Multi-Unit Franchisee Magazine - Issue II, 2025

BEST Build

$1.2M AUV* for the top 50% of U.S. Marco’s franchised stores in 2023. Get in on the $46B pizza industry with a franchise that’s driving growth.

QUALITY TO BRAG ABOUT

Our flour, sauce and signature three cheeses make our product distinctly Marco’s. We prepare the dough daily in our stores and keep customers coming back.

MOMENTUM

1,200+ locations and key territories available in the U.S. and international markets.

Business support, enterprise-

corporate leadership team make Marco’s

investment for

Carrie & Josh

Nick Crouch

Ray & Monica Harrigill

Julie & Scott Beville

Sam Chand

Grady Hinchman

James Brajdic

Chad Given

Phong Huynh

James Ihedigbo

Chanel Grant

Susan & Ronnie Morris

Multi-Unit Franchisee

80 James Ihedigbo

Influencer for Former Pro Athlete MVP Award

88 Susan & Ronnie Morris

Noble Cause MVP Award

RANKINGS

96 Multi-Brand 50

U.S. franchisees by number of units and their brands

FEATURES

120 Franchisees Go

All In

MUFC sets records on its 25th anniversary

128 The Lease You Can Do

Tips for navigating negotiations, renewals, and beyond 134 Employee Experience

The right technology empowers teams to succeed

140 Turnaround Time

Take a systematic approach with underperforming units

COLUMNS

146 People

Leaders need to understand employees’ points of view

148 Customers Count “Divine discontent” can be good for business 150 Finance

Atomic Habits overcome underperformance 154 Succession Planning

Changes require meticulous planning and execution

156 Exit Strategies

Advice for buying and selling underperforming units 158 Market Trends

Technology is the top strategy for tackling labor challenges

160 IFA Report

Go big: 2025 could be the year of franchising

Our Team

CHAIRMAN

Gary Gardner

CEO

Therese Thilgen

EXECUTIVE VP OPERATIONS

Sue Logan

EVP, CHIEF CONTENT OFFICER

Diane Phibbs

VP BUSINESS DEVELOPMENT

Barbara Yelmene

BUSINESS DEVELOPMENT EXECUTIVES

Krystal Acre Hope Alteri

Jeff Katis

EXECUTIVE EDITOR

Kerry Pipes

MANAGING EDITOR

M. Scott Morris

DIGITAL EDITOR

Kevin Behan

WRITER AT LARGE

Eddy Goldberg

CREATIVE DIRECTOR

Cindy Cruz

DIRECTOR OF TECHNOLOGY

Benjamin Foley

SENIOR WEB DEVELOPER

Matt Wing

WEB DEVELOPER

Don Rush

WEB PRODUCTION MANAGER

Juliana Foley

DIRECTOR, EVENT OPERATIONS

Katy Coutts

SENIOR SUPPORT MANAGER

Sharon Wilkinson

SENIOR SUPPORT COORDINATOR

FRANCHISEE LIAISON

Leticia Pascal

SENIOR GRAPHIC DESIGNER

Michael Llantin

VIDEO PRODUCTION MANAGER

Greg Del Bene

DIRECTOR, CUSTOMER EXPERIENCE

Chelsea Weitzman

CONTENT & MARKETING MANAGER

Taylor Williams

SPONSORSHIP

BENEFITS MANAGER

Heather Stoner

CONTRIBUTING WRITERS

Helen Bond Colleen McMillar

CONTRIBUTING EDITORS

John DiJulius Matt Haller

Nichole Holles Larry Layton

Meme Moy Kendall Rawls

Tori Wagner Paul Wilbur

ARTICLE INQUIRIES

editorial@franchiseupdate.com

SUBSCRIPTIONS

subscriptions@franchising.com 408-402-5681

MUFC 2025: A Record-Breaking Success!

Wow! What an incredible Multi-Unit Franchising Conference! MUFC 2025 again set a new attendance record, bringing together thousands of ambitious entrepreneurs, seasoned multi-unit operators, franchisor executives from hundreds of top brands, and an unparalleled lineup of vendors ready to fuel our industry’s growth.

This year’s conference was packed with powerful insights and game-changing connections. We were inspired by “Shark Tank” star Daymond John, who shared his remarkable journey of turning FUBU from a side hustle—financed by a HELOC on his mother’s home—into a global powerhouse. Mike Walsh, a leading futurist, challenged us to rethink how AI will revolutionize not just franchising, but every aspect of our businesses and lives. The future is about data and our ability to process it. Going forward, everything from consumer data to forecasting will make our businesses more productive and profitable.

Beyond the keynotes, MUFC 2025 was a master class in opportunity. I had the chance to reconnect with longtime friends, forge new relationships, and gain insights that will directly impact my business. This conference was a launchpad for the future, offering opportunities to meet growth-focused lenders, engage with innovative new brands, and discover vendors with cutting-edge solutions.

MUFC built its reputation on franchiseeled panels, where the real action and

excitement begin and end. The insights and stories shared by franchisees are the heartbeat of the conference, providing firsthand lessons from those who’ve lived it. Whether it’s the bootstrap entrepreneur, the PE-backed scaler, or the seasoned hired gun, these are the voices that shape the industry and drive the conversation we all learn from.

One thing was clear: Now is the time to take our organizations to the next level.

On the policy front, the IFA delivered critical updates on FTC regulations and tax policy changes, both of which create a more favorable environment for franchising. These shifts mean more flexibility, greater investment potential, and a stronger foundation for expansion.

As this year’s chairman, I couldn’t be prouder of what we accomplished together. MUFC continues to be the premier event for multi-unit operators, and this year’s conference set the stage for a big and bright future. If you missed it this year, make sure you don’t next year!

Until then, keep pushing forward, seizing opportunities, and growing your business. See you in 2026!

David Ostrowe

DAVID OSTROWE MUFC 2025 Chair

25

Written by M. SCOTT MORRIS

MUFC 25

2025

During the 25th anniversary of the MultiUnit Franchising Conference in Las Vegas, Multi-Unit Franchisee magazine revealed its prestigious MVP (Most Valuable Performer) Award winners. These outstanding individuals were recognized for their exceptional contributions to the franchising model.

The 2025 MVP winners have worked diligently to grow their businesses and become leaders in multi-unit franchising. Over the years, they solved problems, mentored employees, served their communities, and embraced new technology. They also developed new ways to deliver for their customers.

By definition, MVPs aren’t afraid of work. In the following pages, you’ll see their stories of sacrifice and resilience as they’ve operated their businesses through bad times and good.

Carrie & Josh Ayers Veteran Entrepreneurship MVPs

Julie & Scott Beville Husband & Wife Team MVPs

James Brajdic (Tie) Single-Brand Leadership MVP

Sam Chand Multi-Brand Leadership MVP

Nick Crouch (Tie) Single-Brand Leadership MVP

Chad Given Mega-Growth Leadership MVP

You’ll also read about the people who advised and supported them as they took risks to build bright futures.

Franchising is open to people from all walks of life, and it offers a pathway to financial freedom. While franchisors provide blueprints, franchisees put in the early mornings and late nights to turn those blueprints into real-life successes. Through their stories, you’ll gain insights into hiring and training practices, discover strategies for navigating industry shifts, and get a glimpse into the future of franchising.

The 2025 Multi-Unit Franchisee MVP Awards showcase the exceptional individuals who elevate franchising. Their dedication and innovation are testaments to this dynamic business model.

Chanel Grant Diversity, Equity, and Inclusion MVP

Ray & Monica Harrigill Spirit of Franchising MVPs

Grady Hinchman Innovation Award MVP

Phong Huynh American Dream MVP

James Ihedigbo Influencer for Former Pro Athlete MVP

Susan & Ronnie Morris Noble Cause MVPs

Carrie & Josh Ayers

Title: Multi-Unit Franchisees

Company: Playa Bowls

No. of units: 6

Age: Carrie 48, Josh 43

Family: 3 children, Oliver, 15, Reagan, 13, and Dexter, 11

Years in franchising: 5

Years in current position: 5

Failure Is Not an Option

Military couple applies Army values to franchise portfolio

By Kevin Behan

Carrie and Josh Ayers are the Veteran Entrepreneurship MVPs (Most Valuable Performers) for outstanding performance, leadership, and innovation by military veterans.

With a combined 18 years of experience in the U.S. Army, Carrie and Josh Ayers are applying the mentality and core values they learned in the military to franchise ownership of six Playa Bowls in New Hampshire.

Josh spent six years in the military and served in Operation Iraqi Freedom in Baghdad in 2003, and Carrie was an active-duty medical officer from 2003 to 2015. They met in the Army and have been married for 20 years. For three of the first five years of their relationship, they were separated by deployments.

After Josh left the Army, he worked as a police officer in Baltimore while Carrie completed her anesthesiology residency at Walter Reed Army Medical Center in Washington, D.C. They developed a fondness for Playa Bowls, a superfruit bowl concept serving bowls, smoothies, juices, and cold brew. They became hooked, and through a connection at Walter Reed, they met with the franchise’s founder, Robert Giuliani.

The pair were looking for a long-term career path as Josh transitioned to civilian life. His safety as a police officer was also a concern. Carrie had some experience in the restaurant industry, having worked in a 24-hour truck stop her family owned. Those factors, along with a passionate belief in Playa Bowls’ healthy and fresh selections, motivated them to open the franchise’s first location in New Hampshire in 2020.

“It is such a satisfying product. I could eat Playa Bowls three times a day,” Carrie says. “We thought if we would drive an hour for this, that others would too. When the vision for the product spoke so strongly to us, we wanted to bring it to others in the area.”

Carrie’s prediction has proven correct because the concept has been a hit. They added five more stores in southern New Hampshire that are all

within a 30-minute radius. Just as important, sales at each store remained steady even as new locations were added nearby.

Josh leads with boots on the ground and manages construction, leases, and the openings of new restaurants. Carrie, who also works full-time as a physician, oversees from above as she handles human resources, supply, and marketing. The situation doesn’t leave much free time for the couple, but their experiences in the military prepared them for this moment.

“The Army officer program sets you up for doing this by instilling principles for success and leadership,” Carrie says. “It is not an option to fail in business, which is the same in war. When you are tired and beat down, you need to come up with a plan to succeed. If there is a problem, you have to figure it out. You learned how to do that each day in the military.”

MVP QUESTIONS

Why do you think you were recognized with this award? We were able to hit the ground running in opening our first store and quickly grew to six locations in a small area of New Hampshire within four years. It is just the two of us within the ownership group, and we had to grind to get that done. That is something you get out of veterans. The values instilled in us by our military service have been instrumental in our success. We know that veterans make up a large part of franchise ownership, and I’m truly honored that we stood out among such amazing multi-unit owners.

How have you raised the bar in your own company? We lead from the front and empower the team to take our product to the next level. We are always available to help, and we always appreciate and respect every employee, from the new hire to the territory manager.

What innovations have you created and used to build your company? We emphasize training and retraining our employees. We develop educational, TikTok-style videos to teach our staff. Many of our workers are young, and they can relate to this format. The videos are fun and easily digestible and help with their learning.

What core values do you think helped you win this award? We use the Army values, which were in our wedding vows as well: loyalty, duty, respect, selfless service, integrity, honor, and personal courage. They are fundamental to every successful relationship and business.

How important is community involvement to you and your company? We have a community giveback policy where we say yes to every request for help in fundraising. It can come in the form of supporting huge corporate events to providing gift cards for a youth hockey raffle. We donate to hospitals and sponsor youth teams in the area. We find a way to help each group that asks us for help.

What leadership qualities are important to you and your team? Carrie: I tend to be the problem-solver and educator on our team. I love to learn, but even more so, I have a strong disdain for being uninformed. If I see a problem, I refuse to complain about it. I will think about it, study it, research it to death, and find a resolution. I am fiercely motivated and have endless energy to succeed. In fact, the more someone doubts me or my ability, the more drive I have to make the impossible happen. Saboteurs are my fuel.

PERSONAL (Carrie)

First job: As a waitress, cashier, dishwasher, and short-order cook at my family’s restaurant when I was 12.

Formative influences/events: My parents owned a truck stop in New Hampshire that operated 24 hours a day, seven days a week. I learned about the restaurant business by watching them early on in my life. It took our entire family to make the restaurant run. I pulled all-nighters as my mom

We lead from the front and empower the team to take our product to the next level. We are always available to help, and we always appreciate and respect every employee, from the new hire to the territory manager."

often needed me to work the 10 p.m. to 6 a.m. shift when someone called out. I came into Playa Bowls fully aware that a restaurant is a lifestyle. It’s like a family member who always requires nurturing and your full attention.

Key accomplishments: Serving in the U.S. Army for 15 years. I earned my medical degree and MBA concurrently, knowing that business is key to success in any field. I practiced more than 40 hours a week as an anesthesiologist while opening six restaurants and raising three children while keeping a healthy and happy marriage.

Biggest current challenge: Growing our support staff and learning to organize operations, sales, finance, and marketing with six stores.

Next big goal: We would like to continue to add more stores and provide a Playa Bowls within 20 miles to as many New Hampshire citizens as we can.

First turning point in your career: When we opened our first shop, the line was wrapped around the shopping complex for hours.

Best business decision: Trusting my intuition about our product. If I loved and wanted quality acai, others must too.

Hardest lesson learned: When you are in a partnership, you can’t force your vision, views, and ideas about every decision on someone who has their own

perspective. It’s a balance even with a husbandwife relationship.

Work week: 50-60 hours a week working in the operating room, which includes 10 to 12-hour days, four to five days a week. We spend breaks, nights, and weekends working on restaurants.

Exercise/workout: That has taken a back seat right now.

Best advice you ever got: My father told me, “You can do anything if you want it badly enough.” He was a very successful man in the military and business and always said the world is your oyster.

What’s your passion in business? To provide quality food in a rad environment that leaves you feeling great. I love for people to feel good after eating a great meal.

How do you balance life and work? I plan, and I am intentional. I make a lot of lists and set reminders constantly. I surround myself with an amazing village. I make sure that I give myself fully to each child and my husband when we are together. I multitask with work like nobody’s business. I am known to post to Instagram for our six shops at 5 a.m. while feeding the dog and balancing my QuickBooks. I will continue to balance that work during lunch while I chat with my amazing co-workers.

Guilty pleasure: Collecting credit card points for travel.

Favorite book: Die with Zero by Bill Perkins. Favorite movie: “Wedding Crashers.”

What do most people not know about you? I got hit by a truck when I was 5 years old.

Pet peeve: People who scrape their teeth on their fork when they eat.

What did you want to be when you grew up? A doctor.

Last vacation: Doha, Qatar, and Abu Dhabi, United Arab Emirates, in October 2024.

Person you’d most like to have lunch with: Tony Robbins.

MANAGEMENT

Business philosophy: Anything is possible with a vision and hard work.

Management method or style: Lead from the front, and never ask people to do something you wouldn’t be willing to do. Always be direct in criticism and appreciation.

Greatest challenge: Time. We have three children, operate six restaurants, and I work full-time as a physician. Having additional time would help so much, so it is important to make every minute

count. Time is really your most valuable asset, and you need to structure your day.

How do others describe you? Extra. Some people are fine doing the bare minimum, and that’s fine. I fill up my days with a million things I want to do. People ask us how we are doing everything we do. We are not going to fail, and that is part of our value system.

Have you ever been in a mentor-mentee relationship? What did you learn? I love what books provide for information on a subject, but mentoring is the finesse and art of application. The restaurant world has a lot of people who are good at a lot of different things. We’ve met a lot of different people in the business and have taken best practices that fit our business from each.

One thing you’re looking to do better: Improve profits and drill down costs.

How you give your team room to innovate and experiment: I allow them the freedom to practice and only come in for quick suggestions or feedback. I constantly support innovations and good ideas.

How close are you to operations? I tend to do the finance side of the business, so I work to provide operational feedback.

What are the two most important things you rely on from your franchisor? Innovation of our amazing product and marketing inspiration.

What you need from vendors: Consistent delivery, prices, and quality of service.

Have you changed your marketing strategy in response to the economy? How? We have increased our marketing efforts recently. It’s important to get people into your restaurant as customers have become more discretionary in their spending.

How is social media affecting your business? It’s a giant part of our world. “Phone eats first” is a motto to live by. If you aren’t proud of a bowl to be featured on social media, you shouldn’t be serving it. How are you using technology, like AI, to manage your business? We are just starting to

play around with it for suggestions and ideas. We are hoping to use it more as we move to our new POS system. Moving to AI will be a giant step forward for technology.

How do you hire and fire? We mostly hire organically via word of mouth or social media. A store manager handles the hiring and any firings. Josh oversees hiring for store opening crews and managers.

How do you train and retain? We have recently brought on a training manager who moves between stores to help with new hires, allergy training, corporate training, and seasonal specials.

How do you deal with problem employees? We have a process for write-ups and retraining, and we provide verbal and written counseling for first and second infractions.

Fastest way into your doghouse: Treating a customer poorly.

BOTTOM LINE

Annual revenue: $6,326,000.

2025 goals: Open our seventh shop in Hanover, New Hampshire. I also want to simplify banking, streamline finances, and improve the bottom line by effectively communicating expectations on labor/ COGS to management and staff.

Growth meter: How do you measure your growth? We previously gauged it as an increase in sales, but now we are moving toward lean practice and increased sales.

Vision meter: Where do you want to be in five years? 10 years? In five years, we would like to be finished building stores and free of debt. In 10 years, we want to be organized and profitable and ready to sell if Josh wants to retire.

Do you have brands in different segments? Why/why not? No, we chose Playa Bowls specifically for our love of their acai and quality ingredients.

How is the economy in your region(s) affecting you, your employees, your customers? People are definitely more discriminating with spending, so we need to make them see the value and feel valued and appreciated for coming in. Are you experiencing economic growth in your market? We are. Other than the last quarter, we have seen year-over-year growth at a great rate in each of our stores. We’ve continued to see that growth even with new stores in the markets. How do changes in the economy affect the way you do business? Costs are rising so quickly that we can hardly keep up. Labor has also been growing more than we can account for with increased sales. Our profit margin is close to gone with labor and cost of goods increases, so we’ve had to get more accurate in our scheduling and inventory. How do you forecast for your business? We use last year’s data to plan along with local events

It’s important to get people into your restaurant as customers have become more discretionary in their spending."

throughout the year and the weather. There is a seasonal ebb and flow to our business. We know cold and rainy weather will negatively impact sales, and the better weather of spring and summer will bring additional customers. Graduations and other area events also increase sales.

What are the best sources for capital expansion? We’ve relied on local banking for business loans (SBA loans) on four of our six shops.

Experience with private equity, local banks, national banks, other institutions? Why/ why not? We’ve tried to stay local as much as possible. We also try to contribute at least 25% to each build as we’ve moved to taking construction loans.

What are you doing to take care of your employees? We give gifts at the end of the year to all 186 employees. We also provide a $25 gift card to the employee of the month at each shop. We do holiday get-togethers in each shop. We arrange friendly competitions to improve sales between stores. Employees are the special sauce of our success. How are you handling rising employee costs (payroll, minimum wage, healthcare, etc.)? It has been tough, but we’ve tried to increase wages for our staff because they are truly worth it. Retraining and finding quality people is expensive, but it is our philosophy.

What laws and regulations are affecting your business, and how are you dealing with them? Luckily for us, not many affect us. We avoid hiring workers who are under 16 years old.

How do you reward/recognize top-performing employees? We name employees of the month at each shop. We also send frequent shout-outs on group communication and highlight employees who get great feedback on reviews.

What kind of exit strategy do you have in place? Once our kids are all in or have completed college in about 10 years, we’d like to move on from owning our shops. 

SIMON & CHRISTINE BUESNEL

Owners/Investors

FYZICAL Therapy & Balance Centers

600+ open locations

WHAT ATTRACTED YOU TO THE FRANCHISING BUSINESS MODEL?

Our professional experience was in the corporate world, working with large global organizations. As we looked to acquire a small business, we quickly realized that our corporate experience did not scale down to running a small business. We determined that we needed the support that comes with a franchise model to give us the best foundation for starting a business.

WHAT WAS YOUR FIRST JOB IN FRANCHISING?

This is our first role in franchising. After speaking with several franchisors, we ultimately chose FYZICAL because we felt very comfortable with it. Our due diligence with existing franchise owners confirmed the value and support FYZICAL provides, and our own experience verified that.

HOW DID YOU SELECT THE BRAND YOU FIRST FRANCHISED WITH?

(Simon) We were deeply moved by its impact on communities. My mother in the U.K. has battled Parkinson's for more than 5 years, greatly affecting her balance and independence. If she had access to FYZICAL, she could have regained confidence in her mobility, likely extending her independence and quality of life. That made FYZICAL the right choice for us.

HOW DID YOU FUND YOUR FIRST LOCATION?

We utilized the ROBS (Roll Over as Business Start-Up) federal program to fund our first location and set aside funds for a second. This program allows business owners to use retirement funds to cover start-up costs through a tax-free 401(k) withdrawal.

WHAT CHALLENGES DID YOU FACE IN THE BEGINNING?

Our biggest challenges were securing a lease for our first location and hiring our opening

physical therapist. Both are so critical to the business's success. FYZICAL provided invaluable support and guidance, helping us make informed decisions on location selection and finding the ideal physical therapist profile to ensure a strong start.

HOW DO YOU BUILD COMPANY CULTURE?

We believe strong company culture is critical to short and long-term success. We focus on several core elements: clarity of vision and values, leading by example (we all do what is required for patients), fostering a team environment, open and honest communication, promoting work-life balance, employee development, acting on feedback, and celebrating achievements.

HOW DID YOU CHOOSE FYZICAL THERAPY & BALANCE CENTERS AS THE RIGHT INVESTMENT OPPORTUNITY TO HELP GROW YOUR ENTERPRISE?

(Christine) Health and wellness have been my passion for 53 years, and FYZICAL aligns perfectly with my values. The franchise's balance of structure and flexibility is key to success. Seeing our patients leave healthier, happier, and moving better confirms I made the right choice. (Simon) It's more than just a paycheck; it's about making a meaningful difference.

WHAT DID IT TAKE TO GO FROM 1 TO MULTIPLE LOCATIONS?

We're committed to 3 locations and are actively looking to sign a lease agreement for our second. The first location has provided such valuable learning that will directly support a rapid ramp-up for the second. We've seen strong demand from our referring sources for a second location. One of our current full-time PTs will lead the opening of location two.

HOW DID YOU BUILD THE NECESSARY INFRASTRUCTURE FOR YOUR COMPANY?

FYZICAL's GAMEPLAN gave us great guidance and a checklist for setting up infrastructure. We used FYZICAL vendors for facility build-out, equipment, technology (website, EMR), HR (payroll, onboarding, benefits), and marketing (digital, signage, branding). Physical marketing was done in-house with regional support, and legal setup was done locally with a C-Corp structure.

GOALS FOR NEXT YEAR

We plan to grow clinic one from 3.2 to 5 clinical FTEs, supporting 1,000+ patient visits monthly. Clinic 2 will open in 5/2025 with a Wellness Program in a larger space. We'll expand services: Wellness, Pelvic Health, and Dry Needling, increase PT/PTA interns from one to 3-4 by 2025, and boost community engagement through groups like the Parkinson's Support Network.

HOW DO YOU HANDLE HIRING AND FIRING EMPLOYEES?

We hire clinical staff through referrals, job postings, and student internships. Our first PT was hired via a recruiter, but we've focused on relationships and postings since then. Hosting PT/PTA student internships helps us source future hires. Each new hire begins with a 1-3 month trial period before deciding on permanent employment.

DID YOU HAVE MENTORS ALONG THE WAY? IF SO, WHO WERE THEY AND HOW DID THEY HELP?

Marc Phillips, our FYZICAL Franchise Regional Consultant, has been an incredible mentor from a few weeks before opening to where we are today. His experience as a seasoned physical therapist and clinic owner and his growth mindset have provided invaluable guidance throughout our journey.

HOW MANY LOCATIONS/UNITS DO YOU PLAN TO HAVE?

We've purchased three licenses. Our next clinic will open in 2025, with the third

following 12 months later. Having three clinics allows us to achieve economies of scale, which aren't possible with just one location. You really need multiple units to maximize efficiency and growth.

IN WHAT WAYS DO YOU MEASURE YOUR GROWTH?

We measure growth through referrals and referral sources, patient visits, revenue, headcount, and operational efficiencies. These metrics help us track progress, identify opportunities, and effectively meet our goals.

ARE YOU LOOKING TO ADD TERRITORIES OR MARKETS WITH THIS BRAND?

We're not looking to add territories; we're focused on Northern Nevada. However, we are expanding markets by adding Wellness services to target and attract an additional complementary customer base.

WHAT IS YOUR NEXT BIG GOAL WITH FYZICAL?

Our next big goal with FYZICAL is to open location #2 and establish Wellness as a viable service in the community so that we can meet the evolving needs of our patients. The HQ team has been there every step of the way, and the support we've received has been enormous. We're so glad to be able to celebrate our patients, our staff, and our community.

HOW MANY UNITS DO YOU PLAN TO HAVE WITH FYZICAL IN 10 YEARS?

In 10 years, we envision 3-5 thriving FYZICAL clinics, each offering exceptional treatments in warm, welcoming spaces that truly put patients first. Hearing patients say, "It almost feels like we're coming home," inspires us every day. There's nothing more rewarding than seeing lives transformed and knowing FYZICAL is making a real difference. 

Title: Multi-Unit Franchisees

Company: Sing Bev Hospitality

No. of units: 20 Chicken Salad Chick

Family: 2 daughters and 1 son

Years in franchising: 12

Years in current position: 12

Julie & Scott Beville

Embracing the Salad Days

Couple excels in all areas of franchise ownership

By Kevin Behan

Julie and Scott Beville are the Influencer for Husband & Wife Team MVPs (Most Valuable Performers) for demonstrating excellence in franchising as husband and wife. The Bevilles were not available to take part in the MVP Q&A for this issue.

Julie and Scott Beville started their franchise journey with a bang 12 years ago and have not slowed down since. Shortly after opening their first Chicken Salad Chick restaurant in Greenville, South Carolina, in 2013, they were recognized with the franchise’s Owner of the Year Award. They earned the award again in 2022, becoming the first franchisees to win twice.

The Bevilles have grown their franchise ownership to 20 locations throughout North Carolina and South Carolina, becoming the largest and most successful franchise operators in the Chicken Salad Chick system. They have also taken on leadership roles for the franchise. Scott is a member of the Franchisee Advisory Council and the Marketing Advisory Committee, helping to shape the brand’s direction.

They prioritize community service and charitable endeavors. Scott serves on the Chicken Salad Chick Foundation’s board, where he plays a pivotal role in fundraising efforts for initiatives, such as Cure Childhood Cancer and local food banks, through the Giving Card promotion and Cookies for a Cure campaign. Those programs have helped raise more than $2.5 million since 2017. Julie is involved in community partnerships and supports the American Cancer Society, regularly donating proceeds from pre-opening events to local chapters of the organization.

As a result of their successful multi-unit franchise ownership, leadership within the Chicken Salad Chick system, and charitable contributions, the couple earned the 2025 Influencer for Husband & Wife Team MVPs. 

The Bevilles have grown their franchise ownership to 20 locations throughout North Carolina and South Carolina, becoming the largest and most successful franchise operators in the Chicken Salad Chick system."

James Brajdic

Title: President

Company: Customer Maniacs and Green Bay A Dub

No. of units: 13 A&W

Age: 53

Family: Wife and 2 children

Years in franchising: 23

Years in current position: 23

Singularly Focused

Legacy franchisee carries on family tradition with A&W

By Kevin Behan

James Brajdic is co-winner of the Single-Brand Leadership MVP (Most Valuable Performer) for achieving leadership with a single brand.

Even though James Brajdic has been a franchisee with A&W Restaurants for more than two decades, he has identified with the brand for most of his life.

When he was 11, his parents purchased a nearby A&W, which led to his first job as a dishwasher two years later. That started his career in the restaurant industry, all of which has been spent with the A&W brand. Following college, he worked in his family’s restaurant and managed a remodeled location before purchasing his parents’ restaurant when he was 31. He later partnered with multi-unit operator Barb Gretzinger, and the two operate 13 A&W locations in Central Wisconsin.

The familiarity with the A&W brand and its close-knit culture has kept Brajdic singularly dedicated to the franchise rather than exploring other restaurant concepts. That sentiment comes with a mix of loyalty and strategic planning.

“I believe it is easier to operate one brand than two,” Brajdic says. “You are totally family with A&W, and it is tough to move away from that. I really like being focused on a single brand, which helps drive our business.”

Brajdic is a respected member of the A&W system. He has been on the franchise board for more than 25 years and also served on the A&W Yum! Brands co-op purchasing board. He cites integrity as the top core value and leadership quality that drives his operations and interactions with customers, employees, and others throughout the A&W system.

“We are proud to see James Brajdic’s recognition for the Multi-Unit Franchisee MVP award. He has been a part of the A&W family for more than 40 years as a second-generation franchise partner, and his growth with A&W is commendable,” says Betsy Schmandt, CEO and president of A&W. “We greatly appreciate his contributions on the board of the National A&W Franchise Association as well as within our greater franchise community and his local communities. This award is well deserved, and we’re confident he’ll continue to achieve great things.”

