Master Class: Priceless advice from your peers

We’re now six months into the year, a perfect time to reflect, analyze, and assess your first-half performance. To aid in that process, we’ve compiled a mini-Master Class, a “greatest hits” collection from the first 18 months of this newsletter, featuring topics critical to the success of multi-unit restaurant franchisees—growing from one unit to many; the challenges of operating multiple units; securing capital for growth; finding the optimal locations; best use of technologies; managing a crisis at your stores; the future of the restaurant industry; and predictions and advice for franchising in 2025.

First—A heartfelt Thank-you! to the many contributors who so generously took the time to share their expertise and experience with their fellow multi-unit restaurant franchisee subscribers.

Second—Got something to say? We want to hear it! We’re looking for new voices to add to the conversation. Think of this newsletter as a virtual roundtable, an ongoing online gathering that appears in your mailbox every week. So, whether you have 2 restaurants or 2,000, QSRs or sit-downs, have been in franchising for 2 years or 20… your voice matters! We know you have something to say. Are you game? (Feeling shy? No worries—we correct all spelling and grammar.)

If you want to see more responses to any of the questions below, we’ve made it easy by including links to the newsletters where the answers first appeared. (Note: Brands or unit counts may have changed since publication.) Finally, if you have a question you’d like to see answered in a future issue, send us an email.

Franchisee Bytes: Where do you want to be in 5 years? 10 years?

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Can you walk us through your journey from owning your first franchise to now managing multiple units? (Issue #1, Jan. 8, 2024)

MITCH COHEN

Company: CEO, PerformMax Franchisee Advisors

Brands: Jersey Mike’s, Sola Salon Studios

Years in franchising: 41

Mitch Cohen is the Incoming Chair of the 2026 Multi-Unit Franchising Conference. He is a board member of the IFA and of the Multi-Unit Franchising Conference. He is the CEO and founding partner of PerforMax Franchisee Advisors. Update: 8 of 10 Jersey Mike’s are open, with 2 more coming; and 3 of 10 Sola Salon Studios open, with a 4th currently under construction.

My journey started back in 1983. I was working for a group that owned five Baskin-Robbins shops in the New York market. They were looking to expand and I was looking for a career in management. When I was presented with the opportunity to attend franchisee training, I jumped at the chance. Once I returned from training, I was so energized to help this group grow. The group wanted to open a Baskin-Robbins in a mall in Queens, New York, but was having a hard time making a deal. I was in the right place at the right time—a friend of mine had a confectionery business in that mall for sale. I approached my soon-to-be partners with the idea of purchasing that store to get our foot in the door. They agreed.

Now all I needed to do was find my share of the money. I would not suggest anyone do what I did: I took cash advances on a number of credit cards and a loan from my family. That was the beginning of my love for franchising. Shortly after that, I approached the mall’s management to add a Baskin-Robbins and they agreed. We went from 6 locations to 15 locations in three states. Fast forward to 2001, when we became the first Baskin-Robbins franchisees to purchase a multi-unit Dunkin’/Baskin network. My partners and I built and purchased 15 combo stores with both brands, and in one unit we added a Nathan’s Famous. Things were good and our business was growing. We even thought about expanding into Puerto Rico.

In 2016, someone made us an offer we couldn’t refuse and we sold it to a private equity group. We thought we would retire, but found ourselves missing the interaction and challenge of owning our own business.

In 2017, we joined Jersey Mike’s Subs. They had the same values and philanthropic philosophy that we’d had all those years. We signed up for 5 units. We now have 8 open and are still growing. My journey in franchising has provided me with the opportunity to not only be in business, but to give back to the community.

I joined the IFA 14 years ago and have been exposed to many great brands and people in this industry. In 2018, we signed on with one of those brands, Sola Salon Studios. We have 2 units open, 2 in development, and 5 more to build.

I’m currently managing two brands and 10 locations with my partners of 43 years. We have a great relationship and each of us has our role in the company. We have always said we are in the people business, and I think when our employees see how we have been together for so long it gives them a sense of family.

What specific challenges arise when transitioning from a single-unit to multi-unit franchisee, and how did you overcome them? (Issue #2, Jan. 22, 2024)

MATTHEW TUCK

Company: PS Venture Holdings

Brands: 36 Hungry Howie’s Pizza, 3 Penn Station East Coast Subs

Years in franchising: Hungry Howie’s franchisee since 2005 (operated as many as 65 restaurants as Director of Operations for Hungry Howie’s Properties before retiring in 2022); Penn Station franchisee since 2019.

The biggest challenge in scaling your organization is that it becomes less about your personal ability in operations and more about your ability to develop a strong culture. While we all develop policies and procedures for our business, it’s impossible to account for every situation. Surrounding yourself with like-minded people who understand your priorities and goals is paramount.

Early in my career I relied solely on my operational ability. I was fast and had a knack for customer service. Growing beyond a single location, I learned the value of truly teaching my team and ensuring that they didn’t just understand what to do, but why we do it that way. It sounds simple, but taking this approach, rather than simply barking orders, will help your team understand that you truly value them.

You need to run your business with the understanding that your people are your greatest asset and that your success depends on your ability to lead them. As I grew, I learned that true leadership is based on three simple principles: 1) Be clear on your expectations, 2) Be consistent, and 3) Always do what you say you’re going to do. That’s how you build loyalty. And once you have loyalty from your team, you will earn the loyalty of your customers.

