's subscription offerings, which are consisted of the All Access Pass (AAP), which is primarily sold through the company's Enterprise Division, and the Leader in Me membership, which is designed specifically for the company's Education Division. The AAP is a revolutionary and innovative way to deliver the company's content to clients of various sizes, including large, multinational organizations, in a flexible and cost-effective manner. Clients may utilize complete offerings such as The 7 Habits of Highly Effective People, The Four Disciplines of Execution, The Speed of Trust, and Multipliers, or use individual concepts from any of the company's well-known offerings to create a custom solution to fit their organizational or individual training needs. Since the introduction of the All Access Pass, the company has developed the role of the Implementation Strategist to provide the company's clients with the direction necessary to create meaningful impact journeys using the company's tools and content. An impact journey is a customized plan to utilize the company's content and offerings on the AAP to drive sustained behavioral change in a manner that achieves a client's specific goals and provides them with the keys to obtain maximum value from the pass. The company has also translated AAP materials into numerous additional languages, which allows the AAP to be used effectively by multinational entities and provides for greater international sales opportunities.

In the company's Education Division, the company offers the Leader in Me membership, which provides access to the Leader in Me online service, and authorizes use of Franklin Covey's proprietary intellectual property. The Leader in Me online service provides access to digital versions of student leadership guides, leadership lessons, illustrated leadership stories, and a variety of other resources to enable an educational institution to effectively implement and utilize the Leader in Me program. The tools and resources available through the Leader in Me membership will provide measurable results that are designed to develop student leadership, improve school culture, and increase academic proficiency.

To deliver these services and products, the company operates globally with one common brand and a business model designed to enable the company to provide clients around the world with the same high level of service. To achieve this high level of service the company has sales and support associates in various locations around the United States and Canada, and operates wholly owned subsidiaries that serve clients in Austria, Australia, China, Germany, Ireland, Japan, New Zealand, Switzerland, and the United Kingdom. In foreign locations where the company does not have a directly owned office, the company may contract with independent licensee partners who deliver the company's content and provide services in approximately 150 other countries and territories around the world.

Business Development

The company's business is structured around two divisions, the Enterprise Division and the Education Division. The Enterprise Division consists of the company's Direct Office and International Licensee segments and is focused on selling the company's offerings to corporations, governments, not-for-profits, and other related organizations. Franklin Covey offerings delivered through the Enterprise Division are designed to help organizations and individuals achieve their own great purposes through behavior changing content and coaching. The company's Education Division is centered around the principles found in the Leader in Me and is dedicated to helping educational institutions build cultures that will produce great results, including increased student performance, improved school culture, and increased parental and teacher involvement.

Following the launch of the company's AAP subscription service and Leader in Me membership, the company has consistently sought to improve the technology, content, and overall client experience with these offerings. Continued investments in technology, content, and personnel are key to subscription service renewals and the future growth of the company's offerings.

In addition to the internal development of the company's offerings, the company has on occasion sought to grow its sales through acquisitions of businesses and content licenses, and opening new international offices. Over the past few years, the company's growth investment efforts have included the following:

Acquisition of Strive Talent, Inc. - In April 2021, the company purchased Strive Talent, Inc. (Strive), a San Francisco-based technology company which has developed and markets an innovative learning deployment platform. The Strive platform enables the seamless integration and deployment of the company's content, services, technology, and metrics to deliver behavioral impact at scale, primarily through the company's AAP subscription. During the year ended August 31, 2023 (fiscal 2023), the company launched the Impact Platform, which integrates the company's content into the Strive platform and is the new driver of the AAP delivery system. The new Impact Platform will drive sales growth in future periods through an improved client learning experience.

Increased Investment in Content and Delivery Platforms - During fiscal 2023, the company significantly increased its investments in content and delivery platforms. In fiscal 2023, the company released significant new content related to sales effectiveness and the Leader in Me, and launched the new Impact Platform. In fiscal 2024, the company expects to launch new and refreshed 7 Habits of Highly Effective People and Speed of Trust offerings and continue to add new content in the company's Leader in Me membership offering. These continuing investments are critical to the company's growth and ability to attract and retain clients.

Integration of Artificial Intelligence (AI) - With the rapid rise of AI, there will be an increasing premium on human leadership and interaction to leverage AI in the workplace. These skills will include the ability to set vision, focus teams, serve customers, and communicate effectively with human co-workers and AI interfaces. The company is working to leverage the capabilities of AI in its offerings and platforms to improve and customize the learning experience for the company's clients.

Investment in New Client Partners - On August 31, 2018, the company had 214 client partners. The company expects to hire additional sales professionals and other client-facing personnel in fiscal 2024 and future periods to provide additional growth opportunities.

The company seeks to consistently deliver world-class content with the broadest and deepest distribution capabilities through the most flexible content delivery modalities and expect to make additional investments in technology, content, and personnel in fiscal 2024 and in future periods as market conditions allow. These investments may include business acquisitions, the acquisition of license rights, and hiring additional personnel.

Clients

The company has a relatively broad base of clients, which includes thousands of organizational, governmental, educational, and individual clients in both the United States and in other countries that are served through the company's directly owned operations. The company has thousands of additional organizational clients throughout the world which are served through the company's global licensee partner network.

Intellectual Property

The company claims rights for nearly 670 trademarks in the United States and foreign countries. The company has obtained registration in the United States and numerous foreign countries for many of the company's trademarks, including FranklinCovey, The 7 Habits of Highly Effective People, The 4 Disciplines of Execution, and The 7 Habits.

The company claims over 265 registered copyrights, and own sole or joint copyrights on the company's books, manuals, text and other printed information provided in the company's training programs, and other electronic media products, including audio and video media.

Products and Sustainability

The company offers training materials and related accessories in either digital or paper formats. The company's printed training materials are primarily consisted of paper, which is a renewable and sustainable resource. The company's training materials are printed on paper which contains at least 30 percent post-consumer (recycled) material and all of the company's primary printers' paper suppliers are Forest Stewardship Council (FSC) certified. The company purchases its training materials and related products from vendors and suppliers located both domestically and internationally, and the company is not dependent upon any one vendor for the production of the company's training and related materials as the raw materials for these products are readily available. The company's training materials are primarily warehoused and distributed from an independent warehouse facility located in Des Moines, Iowa.

Seasonality

The company's fourth quarter of each fiscal year (year ended August 2023) typically has higher sales and operating income than other fiscal quarters primarily due to increased revenues in the company's Education Division (when school administrators and faculty have professional development days) and to increased sales that typically occur during that quarter from year-end incentive programs.

Coemption

Other significant comparative companies that compete with the company's Enterprise Division include Development Dimension International, Crucial Learning, Korn Ferry, Udemy Business, GP Strategies, Cornerstone, and LinkedIn Learning, among others. The company's Education Division competes with entities, such as 7 Mindsets, Capturing Kids Hearts, Second Step, Responsive Classroom, and Character Strong.

History

Franklin Covey Co. was incorporated in 1983 under the laws of the state of Utah.