MVP QUESTIONS

Why do you think you were recognized with this award? I honestly don’t feel like I do anything special. You just do what you do. It’s only when you receive recognition that you’re forced to reflect on your actions. I’ve always approached sitting at the “big table” with the mindset of learning as much as possible from those around me. We’ve had the privilege of being mentored by some truly incredible people. As you get older, you naturally find yourself in the role of a mentor. I genuinely enjoy mentoring others and want everyone to succeed even if that sometimes includes your competition.

How have you raised the bar in your own company? We are consistently exploring new technologies, attending conferences, and staying proactive in the ever-changing restaurant industry. We invest a lot of time coaching and mentoring our general managers, providing them with weekly access to my business partner and me. Together, we bring more than 80 years of restaurant experience to the table. Spending quality time with our staff not only helps develop their skills, but opens the door to fresh ideas and insights that can drive positive changes in our business.

What innovations have you created and implemented to build your company? We are constantly adjusting our work week to implement new systems and improve our operations. Attending the Multi-Unit Franchising Conference has been a valuable source of fresh ideas, many of which we’ve brought back and successfully implemented in our business.

During Covid, we recognized the need to transition to a cloud-based POS system and were the first franchise to make that change amid the pandemic. While we didn’t start with the best online ordering platforms, the support and leverage from A&W allowed us to secure the right systems to drive success, and our sales continue to grow.

I’ve always envisioned having a robust enterprise system, so I’m genuinely excited about our new accounting and operations platform with Restaurant 365, an optional service offered by our POS provider. This platform will enable us to mentor our

general managers consistently, offering them real-time financial insights and fostering ongoing growth and development.

What core values do you believe contributed to winning this award? I have always believed that integrity is the cornerstone of strong leadership. Upholding high integrity has helped me build trust and create a long-term success model for my family, employees, peers, franchisor, and board members. Maintaining integrity in every action is crucial. It’s what sustains lasting relationships and drives sustainable success.

When you consistently make the right choices, not only do you earn the respect of those around you, but you experience a sense of fulfillment and confidence. This inner alignment empowers you to lead with authenticity and conviction, setting a positive example for others to follow.

How important is community involvement to you and your company? My father was a genuinely humble person who always believed in giving back to the community. He taught me the importance of giving without expecting recognition, and we’ve carried that lesson forward. When it comes to donations, our answer is always yes. We give with compassion, staying true to the values my father instilled and helping others quietly and with a sincere heart.

We give with compassion, staying true to the values my father instilled and helping others quietly and with a sincere heart."

What leadership qualities do you find essential for you and your team? Integrity is undoubtedly a vital leadership quality. In addition, empathy, a clear vision for the future, accountability, and adaptability are the core values that guide my leadership approach. These principles allow me to lead with a genuine passion for our employees and a true sense of joy in being part of the A&W business. When you lead with these core qualities, this business doesn’t feel like work; it feels like purpose and fulfillment. 

Taste Success with the #1 HOT DOG franchise

Sam Chand

Title: CEO

Company: Jasam Enterprises

No. of units: 25 Checkers & Rally’s, 35 KFC

Age: 55

Family: Wife Dipti, son Kevin, 27, and daughter Dipali, 24

Years in franchising: 27

Years in current position: 27

Sustainable Success

CEO prioritizes employee retention and workplace culture

By Kevin Behan

Sam Chand is the 2025 Multi-Brand Leadership MVP (Most Valuable Performer) for achieving brand leadership with multiple brands.

Nearly 40 years before building a portfolio of 60 fast-food restaurants that generate more than $75 million in annual sales, Sam Chand experienced an unsettling introduction to the U.S.

Political unrest in his home state of Punjab in India forced Chand’s family to relocate to New York City in 1986 to start a new life that they believed would be filled with opportunity. At first, the teenager struggled to adapt to his new home while figuring out driving directions as a delivery boy for his uncle’s deli.

“It was scary. We had this idealized vision of America from what we saw on television,” Chand says. “But there was graffiti everywhere, and people were playing loud music on their boom boxes. It wasn’t what I expected, and it was an adjustment.”

Chand found his bearings and gained a decade of invaluable experience in the foodservice industry before purchasing his own deli. After several years of ownership, he made what he says was his best business decision by opening a Taco Bell Express within his deli. The arrangement was a tremendous success as the Taco Bell Express had higher sales than two nearby stand-alone locations while also increasing business for the deli.

Officials with Yum! Brands took notice and approached Chand about franchise ownership, selling him 26 KFC restaurants in 2011. He became a franchisee with Checkers & Rally’s in 2015 and currently owns a total of 60 restaurants for the two brands across New York and Michigan. Chand is also the head of a private equity firm and has combined his financial expertise with operational efficiency to streamline processes at Checkers & Rally’s double drive-thru locations.

As a multi-brand franchisee, Chand prioritizes employee retention and creating a strong workplace culture. He hires people with long-term goals, fostering their development and creating lasting relationships.

“It’s more important to me that someone has stuck with one or two jobs and spent extensive time with a company rather than having a long list of short-term jobs,” Chand says. “I’d rather hire someone with less experience but a long-term desire to grow with the company and its vision. I can’t recall

a time when we’ve had to fire someone who grew from within the organization.”

MVP QUESTIONS

Why do you think you were recognized with this award? Consistently delivering strong performance across multiple units or brands and meeting or exceeding financial and operational goals. Prioritizing customer satisfaction and ensuring high service standards across all locations. Being able to adapt to market changes, identify new opportunities, and apply innovative strategies to maintain or grow brand presence.

How have you raised the bar in your own company? I’ve raised the bar by consistently setting high performance standards, creating a nurturing environment for employees, fostering a culture of continuous improvement, and leveraging innovation to drive results.

What innovations have you created and used to build your company? I’ve implemented data-driven decision-making and streamlined operational processes across all units to enhance efficiency. Additionally, I embraced technology integration to improve customer experience and boost brand loyalty. An example of this is our automated drive-thru service at Checkers & Rally’s that greets customers and increases efficiency. Employee retention is critical as experienced employees increase

efficiency, reduce training costs, and create a stable work environment for everyone.

What core values do you think helped you win this award? I believe my focus on leadership and accountability helped me win the award. By fostering a strong team culture and consistently driving performance across multiple brands, I have ensured sustainable success.

How important is community involvement to you and your company? It is very important to us. Many of our KFC locations regularly donate food to local churches, soup kitchens, and food banks. The KFC Foundation offers educational, financial, and food donation programs, and we encourage our teams to contribute to those as well.

What leadership qualities are important to you and your team? The ability to make decisions as an owner with a focus on responsibility and accountability and the ability to relate to the employees and engage them in the process.

PERSONAL

First job: My first job was as a delivery boy for a deli in New York when I was 16.

Formative influences/events: I worked at my uncle’s deli and learned about the importance of taking care of customers. That is something that still resonates with me today.

Key accomplishments: I always worked as if my uncle’s deli were my own store. This mindset allowed me to take on tasks outside my job description and go above and beyond for the store. This ultimately allowed me to transition from one deli to multi-location and multi-concept restaurants.

Biggest current challenge: The biggest challenges I face are labor costs in New York and the increases in food costs everywhere.

Next big goal: My next big goal is to pass the baton to my children so that they can continue to excel in the business.

I believe my focus on leadership and accountability helped me win the award. By fostering a strong team culture and consistently driving performance across multiple brands, I have ensured sustainable success."

First turning point in your career: In 1995, I had the urge to open my own restaurant, specifically a deli in New York. I began searching for delis for sale and looked at 148 different options over nine months. Eventually, I narrowed it down to one at 22 East 49th St.

Best business decision: One of the best business decisions I made was in 2003 when I had the opportunity to open a Taco Bell Express within my existing deli. We were able to increase sales both for the deli and online. Taco Bell did more business than the two stand-alone locations nearby that were eventually closed.

Hardest lesson learned: Keep business and friendship separate.

Work week: I work about 70 hours a week.

Exercise/workout: I play badminton two to three times a week and meditate every day for about an hour.

Best advice you ever got: My late mother always told me to try my best to achieve a perfect 100% score, not just a 97% because 97% was not good enough. What’s your passion in business? My passion in business is making deals and continuing to develop people to their full potential.

How do you balance life and work? Work-life balance is a work in progress for me. At this age, I am trying not to bring work home with me, but I believe it’s important to lead by example and show my children the value of both hard work and taking time for personal life. Finding that balance is something I’m still working on every day. My daughter, at a young age, always asked why I go to work on the weekends, and from there, I realized I needed to prioritize “me time.”

Guilty pleasure: A good, old-fashioned drink with friends.

What do most people not know about you? I will go above and beyond to help someone. I love to help people grow, whether they work for me or not. Even if you were a competitor, I would give you good advice.

Pet peeve: If someone is late. I am pretty punctual. What did you want to be when you grew up? To have a job that lets me help those who are less fortunate.

Last vacation: I spent four weeks in India in February. I traveled to the Maha Kumbh, a spiritual festival that is widely considered the largest gathering of humanity.

MANAGEMENT

Business philosophy: I believe in rewarding people for their performance, honestly sharing company goals and financials for complete transparency with all leaders and store managers, and distributing parts of the increased profits after the cost of goods and labor to all management staff. At the same time, I expect responsibility and accountability from everyone.

Management method or style: My management style focuses on taking care of people and finding the right candidates for the long haul for their growth and ours. I trust people, but there is always verification, accountability, and responsibility involved.

Favorite book: Taking People with You by David Novak.

Favorite movie: “Dumb and Dumber.”

Person you’d most like to have lunch with: Warren Buffett and other leaders I can learn from.

Greatest challenge: Getting old. I feel like the peak years of my career are limited, and I want to take advantage of that time while I can.

How do others describe you? I would like to think of myself as a leader with a heart. But to know how others describe me, you’d have to ask them. I always try to do my best for my people.

Have you ever been in a mentor-mentee relationship? What did you learn? I haven’t had a singular mentor-mentee relationship. There have been many people who have mentored me, and I would feel it would be unfair to name just one. Everything I know is a result of the contributions of family, friends, and leaders in the industry.

One thing you’re looking to do better: Spending more time playing badminton and meditating.

How you give your team room to innovate and experiment: I give my team the freedom to experiment and make decisions on their own. I believe there is a lot to learn from them if we allow them the independence to think and take on tasks as if they were the boss. This is especially true when you provide an opportunity for them to share in the increased profits.

How close are you to operations? I am very close to operations. To me, the relationship is similar to that of a doctor and their patient. I keep a close watch on the daily operations (i.e., food costs, labor, and comps).

What are the two most important things you rely on from your franchisor? Purchasing power and marketing.

What you need from vendors: I need vendors to ensure the availability of products and services on call and to deliver on time.

Have you changed your marketing strategy in response to the economy? How? As a franchisee, we depend heavily on our franchisor. However, for certain underperforming units, we look for opportunities to spend locally on marketing and execute aggressive promotions to boost sales.

How is social media affecting your business? Social media is taking over the market by storm. Although I was initially hesitant about it, I’ve come to realize that it’s essential for reaching today’s audience. To succeed in this space, we need sufficient marketing funds and experts who understand the business. It’s crucial to learn about the return on investment for these efforts.

How are you using technology, like AI, to manage your business? We’ve implemented an auto-order system in 25 of our stores, and it’s still a work in progress. I look forward to seeing how technology and AI can continue to improve the customer experience in various ways.

How do you hire and fire? When hiring, I look for candidates who have held positions for a long

I give my team the freedom to experiment and make decisions on their own. I believe there is a lot to learn from them if we allow them the independence to think and take on tasks as if they were the boss."

time and have shown stability, not those who have jumped from job to job just to gain experience. Firing isn’t something I take lightly. I prefer for people to grow with us. However, when it comes to upper management, if something serious occurs that I cannot overlook, we have to make the difficult decision to part ways. I would estimate it’s only been necessary twice, and both of those cases involved leaders acquired through acquisitions.

How do you train and retain? Most of my employees have been with me for many years, and some for more than 23 years. I provide opportunities for growth and take care of my people. Even if they decide to leave, we never part on bad terms and always keep the door open for their return.

How do you deal with problem employees? I give employees multiple opportunities to improve, and I listen to their concerns. However, if an employee is toxic, they must be reprimanded immediately. Fastest way into your doghouse: People who disrespect our customers.

BOTTOM LINE

Annual revenue: More than $75 million. 2025 goals: Reaching more than $100 million in annual revenue.

Growth meter: How do you measure your growth? I measure my growth by the success of my people. I want to see them grow professionally and be happy. If I lose talented people, I know I’m not doing something right. The longevity of my talented people shows their success and my overall growth.

Vision meter: Where do you want to be in five years? Ten years? I’d like my children to decide how far they want to take my small enterprises. Stay tuned.

Do you have brands in different segments? Why/why not? We focus on fried chicken and

burgers. We prefer to stick with tier-one brands because of the advantages in marketing funds and purchasing power.

How is the economy in your region(s) affecting you, your employees, your customers? There are challenges in many pockets across all states. We plan to get more aggressive with marketing and challenge our people to be the best on the block.

Are you experiencing economic growth in your market? We are in four different markets, so it varies. In some markets, we face more competition, and that impacts growth.

How do changes in the economy affect the way you do business? While we can’t control the economy as a whole, we make the most of the hand we’re dealt. There are different labor costs in different markets. We make sure we hire the right people for the long haul. Keeping employees happy is part of our long-term success.

How do you forecast for your business? I start with last year’s figures, add inflation, and adjust for surrounding market conditions.

What are the best sources for capital expansion? We focus on self-growth within our means. We take a traditional approach to growth, using little to moderate debt to avoid the inevitable upand-down cycles that any business faces.

Experience with private equity, local banks, national banks, other institutions? Why/ why not? I have many relationships with institutions that are ready to lend. However, we haven’t yet found a compelling opportunity where we need to utilize those relationships. When the right opportunity presents itself and our team is ready, we’ll act.

What are you doing to take care of your employees? We pay for performance and focus on educating and motivating them to excel, helping them move to the next level in their careers.

How are you handling rising employee costs (payroll, minimum wage, healthcare, etc.)? Rising costs need to be managed carefully, using a combination of price increases and technology to increase efficiency.

What laws and regulations are affecting your business, and how are you dealing with them? Minimum wage, managing sick days, and advanced scheduling: We follow the rules and try to educate lawmakers to ensure that unnecessary or unreasonable regulations aren’t enacted.

How do you reward/recognize top-performing employees? Through bonuses, advancement opportunities, and potentially ownership stakes. What kind of exit strategy do you have in place? I’m teaching my kids the trade, but ultimately, I want them to decide their own paths. 

REVENUE RELAX INTO

Total Investment: ~$500K - 800K

Revenue Stability: Recurring from membership fees

Resource Needs: Labor

Total Investment: ~$700K - 2M

Revenue Stability: Recurring from membership fees, high attrition, transient

Resource Needs: Labor, Equipment

SIMPLE, SCALABLE OPERATIONS

Total Investment: ~$1.25M+

Revenue Stability: Relatively consistent traffic, no recurring revenue

Resource Needs: Labor, Food Supplies, Equipment Fitness

Nick Crouch

Title: Co-CEO

Company: Dyne Hospitality Group

No. of units: 118 Tropical Smoothie Cafe

Age: 39

Family: Wife Jessica and 2 daughters, Isabella, 9, and Avilynn, 5

Years in franchising: 13

Years in current position: 13

Real Estate Pioneer

Franchisee group expands the brand with stand-alone model

By Kevin Behan

Nick Crouch is co-winner of the Single-Brand Leadership MVP (Most Valuable Performer) for achieving leadership with a single brand.

Nick Crouch was a successful franchise owner seven years before he formed a deep friendship and bond over similar values with fellow Tropical Smoothie Cafe franchisee Glen Johnson in 2018. They merged their ownership groups to form Dyne Hospitality Group and have become the largest franchisee group in the Tropical Smoothie Cafe system.

The two found that their strengths complemented each other well. Crouch handles operations, marketing, and infrastructure, and he ensures the company operates under a strong culture and set of core values. Johnson’s specialty is finance and real estate, and the two collaborate on company strategy, vision, and growth.

Shortly after partnering together, the two made a major move to help transform the brand. They were the first franchisees in the system to develop a real estate model that called for stand-alone buildings in prime market locations. Before that, Tropical Smoothie Cafe was primarily an in-line or drivethru end-cap model.

Crouch felt investing money into building prototypes in good locations with attractive exteriors would lead to success and profitability. That approach led to high average unit volumes for the new locations.

The real estate model fueled an expansion of about a dozen new cafes per year. That growth was vital to Crouch, who centers his mission on creating opportunities for others. He often promotes from within and gives his employees chances for advancement as part of a long-term career path. He says he wants to expose hourly employees to a strong culture and prepare them for careers in the future. To do that, the locations must succeed and grow.

Crouch says his commitment to providing opportunities for his team comes from those who supported him. Shortly after graduating from college, Crouch told his mother that he wanted to buy a business, but he didn’t have the money. He said his

parents believed in him so much that they sacrificed their retirement money to help him purchase his first Tropical Smoothie Cafe when he was 25. Without that belief and assistance, Crouch says he doesn’t know where he would be today.

After more than a dozen years with Tropical Smoothie, Crouch says he couldn’t imagine operating another restaurant brand. He appreciates the franchise’s culture, menu, and price point. He says the operational efficiencies of owning a single brand allow him and his team to focus entirely on how to run his Tropical Smoothie locations at a high level.

“I love the tropical vibe, the made-to-order and fresh menu selections, and our customers being health conscious about the quality of the food they eat,” Crouch says. “Tropical Smoothie is a major part of my life, and I have lived and breathed it every day for the past 13-plus years. We have a great infrastructure in place and an amazing leadership team. I’m even more energized than ever before and focused on growth as we look to reach 200 units.”

MVP QUESTIONS

Why do you think you were recognized with this award? My partner, Glen Johnson, and I have been laser focused on Tropical Smoothie Cafe development over the past 13 years. We are the largest franchisee group in the system with 118 locations, and we open about 12 cafes per year. We were the first franchisees in the country to establish a proven real estate model, and that has tremendously increased the average unit volume for the brand. We have been committed to Tropical Smoothie Cafe and have been a part of almost 14 years of continuous comp sales growth and innovation.

How have you raised the bar in your own company? We are focused on being exceptional at what we do. We always try to live through our core values and work hard every day to fulfill our mission of creating opportunities for others. Perhaps our most significant contribution was leading the change to build stand-alone buildings and fully branded end-cap drive-thrus in prime real estate locations. We were the first to do that, and it greatly increased average unit volumes at those cafes.

What innovations have you created and used to build your company? We have streamlined a lot of our administrative and accounting processes in our support office, which has resulted in a productive office setting, eliminating some of the tedious accounting work. We have also implemented new operational strategies and procedures to help us improve speed and efficiency in our cafes. We are exploring a few innovative AI options this year to continue to improve efficiency and reduce time for our team that can be focused on the guest experience. We have built out a daily KPI list that is used to help us make smart decisions for our company and keep us focused on our key KPIs that drive our business.

What core values do you think helped you win this award? Our mission at Dyne is to “Create opportunities using our God-given gifts.” Our four core values that we live by are: Invest in people, make smart decisions, understand why, and make it happen. I think all our core values apply when receiving this award. They are all important and help shape who we are as people and as an organization. How important is community involvement to you and your company? This is extremely important to us. We try to help as many schools, churches, and nonprofits as we can and believe that giving back to the communities where we own and operate businesses is a top priority. We also support No Kid Hungry on a national level and raise funds for the program throughout the year through sales roundups and donations in the cafe and on our app. What leadership qualities are important to you and your team? Gratitude, humility, discipline, optimism, and a strong work ethic are all values that come to mind when we talk about what we want in our leaders. We are always available to our team and work around the clock to make sure our team members feel supported and excited to work for Dyne. It is important to us that we help others reach their goals and dreams, and we believe it’s our job as leaders to help guide our team members and steer them in the right direction.

PERSONAL

First job: A paper route and working at a local restaurant and grocery store when I was 16. I held several other odd jobs before then.

Formative influences/events: I worked at a country club in my early 20s. That’s where I met a lot of very successful entrepreneurs who accumulated their wealth by owning multiple units of what they were passionate about. Several of those members said that it is better to be the expert and laser focused on one or a few businesses rather than stretching yourself and being mediocre at many different things. I found that franchising was a systematic approach to business that I felt comfortable with and understood. I kept that in mind and knew I needed to find the right franchise brand(s) and be the best in the world operating those to find real success. The advice from those entrepreneurs verified to me that I was on the right path and to always dream big and go for it.

Key accomplishments: When I partnered with an amazing friend and business partner, Glen Johnson. I would never be where I am today, both professionally and personally, if it weren’t for God putting him in my life. I have thoroughly enjoyed our partnership and friendship, and I am very thankful for the opportunity to partner with him.

Biggest current challenge: The cost of capital and construction costs. A lot of the real estate deals that were great a year or two ago don’t make as much sense now from a return on capital standpoint.

n Award winning Hamburger QSR known for its iconic Burgers and Famous Seasoned Fries has franchise opportunities available

n Smaller restaurant design for lower construction and equipment costs and maximized efficiency

n Multiple formats that fit your choice of Real Estate: Free-standing, Travel Centers, Inline in high density urban markets

Next big goal: Creating more opportunities for our team and community is our top priority at all times. Surpassing $200 million in sales within our Tropical Smoothie Cafe portfolio is another milestone that is just ahead of us.

First turning point in your career: When I partnered with Glen. Our skill sets complement each other. It was a perfect business match, and I know we are both thankful for our partnership and friendship.

Best business decision: To build companies based on values and gratitude. Our mission is to create opportunities using our God-given gifts. Every day, we focus on how we can create new opportunities for our team and communities where we operate businesses.

Hardest lesson learned: Sometimes, you believe in someone more than they will ever believe in themselves. It can be hard to grasp that concept and understand that maybe you will never change them. You must know when it’s time to move on to someone more receptive and energized around what you are trying to do for them.

Work week: I am focused on our businesses all day, every day. I love what I do, so it truly doesn’t feel like work. I don’t have a set schedule and end up working on something related to our business every day of the week. However, I think I have a reasonable blend of family time, fun, business, and faith, and I love spending time with family and friends when time allows.

Exercise/workout: Wellness is very important to me. I try to get up at 4 a.m. and begin my routine of wellness and gratitude. I work out for at least an hour every day, and it is what fuels me and brings me energy. My typical week is three days of lifting with a trainer and Peloton and other cardio on the other days.

Best advice you ever got: Trust in God and focus every day on creating opportunities and helping others. The rest will follow. I also believe that if you can outwork everyone and be disciplined in what you do, you will be ahead of most people. I also

heard a line from someone more than 20 years ago that I repeat often: “Do things other people don’t want to do, and embrace that you must sacrifice to get where you want to be. There is no other way.” What’s your passion in business? Helping others and seeing our team succeed and living the life they have always imagined. There is nothing more rewarding.

How do you balance life and work? I think it’s more of a blend than a balance. I love what I do, and my family knows that and supports me. It really doesn’t feel like work to me, so sometimes, it’s hard to shut it off. I try to keep a reasonable blend of family time, faith, fun, and business. I am doing better than I used to, and I cherish the time I spend with my family.

Guilty pleasure: I love a cold drink out on the boat from time to time.

Favorite book: What It Takes by Stephen A. Schwarzman, chairman, CEO, and co-founder of Blackstone.

Favorite movie: I don’t really watch a lot of movies, so it is always hard for me to answer this question. I honestly don’t think I have a favorite movie.

What do most people not know about you? I want to live in Bahamas one day. The only time I am truly clearheaded is when I am on the water.

Pet peeve: Excuses. Focus on the solution, not the problem. There is always a solution and a positive path forward.

What did you want to be when you grew up?

A businessman or a defense attorney.

Last vacation: Paris with my wife for our 10th anniversary in September 2024.

Person you’d most like to have lunch with: Tilman Fertitta or Donald Trump.

MANAGEMENT

Business philosophy: Work harder than anyone, and be willing to sacrifice for the greater good of others. Focus on creating opportunities for others, and provide continuous advancement for our team

members personally, professionally, and financially. I try to wake up every day and approach the day with the same intensity, focus, and gratitude that I had on day one.

Management method or style: We have great infrastructure in place, and our leadership team is fantastic. I am thankful for all of them, and we are lucky to have them leading our organization. I try to support our leaders in any way that I can and provide a clear vision, continuous optimism, and relentless positive energy. We focus on operational excellence, and we try to be exceptional at what we do. All the details put together properly provide a fantastic product, fun atmosphere, and great working environment.

Greatest challenge: When you have an intense passion for excellence, sometimes the drive for perfection can get in your way. Our team has helped me slow down and understand each circumstance before making any assumptions. I am always trying to get better, and sometimes, it can’t happen instantly, and we need to follow our proven processes and be patient. The result and outcome we want will eventually come if we’re focused on what we know works.

How do others describe you? Intense, focused, relentless, driven, disciplined, high energy, trustworthy, and passionate. I hope someone would say that I was fun to work for too!

Have you ever been in a mentor-mentee relationship? What did you learn? I have mentored several young people, and I always try to make time for young people trying to figure out what they want to do with their lives and answer any questions they might have. I have also had a mentor or someone I looked up to as we grew our business. I learned to ask a lot of questions and then keep my mouth shut and listen. Surround yourself with people who already have what you want, and listen to them on how they got there. The path will come, and I believe God will put the right people in your life to give everyone the opportunity and knowledge they need.

One thing you’re looking to do better: Understand how I can best support each company and get creative on ways to continue to grow our real estate portfolio.

How you give your team room to innovate and experiment: I am a big believer of sometimes just staying out of the way and letting the other leaders lead. Our team is encouraged to innovate and experiment with ways to improve our business, and we value that type of collaboration.

How close are you to operations? Not as much as I used to be, but I am still very close. I am on the road about 10 days a month, visiting cafes and spending time with our team. I love serving others and being involved in the business. I get energy from that more than anything. We fortunately have an amazing chief operating officer, whom I fully

trust, and all our operations leaders and our leadership team report to her.

What are the two most important things you rely on from your franchisor? A great national marketing strategy and brand awareness, menu innovation, and a great supply chain with tremendous buying power.

What you need from vendors: Consistency, timeliness in deliveries, and clear communication when something isn’t going the way we want it. We don’t like surprises because we cannot proactively plan for the solution, and it negatively affects the guest experience.

Have you changed your marketing strategy in response to the economy? How? Yes. Tropical Smoothie Cafe has just moved to a full national marketing strategy. This is our first year moving all local store funds to national. We are excited for a huge year for Tropical Smoothie Cafe and a major increase in brand awareness and our overall media presence across the country.

How is social media affecting your business? We advertise on social media just like any other business. It is a component of our market strategy and can be very successful in most markets.

How are you using technology, like AI, to manage your business? We have a great app that keeps getting better. We have implemented AI alternatives in our support office, and we are working on ways to use AI in the cafes.

How do you hire and fire? We believe in protecting our company culture. If there is someone in our organization who does not represent our values, then that person is not the right fit and should not be in our company. We also believe in giving grace and understanding mistakes. The only way to learn is through making mistakes. We work together to help find solutions and keep our business moving in the right direction. We all try to learn from each other and be grateful for each other’s skill sets and experiences.

How do you train and retain? We have comprehensive training programs at all levels and focus on providing the tools to set up each person for longterm success. We believe in providing opportunities for advancement, support, and encouragement for each team member to reach their goals.

How do you deal with problem employees? We believe that everyone should have the leeway to make mistakes and then learn from them. We coach and develop our team members so that they feel supported and confident in their decisions. If we find out that someone in our organization does not fit our company culture and they are not living out our core values and beliefs, then we believe we must protect the company culture and do what is best for everyone. We usually will then have to decide whether they are the right fit for our company and whether we are the right fit for them.

Fastest way into your doghouse: Poor punctuality, bad attitude, and excuses. We are optimistic leaders. When you are in a leadership role, you need to set a high-energy and positive atmosphere for everyone and help show a clear path to a successful outcome. Showing up on time and prepared for each situation is the start to a good experience for everyone involved.

BOTTOM LINE

Annual revenue: $150-plus million.

2025 goals: Continue our development with Tropical Smoothie Cafe and focus on our operational processes, throughput, and urgency in all that we do. We are also working on another stand-alone building prototype that improves our development cost and sets us up for a few different options from a real estate development standpoint. We are also focused on improving individual cafe profitability.

Growth meter: How do you measure your growth? Year-over-year comp sales, year-over-year transactions, overall guest satisfaction, improvements to company profitability, cash flow, and cafe-level EBITDA. Most importantly, our growth is measured by whether we are fulfilling our company mission of creating more opportunities for others using our God-given gifts. We do that through unit-count growth and internal advancement within our organization.

Vision meter: Where do you want to be in five years? 10 years? Five years from now, we will have more than 200 Tropical Smoothie Cafe locations, a substantial real estate portfolio, and close to $300 million in annual sales. Outside of Dyne, we will have started and/or acquired several other businesses, and we will have entered a few other industries that we are exploring.

Do you have brands in different segments? Why/why not? We are 100% focused on our Tropical Smoothie Cafe development in the QSR space. We believe it is an incredible brand, and 2025 is the jump-off point to the best years ahead.

How is the economy in your region(s) affecting you, your employees, your customers? We are competing with some of the large fast-food and QSR concepts that are offering deep discounts and bringing back value meals. We have not seen value meals in quite some time. We believe that Tropical Smoothie Cafe has great made-to-order food and smoothies. We feel we are positioned properly to continue to gain market share and serve guests a delicious, healthy, and fresh product in a fun atmosphere.

Are you experiencing economic growth in your market? Most of our markets are doing well. We are seeing a lot of growth in the Southeast in Florida, Georgia, and Alabama. We are entering Missouri and Kansas in 2025, and we are looking forward to getting a foothold in those markets as well. How do changes in the economy affect the way you do business? We have increased our

focus on providing a great product, exceptional service, and value for our guests. We are taking 2025 to focus on throughput and urgency and tightening up our operational processes and procedures to ensure the guest experience constantly improves. We are operators, and this is a top priority for our team.

How do you forecast for your business? We complete comprehensive forecasting and business modeling for all our businesses. This is done throughout the year, preparing for each year ahead, and the process usually takes about four to six months. We focus on sales trends, seasonality, cost control, automation, comp sales growth, transaction growth, AUV growth, and EBITDA growth.

What are the best sources for capital expansion? We work with a regional bank that we have been with since we started. They have been a tremendous partner, and we are grateful for our relationship with them.

Experience with private equity, local banks, national banks, other institutions? Why/ why not? We currently do not work with private equity in this business, but we recently attended a great PE and family office conference in 2024. We learned a lot and now understand a lot of new and interesting financing options. We thought it was a great experience, and we are possibly open to entertaining ideas for PE or family office investment in the future if it makes sense for our company and our team.

What are you doing to take care of your employees? Taking care of our team is important to us. We offer short-term incentive bonuses (STI) and long-term incentive bonuses (LTI). Our LTI program is a profit-sharing, partner program. Director and above leaders are considered partners, and they are included in an LTI program so that they benefit financially from the growth and success of the organization. We also offer great benefits, wellness programs, an internal fund to help those in need, academic scholarships, and several other benefits for our team.

How are you handling rising employee costs (payroll, minimum wage, healthcare, etc.)? We try to proactively plan and manage this increasing expense. It is part of our business modeling, and we understand that these expenses will continue to increase. We adjust pricing where needed and try to manage hourly wages appropriately.

What kind of exit strategy do you have in place? We do not currently have an exit strategy in place. We are operators, and we are focused on growth and creating opportunities for our team. 

Title: Brand President

Company: Sizzling Platter

No. of units: 361 Little Caesars, 107 Little Caesars Mexico, 185 Wingstop, 92 Jamba, 33 Jersey Mike’s Subs, 31 Dunkin’, 7 Sizzler, 5 Red Robin, 1 Cinnabon

Age: 49

Family: Wife Kristen and 2 sons, Spencer and Beau

Years in franchising: 25

Years in current position: 11

1,200+ cafes worldwide 60+ years of experience

• Established business model

• Scalable cafe format & size

• Professional onboarding & training

• Join a dynamic franchise community

• Continuous innovation

• Ongoing support

A Sizzling Success

Brand president oversees substantial Wingstop growth

By Kevin Behan

Chad Given is the Mega-Growth Leadership MVP (Most Valuable Performer) for achieving excellence in growth and expansion.

With more than 800 restaurants within his ownership portfolio, it would be easy for Chad Given to manage from afar and just look at the bottom-line performance of his units. However, Given says he is 100% involved in the daily operations with a constant eye on growing the business.

As brand president of Wingstop at Sizzling Platter, Given has overseen its growth from a single location eight years ago to its current total of 185 units. Just last year, he added 52 Wingstop franchises through 22 new locations and the purchase of 30 more. With such an ability to rapidly scale, it is easy to see why he won the 2025 Mega-Growth Leadership MVP.

Given’s path in the restaurant industry was not linear. His introduction to the business came 25 years ago as a server with Red Robin. He developed deep relationships and valuable contacts with management executives that proved beneficial down the road.

After working for two years with Red Robin, Given left to pursue a career in real estate. The housing market was struggling shortly after the turn of the century, causing him to reconsider his career path. He was also working two jobs to make ends meet, and his wife was pregnant with the couple’s first child.

He called Mark Howe, a top executive with Sizzling Platter, to discuss his predicament. Howe said, “How soon can you be here?” The response was a tremendous relief for Given, and his return to the restaurant business jump-started his career. He has remained with the company ever since.

After first working on Sizzling Platter’s corporate side, Given became a franchise owner 11 years ago. He said some of the keys to scaling quickly come from being highly organized, being a great partner with the brand, and developing a strong foundation for the business.

“We tried to start small and build a good base to grow the business,” Given says. “Your base needs to be rock solid, or it will crumble. Having a national presence across multiple brands definitely helps

when going into a new market. It is also important to have good relationships with others, be a good buyer, and build a strong culture.”

When operating such a large number of restaurant units, Given is quick to emphasize the importance of hiring and developing a talented team. He has played a pivotal role in the development of Sizzling Platter’s Blue Team Training program, which develops district managers, regional managers, and team members. The program has become a critical component of Wingstop’s rapid expansion, guiding new members with a structured curriculum that enhances leadership, operational knowledge, and guest service standards.

Despite the success he has achieved across hundreds of locations, Given isn’t satisfied with the status quo. He has ambitious plans for the future, hoping to double the restaurant count and size of his team over the next four years.

MVP QUESTIONS

Why do you think you were recognized with this award? We have been fortunate to experience tremendous growth over the past seven years. Just last year in Wingstop alone, we added 22 new locations and acquired 30 more. We’ve gone from a single Wingstop restaurant to 185 in eight years. EBITDA fuels future growth for us.

How have you raised the bar in your own company? By continuously trying to be better each day with each process or system. When we build a location, we ask what we did well and what needs adaptation for the next build. When we hire, we analyze how we did. What was good? What would we change? We use a SWOT approach for all we do. I am also sincerely grateful for my team and tell them that as often as I can. I hope this adds value to our team.

What innovations have you created and used to build your company? We have incorporated business intelligence tools that gather and use data to help make decisions. It has allowed us to create teams large enough to open multiple stores in a single state in a single day.

What core values do you think helped you win this award? GRIT: growth, respect, integrity, and teamwork.

How important is community involvement to you and your company? Very important. We partner with Make-A-Wish Foundation, Wingstop Charities, Salt Lake City Mission, and the Hydrocephalus Association. Lend-A-Hand is a Sizzling Platter program to help its team members and the communities in which we serve.

What leadership qualities are important to you and your team? I want to provide an unparalleled experience for our team members. We start by training them correctly and thoroughly. We make sure to recognize them when they do something

great or exceptional. I always want to be approachable to my team at all times.

PERSONAL

First job: Distinctive Detailing, a mobile detailing business when I was 14, washing and detailing cars. Formative influences/events: I was a server at Red Robin about 25 years ago, and I had some great management and staff leaders that I would watch and listen to closely. I found myself enjoying listening to them and respected what I saw in their actions. They quickly saw things in me that, at the time, I likely did not see in myself. They began training me and showing me things that were beyond the norm. The fact that they saw something in me made me feel like I could do more with my life and that, perhaps, they saw a path for me. My parents also instilled the importance of hard work at an early age.

Key accomplishments: Being a husband and father, building relationships with others, leading my team and their development, and helping to build the Wingstop brand within Sizzling Platter from one to 185 locations.

Biggest current challenge: Adapting to the speed of change.

Hiring the right people, especially at the regional manager and district manager levels. Things can move so much faster when your people have integrity and can lead others."

Next big goal: Double the size of our team and restaurant count in the next four years.

First turning point in your career: After first leaving Sizzling Platter, I worked in real estate during the housing crisis of 2002. About a year and a half into it, I spoke with Mark Howe, one of Sizzling Platter’s leaders, and told him it was not working out. He immediately offered me the opportunity to return, and his simple response gave me so much comfort.

Best business decision: Hiring the right people, especially at the regional manager and district manager levels. Things can move so much faster when your people have integrity and can lead others.

Hardest lesson learned: Hiring the wrong person for a high-level position. That person often lacks passion and is not a leader to the people who work for them. It leads to lots of turnover and the loss of some of the company’s culture.

Work week: Five full days a week and some days on the weekend. It is usually about 50 to 58 hours per week.

Exercise/workout: Four to five workouts a week.

Best advice you ever got: Be the kind of man your kids want to be like.

What’s your passion in business? Helping people grow and become better than me. Empowering others to do things in a different way than I would have with the same or better result.

How do you balance life and work? There is constant retooling. I have had to work on putting down guilt of not being with my family when at work and not being at work when I am with my family. It is not an easy lesson to learn, and it takes time. Guilty pleasure: German chocolate cake.

Favorite book: Anything by J.R.R. Tolkien. For business, I love two Simon Senik books, Start with Why and Leaders Eat Last.

Favorite movie: “Ready Player One.”

What do most people not know about you? At home, I am generally quiet.

Pet peeve: Brake lights, progression being stopped in any way.

What did you want to be when you grew up? An oceanographer.

Last vacation: Xcaret in Mexico in March 2024.

Person you’d most like to have lunch with: My entire team and my family.

MANAGEMENT

Business philosophy: “Treat a person as they are, and they will stay as they are. Treat them as they ought to be, and they become what they ought to be.”

Management method or style: Putting people first.

Greatest challenge: People who won’t get out of their own way.

How do others describe you? Personable and genuine.

Have you ever been in a mentor-mentee relationship? What did you learn? Yes, on both sides. I am who I am in large part due to my many mentors. I find great joy in mentoring others. Learning comes in both roles.

One thing you’re looking to do better: When a bad situation happens, I want to seek to understand before seeking to be understood.

How you give your team room to innovate and experiment: We often counsel in a safe place rather than direct or dictate. We often ask, “What do you think?” in a genuine way to seek others’ perspectives. I think this helps people innovate in the moment and on their own.

How close are you to operations? I’m involved 100%. The bigger your organization gets, the greater the distractions become. I make an effort to stay very closely involved.

Wingstop did a great job with its app before Covid-19, and that helped our business greatly during the pandemic. I appreciate the brand very much for that forward thinking.

How do you hire and fire? We hire carefully with multiple interviews and often multiple interviewers. We really are using our soft skills to see if the person will be a good cultural fit. For firing, we use a “Do they know? Do they care?” approach. We assume they don’t know what they may be doing incorrectly and reteach them and explain our expectations moving forward. After we know they have been properly taught and there is still a problem, it is probably an issue that they may not care. But we first try to give them the support and training they need.

How do you train and retain? We train for seven different shifts at varying lengths based on position, ranging from three to eight weeks.

How do you deal with problem employees? Professionally, respectfully, and as often as possible. Fastest way into your doghouse: If you hurt the team, lie, cheat, steal, or cover up.

BOTTOM LINE

Annual revenue: $350 million.

2025 goals: Stay ahead of current growth plan. Retain all store leadership and reduce in-store turnover. Increase sales and profitability per store operating week.

Growth meter: How do you measure your growth? By our number of units, sales, profitability in store operating weeks, and EBITDA per average. Vision meter: Where do you want to be in five years? 10 years? In five years, I want to be with Sizzling Platter, stay very challenged, and provide my team with greater opportunities. In 10 years, I will probably be in the process of exiting the business.

Do you have brands in different segments? Why/why not? Yes. Sizzling Platter is diversified with multiple food brands.

Hiring the wrong person for a highlevel position. That person often lacks passion and is not a leader to the people who work for them. It leads to lots of turnover and the loss of some of the company’s culture."

What are the two most important things you rely on from your franchisor? Communication and partnership.

What you need from vendors: To treat our teams as their guests. Build relationships of trust and great, speedy communication.

Have you changed your marketing strategy in response to the economy? How? We are running some value-based meals currently. We have a heavy emphasis on sports, both playing and watching.

How is social media affecting your business? Largely. Wingstop is very edgy, and our customers are generally youthful.

How are you using technology, like AI, to manage your business? We currently have AI phones that will take orders and payments.

How is the economy in your region(s) affecting you, your employees, your customers? We are currently seeing guests be careful with spending. It is currently an employers’ market.

Are you experiencing economic growth in your market? In some areas, yes, and in some we see the community tightening up.

How do changes in the economy affect the way you do business? We partnered with the brand. We try to stay on top of these issues and pull levers that help our guests/team members and company as a whole.

How do you forecast for your business? General historical data mixed with what the economy is doing. We use some of our other concepts’ numbers as data points. We look at the cost of commodities and potential minimum wage increases.

We make sure we are staffed enough to provide a great guest experience without sacrificing our profitability. "

What are the best sources for capital expansion? A successful current business leads to resources for additional business. We have also worked with two capital partners, and they have helped fund growth.

Experience with private equity, local banks, national banks, other institutions? Why/ why not? Mostly private equity, and the experiences have been good.

What are you doing to take care of your employees? We offer competitive base pay, health insurance, 13 bonuses per year based on performance, bonuses for new store openings and acquisitions, and a free employee meal every shift.

How are you handling rising employee costs (payroll, minimum wage, healthcare, etc.)? We look to optimize labor. We have a strategic labor planning day in which our regional and district managers assist the general manager with schedules. We make sure we are staffed enough to provide a great guest experience without sacrificing our profitability.

What laws and regulations are affecting your business, and how are you dealing with them? Our locations in Southern California have had to adapt to the $20 minimum wage rule. We increased menu prices slightly to pay members what they deserved. We also paid nonhourly employees more and didn’t cut hours for our staff.

How do you reward/recognize top-performing employees? Through several bonuses, award programs, and contests. Our Presidents Club provides a best-in-class trip to our conference and a vacation in Mexico for top performers. We also gave away nine big-screen TVs following the Super Bowl.

What kind of exit strategy do you have in place? I plan to retire from Sizzling Plater when I am 60 to 65. 

Chanel Grant

Title: Co-Owner

Company: Healthy Living Ventures

No. of units: 6 Tropical Smoothie Cafe, 3 Hand & Stone Massage and Facial Spa, 1 Vio Med Spa

Age: 34

Family: Husband Gerald and 2 daughters, Ryan, 4, and Zoe, 1

Years in franchising: 10

Years in current position: 10

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Showing the Way

Operator shares franchise experience with women and minorities

By Kevin Behan

Chanel Grant is the 2025 Diversity, Equity, and Inclusion MVP (Most Valuable Performer) for her demonstrated exceptional commitment to the promotion of diversity, equity, and inclusion in her organization.

Chanel Grant’s parents owned a custom closet business, so she learned about entrepreneurship as she grew up and started to help with the company’s marketing as a teenager. That early exposure to business ownership was part of what led her to become a franchisee years later. Now, her passion and experience in franchising are leading her to mentor others and teach them how to follow in her footsteps.

Grant owns 10 franchises across three brands with her mother, Toya Evans, and sister, Lauren Williamson, and she continues her specialty of managing the sales and marketing for the group. Business ownership has given her a successful career and personal freedom to devote quality time to raising her two young daughters. With a thriving business built around her desired lifestyle, Grant has the experience to counsel others about the benefits of franchising.

“I attend many franchise conferences, and there is a general lack of representation of women in the industry, particularly women of color,” Grant says. “Franchising has been great for me personally and professionally over the past 10 years. I want to educate and expose others to the wonderful opportunities in business ownership.”

Along with her mother and sister, Grant developed a series of educational initiatives, including an online course, “So You Want to Buy a Franchise?” The course guides aspiring entrepreneurs through the franchising process, covering how to create a business plan, secure financing, and select the right franchise brand. Grant also offers Facebook Live and Instagram Story sessions to raise awareness of franchising and empower women and minorities with the information they need to own a business. Additionally, she works with the International Franchise Association to educate entrepreneurs on franchising options.

She is focused on growing the business over the coming years but sees a future in which she will become a full-time advocate for the industry

and a personal consultant to other owners. She is also drawn to helping others turn around underperforming businesses. It is all part of her plan to make a meaningful impact on people’s lives through franchising.

“You never know what you may share or say to someone that will spark something within them down the road,” Grant says. “I’ve spoken to people who said they talked to me five years ago, and that conversation motivated them to get into franchise ownership. I want to see more women and minorities in franchising. It is extremely fulfilling to know I am helping make an impact in their lives to create generational wealth for them and their families.”

MVP QUESTIONS

Why do you think you were recognized with this award? I’m committed to helping women and minorities in franchising through mentoring, consulting, and overall advocacy for the industry. Franchising has been a blessing to my family, and I want others to experience the same opportunities. How have you raised the bar in your company? We’re always raising the bar! We’ve recently enhanced employee benefits and our approach to team recognition. We primarily recognize outstanding employee achievement through our Slack channel. We will also hold events and outings to build morale and encourage team building.

What innovations have you created to grow your company? We are implementing new marketing strategies, partnering with a marketing agency, and doing grassroots marketing. We have seen our leads quadruple after working with our new agency, and we are also converting leads at a high level.

Core values that helped you win this award? Playing to win, operating with integrity, and putting people first.

How important is community involvement? It’s core to who we are and has been a focus for the past 10 years: “To whom much is given, much is required.” We regularly donate to local schools, galas, sororities, fundraisers, and pantries.

Important leadership qualities for your team? Good communication and honesty.

PERSONAL

First job: I worked with my parents at their custom closet business and assisted with direct mail marketing beginning when I was in the fifth grade. Formative influences/events: I had the opportunity to watch my parents as entrepreneurs, which sparked my passion and curiosity for business that still drives me today.

Key accomplishments: My family. I feel incredibly blessed for my daughters and that I can be present in their lives while running my business. Biggest current challenge: Finding and hiring the right people for our growing team.

Next big goal: Opening our next Vio Med Spa. First turning point in your career: In 2021, I took the big leap to go into entrepreneurship fulltime. I previously had managers in place and didn’t need to be there full-time. I had a job working in pharmaceutical sales with a flexible schedule. As we expanded from one unit to six within two years, I knew I had to shift my focus to our franchise businesses full-time.

Best business decision: Going into business with my mom and sister. The support we provide each other and our clearly defined roles make a huge difference.

Hardest lesson learned: Everything takes longer than expected.

I had the opportunity to watch my parents as entrepreneurs, which sparked my passion and curiosity for business that still drives me today."

Being a mentor is about reaching back while still climbing. You don’t have to wait until you’ve ‘made it’ to help someone else."

Work week: Each week, I oversee the spas, connect with leaders, and strategize high-level marketing and sales.

Exercise/workout: I work with a personal trainer twice a week at 6 a.m. and use a Peloton at home.

Best advice you ever got: My seventh-grade civics teacher, Mr. Weber, said, “If everyone does a little, no one has to do a lot.”

Passion in business: Being able to help prospective franchisees get started and providing solutions for underperforming franchisees through consulting.

How do you balance life and work? Setting strong boundaries. Once I pick up my daughters from school, it’s mom time until they’re asleep.

Guilty pleasure: Travel.

Favorite book: The Power of Vulnerability by Brené Brown.

Favorite movie: “The Pursuit of Happyness.”

What do most people not know about you? I moved a lot as a kid but wasn’t from a military family. My family was in technology.

Pet peeve: Laziness.

What did you want to be when you grew up? An entrepreneur.

Last vacation: Turks and Caicos Islands in October 2024.

Person you’d most like to have lunch with: Michelle Obama or Mel Robbins.

MANAGEMENT

Business philosophy: Supportive leadership. Giving my team the space to grow while always being there to support them.

Greatest challenge: Managing different types of businesses requires different leadership approaches based on age groups, licensure, and industry specifics.

How do others describe you? Ambitious, energetic, and spontaneous.

Have you ever been in a mentor-mentee relationship? Yes. Being a mentor is about reaching back while still climbing. You don’t have to wait until you’ve “made it” to help someone else.

One thing you’re looking to do better: Prioritize self-care and achieve better balance in our business.

How you give your team room to innovate: We host weekly brainstorming sessions to identify challenges and collaborate on solutions.

How close are you to operations? Very involved. I really enjoy it.

Two most important things you rely on from your franchisor: Ongoing support and training plus strong relationships within the brand.

What do you need from vendors? Additional training and support for our staff.

Have you changed your marketing strategy due to the economy? Yes, we are leveraging AI for marketing innovation.

How is social media affecting your business? Skincare is a hot topic, and social media helps showcase our nurse practitioners and licensed skincare professionals. We even have a full-time social media coordinator.

How are you using AI to manage your business? We are developing AI-driven speed-tolead technology and continuously exploring new AI applications.

How do you hire and fire? Hire slow, fire fast. Our hiring process includes four to five rounds, including a lunch meeting. We provide opportunities for improvement, but if it’s not a good fit, we move on quickly.

How do you train and retain? Training is key and something that builds confidence. We also emphasize continuous learning.

How do you deal with problem employees? There is open and clear communication to prevent minor issues from becoming major problems. We train our leaders to be proactive.

Fastest way into your doghouse: Dishonesty.

BOTTOM LINE

Annual revenue: $9 million.

2025 goals: Increase the bottom line, find cost savings, build a complete leadership team, and open an additional location.

How do you measure growth? Year-over-year sales and impact to the bottom line.

Where do you want to be in five years? 10 years? In five years, I’d like to double our units. In ten years, I’d love to exit and move into consulting.

Do you have brands in different segments? Why? Yes, for diversification. We entered Hand & Stone Massage and Facial Spa and fell in love with the industry, which led us to Vio Med Spa.

How is the economy affecting your business? All our brands depend on consumers’ discretionary income, so we’re constantly innovating to adapt.

Are you experiencing economic growth in your market? There’s some strain, but we’re working through it.

How do changes in the economy impact your business? It forces us to be more strategic and focus on what we can control.

How do you forecast for your business? Growth! We’ve implemented new marketing tools and technologies to drive sales and memberships. Best sources for capital expansion? Building strong relationships with lenders and sharing our vision for expansion.

Experience with private equity and banks? Local banks tend to be engaged since they have a vested interest in the community.

How do you take care of employees? 401(k), health insurance, and frequent recognition through bonuses and incentives.

How are you handling rising employee costs? We meticulously manage controllable costs. We recently went through our P&L statements and looked at line items that can be controlled. We also switched to a central inventory management system and cut costs where possible.

How do you reward top employees? Recognition, contests, and team and individual bonuses. Exit strategy: Grow our units and eventually exit to private equity. 

$245,051

$1,252,496

*Based on the top Jeff's Bagel Run affiliate-operated store open and operating for a full fiscal year as of 12/31/24. There were two Jeff's Bagel Run affiliate-operated stores open and operating for a full fiscal year as of 12/31/24. The store with the lowest Sales was $841,884 and the lowest Net Profit was $49,991. “Sales” include all revenues, except tips and taxes. “Net Profit” is Sales minus the cost of goods sold, payroll, rent, store-level office and general operating expenses, utilities, merchant fees, local advertising and imputed 2% marketing fund contribution, and imputed 6% royalty, but with no deduction for amortization or depreciation. Additional information can be obtained from JBR Franchise Co's Franchise Disclosure Document. This advertisement is not an offering. An offering can only be made by prospectus filed first with the Department of Law of the State of New York. Such filing does not constitute approval by the Department of Law. MN – 11233. JBR Franchise Co, 4190 Millenia Blvd., Orlando, FL 32839

Experienced Franchisor. Aggressively Expanding. Inquire Today.

Ray & Monica Harrigill

Title: President/Founder & Managing Member/Co-Founder

Company: The Sunray Companies

No. of units: 19 Palm Beach Tan, 12 Massage Envy, 3 My Salon

Suite, 5 Hampton Inn & Suites, 1 Home2 Suites, 1 Holiday Inn

Express & Suites

Ages: Ray, 56, Monica, 55

Family: Twin children, Max and Tori, 26

Years in franchising: 37

Years in current position: 29

Pursuing Greatness

Couple challenges themselves to perform at the highest level

By Kevin Behan

Ray and Monica Harrigill are the Spirit of Franchising MVPs (Most Valuable Performers) for extraordinary and enduring performance, growth, and community giving.

At the core of every successful organization is a foundation and set of principles that guide its daily operations. Having a strong system in place can positively impact employees and customers and lead to profitability and growth. Ray and Monica Harrigill’s commitment to a set of core values and processes led them to be named the Spirit of Franchising MVPs this year.

Ray first met Monica in college, and the two got engaged several years later. He then left law school to work for her father, who owned several food and hospitality brands. He worked there for three years before becoming a franchisee himself by purchasing a single restaurant from his father-in-law. As Ray started a lengthy journey in franchising, Monica partnered with her husband in their business while also continuing to work for her father.

When Monica joined Ray’s franchise operation in a full-time role in 2015, she enrolled in the Harvard Business School’s Owner/President Management program. The three-year course teaches operational excellence for business leaders and their organizations. The program played a pivotal role in shaping the culture, systems, and long-term strategy of the Harrigills’ business, which helped them achieve profitability.

“Although we had previously implemented elements of these strategies, the program gave me the road map and discipline to fully integrate them into our business,” Monica says. “The OPM experience is not just about learning; it’s about building a cohesive strategy for continuous growth, innovation, and leadership development.”

By further adopting the standards of the Harvard program into their operations, the Harrigills expanded their portfolio and grew the company to its current count of 41 hotel and wellness franchises. The principles of the program proved to be so vital to the core of their business operations that Ray is planning on enrolling in the course this fall.

Ray and Monica prioritize building a strong culture through the consistent communication of values throughout the system. That is built through hiring and developing the right people, having daily

conversations with team members, and processing feedback to understand what is working or what they can do better. Ray says the goal for operational excellence is a continual process and references the title of the couple’s favorite book in how they go about achieving the desired outcome.

“We want to take our business from good to great,” he says. “We don’t know if we’ll ever be great, but it is a continual process and pursuit we strive for each day.”

MVP QUESTIONS

Why do you think you were recognized with this award? We believe this recognition stems from our unwavering commitment to enhancing the lives of our team members, customers, and the communities we serve. Our leadership is built on servant leadership and stewardship, ensuring that every decision aligns with our core values: We act, we excel, we empower, and we wow.

Beyond operating successful franchise brands, we have created systems and processes that drive both business growth and people development. These systems empower our teams to take ownership, innovate, and succeed. This award is not just about us; it belongs to the incredible team members who live our mission every day.

How have you raised the bar in your own company? We have elevated our organization by instilling a culture-first, people-centric approach to business. We created a structured development path that has helped countless team members rise through the ranks into leadership positions. Additionally, we focus on operational excellence through technology, leveraging AI for automation, streamlining processes, and improving customer engagement. We are constantly fine-tuning our operations, using Kaizen, a Japanese methodology, to ensure continuous improvement in efficiency and customer experience.

What innovations have you created and used to build your company?

• Sunray Performance Systems. We use structured hiring, training, and performance management processes that ensure team members are aligned with our culture and operational excellence.

• AI and technology integration. We leverage AI-driven automation for accounting, communication, and operational efficiency, allowing our teams to focus on customer service and leadership.

• Sunray Leadership Academy. We have a structured program for developing future leaders from within, reducing turnover, and improving franchise-wide consistency.

• Flywheels for growth. We have developed and refined core business flywheels that drive efficiency, accountability, and long-term sustainability across our brands.

What core values do you think helped you win this award?

• We act. We take the initiative and move with purpose.

• We excel. We strive for excellence in every aspect of our business.

• We empower. We create opportunities for our people to grow and lead.

• We wow. We deliver an outstanding service that exceeds expectations.

By focusing on enhancing lives through leadership, innovation, and accountability, we have built a culture where franchise success and people development go hand in hand.

How important is community involvement to you and your company? We actively support local charities, mentorship programs, and team-driven community service initiatives with a focus on organizations that serve women and children. We have donated more than $524,000 to Canopy Children’s Solutions and Children’s Hospital of Mississippi through 2024. Our commitment to the community extends beyond

By focusing on enhancing lives through leadership, innovation, and accountability, we have built a culture where franchise success and people development go hand in hand."

A BREAK FROM THE ORDINARY

$2.5 TOP QUARTILE

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785 RESTAURANTS U.S & CANADA

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Our leadership approach is not about managing, but about developing future leaders. This is why mentorship, training, and empowerment remain our top priorities."

charitable giving. It is ingrained in how we operate our businesses, ensuring we positively impact every market we serve.

What leadership qualities are important to you and your team?

• Culture-first mentality. We focus on building an organization where people and purpose come first.

• Service-centric leadership. We lead by example and put the needs of others ahead of personal gain.

• Transparency and ethics. Honesty and integrity are nonnegotiable in every decision we make.

• Accountability and execution. We ensure that we not only set high expectations, but also deliver on them.

Our leadership approach is not about managing, but about developing future leaders. This is why mentorship, training, and empowerment remain our top priorities.

PERSONAL (Ray unless otherwise

noted)

First job: Cleaning up in my parents’ welding shop and as a newspaper delivery boy.

Formative influences/events: My grandparents and parents were entrepreneurs and stressed the importance of hard work and education.

Monica: I grew up in an immigrant family that came to the U.S. before I was born. We were pushed to work harder and study harder than anyone else. This was very formative as I grew up.

Key accomplishments: Building a diverse company that enhances the lives of our team members and those we serve. Having a wonderful marriage, business partner, and great kids.

Biggest current challenge: Identifying opportunities that are right for the size of our company.

Next big goal: Our company wants to enhance 40 million lives by 2035. That includes reaching customers, team members, guests, and others through our community involvement. It will require dramatic growth as we estimate we are currently at 14 million. We want to deliver a wow experience and make a meaningful difference in their lives.

First turning point in your career: When I decided not to practice law and went to work for my father-in-law to learn about franchise operations.

Monica: In 2002, I recognized the importance of creating systems and processes to support growth. I realized that success wasn’t about what I could accomplish alone, but about building a strong team and empowering others to thrive.

Best business decision: Leaving the comfort of working for my father-in-law and starting our own business.

Monica: Going to Harvard Business School’s Owner/President Management program 10 years ago. It was transformative in so many ways.

Hardest lesson learned: Risk is real, and not all businesses work out like you think they will.

Work week: 60 hours most weeks. Sometimes more or less.

Exercise/workout: Five days a week. Strength workouts and flexibility routines.

Best advice you ever got: My father told me to pursue professional training and degrees. What’s your passion in business? I love seeing an idea come to life.

How do you balance life and work? I never think of it that way. They happily co-exist, and I am lucky to be able to work with my best friend and partner every day.

Guilty pleasure: Watching movies.

Favorite book: Good to Great by Jim Collins. Favorite movie: “The Usual Suspects.”

What do most people not know about you? I like cars.

Pet peeve: Indifference and a lack of attention to detail.

What did you want to be when you grew up? A Wall Street executive.

Last vacation: A trip to Paris and Sicily in the summer of 2024.

Person you’d most like to have lunch with: Both sets of my grandparents. I would like to hear their story from my perspective today rather than as a child.

MANAGEMENT

Business philosophy: Invest your energy and effort in a business that enhances the lives of your team members and the guests you serve.

Management method or style: Focused on people, processes, and accountability. We

emphasize people first and processes second followed by performance.

Greatest challenge: Maintaining and attracting great new talent in a new age.

How do others describe you? Persistent and consistent with love for people.

Have you ever been in a mentor-mentee relationship? What did you learn? Learning is a lifelong pursuit, and we learn lessons from everyone around us daily. We mentor and learn constantly.

One thing you’re looking to do better: Draw in top-tier talent that complements where we are in our growth cycle and flywheel.

How you give your team room to innovate and experiment: Provide clear expectations and allow them to succeed or fail. We celebrate success and don’t punish failure. We have developed our flywheels and subflywheels. The team owns these and stays aligned. We also have great coaches who help us adhere to John D. Rockefeller’s principles for scaling up.

How close are you to operations? We are both very close to operations. We have our own lanes so that we are not trying to do the same job.

What are the two most important things you rely on from your franchisor? Building a strong brand that drives customer traffic and a framework for profitability. We also have great franchisors when it comes to the brands we operate today.

What you need from vendors: Honest dealings and a high-value proposition for their goods and/ or services.

Have you changed your marketing strategy in response to the economy? How? Marketing strategies require constant evolution to be relevant to the consumer and current environment. Effective marketing requires constant adjustments. Things have become so digital, and it is critical to know how your market is shifting constantly.

How is social media affecting your business? This is an evolving area. We could not grow and operate without professional marketing management. We have an in-house team led by Amber Sukhbaatar, who works with our brands to adjust strategy and tactics based on our local markets.

How are you using technology, like AI, to manage your business? We are using AI tools for increased automation, communication, and accuracy. We continue to look for more ways to automate accounting and all nonguest-facing areas.

How do you hire and fire? We follow a very structured approach of the 3-3s, which are part of our Sunray Performance Systems with three interviews, three reference checks, and a three-hour shadow day to identify team members who match our culture. We give our team members every opportunity to grow and improve. While we follow a progressive discipline and communication frame-

50% GROWTH EXPECTED IN 2025* $2 MILLION AUV*

work, terminations are generally related to either a poor culture fit or a lack of performance.

How do you train and retain? We invest a lot in our training system and have built a path of progress for all team members. This includes in-unit training as well as off-site training, which is part of our Sunray Leadership Academy for our leaders and team members exhibiting a desire for growth. We believe that this level of communication, teaching, and engagement is the key to our elevated retention numbers and declining turnover numbers.

How do you deal with problem employees? We overcommunicate to give every team member an opportunity to improve and help us meet our core purpose of enhancing lives. If they are ultimately unwilling or unable to do the job, we part company. However, we recognize that often the loss of a team member is a failure in our hiring process or training process.

Fastest way into your doghouse: Not embracing our mission to enhance lives through serving others.

BOTTOM LINE

Annual revenue: Including real estate holdings, approximately $50 million.

2025 goals: Open our first location of our own branded, fully automated, climate-controlled storage facility, Storage Nutz. We are also focused on sharpening the way we recruit and hire. We will continue our scaling-up focus and focus on our flywheels. We will continue to empower our executive team to lead.

Growth meter: How do you measure your growth? Ultimately, in EBIDTA, net operating income, and free cash flow while maintaining high guest scores (NPS) and team member satisfaction scores (eNPS).

Vision meter: Where do you want to be in five years? 10 years? Maintaining and growing our free cash flow while reinvesting in our core assets and our team members. We will continue to grow in our current brands and continue to look for new brands that fit in with our core values.

Do you have brands in different segments? Why/why not? Yes. Our diversity is our number one strength in weathering shifts in the economy. We operate both Hilton and IHG hotels in the hospitality space; Palm Beach Tan and Massage Envy in the personal services/retail space; and My Salon Suite in the retail/real estate space.

How is the economy in your region(s) affecting you, your employees, your customers? Our core revenue growth is currently flat to slightly positive. This requires us to tighten our costs.

Are you experiencing economic growth in your market? No. As noted above, we are flat to slightly positive for our comparable locations.

How do changes in the economy affect the way you do business? Over the past two years, we have all seen costs rise, and interest rates and in-

surance costs have skyrocketed. With revenues flat, it has reminded us to go back to the basics and look for inefficiencies and apply kaizen to our processes. Our leadership team is owning a back-to-the-basics mentality and is looking for all avenues of efficiency.

How do you forecast for your business? We see continued growth in acquisitions and new unit openings. In most of our existing businesses, we are above the system average in revenue and profitability. Additional growth is possible but at a slower pace.

What are the best sources for capital expansion? Your own capital is always the best. Responsible debt from banks, credit unions, and SBA-backed lenders is advisable for growth.

Experience with private equity, local banks, national banks, other institutions? Why/ why not? We don’t recommend private equity and limited partners for growth.

What are you doing to take care of your employees? We try to add additional benefits every year. This includes competitive pay for our markets, 401(k), enhanced vacation/PTO policy, health insurance, discounts across all brands, and incentives, like contests and trips as well as a team member relief fund that we are introducing this year. Our leadership team is focused on this yearly and evaluates where we are and the enhancements that need to be made.

How are you handling rising employee costs (payroll, minimum wage, healthcare, etc.)? We are making small price increases where possible and cutting costs without impacting the customer experience.

What laws and regulations are affecting your business, and how are you dealing with them? We have regulatory pressure in some of the lines of business we are in. We deal with them one issue at a time as some are unpredictable. We also have lobbyists on retainer in the two states in which we operate. They’ve helped pass legislation that supports our massage therapy community and addresses any harmful legislation that negatively impacts not just us, but our community and industry partners too.

How do you reward/recognize top-performing employees? We celebrate success in our organization at all levels. This includes all levels of team members as well as top performers. We operate with a balanced scorecard for all divisions and reward performers at every level monthly. Our incentive plans allow us to reward performers, and we are always focused on how we help them reach their goals and potential.

What kind of exit strategy do you have in place? We are building a strong senior-level management team with defined systems and processes that will allow us to be involved in an advisory capacity in the future. A self-management structure will also allow us to sell our position to others if needed.

Grady Hinchman

Title: Multi-Unit Franchisee

Company: Altitude Trampoline Park

No. of units: 5 Altitude Trampoline Park

Age: 43

Family: Wife Beth and 2 daughters, Emery and Lainey

Years in franchising: 10

Years in current position: 6

Extra Innings

Former minor league pitcher finds second career in franchising

By Kevin Behan

Grady Hinchman is the 2025 Innovation Award MVP (Most Valuable Performer) for bringing a new and unique contribution to his brand.

When Grady Hinchman was a pitcher in the New York Mets’ minor league system 20 years ago, his sole focus was reaching the major leagues and establishing a successful career at the highest level. At the time, he didn’t think much about alternative career plans and certainly didn’t anticipate becoming a franchise owner. Professional sports can be fickle, however, and plans and dreams can be dashed at any time.

Hinchman was released by the Mets when he was 26, leaving him with a decision to make about what to do next in life. He connected with a Planet Fitness in Florida that was looking for someone to handle membership sales. Hinchman later moved up in the system, serving as manager and then director of operations for several locations. More importantly, he was introduced to the franchise system and learned about all aspects of the business, such as operations, financing, real estate, and marketing.

Around that time, Hinchman met Andre Carollo, the owner of a marketing agency in Tampa. He and Carollo discussed franchising and researched several options. Hinchman was impressed by the financial opportunities with Altitude Trampoline Park and looked at the fun, family-friendly concept through the eyes of his daughters, who were 6 and 8 at the time. Hinchman and Carollo partnered together to open their first park in 2020.

After becoming a franchisee, Hinchman took some of the concepts he learned with Planet Fitness and customized them to the Altitude model. He implemented a membership program that reached 10,000 members at his first franchise location. The program was quickly adopted by other parks throughout the system.

“We worked so hard to bring in new members but weren’t doing enough to retain them,” Hinchman says. “There wasn’t a platform at the time for retention. We found a company to handle that and thought it was a perfect solution. We used it across all our locations, and it was adopted by the corporate parks, and it may be pushed out system wide.”

Hinchman and his team engage local schools and communities about the fun, active experiences they can enjoy at Altitude Trampoline Parks. He is also mindful of creating a safe environment, which requires sufficient staff oversight in a 35,000-squarefoot facility.

He has made a significant impact on the Altitude system through his dedicated approach to innovation, membership retention, safety, and franchise growth. In six years, he has served as vice chair of both the ATP franchise advisory board and the International Adventure and Trampoline Park Association. He was also named a Franchisee of the Year by the International Franchise Association. With five current locations and plans to add one or two new units each year, he shares advice for others looking for innovative ways to grow their businesses.

“It is important to be resourceful and work with people who have experience or are creative minds,” he says. “If you think you may have innovative ideas, don’t be afraid to test them out and implement them.”

MVP QUESTIONS

Why do you think you were recognized with this award? I have experience in observing successful concepts from other brands and seeing how they will fit into our model. I thrive on being a connector. I meet many different types of people in different businesses. I am always trying to stay ahead of the “what’s next” generation and anticipate the customers’ expectations for more and better.

How have you raised the bar in your own company? I learned a lot from my previous places of employment in offering a best-in-class product. When I opened my first location in Orlando at the end of 2020, I was working with a blank canvas. I knew we had to introduce our brand in a way to put us on the map. I needed to provide a safe and incredible guest experience as people were getting comfortable going out again following the pandemic. We want to over deliver to our customers and hold our teams to a high standard. By doing this, we have been the top location in the system for multiple years.

What innovations have you created and used to build your company? I was a big advocate and player in introducing a successful membership model within our brand. We introduced a model that was similar to what I saw while working with Planet Fitness and customized it to Altitude Trampoline Park. We quickly got up to 10,000 members, and it was soon implemented system wide. Additionally, I partner with our suppliers to push the envelope on the attractions being developed and how they are applied to my business. I am always trying to make the next venue better than the previous one. What core values do you think helped you win this award? I am always looking at how anything is possible with a collective approach and getting the right people involved to make it happen.

My core values are determination, collaboration, and innovation.

How important is community involvement to you and your company? We are a big part of each community we serve. Our business is family entertainment and children of all ages. The business seasons are largely based on local school schedules. We host field trips, summer camps, and firstresponder events.

What leadership qualities are important to you and your team? Accountability, selflessness, and professionalism. I encourage my management team to run their venue as if it’s their own. Empowering people will allow their skills to develop. They sometimes surprise themselves with what they are capable of doing.

PERSONAL

First job: I worked at a lumberyard in the summer when I was 16.

Formative influences/events: Three people have had a major influence on my career in franchising. I worked for Glenn Dowler at Planet Fitness, and he taught me how the franchise system worked. Andre Carollo is a partner of mine with Altitude Trampoline Park. After I introduced him to franchising, we hit the ground running. I have been learning business alongside him now for six years. Imre Szenttornyay, founder and president of Cielo, our technology partner, and I have developed a close relationship through multiple innovations over the years.

Key accomplishments: Played professional baseball in the New York Mets’ minor league system. Biggest current challenge: Dealing with the inherent risks of trampoline parks and the insurance intricacies that go into that. It is a challenge to maintain the numbers we strive for with the insurance rates continuing to rise.

Next big goal: Finding the next brand to add to my portfolio.

It is important to be resourceful and work with people who have experience or are creative minds. If you think you may have innovative ideas, don’t be afraid to test them out and implement them."

First turning point in your career: Working and being mentored by Glenn Dowler at Planet Fitness. It was my first full-time job following my playing career, and Glenn took me under his wing and introduced me to franchising.

Best business decision: Getting into the family entertainment center (FEC) world. I loved the fitness industry, and the FEC opportunity came when my time at Planet Fitness ended. At that time, my daughters were 6 and 8 and the perfect age for the concept. I looked at FDDs and saw the financial possibilities and thought it was a great opportunity. It is in a setting where people are active, families are present together, and there’s a break from the phone-based childhood. There is a family feeling at the core of business, and the product you are selling is fun. There is nothing better.

Hardest lesson learned: The inherent risk associated with owning and operating an FEC and how to navigate those waters. The influence of

insurance and risk forces me to reconfigure my park design—how I lay out a facility—which has the most influence on operations. It can compromise the thrill and fun the kids feel. We live in a litigious world, and we must strike a balance between fun and safety.

Work week: The work week is blended with life with no true hour allowance. I’m always ready to push ideas and answer the call.

Exercise/workout: Pickleball, surfing, and golf. Best advice you ever got: “One thing at a time, my boy,” which was my grandfather’s approach to everything.

What’s your passion in business? Developing future leaders and innovation.

How do you balance life and work? An equal commitment to both with no exceptions.

Guilty pleasure: Fresh-baked cookies.

Favorite book: Good to Great by Jim Collins.

Favorite movie: “Into the Wild.”

What do most people not know about you? I started college as a painting fine arts major.

Pet peeve: Procrastination.

What did you want to be when you grew up?

A professional baseball player.

Last vacation: Slovenia in the summer of 2024.

Person you’d most like to have lunch with: Both of my late grandfathers.

MANAGEMENT

Business philosophy: It’s not that hard to do the right thing. That doesn’t mean you won’t experience challenges, but when you’re doing the right thing, the path will still lead to a positive result that you can feel good about.

Management method or style: Very hands-on, leading by example.

I always welcome new ideas and innovations. The business we are in requires a creative mind, and I tap into my people constantly."

Greatest challenge: Knowing when to delegate. How do others describe you? From my district manager, “He leads by example, cares about people, and treats everyone fairly. He leads with his heart and genuinely cares about everyone in his organization.”

Have you ever been in a mentor-mentee relationship? What did you learn? Yes, many times. The one who stands out the most is Imre Szenttornyay. He is a true innovator, and we share many long conversations that start with, “I have an idea” or “I’m working on this new concept.” He has always inspired me to push what is possible, overcome obstacles, and never feel I have to do it alone. He has been there for me through some low times in business and life and has always been there to celebrate the big wins. He has been, and will continue to be, a mentor in my life and business.

One thing you’re looking to do better: Delegate with trust and don’t micromanage.

How you give your team room to innovate and experiment: I always welcome new ideas and innovations. The business we are in requires a creative mind, and I tap into my people constantly. How close are you to operations? I live and breathe operations daily.

What are the two most important things you rely on from your franchisor? To lead the charge with technology blending into our business. To stay innovative and cutting-edge. To create and maintain a culture with brand standards.

What you need from vendors: Forward thinking and an understanding of the evolution of our industry. Understanding our challenges and adapting their offering to meet our needs and the industry’s requirements.

Have you changed your marketing strategy in response to the economy? How? My business partner also owns the ad agency that handles the marketing for our parks. It is important to be in front of the right audiences. We rely heavily on organic social marketing and share fun videos of people having a great time in our facilities. Some

of our employees have large social media followings, so we allow collaborations with the business to get in front of more eyes and share good content with large audiences. I am a firm believer that I have to spend money on marketing and showcase our product.

How is social media affecting your business? Social media is a driver for our business, and organic content by our guests is a gold mine for our business. How are you using technology, like AI, to manage your business? We will be doing more in the future. We are working on implementing a SmartSigns program featuring KYAI (Know Your Audience Intelligence) to deliver the right message to the right audience at the right time. We also use AI tools, such as chatbots, and are currently working on a call-routing AI agent.

How do you hire and fire? I hire based on personality and potential. I can teach the Altitude business, but I cannot teach personality. For firing, depending on the level of the employee, we will coach them out as constructively as possible.

How do you train and retain? I use a strong LMS platform that we get from our corporate office. I love to role-play with my team. It helps teach them the unpredictable nature of the job. When a situation deviates from normal business procedures, we want to equip our staff with the tools to course correct and resolve the situation. I have a young staff, and it’s often their first job, so I build a strong foundation of basic skills to build upon. I know they won’t be here for an extended time, so I want to equip them with skills they can carry to future careers.

Fastest way into your doghouse: Not being accountable for expectations.

BOTTOM LINE

Annual revenue: $12 million.

2025 goals: At least one additional unit and increase the annual revenue to $15 million.

Growth meter: How do you measure your growth? To increase our top line and have an EBITDA of 25 to 35%. We also look at unit volume as an ownership group and strive to add one or two new units per year.

Vision meter: Where do you want to be in five years? 10 years? I would like to have at least three brands in my portfolio with a combined unit total of 20, maintain a great work-life balance, and travel the world.

Do you have brands in different segments? Why/why not? Not at this time.

Are you experiencing economic growth in your market? Florida is a hot market. The growth in our state is rapid. Different types of businesses are popping up everywhere.

How do changes in the economy affect the way you do business? It is similar to a domino

effect. The biggest concern now is navigating the wage increases creatively. We want to always pay a fair wage for the particular position and not compromise. Pricing our product is a luxury as we are selling experience. We can adjust pricing based on the discretionary income available to the market I operate in.

How do you forecast for your business? Our customers are families. We forecast our business in tandem with the local school calendars. We always look for year-over-year growth each month. We have certain goals to hit and a margin to maintain, and it varies by market.

Experience with private equity, local banks, national banks, other institutions? Why/ why not? We have used a local bank to finance our locations and have a great relationship. Once we are ready for an exit, we will have deeper conversations with the PE groups that have spoken to us about our business in the past.

What are you doing to take care of your employees? We offer competitive salaries and provide health insurance reimbursement for higher-end employees. We host conventions to cultivate leadership development and give them a voice to be heard. What laws and regulations are affecting your business, and how are you dealing with them? The rapid increase in minimum wage. The ASTM standards are the guiding rules for our industry and are always under scrutiny by state lawmakers. Regulations are becoming more and more present in the FEC space. Brands in our space continue to fight the good fight to ensure that regulations being enforced are fair for the businesses. We can’t compromise safety, so we comply.

How do you reward/recognize top-performing employees? We give out quarterly bonuses for each location. Their goals are not easy, but they are attainable. If you prove yourself to be a great leader, there is an opportunity for upward advancement. We want to position them for their next roles. What kind of exit strategy do you have in place? It is not something that is on my radar at the moment. I want to focus on the now and not what’s next. Maybe in the future, I could potentially work with private equity to purchase the business and stay on in another role. 

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Phong Huynh

Title: Co-Owner

Company: Fuego Investment Inc.

No. of units: 30 El Pollo Loco

Age: 54

Family: Wife Mia, 2 daughters, Isabelle and Shanelle, and 1 son, Justin

Years in franchising: 15

Years in current position: 15

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An American Story

Orphan from Vietnam achieves success as a multi-unit owner

By Kevin Behan

Phong Huynh is the American Dream MVP (Most Valuable Performer) for achieving remarkable success in his new country.

When reflecting on his personal journey and path to restaurant ownership, Phong Huynh says, “Everyone has a story.” However, few can match his account of coming to the U.S. as an orphan from Vietnam and living on the streets as a teenager before eventually owning 30 restaurants in four states.

Huynh’s path to the American dream started a few years after the Vietnam War when he moved to the U.S. at the age of 7. The Catholic Church sent orphans from the country to the U.S. in hopes of giving them better lives. He relocated to Minnesota and lived in the back of St. Joseph’s Catholic Church for five years while spending weekends in the homes of local parishioners.

When he was 12, Huynh was put on a Greyhound bus to go to California to live with an adoptive family. Once he arrived, nobody was there to meet him. Instead, he lived on the streets of San Gabriel Valley for the next three and a half years, sleeping in parks and laundromats.

“During those moments, you just do what you need to survive,” Huynh says. “I had no choice. I didn’t know any better. I didn’t feel bad for myself. It made me a stronger person.”

The only way he got a free meal was by going to school. While he was in high school, the older brother of one of his friends worked for El Pollo Loco and suggested he could sleep in the restaurant. Once there, they said he could start earning his place by cleaning the grills.

This meager start would set the wheels in motion to change his life. He soon met a young cashier at the store named Mia, who had a similar background. She was born in El Salvador, and her father was killed during an insurgency in the country when she was 2 years old. She came to New York when she was 11 and moved to California three years later. A year after meeting as young employees at El Pollo Loco, the two got married while they were still teenagers.

Huynh was promoted to assistant general manager on his 18th birthday and continued to move up the ranks in various roles with the restaurant and company. Huynh said he possessed an ownership mentality as an employee, and after working there for a year, he knew his goal was to someday own an El Pollo Loco restaurant.

Huynh and his wife both worked for the El Pollo Loco corporate office for about 25 years. While they were good operators, they didn’t have the money to buy a restaurant. The change came when the couple’s three children reached high school, and the couple realized they needed to find a way to fulfill their promise to send them to college. The Huynhs partnered with an existing franchisee to purchase an underperforming restaurant in Hemet, California, and then doubled its sales. They used the income it generated to purchase additional restaurants, and their move into multi-unit ownership had begun.

He owns 30 restaurants and wants to reach 100 in the next five years. As he grows, he gives others opportunities to own franchises. He started a restaurant partnership program in which an employee can partner with Huynh on a new restaurant and earn 10% of the profits with the option of purchasing it from him after five years.

The program gives aspiring franchise owners valuable experience and teaches them how to save money and invest properly while establishing a line of credit. It also allows Huynh to help others on their path to franchise ownership and financial freedom. He is thankful for the opportunity to invest in others and says that may be the reason he made it through the most difficult times of his life.

“The only country where you can come from nothing to realize the American dream is here in the United States, and it is alive,” Huynh says. “Nothing will be given to you. You just have to work hard for it. Focus on what you want and go after it. You only have one life to live. Go make the best of it.”

MVP QUESTIONS

Why do you think you were recognized with this award? I believe it is because of nearly 40 years of our life’s work as a crew member with an amazing growth opportunity into management and leadership roles. It all led to achieving the American dream as an entrepreneur/franchisee through personal consistency, trust, and hustle as well as our love and commitment to the El Pollo Loco brand and family.

How have you raised the bar in your own company? We focus heavily on providing ongoing leadership skills training and individual growth plans for our team members to ensure the highest level of service for our employees and guests. We try to help them identify their skill sets at a young age and match their passions with where they want to go in life.

What core values do you think helped you win this award? We are experienced operators and strong brand ambassadors who listen and want to help our people. Trust is an important quality when dealing with people, especially with restaurants where 80% of your sales come in cash. Trust needs to be earned both from an employee and leadership standpoint. We also strive to be open and honest with our expectations.

How important is community involvement to you and your company? It is a big part of what we do as a company. We encourage all our team members to participate in their local communities and bring forth any ideas of how we can better support these causes and leverage our scale and resources appropriately. This can range from supporting local charities and community organizations to hosting back-to-school supply giveaways and fundraisers in our stores. Some of our best community involvement ideas have come from our field-level team members, and we love participating in these events.

What leadership qualities are important to you and your team? Having a strong vision, setting expectations, empowering our team, and giving them career paths to grow. Holding ourselves as owners accountable as well as our team to the same vision. We never ask an employee to do something we won’t do. Most importantly, integrity in the relationships we have built over the decades is vital.

Having a strong vision, setting expectations, empowering our team, and giving them career paths to grow."

AVERAGE GROSS SALES*

(ALL STORES... NOT JUST THE TOP QUARTILE)

8-hour operating day 50% royalty reduction for first 2 years (for area development agreements signed by 6/1/25) $2.7 MM

*18 of the 33 Restaurants operating for a full year 2023 met or exceeded this figure. Your results may vary. See our FDD, Item 19 for definitions and other detail.

We learned that the way to achieve a work-life balance is to recognize when imbalances occur, make the necessary adjustments, and then reprioritize what is needed."

PERSONAL

First job: I was a night porter at El Pollo Loco when I was 16.

Formative influences/events: My wife and I are both immigrants who came to America at very young ages. That experience taught us many great lessons that made us who we are today: full of grit, perseverance, and ambition for the American dream. I was an MVP for my high school varsity basketball team. That taught me a great deal about teamwork, competitiveness, and having a winning mindset.

Key accomplishments: We became parents at a very young age with responsibilities and determination to provide the best life possible for our kids. The urge for family growth led us from a night porter and cashier to becoming restaurant managers and then general managers. After five years, I was promoted to a multi-unit district manager and then director of new restaurant openings in charge of promoting growth across the country and international markets. Soon, we both realized that for us to be able to financially support our three kids for college, we had to pivot from workers to owners, starting with our very first El Pollo Loco restaurant in Hemet, California.

Biggest current challenge: We continue to be challenged with staffing and labor costs.

Next big goal: We are marching toward achieving our goal of owning and operating 100 franchise units by 2030.

First turning point in your career: When my wife and I both decided to become restaurant managers for El Pollo Loco.

Best business decision: When we pivoted from being employees to owning our own restaurants and becoming franchisees of El Pollo Loco.

Hardest lesson learned: We believe in exercising control of what we can control and not sweating the rest. Always being optimistic with a can-do attitude often leads to better outcomes. As leaders, we cannot afford to have a bad day.

Work week: We work six days a week with Sundays off.

Exercise/workout: We strive daily to eat a healthy diet and incorporate as much sunlight as possible. Regular physical activities include mountain hiking and working out at the gym five times a week. We realized that our health is our wealth, and so it is a nonnegotiable priority.

Best advice you ever got: Life isn’t fair: Get over it, and move forward. Give it all you’ve got, and pursue your dreams as none of us get out of this life alive.

What’s your passion in business? To help light a fire in another person’s life through mentoring, nurturing lifelong friendship, and supporting their growth in pursuit of their dreams.

How do you balance life and work? We learned that the way to achieve a work-life balance is to recognize when imbalances occur, make the necessary adjustments, and then reprioritize what is needed. For us, we chose this lifestyle early on, and so to be effective, we learned to harmonize the two.

Guilty pleasure: We love to eat basically any type of food.

Favorite book: The Tortoise and the Hare is a simple book that taught us at an early age to do things slowly and steadily rather than quickly and carelessly to win the race.

Favorite movie: “Forrest Gump.” It depicts stories of perseverance, hope, and the American dream. It taught us that we can shape our own destiny through our disciplined actions and choices.

What do most people not know about you? We both had a very tough beginning, and survival was the only option available with a lack of family structure or parents growing up.

Pet peeve: Witnessing the lack of desire to make disciplined decisions for one’s future.

What did you want to be when you grew up? I wanted to be an astronaut, but the most I got off the ground was getting my pilot’s license and flying an airplane.

Last vacation: We climbed Mt. Kilimanjaro in Tanzania and reached the highest mountain peak on the African continent together.

Person you’d most like to have lunch with: Elon Musk.

MANAGEMENT

Business philosophy: Work on the business, not in the business, and ensure everything we do is adding value that someone else can’t or is unwilling to do. Be a positive force in changing a person’s trajectory in business and in life.

Management method or style: We spend the necessary time with our team, listening, understanding their needs, and sincerely caring about them as people. That is how we gain their respect and loyalty.

Greatest challenge: Finding the right employees can be challenging in our business. We are always in need of qualified, hardworking employees who can handle multiple tasks and adapt to change quickly. Therefore, to find great employees, we choose to invest time heavily in the hiring process.

One thing you’re looking to do better: As we expand our business ventures, we are hoping to further establish our restaurant partnership program to offer the resources and leadership experience necessary to empower others to follow in our footsteps and transition from workers to owners.

How close are you to operations? Operations are the backbone of our business, and because we began our careers as operators, our transition to ownership was seamless for the first several units. However, once we acquired additional units, some of our days had to be dedicated to understanding financials and key business metrics that helped drive our business. Other days, we would visit the store to observe and help wherever possible to build relationships with employees. We did this to gain their trust, answer their questions, and then move on to the next store. That’s where we are most comfortable.

What are the two most important things you rely on from your franchisor? Their leadership in developing and implementing marketing strategies to help grow our business in the local markets in which we operate. In addition, we also look forward to new and innovative training programs that corporate rolls out for our managers and crew members in support of our efforts to provide exceptional guest service.

What you need from vendors: Their commitment to providing us with high-quality products and timely deliveries via our back door so that our team can turn around and produce quality foods our guests expect.

Have you changed your marketing strategy in response to the economy? How? Yes, we have increased our focus on third-party deliveries and online business to increase our reach.

How is social media affecting your business? In most locations, it has been a positive lift in sales by attracting new guests who may not even know our brand or what we serve, which is fresh flamegrilled chicken marinated daily in secret herbs and spices.

How are you using technology, like AI, to manage your business? Currently, we are in an early stage of exploration and testing. We hope to have some applications by the end of this year.

How do you hire and fire, train and retain? I believe in having hiring managers aligned with our philosophy and principles for hiring, which is hiring for attitude and training for skill. Division leaders are involved at the management level and focus on functional skills, like scheduling and ordering. They understand the importance of good

Automated tools help your staff work faster with less manual entry and fewer errors.

WHO WE ARE?

Track ingredients like cheese with precision and cut unnecessary overuse.

Label King Turbo is a leading provider of digital back-of-house solutions designed to simplify operations, improve food safety, and boost team productivity. We serve restaurants and food service businesses with reliable, easy-to-use tools built for busy kitchens.

WHAT WE DO?

We deliver smart, affordable technology that helps your team:

Label food accurately and consistently

On-screen job aids standardize training so new hires learn faster and do it right.

Monitor and log temperatures digitally

Communicate with staff in real time

Standardize training and reduce waste

Improve compliance and accountability

operations and are well prepared to cover every situation that could arise. We also have an HR director who is involved in the termination processes to ensure we are following all the respective laws in each state in which we operate and that all employees are treated fairly.

BOTTOM LINE

Annual revenue: $48.5 million. 2025 goals: To reach $55 million.

Growth meter: How do you measure your growth? One important measurement we use is customer satisfaction via Market Force indicator. We review the satisfaction rates with the team on a consistent basis to look for the root causes of any decline. We monitor how many new and repeat customers we are getting and use these metrics to predict growth and measure success. Additionally, we stay current with the market technology and new efficiencies, such as order ahead, online orders, deliveries, etc.

Vision meter: Where do you want to be in five years? 10 years? Our target by 2030 is to own and operate 100 franchise units and continue to develop and invest in a diverse business portfolio. I only look ahead in five-year stretches because there is so much change in the restaurant industry.

Do you have brands in different segments? Why/ why not? None at the moment. However, our growth strategy is to build a diverse investment portfolio.

How is the economy in your region(s) affecting you, your employees, your customers? Out of the four states in which we operate, the most challenging is California. This is due to high minimum wage and strict state/local laws and regulations, which contribute to a tough business environment.

Experience with private equity, local banks, national banks, other institutions? Why/ why not? We have partnered with a traditional bank in national franchising, which has funded us from the early stage of our growth to now 30 units and counting. Because of our long-term business

relationship, we believe we have found the perfect partner to support our future growth plans.

What are you doing to take care of your employees? We provide vacation time to all general managers and division leaders so that they can prioritize rest and recharge. We also provide ongoing personal training and development seminars to promote consistent self-improvement for our employees inside and outside of the workplace.

How do you reward/recognize top-performing employees? We have a performance-based bonus program to monetarily reward each general manager whose store meets and exceeds the sales and profitability targets we set quarterly. We also recognize overall top operational performers at our year-end conferences.

What kind of exit strategy do you have in place? Down the line, we would hope to provide operating ownership to our key partners who embody entrepreneurship and seek the American dream.

 OPPORTUNITY DETAILS

39 stores now open nationally, 22 new stores coming in 2025, and many more in the works, Bad Ass Coffee of Hawaii is making serious waves, and rapidly emerging into the market.

BADASS is GOOD. This is a new stand-out iconic & traffic driving name, experience, and concept in the coffee space, driving customers in. Opening with its unmatched Premium Hawaiian Coffee Collection, exciting and intentionally crafted Hawaiian drinks, and food menu, and following with must-have branded merchandise, it all adds up to some of the highest $/ transaction in the coffee segment. The distinct branding makes merch not only a significant revenue stream, but also an integral part of the brand experience, driving word-of-mouth and brand buzz.

 DEMOGRAPHICS

• Proximity to dense populations, schools/colleges, businesses, parks, retail areas.

• Residential population greater than 25,000.

• Morning commute side with multiple access points, visible signage and 20,000+ ADT

• Median HHI $55,000+



SITE ASSISTANCE

We provide end-to-end support throughout the site selection, lease or purchase execution, and construction/build-out process.

 QUALIFICATIONS

• Multi-unit franchise partners with prior or current multi-unit, multi-brand experience preferred, or strong business ownership/ management experience.

• A persistent entrepreneurial spirit.

• A desire to be a part of a bigger ‘ohana (family) with a strong connection to their community.

• $750,000 available in liquid assets and a minimum net worth of $1,500,000. Three-store minimum development commitment required.

 RANKINGS & AWARDS

• QSR’s 40/40 List 2023 as one of America’s hottest emerging fast casual brands

• QSR’s Top 50 – 2022 Contenders List as a brand to watch

• IFA Franchisee of the Year Award winners: 2022, 2023, 2024

• Inc. 5000 2024

Gkoffler@royalaloha.com

www.badasscoffeefranchise.com

 FAST FACTS

FRANCHISING SINCE: 1995 under prior ownership. New ownership and brand re-launch in 2019

MULTI-UNIT FRANCHISEE OPERATING UNITS: 27

TOTAL OPERATING UNITS: 39

COMPANY OPERATING UNITS: 1

CAPITAL INVESTMENT: $514,200-$980,500*

*Source: 2024 Bad Ass Coffee of Hawaii FDD

FRANCHISE FEE: $100,000** **for three-store commitment (required)

ROYALTY FEE: 5%

ADVERTISING FEE: 2%

EARNINGS CLAIMS: No

BUILD-OUT OPTIONS: We offer a full complement of store build-out models for any real estate need.

AVAILABLE TERRITORIES: Opportunities available nationally.

James Ihedigbo

Title: Owner/Operator

Company: The Ihedigbo Group

No. of units: 6 Kiddie Academy

Age: 41

Family: Wife Brittany and 4 children, Grace, 11, Ava, 8, Jeremiah, 6, and Elias, 4

Years in franchising: 9

Years in current position: 9

A Competitive Edge

Super Bowl champion moves the ball forward with franchising

By Kevin Behan

James Ihedigbo is the 2025 Influencer for Former Pro Athlete MVP (Most Valuable Performer) for achieving excellence in franchising as a former professional athlete.

When he was a member of the Baltimore Ravens in 2012, James Ihedigbo spent late nights at All-Pro safety Ed Reed’s house as they watched hours of game film together. As an eager understudy, Ihedigbo wanted to soak up knowledge from the future Hall of Famer to give him any advantage on the football field. Later that season, the two helped the Ravens capture the championship in Super Bowl XLVII.

More than a decade later, Ihedigbo owns six Kiddie Academy locations in the Houston area and uses the same approach and mindset from his playing days in his second career in franchising.

“Franchising feeds my competitive edge,” Ihedigbo says. “I am used to competing against others. I will talk to the most successful owners in the system and in childhood education across Texas and ask them what I need to know to excel. I want to be the best regardless of what I do.”

Ihedigbo’s parents immigrated from Nigeria and both earned their doctorates in education, instilling the importance of teaching and academics in his family. As his playing career wound down, Ihedigbo began considering options for the next stage of his life. After conducting due diligence, he followed his heart and opened his first Kiddie Academy franchise in 2016 shortly after retiring from the NFL.

“I’ve seen a lot of guys who viewed their identity as an NFL player and struggled with that when they transitioned to retirement,” he says. “I viewed playing as something I did, not who I was. My identity is tied to my faith and the desire to have a greater impact. My mindset is using the platform I was given as a former player to accomplish my goals, which are having an impact in the communities we serve and transforming generations of people.”

Although childhood education came naturally to Ihedigbo, understanding all aspects of business ownership required learning on his own. The former defensive back likened the experience to studying a playbook each week to master the game plan. He also compared his two professional roles by saying that every member of the team needs to understand and do their job correctly for the entire organization to be successful.

Ihedigbo has been in franchising for nine years, matching the length of his playing career. At age 41,

Ihedigbo has many more years of business ownership ahead of him. He has taken the customizable business model of Kiddie Academy and made it his own.

“The scary thing about the NFL is that you are not totally in control over your fate,” he says. “The idea that you could be terminated at any point of your career never sat well with me. Now, I control my fate, and I can do this as long as I desire.”

MVP QUESTIONS

Why do you think you were recognized with this award? This recognition likely stems from our commitment to excellence in early childhood education, impactful community engagement, and the successful transition from professional athletics to entrepreneurship, demonstrating leadership and dedication.

How have you raised the bar in your own company? By fostering a culture of continuous improvement, investing in staff development, embracing innovative educational practices, and maintaining unwavering dedication to the families we serve.

What innovations have you created and used to build your company? We have integrated advanced technology into our classrooms, developed community outreach programs, and implemented efficient operational systems that enhance both the educational experience and business performance.

What core values do you think helped you win this award? Integrity, excellence, community focus, and a passion for empowering others are core values that have guided our actions and contributed to this recognition.

How important is community involvement to you and your company? Community involvement is central to our mission. We believe in giving back, building strong relationships, and contributing positively to the communities that support us.

What leadership qualities are important to you and your team? We value vision, empathy, resilience, effective communication, and the ability to inspire and empower others to achieve collective goals.

PERSONAL

First job: Delivering newspapers on a paper route when I was 13. It instilled in me the value of hard work and responsibility from a young age.

Formative influences/events: First would be my parents, the late Apollos Ihedigbo, Ph.D., and Rose Ihedigbo, Ph.D., who, through their hard work and perseverance, left the small villages of

Nigeria and came to the U.S. with nothing but the clothes on their backs. For both of them to go from that situation to earn doctorates in education taught me that there was nothing I would set out to do that I couldn’t accomplish. I walked on to the University of Massachusetts football team and then spent nine years in the NFL after initially signing as an undrafted free agent. These experiences taught me resilience and determination and the importance of faith in overcoming challenges.

Key accomplishments: I went from a college football walk-on to being inducted into the University of Massachusetts Hall of Fame. I had a nine-year NFL career, culminating in a Super Bowl championship with the 2012 Baltimore Ravens. I then successfully transitioned from the NFL to entrepreneurship and now operate six Kiddie Academy franchises, impacting more than 1,500 children annually.

Biggest current challenge: Navigating the complexities of scaling our operations while maintaining the quality and personal touch that our communities have come to expect.

Next big goal: Doubling the size of our impact by expanding our reach and supporting additional families and communities through our services.

First turning point in your career: Earning a spot on the University of Massachusetts football

These experiences taught me resilience and determination and the importance of faith in overcoming challenges."

A lack of integrity or failing to uphold our core values can quickly erode trust and disrupt team cohesion."

team as a walk-on, which set the foundation for my professional career and personal development.

Best business decision: Purchasing the real estate for our first Kiddie Academy location, which provided stability and long-term investment benefits. Hardest lesson learned: Mistakes are expensive both financially and in terms of time and energy. It’s crucial to approach decisions with diligence and seek wise counsel.

Work week: My days start early with a 5 a.m. cold plunge and workout at Ihedigbo Fitness Gym. This routine energizes me for a day filled with overseeing operations, strategic planning, and community engagement.

Exercise/workout: Consistent physical training is vital. I maintain a disciplined regimen to stay fit and focused.

Best advice you ever got: My mentor, Dana Carson, said, “Nothing gets done without leadership, and nothing stays done without management.” This emphasizes the balance between initiating action and sustaining results.

What’s your passion in business? My passion lies in meeting the needs of those I encounter and solving problems in a profitable way. Through our Kiddie Academy franchises, we provide quality early childhood education. Additionally, through Chance Global, a nonprofit group we partner with, we bring education, clothing, food, and water to children in the slums of Kenya. To me, business is a vehicle for transformation in the marketplace and in the lives it touches.

How do you balance life and work? My faith is the cornerstone of my identity. Whether in the NFL or in business, I see myself first as a man of God, which provides clarity and balance in all pursuits.

Guilty pleasure: Enjoying a quiet evening with my family and watching our favorite movies.

Favorite book: Learning to Lead by Dana Carson. Favorite movies: “The Founder” and “300” for their themes of perseverance and leadership. What do most people not know about you? When you meet me, I am very humble and down-to-earth.

Pet peeve: Tardiness. Being late shows a lack of respect for others’ time.

What did you want to be when you grew up? An NFL player, a dream I was blessed to fulfill.

Last vacation: A rejuvenating trip to Cabo San Lucas, Mexico, with my family in August 2024.

Person you’d most like to have lunch with: Shaquille O’Neal so that we can discuss his transition from professional sports to successful entrepreneurship.

MANAGEMENT

Business philosophy: Meet needs and solve problems at a profit. Without addressing the essential needs of your customer base, a business cannot thrive.

Management method or style: I believe in empowering leadership, focusing on building leaders, and inspiring individuals to exceed their own expectations joyfully.

Greatest challenge: Ensuring consistent quality and personal engagement as we scale our operations. How do others describe you? Driven, compassionate, and visionary with a commitment to excellence.

Have you ever been in a mentor-mentee relationship? What did you learn? Yes, I firmly believe that every leader should both seek mentorship and mentor others, fostering continuous growth and learning. I discovered that we are lifelong learners. Ceasing to learn equates to ceasing to grow.

One thing you’re looking to do better: Enhancing our technological infrastructure to improve operational efficiency and customer experience.

How you give your team room to innovate and experiment: By fostering a culture that encourages creative thinking, calculated risk-taking, and learning from failures without fear of reprimand.

How close are you to operations? I oversee the entire operation, staying engaged with daily activities while empowering my team to lead and make decisions.

What are the two most important things you rely on from your franchisor? Branding and curriculum as well as sharing best practices to ensure we deliver exceptional education consistently.

What you need from vendors: Consistency in quality and service to maintain our standards and trust with our clients.

Have you changed your marketing strategy in response to the economy? Yes, we’ve increased our presence on social media platforms and deepened community connections, leading to more grassroots opportunities.

How is social media affecting your business? It’s been a significant asset, allowing us to connect directly with our audience through geo-targeted marketing and PPC campaigns.

How are you using technology, like AI, to manage your business? Integrating AI into our customer management and communication systems has enhanced efficiency. While AI processes data swiftly, its true value lies in complementing the human qualities essential for exceptional leadership. How do you hire and fire? We hire individuals who embody our 5-Star Plus values: excellence, energy, execution, efficiency, esteeming leadership, and economic sense.

How do you train and retain? We invest in comprehensive training programs that equip our staff with the skills and knowledge necessary to excel in their roles. Ongoing professional development opportunities, competitive compensation, and a positive work environment contribute to high retention rates.

How do you deal with problem employees? We address issues directly and constructively, focusing on clear communication and setting expectations. When necessary, we implement performance improvement plans and provide support to help employees align with our standards.

Fastest way into your doghouse: A lack of integrity or failing to uphold our core values can quickly erode trust and disrupt team cohesion.

BOTTOM LINE

Annual revenue: More than $10 million annually.

2025 goals: Our primary goal is to double our impact by expanding our services to reach more families and communities, enhancing the quality of early childhood education we provide.

Growth meter: How do you measure your growth? We assess growth through enrollment numbers, customer satisfaction scores, staff retention rates, and financial performance. Additionally, community impact and the successful development of our team members into leadership roles are key indicators.

Vision meter: Where do you want to be in five years? 10 years? In five years, we aim to have expanded our footprint, operating additional Kiddie Academy locations and positively influencing more communities. In ten years, our vision includes being a leading provider of early childhood education while also exploring opportunities to support underserved areas both domestically and internationally. We want to be known for excellence and innovation.

Do you have brands in different segments? Why/why not? Our focus is on the early childhood education segment through our Kiddie Academy franchises. This concentration allows us to maintain high-quality standards and leverage our expertise effectively.

How is the economy in your region(s) affecting you, your employees, your customers? Economic fluctuations present challenges, such as

increased operational costs and financial strains on families. We strive to support our employees through competitive wages and benefits, and we offer flexible programs to assist families in accessing quality education for their children.

Are you experiencing economic growth in your market? Yes. Despite challenges, there is a growing demand for quality early childhood education, and we are positioned to meet this need through strategic expansion and community engagement.

How do changes in the economy affect the way you do business? Economic changes prompt us to adapt by optimizing operational efficiencies, revisiting pricing strategies, and exploring alternative revenue streams to ensure sustainability without compromising service quality.

How do you forecast for your business? We utilize a combination of historical data analysis, market trend evaluation, and community feedback to project future enrollment, staffing needs, and financial performance.

What are the best sources for capital expansion? We consider a mix of traditional bank loans, reinvested profits, and potential partnerships with investors who share our vision and values.

Experience with private equity, local banks, national banks, other institutions? Why/why not? Our expansion has primarily been financed through relationships with local and national banks, which offer terms that align with our financial strategies and community-focused approach.

What are you doing to take care of your employees? We provide competitive compensation, comprehensive benefits, and opportunities for professional development as well as a supportive work environment that values their contributions and well-being.

How are you handling rising employee costs (payroll, minimum wage, healthcare, etc.)? We proactively manage rising costs by optimizing operational efficiencies, adjusting tuition rates as necessary, and exploring cost-saving measures that

do not compromise the quality of education or employee satisfaction.

What laws and regulations are affecting your business, and how are you dealing with them? Changes in childcare licensing requirements, health and safety regulations, and labor laws directly impact our operations. We stay informed through continuous education, consult with legal experts, and adjust our policies and procedures to ensure full compliance.

How do you reward/recognize top-performing employees? We implement recognition programs that include bonuses, public acknowledgment, opportunities for advancement, and professional development initiatives to reward excellence and dedication.

What kind of exit strategy do you have in place? Our exit strategy involves succession planning, potentially transitioning ownership to trusted leaders within our organization or exploring opportunities for acquisition by parties who align with our mission and values.

Ronnie & Susan Morris

Title: Multi-Unit Franchisees

Company: Express Employment Professionals

No. of units: 8 Express Employment Professionals

Age: Ronnie, 67; Susan, 62

Family: 3 sons, Kyle, Casey, and Spencer

Years in franchising: 15

Years in current position: 15

LONDON | LA | NYC | 40+ SALONS GLOBALLY

The nail salon market is an $8 billion industry with no dominant brand, despite 57,000 salons in the U.S. Townhouse is the fastest-growing premium nail salon chain, redefining the category with a strong brand and industry-leading operations. Now working exclusively with multi-unit franchisees expanding into this high-growth sector.

$8BN

Nail care services market value

70%+

Monthly revenue from returning customers

95%

Consider regular manicures and pedicures an essential part of self-care

95% Appointments booked in advance

Average franchise commitment of 24 locations

Average salon size 8001500 sq foot

The Express Lane

Franchisees affect lives through employment and charitable work

By Kevin Behan

Ronnie and Susan Morris are the Noble Cause MVPs (Most Valuable Performers) for their organization’s passionate, unwavering support for those in need.

The 2000s were challenging times for Ronnie and Susan Morris. After spending 14 years working for Coca-Cola Enterprises, Susan retired to raise the couple’s youngest son. Although Ronnie had a good job and survived several corporate restructures, he says, “Sooner or later, my expiration date was going to hit.” Most importantly, Susan was diagnosed with breast cancer in 2009, just weeks after running in the Boston Marathon.

The news was shocking to Susan, an avid runner with a healthy lifestyle. Her doctor said cancer spares nobody, and if she waited a year later to be tested, they would have had an entirely different conversation. Susan underwent multiple surgeries and other treatments and has been cancer free for 15 years.

“That was a wake-up call for us in wanting to build our own destiny,” Ronnie says. “She was the picture of health. But if you look up the definition of grit in the dictionary, you will find a photo of Susan. I think that experience pushed us toward franchise ownership. I traveled a lot and missed some family events, and we wanted to have a greater life balance.”

The Morrises learned about Express Employment Professionals through a friend at Coca-Cola. They purchased a franchise in 2010 and moved to Tennessee to be close to family. They felt their previous corporate experience in sales, running a business, and managing employees would be a perfect fit to lead the staffing agency. After pouring all their savings into the business, Ronnie and Susan took an aggressive approach in which failure was not an option.

The couple doubled the required number of sales calls after starting the business and broke even financially within six months. They reached an internal reward level in their second year and continued to climb the ranks. In the past two years, the pair were named to the Diamond Circle

of Excellence, the highest performance level in the Express Employment Professionals system.

Each day, the Morrises and their team match hundreds of people with jobs that fit their interests, skill sets, and work histories. The outcomes can be rewarding.

“We have associates who come back to us and say that if we did not help find them this job, they would not have been able to afford Christmas for their family or pay their rent or electricity bills,” Susan says. “When we place them with a job, they tell us they feel like they have a purpose in life and can now support their family. The feedback we receive hits home about how we have changed their lives.”

Ronnie and Susan are actively involved in several charitable endeavors. They are both past chairs of Making Strides Against Breast Cancer, which helped raise more than $500,000 for the American Cancer Society with a 5K walk/run over five years. For the past 10 years, they have also hosted a Black Tie and Boxing fundraiser in their hometown of Jackson, Tennessee. The sold-out event features a black-tie dinner with live amateur MMA and kickboxing matches. Over the years, proceeds have exceeded $1 million to support the Juvenile Diabetes Research Foundation and the STAR Center, an organization that places people with disabilities in new jobs.

MVP QUESTIONS

Why do you think you were recognized with this award? Being engaged in our local community has been a priority for us since day one. Coming out of the Coca-Cola system, we saw firsthand the power of local engagement, so it was natural to do so with our franchise. We have been on the startup side with major fundraisers that have delivered more than $1 million to the Jackson and West Tennessee communities.

How have you raised the bar in your own company? Our main metric is how many temporary associates we place with clients, and we strive to place 1,000 each week. We also created a program a few years ago called Second Chance. We meet with associates with a problematic work history for a session on how to keep a job. We teach them the importance of being on time, adding value, and learning to do more. We then reassign them to a job and give them a second chance to work. What core values do you think helped you win this award? Having a servant leadership style. It’s our stated vision. It’s a desire to give back to the community that has supported us and just doing what’s right. It feels good to give back to others. How important is community involvement to you and your company? It is a major part of our company’s vision. From the beginning, we wanted to be good community partners and give back to others who have been so good to us.

What leadership qualities are important to you and your team? There are several qualities. Authenticity builds trust, and without that, there is no leadership. Being direct with good or bad feedback is important for business owners along with being skilled at having difficult conversations with staff members. It’s important to be consistent, collected, and willing to lead by example, especially when things are tough. Acknowledge real challenges, but be optimistic. Having a sense of urgency sets the tone for all we do. Lastly, keep the reason why you are in business front and center. We provide hope to associates through employment while helping our clients achieve their goals by providing quality staffing.

PERSONAL (Ronnie)

First job: Working at McDonald’s for several years while I was in high school.

Formative influencers/events: Switching my major from journalism to business at the University of Memphis was transformative for me. It made me realize that business was where I wanted to be. It eventually led me to several senior management roles within Coca-Cola Enterprises, which helped me see the big picture of how a successful business operation should be run through sales, operations, accounting, and HR.

Key accomplishments: For the past two years, we have reached the Diamond Circle, which is the highest level of recognition in the Express

It is so gratifying to help people create financial independence for themselves."

Employment Professionals system. We were also awarded Franchise of the Year for 2024 and finished the year as the top territory in the Express Employment system. Susan is a breast cancer survivor and has run eight marathons (three times in the Boston Marathon) and at least 20 half-marathons. She started an organization, Making Strides Against Breast Cancer, which raised more than $500,000 in five years for the fight against breast cancer.

Biggest current challenge: Getting our hands around the ever-changing staffing environment and growing our client base and volume in an industry that has contracted over the past few years.

Next big goal: After achieving Diamond Circle status the past two years, we are focused on reaching that again in 2025.

First turning point in your career: Breaking even within six months of starting with Express and achieving Gold Circle status. Susan and I came out of the gate running and set the record for “fast track” of billing clients within our first 12 weeks of being open.

Best business decision: Leaving the corporate world and opening our franchise business. We had very successful and satisfying careers with Fortune 500 companies, but we had a desire to manage our own destiny, and franchising was the answer. Express Employment Professionals suits us well because it allows us to leverage skills that we developed for decades in sales, customer management, operations, and team leadership.

Hardest lesson learned: Putting too much trust in staff members without verifying they were doing what they said they were doing. In a small business, the owner has the ultimate responsibility for everything good and everything bad. We turned a lot of our responsibility over to senior management and got burned, and that ultimately fell on us. We learned to ask questions and verify that tasks were being done along the way.

Work week: Susan and I are up early every morning around 5 or 6 a.m. We discuss our schedule for the day or the week over coffee before heading to the office. We normally leave the office by 4 p.m., and if we have no functions to attend, we are home and downloading each other on the day’s events.

Exercise/workout: I walk, go to the gym, and love hitting 10,000 steps. Susan runs every day for a total of 30 miles a week, all of which are early in the morning before she gets to the office.

Best advice you ever got: “Cash is king and oxygen to a small business,” according to our CPA. What’s your passion in business? Putting people to work and providing hope for them. It is so gratifying to help people create financial independence for themselves.

How do you balance life and work? When you run a busy franchise business with multiple locations, it’s hard to turn it off. You have to accept the fact that you’re going to talk about business issues and opportunities at home. We are fortunate enough to have a place in Florida where we can escape to as often as we can, about five to six times a year.

Guilty pleasure: Blueberry cheesecake for me and pizza for Susan.

Favorite book: Good to Great by Jim Collins. The principles from this book regarding assessing people on the bus, confronting the brutal facts, and the flywheel effect are concepts we use all the time when we evaluate our team and assess the progress and state of our business.

Favorite movie: “Rocky” for me and “Pretty Woman” for Susan.

What do most people not know about you? I love to read and hope to write a business book on leadership someday.

Pet peeve: For me, it is indecision and waiting in line. Susan’s pet peeve is people talking on their speaker phone in public and assuming we want to hear their conversations.

What did you want to be when you grew up? Susan and I both knew we just wanted to be successful and distinguish ourselves from our peers. Together, we wanted to build a career that was challenging and financially rewarding.

Last vacation: Beach vacation in San Destin, Florida, in March 2025 to celebrate Susan’s birthday.

Person you’d most like to have lunch with: I’d like to have lunch with George Washington to hear the stories he could tell. Susan would like to have lunch with her dad.

MANAGEMENT

Business philosophy: Volume/rate/mix: We first focused on building our volume, which is hours billed. Once we had that on track, we began to work on our pricing to build our gross margin rate. Now, we are working on our mix by making a concentrated effort to grow additional product lines to insulate our margins and make the business more sustainable over time. We believe you can survive in achieving two out of three. But to have a high-performing, sustainable business, we need to optimize all three.

Management method or style: We are very hands-on and highly engaged in the business. Having a consistent and solid culture is critical for long-term success, and our culture is grounded in having a sense of urgency and winning. Be willing

to pivot, pay attention to trends, and don’t focus on good or bad but rather better or worse.

Greatest challenge: Delivering our 2025 sales of $50 million, which will put us in the Diamond level for the third straight year.

How do others describe you? People describe me as strategic, genuine, and focused. They say I’m a good communicator and a great listener. People describe Susan as a hard worker who’s direct, gritty, and kindhearted.

Have you ever been in a mentor-mentee relationship? What did you learn? Throughout my career in the Coke system and other companies, I was fortunate to work for highly skilled and competent leaders who taught me the nuances of managing people and delivering a plan. More recently in the Express system, I have served as a mentor to others and have shared some advice I have learned. Keep it simple with metrics, stick to the process, and don’t be afraid to make a mistake. Business is a game of singles, doubles, and the occasional home run.

One thing you’re looking to do better: Building a strong team with more accountability. I am working on the trust-but-verify process. I tend to trust too quickly, and that has gotten me into trouble. Susan is working on slowing down and being a better listener.

How close are you to operations? Very close. We have morning huddles and one-on-one conversations with our staff both formally and informally. We are highly engaged in the day-to-day operations, and we believe that it is the primary ingredient of our success.

What are the two most important things you rely on from your franchisor? Innovation and communication. Ever-changing laws and regulations affect what we do in the staffing industry, and we rely on the franchisor to keep us updated on how these changes impact our day-to-day business. It also helps when they keep us updated on technical innovations and AI. Communication is a priority with our franchisor, and we greatly appreciate that. What you need from vendors: Communication and how you can make us better. The best ones know what is important to us and what we are trying to achieve. We ask for competitive prices, honesty, and quality services.

How is social media affecting your business? We leverage major platforms, like Facebook, Instagram, LinkedIn, and TikTok, to promote our job openings. Our best tool is mass texting.

How are you using technology, like AI, to manage your business? Primarily for automation of reporting and process flow for clients and associates, drafting responses for online reviews and social engagements, and video editing and production for content creation. It’s also for brand awareness and recruiting.

Communication is a priority with our franchisor, and we greatly appreciate that."

How do you hire and fire? To hire, we normally will post open roles. We always try to promote internally first. We are big on working interviews because staffing isn’t for everyone. It’s fast-paced and can be chaotic in a busy office. To fire, it depends on the severity of the issue. We normally take the traditional warning route, and if there is no improvement, we will terminate after that.

How do you train and retain? Initial training is a combination of on-the-job training and our internal online training, Express University. Then, we assign mentors and a lot of coaching. Retention is about increased accountability and responsibility. Emphasizing those two things is an effective model to build leaders.

How do you deal with problem employees? Quickly. People who don’t adhere to or fit in with the culture are usually terminated early.

Fastest way to your doghouse: Poor communication, not having a sense of urgency, disorganization, and being late.

BOTTOM LINE

Annual revenue: More than $50 million in gross sales.

2025 goals: Achieve Diamond Circle recognition for the third consecutive year.

Growth meter: Growth margin is the ultimate number. We have a weekly focus on paid associates and clients billed.

Vision meter: We would love to be the top staffing company in our markets and be known as a great corporate citizen that puts people to work.

How is the economy in your region(s) affecting you, your employees, your customers? Low unemployment and very low turnover have clients telling us they expect to be flat or slightly up in 2025. Many are in a wait-and-see mode now regarding increasing staffing or expanding. We are hearing the second half of 2025 could be busy, and we hope that’s the case.

Are you experiencing economic growth in your market? In our particular market, yes. Tennessee, especially West Tennessee, is a very business-friendly region. Significant and steady growth is expected over the next five years.

How do changes in the economy affect the way you do business? Staffing, especially industrial staffing, is a great early economic indicator.

Coming out of Covid, it was hard to get people to go and stay at work. Our clients were shut down in Q2 of 2020, but by midyear, they were behind on production and needed people quickly. We were very busy. Over the past year or so, inflation has peaked, associates stayed on the job, and we are seeing turnover reverse. In the second half of 2024, we felt like our clients put things on hold, waiting to see how the election turned out. Today, we are still seeing very low turnover, and associates are staying on the job. Client demand is still sluggish.

How do you forecast for your business? We analyze our recent trends over the past two to three years, we talk to dozens of clients to get a feel for what they expect for the coming year, and we get input from our franchisor on what they foresee coming for the industry.

What are the best sources for capital expansion? We have used traditional funding sources, like local bank loans and lines of credit. Banking relationships are critical for a small business, especially when starting out.

What are you doing to take care of your employees? We pay a very competitive base salary and provide both a generous PTO policy and a bonus program based on the performance of the company. We also offer a retirement IRA that we match up to 3%.

How are you handling rising employee costs? No doubt our internal payroll has seen significant increases, especially since Covid. Entry-level jobs in

our company have a much higher starting rate than in years prior. Like any other small business, we tightly manage overtime and nonessential expenses. What laws and regulations are affecting your business, and how are you dealing with them? Our associate onboarding process is best in class, ISO certified, and constantly under review to keep us in line with new regulations and laws. Regulations vary from state to state, and our franchisor does an excellent job of keeping us abreast of laws and regulations that affect us.

How do you reward/recognize top-performing employees? Our headquarters in Oklahoma City does a great job with recognition programs for key positions in our office, especially with our sales teams. Locally, we celebrate every win no matter how small, and when someone performs above and beyond, we make sure everyone is aware of that performance. We are constantly giving out gift cards and small tokens as instant gratification for jobs well done. Beyond our bonus program, we offer annual travel certifications to high-performing employees. What kind of exit strategy do you have in place? This is something we are working on. Our youngest son is a senior in college and may find himself running the business one day although it is too early to tell. In five years, we want to be living at the beach and playing a lot of golf. 

The 2025 Multi-Brand 50 reveals a dynamic year in multi-unit, multibrand franchising. While familiar names continued to dominate the top spots, this year’s data highlights steady expansion, strategic acquisitions, and some notable new entrants making their mark on the landscape.

At the top of the list, Flynn Group maintained its No. 1 position, increasing its total unit count from 2,520 in 2024 to 2,745 in 2025. The franchise giant, known for operating Pizza Hut, Applebee’s Neighborhood Grill & Bar, Arby’s, Wendy’s, Taco Bell, Panera Bread, and Planet Fitness, continued to scale its operations. In 2024, Flynn Group expanded its Wendy’s and Panera locations and acquired additional Pizza Hut units in 2025, bringing its total count of Pizza Hut restaurants to 1,024. At No. 2, Sun Holdings jumped a spot and went from 1,193 units last year to 1,704 this year. KBP Brands came in at No. 3, holding steady with 1,120 in 2024 and 1,119 in 2025.

Notable changes

Several franchise groups made significant leaps in ranking due to aggressive expansion and strategic acquisitions while some fell off the list due to strategic organizational changes:

• K-MAC Enterprises made a notable jump from No. 23 in 2024 to No. 18 in 2025, driven by its rapid growth in the 7 Brew portfolio. With an ambitious plan to open 200 new stores by 2027, the company is capitalizing on the growing drive-thru coffee trend.

• Tasty Restaurant Group, backed by Triton Pacific Capital Partners, climbed from No. 17 in 2024 to No. 13 in 2025. The group expanded its portfolio with

MULTI-BRAND 50

the acquisition of 64 KFC restaurants, further strengthening its position in the fast-food sector.

• Alline Salon Group, formerly ranked No. 22 in 2024, dropped off the list entirely. The group exited the franchise business, selling its entire portfolio to Regis Corporation for $22 million.

The 2025 Multi-Brand 50 also saw new entrants making their debut. Tacala LLC, a longtime Taco Bell operator, appeared on the list for the first time. In 2024, Tacala diversified its brand portfolio by adding 7 Brew, marking its entry into the fast-growing drive-thru coffee segment.

The Multi-Brand 50 franchisees saw widespread unit growth in 2025, high-

lighting their resilience and continued expansion in an evolving market. Large operators are not only consolidating their existing positions, but also branching into new segments and concepts to mitigate risks and expand revenue streams, ensuring long-term relevance and profitability.

Whether it’s established giants like Flynn Group broadening their brand mix or new entrants like Tacala LLC tapping into the specialty beverage space, large operators continue to leverage brand diversity, operational scale, and strategic acquisitions to stay competitive in today’s fast-changing franchise landscape.

Ambika Oberoi is director of information management for FRANdata.

Written by AMBIKA OBEROI

We are proud to be an exhibitor at the 2025 Multi-Unit Franchising Conference.

Brown Rudnick is a leading international law firm that provides exceptional, client-driven service in global litigation, crisis management (restructuring, investigations and special situations), brand and reputation management, life sciences and technology. We advise on high-profile cross-border matters while providing the kind of personal attention to clients that is typically found at boutiques.

• Island-inspired plates with sweet, savory and spicy options

• Simple menu with less than 100 SKUs (6 Entrees, 5 Sides and 1 Dessert)

• No freezers, no fryers, no microwaves

• Rapidly growing, emerging concept with 60+ locations in 9 states, founded in 2018

• 30 seconds or less speed-of-service at the drive-thru windows

speed-of-service at the drive-thru windows

• Multiple flexible building formats (drive thru, end cap, in-line, 2nd generation building conversions)

Smart Answering, our AI-powered voice assistant, answers 100% of your calls and then tells you who called, when they called and why. And it comes with an easy-to-use analytics dashboard that can help you optimize business decisions like lead collection, eliminating complaints or even scheduling Brad during the busy times.

THE EXPERIENCE

At Benihana we celebrate what each guest brings to the table. Whether it’s your family, friends, appetites or enthusiasm, we’re here to transform every meal into a memorable experience.

OUR STORY

Benihana is a cultural icon, backed by The ONE Group - the undisputed international leader in VIBE DINING and hospitality services. With over 60 years’ of heritage, Benihana is a cultural icon and the largest operator of teppanyaki restaurants in the United States.

WHY FRANCHISE WITH US?

Opportunity to operate one of the most well-known restaurant brands in the country.

Receive access to a strong support network across marketing, management & events.

Hands-on training and support from our dedicated team.

Fast casual business model available for experienced QSR franchisees.

Multi-Unit Franchising Conference

MUFC 25

Franchisees

Go All In

Multi-Unit Franchising Conference sets records on its 25th anniversary

Written by KERRY PIPES

Multi-Unit Franchising Conference

In March, the Multi-Unit Franchising Conference (MUFC) hit the jackpot at Caesars Forum in Las Vegas: The annual event attracted record attendance for its 25th anniversary.

More than 2,600 attendees met for multi-unit franchising’s signature event. More than 1,000 franchisees represented more than 300 brands, operated more than 23,000 units, and generated more than $16 billion in system-wide revenue. Meanwhile, more than 390 exhibitors and sponsors were on hand to support the conference and meet with franchisees during exhibit hall hours.

Numerous education sessions covered important industry topics, such as growth, planning, leadership, and logistics, and peer-to-peer networking opportunities were around every corner. This year’s exhibit hall set a record for the number of exhibitors.

The 2025 MUFC Platinum Sponsors were Inspire Brands and Jersey Mike’s Subs.

Welcome to Las Vegas

Every MUFC begins with a “shotgun style” golf tournament. This year, the event was at sunny Siena Gold Club. The tournament offered an excellent networking opportunity to build and strengthen relationships among industry leaders over 18 holes.

That evening, first-time franchisees mingled at a special welcome mixer. This brought together the new attendees and the conference advisory board for conversation, networking, and refreshments. First-timers also learned how to make the most of the conference experience.

Day 1

Breakfast welcomed attendees as the conference kicked off for the first full day. Attendees then gathered in the first general session, where Franchise Update Media’s Chairman Gary Gardner and CEO Therese Thilgen welcomed everyone to the 25th MUFC with nostalgic memories of the event through the years. During her opening remarks, Thilgen revealed that Franchise Update Media and the International Franchise Association (IFA) had signed a merger agreement with the transition set to take place this summer.

Next up was MUFC Chair David Ostrowe, who welcomed the crowd and said, “Whether you’re a first-time attendee or a veteran of this event, this is the place where deals happen.” He encouraged attendees to make the most of their time at the conference by telling them to “hit the floor hard, talk to exhibitors, and make it a goal to come away from here with at least one nugget of great information.”

Ostrowe then thanked the Gold Sponsors: Angry Crab Shack, Penn Station East Coast Subs, and Ziebart. Zaxby’s was a gold and keynote sponsor.

Keynote speaker Daymond John is the founder and CEO of global lifestyle brand FUBU, and he’s also known for his investor role on the TV show “Shark Tank.” The native of Hollis, Queens, documented his journey to success with funny tales

and hard lessons learned on his way to building his successful clothing brand.

“You are what I call my fellow sharks,” he told the crowd. “You are investing in others every day.”

John offered keen insights for successfully growing a business and adapting to market challenges and transformations, including his “5 Shark Points” for success: set goals, do your homework, find “amor,” remember you are the brand, and keep swimming.

Following a short coffee break, the first round of breakout sessions began and included timely topics, such as “Scaling Up: Expanding to 10 Locations,” “Building Bench Strength To Support Infrastructure To Grow,” “Customer Experience & Changing Buyer Behaviors,” and “Discovering Your Next Brand: A Guide to Effective Research.” Rooms were packed, and discussions were lively.

After a lunch break, the first general session panel convened. “Navigating the Path to Future Growth–Choosing the Right Brand Growth Options, Overcoming Challenges, and Preparing for Obstacles in Turbulent Times” featured Rocco Fiorentino, CEO of Benetrends Financial; Luis Ibarguengoytia, a multi-unit franchisee with Pizza Hut, Crú Food & Wine Bar, Ling & Louie’s Asian Bar and Grill, Applebee’s, and Panda Express; Dawn Lafreeda, a Denny’s multi-unit operator; David Ostrowe, a Taco Bell multi-unit operator; and Nauman Panjwani, a multi-unit franchisee with Choice Hotels, Hilton Hotels, Marriott Hotels, and Total Wireless by Verizon.

The panelists discussed how growing a successful franchise enterprise can be both exhilarating and rewarding, and they shared what they’ve learned along the way. Each operator told stories of how they built their enterprises and explained how they chose the brands they expanded with. They talked about operating during challenging times, dealing with underperforming units, and other obstacles they faced in their journeys.

“Economy of scale is the name of the game,” Panjwani said. “You’re seeing a lot of consolidation.”

Attendees then adjourned to the grand opening of the exhibit hall, where they enjoyed cocktails, engaged in conversation, and kindled potential new partnerships.

Day 2

The second day of learning opportunities started after breakfast and coffee with another round of breakout sessions. These included “Scaling Up: Expanding from 25 to 50 Locations,” “Labor Management and Retention Tools & Strategies,” “Key Insights for a Profitable Franchisee Sale,” “Thriving Through Innovation,” and “Essential Steps for Launching Your Next Brand.”

Following the breakout sessions, attendees returned to the general session for another keynote presentation. The Day 2 keynote speaker sponsor was Freshslice Pizza. Mike Walsh, CEO of Tomorrow, a global innovation consultancy, brought his futurist views and predictions for emerging technology and consumer innovation and suggested ways for businesses to thrive in this new era.

“What will it mean to live in a world dominated by AI?” he said, adding that he thinks the people are “underestimating what AI will do in the next 10 years.” He touched on Open AI Deep Research, noting that it is a sophisticated tool that can help businesses build marketing plans and proposal analyses.

“We are at the dawn of a new industrial revolution,” he said, adding that AI will change the scale, speed, sustainability, and security of our world while also transforming the roles of business leaders.

Walsh’s keynote was followed by a timely general session panel, “Trump 2.0 and the Impact on

Franchising.” IFA President and CEO Matt Haller, Bryan Lanza, a Republican strategist and communications director for President Trump’s transition team, and Gary Robins, a multi-unit franchisee with Supercuts and Waxing the City, discussed policies related to the Trump administration and how franchising could be affected.

“He doesn’t mind being disruptive,” Lanza said of Trump.

The panelists discussed how Trump got reelected, what the first 60 days of his administration has been like, and the ongoing misperceptions that Congress has about franchising. All three emphasized the importance of franchisees being politically engaged in their communities, state capitols, and Washington, D.C.

A lunch break followed, and then it was time to recognize franchisee excellence during the Most Valuable Performer (MVP) Awards ceremony. Each of the winning franchisees demonstrated

exceptional performance, leadership, and innovation in various aspects of their businesses. You can read all about the MVP Awards on page 6.

Next, FRANdata CEO Darrell Johnson presented his annual overview of the “State of the Economy” and the “State of Franchising.” He said the global economy is entering a period of slowing growth and stabilizing inflation.

“U.S. consumer sentiment has dropped at its fastest rate since 1991,” he said, adding that job creation has slowed and wage growth continues to decline.

In the good news department, Johnson predicted that franchising would add more than 20,000 units and more than 210,000 jobs and see output increase by 4.4% during 2025. However, he said, “Franchisors and franchisees will need to make sure they manage costs while dealing with continued labor troubles and a slowdown in consumer demand.” He finished up his presentation with the announcement of FRANdata’s FundScore awards.

RECONCILIATION

Local franchisee spend placed via the platform, using approved channels and creative, will be aggregated over time. Data insights inform future strategy.

MULTICHANNEL ENABLEMENT

Franchisors can enable desired media channels and targeting for franchisees for local performance marketing or amplification of brand campaigns.

REPORTING

Individual, multi-store, regional, or corporate reporting views can track campaign delivery and KPI performance.

MEDIA EXECUTION

In four easy steps, franchisees can execute campaigns using brandapproved creative with customizable local addresses and offers.

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The afternoon brought another round of breakout sessions, and topics included “Scaling Up: Growing Beyond 50 Locations,” “Media Training for Franchisees,” “Funding Diversification & Management,” and “Optimizing Real Estate Investments for Future Wealth.”

With another day of speakers, sessions, and learning tucked away, attendees gathered again in the exhibit hall for cocktails, networking, conversation, and dealmaking.

Leaving Las Vegas

The final morning of MUFC featured two workshop sessions, “Key Business and Legal Issues for International Franchise Agreements and Supply Chain Agreements” and “Strategies to Address Underperforming Units.” Extra chairs had to be brought in for the latter session, which was packed with eager attendees looking for turnaround tips for their struggling units.

“The numbers tell the story. Look at your KPIs,” advised Chanel Grant, co-owner of six Tropical Smoothie Cafe units, three Hand & Stone Massage and Facial Spa locations, and one Vio Med Spa. “Look at your numbers and KPIs, and devise a plan to address those.”

Initial feedback from attendees reflected another content-rich conference filled with timely, topical, and valuable insights.

Chris Baker, a multi-unit operator with Wendy’s and Tropical Smoothie Cafe in the New England area, was a first-time attendee and said, “There are so many people here who can provide value to what we do. There’s no shortage of opportunity to learn but also to build and bring on new brands for your business.”

Nadeem Bajwa, a multi-unit franchisee with more than 275 Papa Johns in 12 states, said, “The main thing here is networking. Network is your net worth. When I come here, I look at what everybody is doing, and I have picked up ideas which have helped me in my business.”

Next year’s Multi-Unit Franchising Conference will be at Caesars Forum in Las Vegas, March 24 to 27, 2026. For more conference information, visit www.multiunitfranchisingconference.com in the coming months. 

MUFC BY THE NUMBERS

Aggregated statistics from the 2025 MUFC

2,600+

Total attendees registered

1000+

Franchisees registered, representing more than 600 franchisee enterprises

300+

Franchise brands represented 23,000+

Operating units

44%

2 or more brands

24%

3 or more brands

75%

3 or more units

52%

10 or more units

37%

20 or more units

394

Exhibitors and sponsors (combined)

$16+ billion

Total annual revenue

70%

Franchisees seeking other brands

73%

Single-brand franchisees seeking other brands

65%

Franchisees interested in acquiring operating franchises

4,000

Units expected to open in the next 12 months

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Tips for navigating negotiations, renewals, and beyond

Written by COLLEEN MCMILLAR

Mike Philip grew up in northwest Arkansas. He worked in the real estate business there before he opened four Einstein Bros. Bagels and a Slim Chickens restaurant in the region. He’s known some of the area’s commercial property owners for decades.

When he sits down to negotiate a lease for one of his businesses, nothing is understood, nothing can be assumed, and everything in the agreement needs to be spelled out. For franchise operators to draft a lease that works best for them, Philip and other longtime multi-unit franchisees say, they have to get into the weeds with their landlords.

A well-drafted lease should answer the what-ifs that come with owning a business but not owning the premises. Who’s financially responsible if the restaurant floods because of a preexisting plumbing issue? Who’s responsible for snow removal? What if someone falls in the parking lot? What if a competitor wants to rent space from the landlord in the same shopping center?

“In a business relationship, if I can have it black and white, then there is no gray area,” says Philip, who became Einstein’s first franchisee in 2006. “Gray area is what causes issues. So, by not defining the responsibilities of the franchisee and the landlord, you’re going to doom the relationship. There are no handshake deals in a lease scenario. You’ve got to put it all in writing.”

Sometimes, the fate of a business depends on the details hammered out in the beginning. What constitutes a good lease? What factors are most important? The short answer: It depends.

“At this point in my career, there are things I want in a lease that are important to me that aren’t important to somebody else,” says Jeffrey Klein, a Nevada franchisee who owns 19 locations of Capriotti’s Sandwich Shop, Auntie Anne’s Pretzels, Baskin-Robbins, and The Gents Place. “There are things that people might want in a lease that I don’t care about. It’s really a personal thing.”

There are some key factors franchisees should consider when making lease deals. We called on

JEFFREY KLEIN

Multi-Unit Franchisee

Capriotti’s Sandwich Shop, Auntie Anne’s Pretzels, Baskin-Robbins, and The Gents Place

Philip, Klein, and other multi-unit operators to talk about what they look for in a location, how they approach lease negotiations, and how they manage their relationships with landlords.

LOCATION

Before Philip even signs a franchise agreement, he has at least two locations in mind for the new business. He’s evaluated the locations, and talks with the property owners are underway. “Because great locations are so hard to find,” he says. “And that’s not just in my market; that’s everywhere.”

In the past five years, the pace of new construction has slowed because of the pandemic, interest rates, tight credit, and inflation. For Philip, location is the most important factor in the success of his business.

“If someone is describing a site to me and they say, ‘It’s behind this’ or ‘It’s down that street and around the corner from that,’ those are descriptors that let me know I’m not interested. I’m out,” he says.

He pays more for a highly desirable site, but he also makes more money by being there. “I make my location decisions based upon a percentage of what I think the sales are going to be in an A-plus location because that’s when you make your money,” Philip says. “There are so many fixed costs in this business that you really have to do what you have to do to drive that top line.”

It’s a different proposition for Matt Speranza. He and his wife, Dina, are the largest franchisees in The Goddard School network with 14 facilities up and running in Philadelphia, Pittsburgh, and Cleveland and eight in development in Florida. The viability of their schools, which offer private preschool and early childhood education, doesn’t rely on having prime locations that are clearly visible from the road.

“Goddard is a destination point,” Speranza says. “We can maybe take that B-site and not have to put as much money into rent because we don’t need to have that A-site that’s on the main traffic road. Once parents learn that we’re there, our clients, our families, will find us.”

You have to understand what type of business you have, what it needs to be successful, and the market you’re in, Speranza says. The school needs to be in an area where it can thrive.

“For us, we have to have the right amount of children,” he says, “and we have to have the right income level in the area to support The Goddard School.”

Most franchisors have technology that proves useful in finding sites. “AI today is pretty incredible,” Klein says. “You put a bunch of data in, and it spits out a location, and then it’ll give a score. It’ll give a range of what the AI thinks that location will do in sales. But I kind of have an idea of what I think is good and what is bad, and that changes with the business climate.”

MIKE PHILIP

Multi-Unit Franchisee

Einstein Bros. Bagels and Slim Chickens

LETTERS OF INTENT

A good lease starts with a letter of intent (LOI), which outlines some terms and conditions that the franchisee and the landlord have preliminarily agreed on, such as rent, deposits, lease duration, permitted uses, and improvements. Franchisors typically have guidelines for what an LOI should look like and what franchise operators should ask landlords for.

“Most franchise brands that I work with have very short LOIs. I like really long LOIs because I want to negotiate some of the things up front, so I don’t waste time or, more importantly, money on an attorney later,” Klein says. “Up front, I get landlords to agree to points that are important to me. Once you negotiate the LOI, the lease is kind of simple because now you’re just putting the language around the LOI.”

The importance of securing expert legal advice to help protect your interests can’t be overstated, Klein says. He tells inexperienced franchisees to “get an attorney who can help you figure out what’s important to you and your family. What risk can you have? Can you afford to sign a personal guarantee?”

More than one commercial property owner has questioned the necessity of some of the details that Klein wants covered in a lease agreement. “When they ask me why, I always use the same answer: ‘It’s for the reason we can’t think of.’ Covid was a reason we couldn’t think of,” he says.

OPTIONS

A new build might have walls. It might not. It might have heating and air conditioning. It might not. The cost of finishing a building should be taken into careful consideration. Franchisees can negotiate for rent abatement or a tenant improvement (TI) allowance from the landlord to offset the cost of customizing the space.

“Warm vanilla shells,” which are spaces with HVAC, walls, and a ceiling, can save on upfront costs but likely will come with less of a TI allowance than a “cold dark shell” that has no interior improvements and no HVAC.

I WANT TO USE AS MUCH OF THE LANDLORD’S MONEY AS POSSIBLE. NOW, THAT MIGHT DRIVE UP MY PER-LEASE PRICE, BUT IT KEEPS MY CASH FLOW OPEN SO THAT I CAN GO AND OPEN MORE LOCATIONS. TO ME, THAT’S MORE IMPORTANT."

“The more you can negotiate on the front end, the less you’re going to spend of your TI allowance on the back end,” Philip says.

For the landlord, offsetting the cost of a buildout often makes sense because the franchisee is “also increasing the value of that property. Even if you don’t stay for the term of your lease, the landlord has a finished space versus an unfinished space,” Philip says. The amount of the TI depends on the market. “Probably the bare minimum now is $25 a square foot to upward of $60 to $90 a square foot,” he says.

Speranza doesn’t take on any of the cost of building out a space. He’s only interested in triple net turnkey leases in which the buildings are constructed for The Goddard School and are ready to move into without major renovations. In turn, he takes on the operating expenses, including property taxes, insurance, and maintenance.

“A lot of developers or landlords want to say, ‘Hey, we’re going to give you X amount toward the build-out of the space,’” Speranza says. “I don’t do it that way because then you have to go out, get a loan, and do everything on your own. I want to use as much of the landlord’s money as possible. Now, that might drive up my per-lease price, but it keeps my cash flow open so that I can go and open more locations. To me, that’s more important.”

For franchisees finishing out spaces, it’s key to negotiate a period that’s rent free.

“If I’m leasing your space and it’s a new construction, it might take me four months to do the improvements,” Philip says. “Obviously, I don’t want to start paying rent until I’ve got something that’s procuring sales.”

MAINTENANCE COSTS

Ongoing maintenance costs can add up. They should be factored in when negotiating a lease. The agreement should detail which party is supposed to do what. If a landlord provides an HVAC unit, who maintains it? If the exterior glass gets broken by the guy mowing the lawn, who’s responsible?

The common area maintenance (CAM) cost, which is the franchisee’s portion of utilities in common areas, parking lot upkeep, and other shared expenses, can often be a point of contention. At the end of the year, there’s always financial reconciliation due because of the difference between what the landlord estimated those costs would be and what they actually were.

“We’ve learned to anticipate it and to talk to the landlord to make sure we’re mitigating or preparing by adjusting the CAM monthly instead of having a big number at the end of the year,” Philip says.

Even in the triple net agreements preferred by Speranza, where repairs generally fall on the franchisee, there’s plenty to negotiate in a lease when it comes to big expenses, like a roof replacement. After all, the landlord owns the property and retains the value of whatever is put into it.

“Those are all things that I look for when I’m negotiating a lease,” Speranza says. “I try to negotiate one in which we’re at least splitting that cost with the landlord one day. It might not need a new roof for 20 years. But when the whole roof needs to be replaced, then I feel that it should be 50/50.”

PERSONAL GUARANTEES

When it comes to personal guarantees, Klein keeps it simple: He will not sign a lease that demands a personal guarantee from him.

Speranza is willing to give a limited personal guarantee for a set period. A brand new The Goddard School costs between $6 million and $8 million to build, he says. “Instead of personally guaranteeing that whole amount, I would guarantee a portion of that, maybe 20% or 30%. Then, even though we sign long-term, 15-year leases, we try to tear down that guarantee so it goes to zero within 10 years.”

EMILY HARRINGTON

Leasing Tips

He sees it as only fair. If a franchisee were to go out of business, “the landlord still owns the building,” Speranza says. “They still have value there, and the franchisee doesn’t.”

LEASE RENEWALS

In the franchising world, it can be devastating for franchisees to lose their leased space. But that sometimes happens because a franchisee has unwittingly missed a deadline that’s in the lease agreement.

Contracts are different when it comes to how much notice lessees must give to a landlord if they plan to renew their leases. Klein recommends Leasecake, a platform that allows franchisees to keep up with critical dates in the lease. Sometimes, landlords are eager to get new tenants who aren’t locked into a certain rent, he says.

“I’ve gotten spaces because people forgot to let the landlord know they were going to stay,” Klein says. “Then, when they called to renew, they were told, ‘I’m sorry, you’re too late.’ Leasecake gives you warnings.”

During lease negotiations, franchisees should look closely at renewal terms, Philip says.

“How many renewals do you have? And do they match up with the terms of your franchise agreement?” he says. “Typically, a franchise agreement will go 10 years and then usually have another 10year renewal. Often, your franchisor will want your lease to match up with the terms of at least your initial agreement.”

Speranza negotiates 15-year leases with two fiveyear options.

“Most of your leases are going to say that the landlord wants to start negotiating the year before. I would say you’ve got to know your lease,” Speranza says. “If you’re thinking about moving, you need to start negotiating your option, if there isn’t one, almost five years in advance. That’s because you may have to go find a new piece of property and build a new building.

“Remember, if you’re waiting until that last year, the landlord has all of the power. If you have your option negotiated ahead of time, he has to honor it. But if you don’t have any options left, then he can jack up the price of your rent, and he’s kind of got you because you need that space.”

TODAY’S CLIMATE

The market is so tight in some regions, and prices of leasing commercial property are at such a premium, that it’s hard to dicker over price.

Emily Harrington, who owned seven Tropical Smoothie Cafe units in the Tampa area, closed her last remaining store in December. Before Tropical Smoothie, a brand that she considers strong, she coowned 10 Hardee’s locations. She says she’ll probably get back into franchising in the next couple of years, but for now, she plans to sit it out.

MATT SPERANZA

Multi-Unit Franchisee

The Goddard School

The restaurant industry has changed since Covid, she says, with third-party delivery, fewer interactions with customers, and new operational challenges. Leasing commercial space in her market is hard right now.

“It’s very difficult to find space,” she says. “The last store that I closed, I closed because the landlord wanted to renegotiate the whole lease and wanted to raise the rent to a point that just didn’t make economic sense for me.”

Tampa is burgeoning. The real estate market isn’t keeping up, which complicates any negotiations, she says. Tenant improvement dollars are hard to come by.

“The supply isn’t enough to meet the demand. And when that happens, you have a dramatic increase in price,” she says. “Landlords become increasingly difficult to work with because they know if this guy doesn’t want to pay what I want him to, I’ve got five more potential tenants waiting in line that want this space. It’s not just about the dollar amount in the lease. There are all these other components to that lease that you want to think about, and if a landlord has the upper hand, it becomes very difficult to convince him or her that you’re being reasonable. They can go get exactly what they want from somebody else.”

In that type of market, franchisees who can’t afford A-plus locations on Main Street can look for inline space and smaller locations to make the lease more affordable, she says. Her first Tropical Smoothie Cafe was 2,200 square feet. Her last was 1,200 square feet with 10 seats and an outdoor patio, saving her tens of thousands of dollars a year in rent.

The tight market won’t exist forever, she says. Sometimes, patience is required. “Real estate is cyclical,” she says. “So, right now, landlords have the upper hand. They’ve got a lot of cards. But that always comes back around.”

GETTING ALONG

Philip thinks most of his landlords would agree that he’s easy to get along with. When commercial

property is coming open, the owners often call him first to see if he’s interested. He doesn’t just pay his rent on time. He pays early. As a result, if something is broken, he expects a prompt response and gets it.

“The key to that whole deal is to just have open lines of communication,” he says. “Transparent and honest communication, without emotion, is a waning art.”

The tone of the relationship is often set at the beginning, says Harrington, who bought her first Tropical Smoothie Cafe in 2016. As she negotiated her leases, she always paid attention to whether she had a good rapport with the landlords and consistent communication from them. “If they go two weeks without responding to you, if they’re very slow in getting back to you, that’s a bad sign,” she says. “It means that they’re either not very attentive to their tenants or they’re perhaps working on something else, and you’re just not a priority.”

Speranza agrees that open communication is key. But he also has this advice: Don’t sweat the small stuff.

“There’s always going to be something, right? Sometimes, you just have to bite the bullet on all the little stuff and fix things,” he says. “I see people in franchising fight with their landlords about every little thing. We just don’t do that. I think of it this way: If it’s your partner or your spouse, there might be lots of things that you might not like about that person, but you work through it. Sometimes, you just have to accept some things.”

WHEN TO WALK AWAY

The franchisor operators we spoke to say that if the lease doesn’t contain the protections you want, don’t sign it. If it’s more than you can afford, don’t sign it.

“I tell young franchisees that the worst thing you could ever do is sign a bad lease. There’s really nothing worse,” Klein says. “You can have a bad franchise agreement. But if you have a bad lease, you’re dead. Leases are very, very important now. I’ve walked away from a bunch of deals over the last four years. They may have been good locations, but they weren’t good leases.”

To find the right deal, Harrington says, you’ve got to look around—a lot.

“Don’t set your heart on one particular location. If you do that, you overpay. Stay flexible. Find a good broker who can help you source properties," she says. "If a landlord knows you’re looking at other properties, they’re more likely to negotiate with you. If they know that you’ve got your heart set on their site, they can charge you whatever they want.” 

The right technology empowers teams to succeed ¬

Written by HELEN BOND

Multi-brand franchisee Joe Sample says he is always looking for innovative ways to “pull labor out of the box” across his expanding Taco Bell and Bobby’s Burgers by Bobby Flay portfolio.

Facing rising costs and persistent labor shortages, challenges he describes as painful in his home state of Montana, Sample has embraced technology to streamline operations and empower teams.

“One of the most important things in running these businesses is the employee experience,” Sample says. “To the degree to which you can maintain a connected workforce and build this relationship between employees and their peers and managers makes a difference.”

Sample’s approach reflects a trend among multiunit franchisees, who recognize technology’s power to enhance the culture and stability of their workforces. Key technologies include:

• Artificial intelligence (AI) and automation simplify workflows and scheduling, predict trends, and personalize employee experiences.

• Data-driven labor management balances labor costs with demand and reduces turnover.

• Mobile training apps are for on-the-go onboarding and continuing skill development.

• Performance management platforms digitally track progress, provide timely feedback, and promote morale-boosting employee recognition programs.

Cloud-based software solutions, now mainstays in franchising to streamline operations, are working to break down communication barriers. Real-time messaging, video conferencing, and centralized communication systems keep employees informed and engaged regardless of location.

Adopting leading-edge innovations requires substantial investment, a strong support system, and the ability to adapt, which is a challenging prospect for many multi-unit operators trying to navigate the rapid speed of change.

Yet, as Sample puts it, “It’s the way of the future, so I think if you’re not playing, you’re falling behind.”

Below, Sample and three fellow multi-unit franchisees share how they use technology to transform their operations and motivate their teams.

JOE SAMPLE

Multi-Brand Franchisee

Taco Bell, Bobby's Burgers by Bobby Flay

THE RIGHT TOOLS

As one of Taco Bell’s pilot testers of AI-powered voice ordering for drive-thru, Sample has been on the front lines of parent Yum! Brands’ push to scale next-gen restaurant tech through AI-fueled advanced analytics and proprietary front and backof-the-house management platforms.

Implementing the conversational voice-automated AI agents presented challenges. Sample first had to upgrade the hardware at select locations. Once in place, the results have been promising: higher customer satisfaction scores, larger average checks, and AI handling roughly 70% of drive-thru transactions, freeing up crew members to focus on more complex tasks.

Sample says that far from viewing this technology as a threat, his employees welcomed it enthusiastically.

“None of them viewed it that way partly because we weren’t cutting any positions; we were just reallocating the people we had because we needed more of them anyway,” Sample notes.

While Sample continues to evaluate the cost of the technology, which is set to roll out in 500 Taco Bell, Pizza Hut, KFC, and Habit Burger locations, his management team is bullish on the strategy.

“We just had a quarterly meeting, and our management team was pretty emphatic,” Sample says. “They told me: ‘Don’t take that away. Everybody loves it.’”

Sample’s wide-ranging tech arsenal includes performance management systems that provide Taco Bell and Bobby’s Burgers employees with clear pictures of what’s expected of them and how their work fits into the strategy and goals of the overall business.

Breakroom, a team communication and scheduling tool, ensures store-level employees stay informed and connected. The platform makes transferring shifts, sharing updates, asking questions, and recognizing employee achievements easy.

For management-level employees and above in Sample’s support center, he turns to 15Five. The AIpowered performance management system works as a weekly planning tool to promote engagement, productivity, and organizational success. Features, like structured check-ins, one-on-one meeting agendas, and performance reviews, help gather insights and track progress on both short and long-term targets. Aligning broader company objectives with individual goals keeps everyone on the same page.

“I call it connecting the near with the far,” he says. Sample is happy to implement fully integrated tech tools that simplify jobs for his employees and improve the guest experience, but each application must move the needle.

“It’s so many platforms managing different parts of your business,” Sample says. “We are careful and hesitant about changing technology. That thing had better really improve the experience, outcome, quality, or speed in order to get us to change.”

"WE ARE CAREFUL AND HESITANT ABOUT CHANGING TECHNOLOGY. THAT THING HAD BETTER REALLY IMPROVE THE EXPERIENCE, OUTCOME, QUALITY, OR SPEED IN ORDER TO GET US TO CHANGE."

A HUMAN TOUCH

When Bill Mathis opened his first Subway in Crosslake, Minnesota, in 2001, running a restaurant was a different experience: Cash was king, inventory was tallied by hand, and franchisees phoned in weekly sales.

Today, Mathis is a multi-unit franchisee of three Subway and three Caribou Coffee locations with another in development. His approach is both high tech and high touch. Digital tools fuel operations and deliver the data he needs to focus on strategic growth with happy employees.

Gone are the days of paper schedules and frantic phone calls to fill shifts. Employees now access and manage schedules via mobile apps, request changes instantly, and receive real-time updates. AI recruitment tools and digital training platforms simplify hiring and help new employees learn the ropes of their roles before their first shifts.

Mathis says taking advantage of the tech stack your franchisor provides is vital. He relies on realtime labor metrics, including cost percentages, sales per labor hour, and productivity, to make informed staffing decisions.

“These are tools you must use on a daily basis, especially in the restaurant business,” Mathis advises. “Find out what your fellow franchisees with similar market conditions are running for costs, and use that as a baseline of where to start if you haven’t done forecasts.”

One of Mathis’ most valuable investments is Glimpse, an AI-driven platform he evaluated for Subway. The restaurant and bar management system analyzes video footage alongside sales and inventory data to detect theft.

“After three months of testing, I couldn’t let it go,” Mathis says. “It was going to add to my costs, but at the end of the day, it’s a net cost savings.”

Glimpse does more than prevent losses; it recognizes employees who follow best practices. The system tracks whether team members properly ring up items and maximize add-ons, awarding points toward employee of the week or employee of the month.

“When the team sees the report and they’ve done well, it makes them feel like somebody is noticing,” Mathis says. “It reinforces that doing what’s right pays off.”

"KEEPING EMPLOYEES ENGAGED IS ESSENTIAL. CHANGING UP THE CONTESTS OR WHAT GOALS YOU WANT TO FOCUS ON NOW AND AGAIN IS IMPORTANT. THE REWARDS DON’T HAVE TO BE LARGE; EVEN $10 FOR AN EMPLOYEE OF THE WEEK OR $50 FOR THE MONTH MEANS SOMETHING."

To further boost morale, Mathis uses the webbased platform Reward Builder to send digital bonuses directly to employees that they can redeem for thousands of gift cards, adding a personal touch to recognition.

Mathis keeps engagement high by running friendly competitions around metrics, like highest ticket averages, guest service speed, and upsell rates.

“Keeping employees engaged is essential,” Mathis says. “Changing up the contests or what goals you want to focus on now and again is important. The rewards don’t have to be large; even $10 for an employee of the week or $50 for the month means something.”

For Mathis, chairman of the North American Association of Subway Franchisees board, creating a workplace where employees feel valued and set up for success is crucial.

“Aside from contests, the best technology we have at our disposal for engagement is ourselves and our managers,” Mathis adds. “Use the technology of ‘thank you,’ ‘I appreciate you,’ and show them you care about them as a person. My wife, Michelle, is a champion at this, and I learn a great deal from her. That technology is free!”

ELIZABETH WHITBY

Multi-Unit Franchisee

Hand & Stone Massage and Facial Spa

INTEGRATED SOLUTIONS

Elizabeth Whitby is a multi-unit franchisee of six Hand & Stone Massage and Facial Spa locations with a seventh underway. She deploys a suite of cutting-edge solutions provided or recommended by her brand.

“We are in a relationship-based business, so caring for our team both directly and indirectly is critical, so they can care for our guests,” Whitby says.

At the core of Whitby’s tech stack are four advanced platforms, each incorporating AI-driven features over the past 18 months. These tools work to streamline operations and foster a supportive environment for her employees:

• Zenoti. The backbone of daily operations, Zenoti streamlines and simplifies key business functions, such as scheduling, payroll, and performance management.

• Power BI. Offering real-time performance analytics and strategic insights, the Microsoft tool transforms data into real-time performance metrics using interactive dashboards.

• ADP’s Run. It simplifies payroll and human resources management.

• Tortal Training. It is a robust learning management system (LMS) that provides the critical infrastructure for onboarding and ongoing professional development.

Multi-Territory Franchisee

While integrating AI into her operations is in its early stages, it’s already paying off, saving time and money and empowering employees.

“To date, the most transformational use of AI at Hand & Stone has involved the integration of our operations and training manuals into a searchable Q&A-based platform,” Whitby says. “This not only drives efficiency and accuracy, but also provides the information that our millennial and Gen Z workforce have come to expect.”

Whitby aims to expand her use of advanced analytics in 2025, focusing on quantifying the often-overlooked costs associated with operational inconsistencies and employee turnover.

GROWING WITH TECH

With a corporate marketing and brand management background, new Bloomin’ Blinds franchisee Rob White knows firsthand how data and analytics drive smart business decisions.

The innovative mindset of the window coverings franchise was a critical factor in White’s 2024 decision to partner with Bloomin’ Blinds, where he has hit the ground running with three territories in North Carolina’s Triad region of Winston-Salem, Greensboro, and High Point.

White is leaning into the brand’s AI-powered tech stack to build an efficient, scalable business for the future. He was among the first franchisees to adopt BloomScale, the home services brand’s new vertically integrated, AI-powered tech stack, now rolling out system wide. The proprietary platform goes beyond a traditional CRM, automating everything from sales and marketing to KPI tracking and customer support.

For White, BloomScale has been a game changer for growth, accelerating his industry knowledge with instant access to national sales trends, margin analytics, and customer preferences. He can quickly identify opportunities and fine-tune his local marketing efforts and product offerings.

“It’s shortened the learning curve, so I can make better decisions,” White says. “Anytime you have a single source of truth, it’s just a lot better and easier to make decisions from.”

The system also connects him with Bloomin’ Blinds’ network of 80 franchisees to collaborate and problem solve. If he encounters a tricky installation or needs product advice, he can snap a photo, post a question, and get feedback.

“It’s like having a 20-year window covering veteran to ask questions in real time and really minimize those mistakes,” White says. “So, you remain more profitable and more confident when you’re going and talking to customers.”

With more innovation on the way, including an AI-powered call center, White is ready to leverage tech-forward strategies to support the onboarding and continuing learning opportunities for installers, sales team members, and other support staff he plans to hire as he grows.

"IT’S SHORTENED THE LEARNING CURVE, SO I CAN MAKE BETTER DECISIONS. ANYTIME YOU HAVE A SINGLE SOURCE OF TRUTH, IT’S JUST A LOT BETTER AND EASIER TO MAKE DECISIONS FROM."

ROB WHITE

Bloomin’ Blinds

"YOU’RE COMING INTO A NEW ERA, A NEW CONFLICT, AND THAT IS, TO WHAT EXTENT SHOULD FRANCHISEES HAVE TO PAY FOR THIS TECH THAT IS NOW SOMEWHAT BEING MANDATED ON THEM, WHERE THEY WON’T NECESSARILY HAVE A CHOICE?"

CHALLENGES

For franchise owners, selecting and scaling technology across multiple locations comes with a host of hurdles.

Implementing advanced systems can be cost prohibitive. Software licenses, hardware upgrades, and ongoing maintenance and updates can quickly add up, eating into tight profit margins. Franchisors are moving toward developing proprietary technologies to control costs and ensure consistency. However, many lag behind, requiring franchisees to rely on a patchwork of third-party vendors and a fragmented tech ecosystem.

The question of who bears these costs and whether existing fees cover them or represent additional expenses can create tension between franchisors and franchisees.

“You’re coming into a new era, a new conflict, and that is, to what extent should franchisees have to pay for this tech that is now somewhat being mandated on them, where they won’t necessarily have a choice?” Sample says. “Is that the franchisor’s job? Or is the technology they’re providing charged back to the franchisee, and how do you balance that? It is coming to a head, and it’s interesting.”

The pace of innovation, accelerated with the introduction of AI, can also overwhelm team members. Whitby recommends leveraging the recommendations of your franchisor and fellow franchisees and using that collective knowledge to drive innovation within your organization.

“When you find a tool or system that’s transformative, invest the time to research its full potential,” Whitby says. “When you discover limitations, use those as a launching point for researching what you could accomplish by integrating other technology solutions that were not previously available or considered.”

As tech-enabled franchising continues to evolve, so will the opportunities for operators to innovate with a connected and motivated workforce ready to take on the challenges of tomorrow. 

Take

a systematic approach with underperforming units

Written by M. SCOTT MORRIS

Over 10 years in franchising, Chanel Grant and her partners have owned franchise units that performed as well or better than expected and others that required extra attention.

“It’s interesting because different projects present different challenges, right?” says Grant, co-owner of six Tropical Smoothie Cafe units, three Hand & Stone Massage and Facial Spa locations, and one Vio Med Spa. “Sometimes, what worked to turn one project around doesn’t work for another project. You do that exact same formula, and for whatever reason, this market or this project is different.”

Grant is in business with her mother, Toya Evans, and sister, Lauren Williamson. Together, they own Healthy Living Ventures. When dealing with an underperforming unit, their philosophy is to dig in and look for answers. The owners and their team members brainstorm solutions, reach out to fellow franchisees to see what has worked for others, and connect with franchisors.

“I’m constantly challenged in that I have to continuously innovate and continuously think outside the box because it isn’t always very cookie-cutter,” Grant says. “You’re buying the blueprint and the business model, but your specific demographics, your market, the different competitive fields, and all of that play a role in how you carry out that blueprint. That’s why I try to never get comfortable. I’m always thinking of what tools and innovative resources I can add to make us successful.”

Brooke Wilson, president of Lead Dog Ventures, oversees Two Men and a Truck territories in Atlanta and the Triad area of North Carolina. She’s also acquired, built, and sold multiple Two Men and a Truck franchises over the years. Along the way, she dealt with underperforming units and considers them a natural part of life as a multi-unit franchisee.

“I believe nearly everyone has worked in an underperforming business at some point in their life.

Brooke Wilson President Lead Dog Ventures

The difference is whether they recognize it and take initiative to learn from it,” Wilson says. “Even in high school, working at a family-owned shaved ice and ice cream shop, I found ways to improve efficiency. In college, I helped build and manage a bar from the ground up, balancing the demands of operations with the financial expectations of investors. Those experiences shaped my approach to business, teaching me that success isn’t about avoiding challenges but about responding to them swiftly and effectively.”

While it can be necessary to sell underperforming units in some situations, franchisees succeed over the long haul by becoming turnaround artists, using all the skills and resources at their disposal to get locations on track.

“The key is approaching challenges with data-driven decision-making, a commitment to strong leadership, and a culture that embraces continuous improvement,” Wilson says.

KPIs

When buying new locations, Chris Patel prefers to purchase underperforming units because he can get them for a relatively low multiple. He’s the coowner and COO of Pie Investments, which operates 70 Papa Johns, 50 Dunkin’, and two BaskinRobbins. In 2020, Patel and his partners bought four Papa Johns locations in New Jersey, and he was tapped to manage them.

“When we look at a particular distress situation, it’s a multi-pronged approach for me,” Patel says. “We do a review of the KPIs in place: Is there a service issue? Is it an issue of an unengaged owner? Is it an issue of culture? Or is it an issue of just lack of marketing?”

As the number of Pie Investments’ Papa Johns units has grown over the past five years, Patel goes back to what he learned from operating those first four units. It was definitely a learning curve.

The key is approaching challenges with data-driven decision-making, a commitment to strong leadership, and a culture that embraces continuous improvement."

“We possibly bought the worst set of four stores you could buy in the system,” he says. “I was able to get in there, train people, work myself, and cover shifts. That’s how I was able to see this impact. The first four sets of restaurants had all these core issues I just pointed out. It had a tired owner, the culture was not there, the lack of capital was there, and marketing was not there. That’s how buying potentially the worst set of stores helped us understand how to implement a strategy and see growth.”

The work is ongoing. Patel said that not every Papa Johns is performing as well as it could, but the portfolio as a whole is doing well. His wife, Pre Patel, is vice president of operations, and she oversees area directors who implement the turnaround plan that he developed.

“All of them worked in our restaurants,” he says. “I guess the career progression for them came

Underperforming

Nobody wants to be promoted to customer, and nobody wants to see all that investment go down the drain either."

through by working for us within our assets. Some of these employees worked for the same owners who retired and were ready to throw the white flag in. Sometimes, it’s not an employee issue; it’s an issue of motivation and having the right culture in place.”

While Grant keeps the pressure on herself to ensure her units are operating as they should, she also relies on data from her franchisors to let her know how her units compare to those owned by other franchisees.

“We like to use benchmarks. We’re lucky enough that the brands that we’re involved in really provide you with cohort data,” she says. “Someone who opened the same time as you, how are they doing? It would be unfair to benchmark ourselves against a spa or something that’s been open for 13 years. We use the data that we get weekly from our franchisors. We like to benchmark ourselves against spas that opened around the same time as us.”

If a location is underperforming in relation to its cohort, it’s time to dive in and look at the data and KPIs to get to the root of the problem. There could be a staffing issue or a lack of marketing. She recently initiated a technology overhaul designed to boost store performance.

“I’m building out an AI platform that will help us get to leads faster,” Grant says. “I am never comfortable. I’m constantly like, ‘What’s next? What else can we be doing? How can we take this to the next level?’”

Working with franchisors

She and her fellow franchisees communicate with each other and swap ideas. She’s also worked with her franchisors to deal with issues. When a franchisee has underperforming stores, franchisors might not provide a complete solution, but they can be a crucial part of an overall turnaround plan.

“I don’t know that I ever brought a problem to the franchisor and they fixed it on their own,” Grant says. “I think it’s been like a team effort of saying, ‘Hey, let’s come up with a solution for this.’ And we’re able to. One of the great things about being in a franchise is that they want you to succeed just as bad as you want to succeed.”

Mitch Cohen is a Jersey Mike’s Subs and Sola Salon Suites franchisee, and he’s been involved with franchising since operating Baskin-Robbins locations in the 1980s. During a spring meeting of the International Franchise Association, he and his partners, Tom Baber and Tamra Kennedy, started talking about the state of franchising and saw a need for their expertise. They joined together to create PerforMax Franchisee Advisors, a consulting firm focused on helping franchisees and franchisors improve their bottom lines.

“We brainstormed and said, ‘Wouldn’t it be great if we put together a company to help the industry and the field people work with underperforming franchisees?’” Cohen says. “We thought that there would be a niche in the industry for us to go out and do that.”

The company is usually hired by emerging brands and large multi-unit franchisees. When a call comes in, PerforMax starts by talking to the executive team and department heads at the franchisor. That’s followed by delving into the brand’s FDD and other paperwork and essentially doing due diligence as a potential franchisee.

“Then we talk to the franchisees, and we roll up a report that will be included in our services if they choose to sign us on. Otherwise, that report they pay for separately,” he says. “The report is really, for lack of a better term, a SWOT analysis from the outside of where their opportunities are. Then we construct a proposal with the franchisor to figure

out exactly what they want to tackle between the franchisees and the brand.”

Early in the process, Cohen looks for low-hanging fruit, easy changes that can help alleviate some of the pressures on struggling franchisees or operators in multi-unit systems. For example, if a brand’s packaging is expensive, it could inspire testing different options to find a less expensive supplier.

“The franchisees could be more profitable right away, so you’re putting money back in their pockets,” he says. “That’s one example. Another would be menu maintenance. When was the last time a franchisor in the food industry really evaluated their menu?”

Working with franchisees

Pragmatic suggestions that streamline operations do double duty by reducing costs and smoothing the way forward for more changes. When it’s time to meet with the operator of an underperforming unit, PerforMax can show that it’s already improved the situation.

“That’s the first win,” Cohen says. “Most of this is a relationship business. Yes, things are broken, but it breaks down when somebody’s not making money or they don’t believe in the system. We come in, roll up our sleeves, and help them believe in the system and show them how to make money.”

One part of PerforMax’s service is to coach field teams on how to focus on operations. Cohen says that a drop in sales usually starts with a breakdown in operations.

Mitch Cohen

Multi-Unit Franchisee

Jersey Mike’s Subs & Sola Salon Suites

“If you have operational excellence, then you look to see if sales data is showing a downward trend in sales,” he says. “Then you have to look at location. What happened in the area? Is the road closed? Are they building a new highway? Did the big university shut down? Whatever it is.”

If everything else is working well, it could be a proximity issue. Two different units might observe the franchisor’s radius restriction, but Cohen says a border drawn with a pen doesn’t always reflect what’s happening on the ground.

“The traffic pattern is different depending on your product,” he says. “Store B might be more convenient than my store was. I become underperforming because my sales are down, but everything else is good.”

Making a change

Wilson with Two Men and a Truck says some situations aren’t salvageable. She says that knowing when to make a change is as important as knowing how to fix a struggling location.

“Selling isn’t a failure; it’s a strategic decision,” she says. “If reinvesting in the unit doesn’t generate a clear path to profitability, reallocating resources to stronger-performing businesses or locations is the smarter business move.”

When considering the viability of a unit, Wilson looks at three factors:

• Sustained financial struggles. If a unit has been consistently underperforming despite strategic interventions and the market doesn’t support profitability, it may be time to exit.

• Leadership or operational limitations. If the local labor pool lacks the right talent or the unit struggles with retention despite strong incentives, sustaining improvement becomes difficult.

• Market and competitive landscape. Some locations are no longer viable due to shifting demographics, economic downturns, or strong competition.

Cohen adds that if the decision is made to close a location, it’s in the franchisor and franchisee’s best interest to get as much value out of a sale as possible. Deciding to sell can spur operators to invest in their units to make them more attractive to potential buyers.

“Nobody wants to be promoted to customer, and nobody wants to see all that investment go down the drain either,” Cohen says.

Thinking win-win makes as good sense at the end of the franchisee-franchisor relationship as it does in the beginning.

“If the location isn’t worth saving, I want to help that franchisee get some money back out of his or her investment,” Cohen says. “We’ll want to concentrate on that and say, ‘Look, it’s better if you work with us and we get you to a point where you can put this place up for sale and get a reasonable value for it before the brand asks you to walk away. Everybody wins.”

Multi-unit advantage

As Pie Investments’ portfolio has grown, Patel has found that consolidation of units in a particular market serves as a hedge against underperforming units. Economies of scale kick in, which can cut costs for supplies, marketing, and labor.

“Let’s say that before it was four franchises, but now it’s one. Now, it would be a single franchisee owning 10 locations in one geographical area,” Patel says. “We can unify the offer mix. We can do joint marketing and joint mailers. Consolidation of a portfolio is a big key in order for you to turn something around or even see some level of growth or progress. Being able to control an entire market area goes a long way in terms of what strategies you use.”

Patel and Pie Investments are focused on growth and have no plans to slow down. That’s the way they like it.

“I hope we don’t have to shut a unit down in the future,” he says. “We want to be here for the long haul and ensure we only grow, not go backwards.”

Grant and her partners share the sentiment. They try to be extremely selective when choosing to expand. While due diligence on the front end isn’t a guarantee of success, Grant says it’s a good start. Even so, unexpected difficulties arrive. They might not be pleasant, but Grant, who never wants to get complacent, sees problems as potential gifts.

“On a positive note, it kind of makes us shake things up a little bit,” Grant says. “I mean, let’s come up with a solution.” 

A Repeatable Process

According to franchising veteran Brooke Wilson, a structured turnaround approach requires a repeatable process and the right tools:

• Financial and operational audit. Conduct a deep dive into P&L statements, payroll efficiency, and pricing models to spot inefficiencies.

• Customer experience insights. Analyzing surveys, complaints, and reviews helps identify service gaps.

• Sales and marketing strategy. Are leads converting at the expected rate? Are digital marketing efforts optimized?

• Talent and training. Employee engagement and competency are critical. If leadership at the unit is weak, retraining or replacing key personnel may be necessary.

• Tech utilization. Ensure the unit is effectively leveraging CRM software, management tools, and tracking systems.

• Accountability and followup. Set up weekly progress tracking, benchmarks, and clear consequences if improvements aren’t met.

Difficult Conversations

Leaders need to understand employees’ points of view

Written by NICHOLE HOLLES

In the complex landscape of modern leadership, few skills are as critical yet challenging as navigating difficult workplace conversations. For managers, especially those newly promoted from within, these interactions can feel like walking a tightrope.

HUMAN DYNAMICS

Let’s start with a revealing exercise I use with new managers: the best boss/worst boss reflection. Think about the worst boss you’ve ever had, the one who left you feeling frustrated, undervalued, or constantly on edge. What specific behaviors made you feel that way? In hundreds of conversations, the top issues consistently revolve around communication:

• Not knowing where you stand

• Unclear expectations

• Feeling like you’re not getting the whole truth

• Sensing unexpressed anger or disappointment

Now, flip the perspective. Recall your best boss, the mentor who helped you grow and made you feel supported and understood. What sets them apart? The answers are remarkably consistent:

• Clear, transparent communication

• Consistent feedback

• A genuine commitment to your professional development

• Providing constructive guidance

• Creating a sense of psychological safety

Understanding exactly what makes team members feel comfortable with and confident in their leaders provides important context for leadership skills and reinforces the importance of effective communication.

ACKNOWLEDGE THE FEAR

At our core, no matter our age, profession, or other traits, we are human. We’re designed to protect ourselves from perceived danger, and when our brains don’t have clarity, they prepare for potential danger.

When workplace communication breaks down, our brains immediately interpret the uncertainty as a potential threat. This triggers a mechanism that prompts us to start creating elaborate scenarios to better understand the what-ifs. If we can understand the potential scenarios, we can begin to think through how we might protect ourselves from them.

Imagine an employee sitting across from you with their mind racing with questions: “Am I going to lose my job? How will I pay my bills? What about my family?” These underlying fears can transform a simple performance or problem-solving conversation into a high-stakes emotional encounter.

A STRATEGIC APPROACH

Effective leaders understand that communication is not a one-time event but an ongoing process. From the moment they step into a leadership role or bring on a new hire, it’s important to establish clear expectations while being as granular as possible. Even the smallest things (e.g., “I prefer to be texted about urgent issues rather than emails”) should be discussed.

This allows team members to hold the keys to their own success. They know what’s expected of them, and they do not leave work wondering if they have fallen short of any unspoken expectations.

Still, mistakes will happen. Eventually, a difficult topic will have to be discussed, and in these cases, the approach is everything.

Timing is crucial. It’s important to have difficult conversations as soon as possible, but this urgency should be balanced with self-regulation. If you know you are going to need 24 hours to cool down before leading an effective conversation, take that time and initiate the conversation as soon as you are ready.

Start the conversation by explicitly stating your intent: “I know our shared objective is to serve our clients and follow our guidelines. I want to discuss

how we can improve our approach together. I’m not here to criticize but to help us both succeed.”

In many cases, you can physically see someone relax once this is communicated. They understand that you’re on their side, and they’re able to de-escalate from an emotionally charged fight-or-flight state.

It’s also important to remember that almost no one comes to work intending to disappoint their leader or fail. Employees generally want to do well, succeed for their own professional benefit, and make positive contributions. Approaching difficult conversations from a place of blame, frustration, or superiority and overlooking the team member’s intentions can damage trust and create resistance.

THE BENEFITS

Why should leaders invest time and emotional energy in mastering these conversations? The reasons are plentiful:

• Retention costs. The financial and time investment required to hire and train a new employee far exceeds the effort required for a constructive conversation.

• Operational stability. Losing an employee creates ripple effects, overburdening existing staff, creating gaps in scheduling, and potentially losing the trust of remaining team members.

• Personal growth. As a leader, you have a unique opportunity to impact someone’s professional and personal trajectory regardless of their current role or compensation level. Playing this positive role can be incredibly rewarding.

Taking the time to invest in people ultimately benefits the business. Research consistently demonstrates that workplaces with high employee satisfaction and engagement financially outperform their counterparts. The businesses can be in the same industry or a part of the same brand, but there are dramatically different outcomes based on leadership approach.

LITMUS TEST

Before your next difficult conversation, pause and ask yourself: What is my true intention? Am I looking to prove I’m right and demonstrate my superiority? Or am I genuinely interested in helping this person grow and improve in their role to better serve our common objectives?

If your intentions are to support, guide, and elevate, you are already on the path to becoming a leader people will trust, appreciate, and remember. 

Nichole Holles, PHR/SHRM, is the senior vice president of people strategy and governance at Right at Home. She has a deep passion for transforming HR departments into strategic business partners and enhancing employee experiences.

“Divine Discontent”

Questions and challenges can be good for business

Written by JOHN DIJULIUS

Whenever I conduct a leadership workshop around our latest book, The Employee Experience Revolution, one consistent question that comes up is how to handle negative employees. I have heard others answer by saying, “Hire slow, fire fast.” While it is critical to an organization’s culture not to allow team members with chronic bad attitudes to remain, there is a difference between an employee who doesn’t want to be there and an employee who is questioning the way things are done. As a leader, you need to recognize the difference.

Every leader has drama to deal with on a day-today basis. The last thing we want is to have an employee come to us with an issue. It is human nature to paint that employee as negative and never happy. However, we need to recognize the value these employees potentially provide. We pay tens of thousands of dollars annually to survey our customers. Yet we roll our eyes when our most valuable asset wants to tell us what is not working. Your organization is headed to becoming the next Blockbuster if you have created an environment where no one feels comfortable being totally honest, questioning the way things are being done, and challenging your thinking.

These team members care enough about the company’s success, their jobs, and the customers to speak up. We need them to feel confident enough to share their feedback and feel that we welcome and encourage them. Quarterly employee surveys don’t show the whole picture. You want a culture that encourages employees to share ways to improve the business.

Using dissatisfaction

A valuable characteristic in some people (usually future entrepreneurs) is “divine discontent,” which refers to a state of continuous striving for improve-

ment and excellence driven by an inherent dissatisfaction with the status quo. It implies a constructive form of discontent that motivates individuals or organizations to push boundaries, innovate, and seek high standards.

Potential results of divine discontent include:

• Positive dissatisfaction. Unlike negative dissatisfaction, divine discontent inspires action and growth rather than frustration or complacency.

• Continuous improvement. It fosters a mindset of seeking personal growth as well as better solutions and services.

• Innovation and progress. Many business leaders use divine discontent as a driving force for innovation.

• Customer-centric focus. Amazon has used the term to describe its approach to customer service. The company strives to anticipate needs and exceed expectations.

Celebrate feedback

Divine discontent encourages a relentless pursuit of excellence while maintaining a positive, forward-thinking attitude. We need people who tell us what they and others are thinking. We need to make them feel comfortable about sharing, and it is not their job to worry about how they come across to us. Today’s leaders were often employees who asked, “Why hasn’t this been fixed yet?” and “Why are we keeping employees who do not meet our standards?” We need to encourage such questions and not temper them in any way. Leaders need unfiltered feedback and should recognize how awesome their team members are for caring enough to speak up.

Employees who complain can be valuable assets to an organization when their concerns are

addressed constructively. They help you detect problems. Complaints often highlight underlying organizational issues, such as inefficiencies, workplace dissatisfaction, or operational challenges. Addressing these concerns early can prevent them from escalating and impacting morale, productivity, or customer satisfaction.

Employees can indicate a sense of ownership and investment in the company’s success. Conversely, silence might indicate disengagement or apathy, which can be detrimental in the long run.

Complaints often reveal inefficiencies or pain points. Employees on the front lines have firsthand experience with systems and processes, making their feedback valuable for identifying areas of improvement.

Encouraging open dialogue and listening to complaints foster a culture of transparency and psychological safety. When employees feel heard and valued, they are more likely to stay engaged and contribute positively to the workplace. Employees who feel their concerns are taken seriously are more likely to stay with the company rather than seek opportunities elsewhere.

Handling employee complaints effectively can help managers develop their leadership and problem-solving skills. Leaders who address concerns constructively demonstrate empathy and emotional intelligence, strengthening team dynamics.

Organizations that actively seek out and address complaints create a culture of continuous improvement and adaptability. It helps companies stay competitive and responsive to changing workforce and market demands.

Employees who complain are an opportunity for growth, reflection, and improvement within an organization. When handled correctly, their feedback can lead to a stronger, more engaged workforce and a better-functioning company. 

John DiJulius III, author of The Customer Service Revolution, is president of The DiJulius Group, a customer service consulting firm that works with companies, such as Starbucks, Chick-fil-A, Ritz-Carlton, Nestle, PwC, Lexus, and many more. Contact him at 216-839-1430 or info@thedijuliusgroup.com.

LEVERAGE EMPLOYEE COMPLAINTS CONSTRUCTIVELY

Encourage open communication.

Foster an environment where employees feel safe to speak up without fear of retaliation.

Act on feedback. Take complaints seriously and implement solutions where necessary. Recognize constructive criticism. Differentiate between complaining for the sake of it and complaints that lead to meaningful change.

Provide channels for feedback.

Offer structured opportunities, such as anonymous surveys or regular check-ins.

Multi-Unit Turnaround Playbook Atomic Habits overcome underperformance

Written by LARRY LAYTON

Every operator dreams of a thriving business, but shrinking margins, disengaged employees, and declining customer satisfaction often get in the way. Many chase quick fixes: marketing tweaks, new products, and leadership shifts. The best, however, treat failure as data, not defeat.

Measure failure

Underperformance is often ignored, hidden, or blamed on externals. Top operators see failure as feedback, an opportunity to refine processes and improve. They measure it to drive progress, not just penalize mistakes.

At this year’s IFA Convention, Atomic Habits author James Clear highlighted the power of small, consistent improvements. The six-step Multi-Unit Turnaround Playbook applies those principles, giving multi-unit managers a system to assess, prioritize, and execute changes that enhance operations, engagement, and financial results.

Step 1

Assess market and unit performance, diagnose core issues with structured data collection, and identify key financial and operational gaps:

• Revenue trends. Look at sales by location over the past three years and 12 months.

• Benchmark gross profit margin. Align labor and cost of goods.

• Customer retention. Measure repeats vs. first-time visits.

• Labor productivity ratios. Examine sales per labor hour.

• Service and accuracy. Track drive-thru time, table turnover, ticket speed, complaints, and refunds.

• Employee productivity: Measure upselling and checklist completion.

Tool: Use a market performance dashboard, a ranking system for financial strength, operational efficiency, and cultural health.

Step 2

Prioritize high-impact changes. Not all issues are urgent. Focus on the 20% of issues that drive 80% of turnaround success. Use a HighImpact Prioritization Matrix to target the most critical areas.

Examples of immediate fixes include:

• High employee turnover. Improve onboarding and culture.

• Low customer retention. Enhance service speed and loyalty incentives.

• Inconsistent execution. Use standardized checklists and processes.

Examples of strategic fixes (next 60 to 90 days) include:

• Optimize pricing strategy.

• Launch local store marketing.

• Implement leadership training for managers.

58 GOLDEN YEARS & GROWING STRONG!

Golden Chick® is a thriving heritage brand with 58 years of success since its founding in 1967. Today, we’re one of the fastest-growing food chains in the U.S., with over 230 locations across Texas, Oklahoma, Louisiana, Mississippi, and Florida—and we’re expanding into Las Vegas, Arizona, Missouri, Kansas, Alabama, and Arkansas.

With humble roots in Central Texas, Golden Chick has grown from a small regional brand into a major player in the Quick Service Restaurant industry, now ranked among the top 150 U.S. restaurant brands. Our franchise network employs over 5,000 people, fueling our continued growth and success.

Flexible Building Prototypes

Including traditional full dining room with drivethru and smaller footprint

Known & Respected Brand

One of the fastest-growing and most-loved brands in our established markets and growing aggressively in concentric markets

One of the Fastest Growing Brands in America Currently ranked #151 by Nation’s Restaurant News

Over 230 locations in TX, OK, LA, MS, & FL Coming soon to Las Vegas, AZ, MO, KS, AL, and AR

Compelling Unit Economics

70% revenue from efficient drive-thru

Award-Winning Marketing & Innovation Innovation Awards, 8 Telly Awards, 3 Davey Awards, 4 Marcom Awards Entrepreneur and Top Franchise Awards

Tool: Use a market turnaround tracker, a onepage plan outlining the top three priorities with deadlines per location.

Step 3

Implement habit-based solutions. Once priorities are set, create simple, repeatable systems that drive change at the unit level. Use the Atomic Habits framework:

1. Make it obvious. Measure habit-driven leading indicators that predict strong financial performance, hold daily pre-shift huddles to reinforce priorities, and track key financial metrics on a visible dashboard per location.

2. Make it attractive. Recognize employees for key behaviors (upsells, speed, accuracy, customer engagement), and display a weekly leaderboard to recognize top performers.

3. Make it easy. Simplify checkout processes for fast service, and automate scheduling and labor planning.

4. Make it satisfying. Provide instant performance feedback, and celebrate daily customer service wins.

Tool: Use a fast-fixes playbook, a collection of best practices for service speed, labor productivity, and sales growth.

Step 4

Use player scorecards to track progress. You can’t improve what you don’t measure. Use player scorecards to track key leading indicators for each location and team member to ensure consistent tracking and accountability:

Step 5

Engage and reinforce new habits. Without reinforcement, changes fade. Build a system of consistent engagement to sustain new habits, and create an engagement plan:

• Daily. Pre-shift huddles focus on one behavior per day with real-time leaderboard updates.

• Weekly. Institute flash challenges (e.g., “First to hit 5 upsells”) and team recognition.

• Monthly. Schedule surprise visits from the regional director/CEO, and offer incentives for top teams.

• Quarterly and annually. Offer turnaround awards for most improved locations, and hold leadership retreats for top managers.

Tool: Use an engagement calendar, a structured plan for daily, weekly, and monthly reinforcement.

Step 6

Evaluate and scale what works. Sustained success comes from lessons learned across all locations. Run a quarterly business review (QBR) process:

• Review successes. Identify habits that drove real improvement, and highlight top-performing locations.

• Analyze failures. Which strategies fell short and why? Identify roadblocks to success, and address barriers teams faced.

• Scale what works. Roll out best practices system-wide, and introduce new challenges to sustain momentum.

Tool: Use a QBR to summarize lessons learned and plan next steps.

Final thoughts

Build small wins daily. Turning around underperforming units isn’t about sweeping overhauls; it’s about compounding small, smart habits until excellence is inevitable. A 1% daily improvement sustained over time creates unstoppable momentum:

• Fix small operational leaks first.

• Build systems, not motivation.

• Track and reward leading indicators.

• Recognize and reward improvements.

• Reinforce behaviors until they become second nature. 

How to use a player scorecard:

• Managers track daily shifts in pre-shift and post-shift meetings.

• Recognize weekly top performers.

• Adjust strategies through monthly performance reviews.

Tool: Use a scorecard dashboard, a simple tracking sheet displayed in breakrooms and the back office.

Larry Layton, CFE, is a member of the Profit Soup team. With experience as a franchise operations executive, business coach, and business owner, he brings new depth and valuable insights. Contact him at 714-309-3773 or larry.layton@profitsoup.com.

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in t ransitiOn

Changes require meticulous planning and execution

Written by KENDALL RAWLS

For multi-unit franchisees, navigating change is crucial. Expansion from a few units to a vast network, leadership and ownership changes, or diversifying into different brands presents unique challenges. It’s essential to adapt to economic climates, franchisor demands, and customer preferences. Robust growth and transition strategies ensure leadership continuity and sustained profitability as the business scales.

Case study

Amelia Delia, owner of Health Lifestyle Brands, which includes 20 smoothie franchises, four yoga and Pilates studios, and four med spas, is a prime example of strategic business management. Beginning at age 22 with a single location and her parents’ support, Amelia expanded her enterprise into a regional powerhouse by her mid-40s. When she was ready to reduce her day-to-day involvement to focus on strategic growth, it required meticulous planning and execution. Recognizing the complexity of transitioning leadership and growing a business of this scale, she collaborated closely with her team of advisors, including a CPA, attorney, wealth advisor, and growth and transition specialist.

CeO transitiOn

Amelia’s vision involved grooming her husband, John, to assume the CEO role. Previously a technology consultant, John was poised to inject a new perspective and drive the franchise’s next phase of growth. However, Amelia recognized through her advisory team’s insights that transitioning leadership was more complex than a simple handoff. The process involved aligning John’s distinct leadership style with the existing culture, fostering trust among key leaders, ensuring John’s understanding of the industry and brands, and addressing the financial shift from dual to single-household income to rely solely on the business.

Leadership development

After starting the CEO transition, Amelia and John learned their CFO intended to retire in five years. Healthy Lifestyle Brands initiated a leadership development program focused on identifying internal talent and planning for a smooth CFO succession over three to five years. With input from growth

and transition experts, they identified essential behaviors, attitudes, skills, knowledge, and experience (BASKE) for key roles, crafting customized development plans for promising team members. This proactive strategy ensured the company prepared effective leaders to sustain growth and mitigate risks from potential departures.

Key L eadership

Amelia’s team of advisors recommended implementing “golden handcuffs” for managers critical to supporting John’s transition into the CEO position. She implemented performance-based bonuses and established supplemental executive retirement plans (SERPs) to provide competitive compensation packages that aligned with long-term business goals.

s trategiC planning

As John assumed the CEO role, Amelia’s advisory team suggested a strategic planning session with C-level leaders to reinforce the company’s vision, mission, and values. They aimed to define growth strategies for three to five years, setting the stage for their 10, 15, and 20-year visions. Facilitated by a growth and transition expert, the strategic planning led to clear action plans for reaching growth objectives. John, Amelia, and their team identified necessary resources and discussed market shifts to swiftly adapt, ensuring sustainability and a competitive edge.

a dvisory bOard

To foster unity and strategic alignment, Amelia’s advisory team recommended establishing a management advisory board. With key managers from various brands and facilitated by a growth and transition expert, the board drove strategic initiatives, tested new ideas, and ensured cohesive leadership across the company.

Family g OvernanCe

Amelia and John established clear policies for family member involvement to minimize the impact of family dynamics on business decisions. This preparation was crucial for setting the stage for their daughter’s future involvement without disrupting the business’ culture or performance.

put it all together

Try this checklist for effective succession planning:

• Define vision and objectives. Clearly define your future role and the company’s direction. Specify expansion scale and brand portfolio diversification. Plan in five-year segments, detailing goals for size (revenue/units), brand mix, locations, and the evolution of your role.

• Assess current resources. Evaluate your operational capabilities, leadership, and financial status to pinpoint improvements to achieve growth objectives.

• Develop a transition road map. Pinpoint key growth areas and new market opportunities that match customer preferences. Plan for leadership development across key roles to support growth and leadership transitions, addressing potential challenges strategically.

• Implement strategic initiatives. Launch targeted training and standardized processes to ensure quality across expansions. Align strategic initiatives and compensation plans with long-term goals.

• Monitor progress and adjust. Regularly assess the impact of strategies through KPIs, and adjust tactics to enhance results.

• Engage with external advisors. Assemble a team of specialized advisors to gain insights into the challenges of growth and change in multi-unit franchising.

t he importanCe OF advisors

Managing a growing multi-unit franchise operation often requires expertise beyond the internal capabilities of the business. Building a team of skilled advisors is crucial. These professionals offer specialized knowledge in legal, financial, strategic, and operational areas.

For smaller operations (one to five units), focus on foundational advisory support, including a CPA, an attorney, and an operational specialist. For larger operations, expand your team to include specialists in growth and transition planning.

By adopting a strategic approach to planning, engaging with the right advisors, and implementing a structured plan, franchisees can navigate growth and transitions. Franchisees can plan for their futures and actively manage growth and transitions, safeguarding and enhancing their businesses’ value. 

Kendall Rawls with Rawls Succession Planners knows and understands the challenges that impact the success of a complex, privately held, and family-owned business. For more information, email kendall@ rawlsgroup.com or visit seekingsuccession.com.

Finding Opportunities

Advice for buying and selling underperforming units

Written by TORI WAGNER

In franchising, multi-unit operators know that not all locations perform equally. While some units consistently generate strong revenue and loyal customer bases, others struggle with declining sales, operational inefficiencies, inferior locations, and high employee turnover. These underperforming units present challenges and opportunities.

The path to long-term profitability and portfolio growth often involves strategic decision-making about struggling locations. The key lies in evaluating whether a unit has the potential for a turnaround or if it is better to close. Working closely with franchisors and leveraging operational expertise can help operators make informed choices and execute effective strategies. As multi-unit operators evaluate their networks, the first step is recognizing the root causes behind their underperforming units and whether a turnaround is feasible. Not all struggling locations are created equal; some have hidden potential while others may be beyond saving.

Declining sales trends, high employee turnover, and poor customer reviews are obvious red flags. Operational bottlenecks and failure to adhere to brand standards can signal trouble. Older stores that require significant CapEx for renovations or equipment upgrades may pose an overbearing financial burden. In many cases with older brands, the trade area has evolved, and the brand or site is no longer relevant. If the site cannot be reasonably turned, efforts should be directed to closing ASAP.

Collaboration with franchisors is crucial. Many brands offer resources or incentives to help operators determine if a turnaround is feasible. By working with brands and landlords, a solution can often be reached.

For some multi-unit operators, underperforming units represent an untapped opportunity for growth. Acquiring struggling locations can be a strategic way to expand market share at a lower upfront cost than building a new store. Operators with scale can leverage existing staff training programs, lower cost structures, share marketing strategies, and streamline operations to turn around struggling units. Distressed sellers may offer attractive terms, allowing for flexible financing or reduced purchase prices. To keep a location open,

franchisors might waive certain fees or contribute to remodeling efforts. Landlords can be helpful if a store has poor rebranding prospects.

Due diligence is essential. Review the unit’s financials thoroughly, including trends, P&L statements, lease agreements, and outstanding liabilities. Are there untapped customer segments, or is competition too fierce? Lastly, confirm what support the franchisor will provide through training, technology, or marketing assistance.

When structuring a deal, consider performance-based purchase agreements that tie part of the payment to the unit’s future success. How much will it cost to renovate or upgrade technology? Speak with trusted advisors to explore financing options, including loans, franchisor-backed funding, or third-party investors. Once you’ve committed to revitalizing a struggling unit, execution becomes key. A successful turnaround requires a well-rounded strategy focused on operations, marketing, technology, and cost control.

Start with an operational overhaul. Implement best practices across your locations to standardize processes and drive efficiency. Investing in staff training and leadership development ensures managers are equipped to execute your vision. Consider

introducing performance-based incentives to motivate your team and align their goals with your own. On the marketing front, reintroduce the unit to the community with localized campaigns and digital outreach. Boost the store’s online presence by enhancing SEO, strengthening social media efforts, and streamlining online ordering platforms. Ultimately, improving the guest experience through service, operations, and an inviting atmosphere will foster repeat business.

Technology can be a game changer. Upgrading POS systems, integrating delivery platforms, and using AI-driven tools for scheduling and inventory management can improve efficiency and cut costs.

Lastly, focus on financial optimization. Renegotiate leases and supplier contracts, ensuring the best possible terms. Streamline operations to eliminate waste, and use your multi-unit buying power to reduce expenses on inventory and services.

If a turnaround isn’t feasible, selling the unit or closing the store might be the smartest move. When pursuing a sale, maximizing value requires careful preparation. Begin by stabilizing revenue, reducing operational inefficiencies, and improving customer satisfaction. A prospective buyer will want to see a unit on the upswing, not in freefall. Use data to highlight recent improvements and showcase the store’s potential.

Finding the right buyer is crucial. Consider marketing the unit to other multi-unit operators, new franchisees, or private equity groups. Franchise advisors can help broaden your reach and negotiate favorable terms. Timing the sale strategically can also impact the unit’s valuation. If the market is strong and the brand is performing well, holding off until the unit shows consistent financial improvement could result in a better sale price. However, if the unit continues to drain resources, selling sooner might free up capital for more promising investments.

Underperforming franchise units don’t have to be a liability; they can be an opportunity. The key is making informed decisions based on data, due diligence, and strategic planning. By identifying struggling units, assessing their potential, and collaborating with franchisors, operators can revitalize locations for profit, position them for a maximized sale, or close underperforming sites to reallocate resources to more profitable locations. Striking the right balance between acquisitions, operations, and exits will ultimately drive sustained portfolio growth. 

Tori Wagner is a vice president with C Squared Advisors, an advisory firm that focuses on multi-unit franchisees and franchisors. She has worked with franchisees for more than a decade, advising clients through M&A transactions as well as raising debt and equity capital to support strategic initiatives. Contact her at 508-769-0097 or tori@c2advisorygroup.com.

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Technology is the top strategy for tackling labor challenges

Written by MEME MOY & PAUL WILBUR

As labor challenges continue to evolve in the franchise sector, franchisors and franchisees must adopt forward-thinking strategies to ensure sustainable growth and operational efficiency. The International Franchise Association (IFA) 2025 Franchisor Survey highlights how franchisors are proactively addressing labor concerns in the years ahead.

The 2025 survey data make it clear that franchisors continue to rely on technology to solve their most pressing issues: labor shortages and workforce management. Sixty-three percent of franchise executives plan to leverage technology to increase revenues and cut costs in 2025, matching the strong focus we saw in 2024.

Franchisors are prioritizing several initiatives:

• Improving operations (more than 60% of respondents in both 2024 and 2025)

• Assisting franchisees with recruiting efforts

• Enhancing employee retention strategies

Additionally, 28% of franchisors specifically mentioned incorporating artificial intelligence (AI) and increased automation to help address these labor issues. For tech vendors offering AI-driven recruitment tools, workforce management platforms, and automation solutions, the franchise market is primed for engagement.

Innovation is accelerating

Capital allocation trends underscore franchisors’ commitment to technology. In 2025, 75% of franchisors expect to increase their capital spending on technology and innovation.

This increase in investment is consistent across several industries:

• 76% of health and fitness franchisors plan to boost their technology investments.

• 72% of sit-down restaurant franchisors are increasing allocations. This is slightly lower than the 82% seen in 2024.

• 91% of business service franchisors also plan to increase their technology spending.

On the other hand, 56% of child-related franchise brands anticipate keeping their tech budgets flat in 2025, signaling a potential opportunity for suppliers to explore unmet needs in that space.

Emerging trends

Beyond the numbers in the survey, several technology trends are shaping the franchising landscape in 2025:

• AI-driven customer support. Many franchises are rolling out AI-powered chatbots and virtual assistants to provide personalized customer service and streamline processes. These technologies help reduce labor costs and improve customer experience.

• Virtual reality (VR) for franchise development. Some franchisors are using VR technology to create immersive experiences for potential franchisees, allowing them to explore franchise concepts and operations remotely.

• Internet of Things (IoT) and predictive maintenance. IoT devices are being used to monitor equipment in real time, allowing for predictive maintenance that minimizes downtime and extends equipment life. These technologies are becoming critical tools for franchisors and franchisees looking to improve efficiency and stay competitive.

Advanced tech

Several leading franchise brands are actively adopting advanced technologies to streamline operations, reduce labor dependence, and enhance customer experience.

McDonald’s is undergoing a comprehensive technology overhaul across its 43,000 global locations. The brand is implementing AI-powered drive-thru systems and internet-connected kitchen equipment designed to optimize operations and

improve efficiency. This effort is aimed at enhancing the customer experience while reducing the burden on staff, a key strategy as labor challenges persist.

Wendy’s is also taking bold steps in AI adoption. After successful pilot programs, Wendy’s plans to expand its AI-driven drive-thru ordering system at 500 to 600 locations by the end of 2025. The AI technology improves order accuracy, speeds up service, and allows employees to focus on higher-value tasks.

Meanwhile, Yum! Brands, which owns KFC, Taco Bell, and Pizza Hut, has launched Byte by Yum!, a suite of AI-powered software tools. This initiative is transforming the customer journey from mobile and web ordering to kitchen operations and delivery logistics. By investing in AIdriven systems, Yum! Brands is improving efficiency, increasing customer satisfaction, and addressing labor-related challenges.

These brands are setting the standard for technology adoption in franchising, demonstrating how advanced tools can solve workforce issues and create better experiences for franchisees as well as their customers and employees.

The takeaway Franchisors are actively seeking technology partners who can offer practical, scalable solutions to their most pressing challenges. Solutions that focus on AI, automation, and data-driven decision-making are in high demand. 

Meme Moy is the director of marketing at FRANdata, where she’s spent more than 10 years shaping the company’s brand and telling its story within the franchise industry. She’s passionate about creating smart, strategic marketing that highlights FRANdata’s expertise and connects with the right audiences, whether that’s franchise brands, lenders, or suppliers.

Paul Wilbur is the COO of FRANdata, where he is instrumental in building the company’s research and consulting framework. He manages the research, information management, marketing, and IT departments and plays an integral role in the strategic development of FRANdata’s suite of franchise solutions. Contact him at 703-740-4700.

“GO BIG”

Written by MATT HALLER

The new year is off to a fast and furious start with no shortage of action in Washington, D.C., and around the states that impacts the franchising community. From the very beginning of the new administration and Congress, IFA has been at the center of the key policy debates in the nation’s capital, working to protect, enhance, and promote the franchise business model.

There are incredible opportunities ahead for franchised businesses in 2025, and it is up to all of us in franchising to realize that potential. With the right economic and policy environment, together we can make 2025 “The Year of Franchising.”

Announced leading into the 65th IFA Annual Convention, IFA released our annual Franchising Economic Outlook. The numbers indicate that not only did franchise growth exceed projections for 2024, but franchising is expected to grow an additional 2.4% this year, a faster rate than the 1.9% projected for the broader economy by the Congressional Budget Office (CBO). This year, franchising is expected to add 20,000 new units, totaling 850,000 small businesses in the U.S. this year and 210,000 new jobs. Last year’s franchise growth of 2.2% also bested the 1.9% projection.

From economic growth and increased regulatory certainty—following a decade of back-and-forth policy changes targeting franchised businesses— now is the time to enact policies to protect franchise small businesses for good. It’s why IFA is pursuing a “go big” legislative strategy that we will be unrolling as the year unfolds.

To start, IFA has announced our support for numerous key positions in the administration that will be critical to advancing meaningful policies for local franchises.

2025 could be the year of franchising

One major example has been IFA’s successful advocacy in the debate around Secretary Lori ChavezDeRemer to lead the Department of Labor. Seen as an unconventional choice for this role by some, IFA secured a meeting with the nominee and some of our members to understand Chavez-DeRemer’s priorities and ensure her support for franchising. Following that meeting, IFA became one of the first major business organizations to publicly support her nomination.

Throughout her confirmation process, ChavezDeRemer reiterated not only her support for the franchise model, but also her commitment to the appropriate and narrow definition of joint employer, which is consistent with her support of the effort to repeal the previous administration’s expanded joint-employer rule.

Chavez-DeRemer was ultimately confirmed on a strong bipartisan basis, and I was pleased to attend her swearing in at the White House to show our commitment to working together to enable the franchise business model to reach new heights.

IFA has also come out in support of a number of other key nominees who will have roles directly impacting franchising, such as those at the Small Business Administration (SBA) and Federal Trade Commission (FTC). We are working to build relationships as leaders and their agencies overhaul the regulatory landscape, which can affect every franchised business.

Specifically on the policy front, IFA will be taking the opportunity at hand to pursue a permanent solution to the back and forth of the joint-employer standard. After four different definitions of joint employer in a decade, now is the time to enact permanent change to ensure franchisors and

franchisees have a clear definition of the appropriate level of control without damage to the brand or a franchisee’s autonomy and equity.

Additionally, IFA is urging Congress to permanently extend pro-growth tax reforms in the 2017 Tax Cuts and Jobs Act, which will provide businesses with long-term certainty to drive economic growth, increase wages, and support job creation. Without the extension of these tax cuts, every franchised business faces a tax increase.

IFA will also be working with the FTC on finalizing the long-overdue update to the Franchise Rule. We are encouraging the agency to adopt our 2024 Responsible Franchising policy recommendations to improve disclosure at the outset of the franchise sales process. We will also keep a watchful eye on any misguided regulatory overreach, like the Corporate Transparency Act, which we have opposed from its inception and which the administration announced it would not enforce—another win for franchising.

While nobody could have predicted the pace of action in Washington, IFA is working toward long-term, meaningful change that can preserve the franchise model well into the future. Your engagement is essential to achieving that goal, and we encourage everyone in franchising to get involved to make it possible. 

Matt Haller is president and CEO of the International Franchise Association.

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