Can you share some financial strategies or practices that have been instrumental in the profitability of your units? (Issue #7, April 8, 2024)

DAVID OSTROWE

Company: Founder & CEO, O&M Restaurant Group 

Brands: Taco Bell, Personalized Management Associates, O&A Consulting, 180 Business Solutions, Career Lead

Years in franchising: 34 (24 on the franchisee side, 10 on the franchisor side)

In the dynamic landscape of franchising, our edge at O&M Restaurant Group is driven by a laser focus on financial and KPI oversight—which, contrary to what one might assume, doesn’t monopolize our time thanks to state-of-the-art software and custom dashboards. Each day starts with a swift, yet thorough, 5–10 minute dive into the critical metrics of our operations. This quick scan covers everything from customer insights and digital engagement to inventory, labor costs, and sales trends. This isn’t just a task on my to-do list; it’s an integral part of my daily planning, setting the tone for the day and allowing for strategic adjustments on the fly.

This rigorous analysis isn’t just my personal routine; it’s a practice embedded in the very fabric of our company culture, one that I advocate every member of our team, especially unit managers, to adopt. The rationale is simple, yet profound: real-time insights enable proactive decision-making. By staying attuned to daily KPIs, we empower our unit managers to not just react, but to anticipate and strategize. This not only drives profitability, it also positions us to scale aggressively. We’re not just keeping pace; we’re setting the pace. This approach has not only been instrumental in our profitability, but is the bedrock upon which we plan to expand our footprint and continue our legacy of excellence in the franchising arena. It’s extremely hard to take action if you don’t have your data in real time. If you’re waiting for the data to take action, it’s probably too late.

How do you decide on the locations for new units? What factors or data points are most critical in your analysis? (Issue #4, Feb. 26, 2024)

HANNIBAL MYERS

Company: President & CEO, Global Restaurant Hospitality Group 

Brands: 41 Church’s Chicken in Southern CA and Western AZ

Years in franchising: 32 (27.5 on the franchisor side, 4.5 as a franchisee)

When thinking about potential locations for new units, in addition to the usual attributes of favorable trade area demographics, there are several factors/data points I look for:

• Is there a true demand for my brand offering in the trade area? (General, but not to be overlooked)
• Would the development of the new location cannibalize sales at a nearby profitable location by more than 15%?
• Will the location be equal to or superior to that of any key competitor(s) in the trade area? (Highly desired, though not an absolute deal breaker for the ideal location)
• Is there an acceptable presence and volume of the core customers for my brand within 8–10 driving minutes during the lunch and dinner daypart windows? (Most critical)
• Is there an acceptable presence and volume of “likely” customers for my brand within 5–8 driving minutes during the lunch and dinner daypart windows? (Most critical)
• Is there strong average daily traffic on the main artery past the location, and a lack of any blockage of access to the site during rush-hour traffic? This will vary by brand. (Most critical)
• Is there good ingress and egress for the location during the lunch and dinner daypart hours? (Most critical)
• Is there good visibility of at least one side of the building on which building signage will be installed from both directions on the main artery? (Most critical)
• Is there the existence of or the ability to install a pole sign (as opposed to only a monument sign)? (Highly desired, though not an absolute deal breaker for the ideal location)
• Has the location housed a national or regional brand offering a similar service or product in the recent past that failed? If so, how might any lingering impressions affect customers’ propensity to give my brand a try?
• How robust is the trade area competition for QSR workers?

How has technology played a role in managing and scaling your franchises? Any specific tools or software you swear by? (Issue #10, May 27, 2024)

GREG FLYNN

Company: Flynn Restaurant Group

Brands: 1,200 Pizza Hut, 460 Applebee’s, 360 Arby’s, 280 Taco Bell, 210 Wendy’s, 125 Panera Bread, 35 Planet Fitness

Years in franchising: 25

We have very, very good information systems. We use Microsoft’s Power BI, which allows us to understand our business with great depth and very clear reporting, so we know in real time what the levers are that are really driving our business, and we know where to focus our efforts. And we can share that information with our operators and help them understand what really matters and what we ought to be focusing on. So that’s the information technology. Then there are all sorts of restaurant technologies that are making us more and more efficient all the time and making the guest experience more frictionless.

I think the main takeaway here is that you need very good information and reporting systems to keep track of everything that’s going on at an enterprise of our scale and as diversified as we are. And we have that. I know what’s going on in our business very well. I probably know more about our business than many small operators know about their businesses, because it hasn’t been a priority for them and they don’t have the systems.

Can you share an instance where one of your franchises faced a significant challenge or crisis, and how you managed it? (Issue #20, Oct. 28, 2024)

ZANE TANKEL

Company: Chair/CEO, Apple-Metro

Brands: Applebee’s

Years in franchising: 30

In 2011, Tankel was named Multi-Unit Franchisee magazine’s MVP for outstanding performance and innovation growing his organization and brands. At the time, he was CEO of Apple-Metro, which owned and operated every Applebee’s in New York City and nearby Westchester and Rockland counties. In January 2024, he sold 21 of his 23 remaining Applebee’s, keeping one in Staten Island and one just north of Times Square—the world’s largest and top-grossing Applebee’s, whose 3 stories and 14,000 sq. ft. can accommodate 400 diners.

We did have a situation where there was a shooting just outside our front door at one of our Brooklyn restaurants. In fact, there was blood splattered across the front door. We were forced to immediately close because of the police investigation. We remained closed and paid all our staff for three days following the shooting. The rationale was it would give people some space between this traumatic event and our restaurant being open. Turns out it was a wise decision, because three days later most everything was back to normal and pretty much forgotten. When we reopened, there were so many people awaiting our reopening that the restaurant was full and folks still coming in had to wait for a table to get free.

So, the lesson here is let some space pass between a crisis that involves the public and restaurant operations. We just wanted to get some separation and it worked.

Where do you see the future of the restaurant industry? Any emerging trends you’re excited about? (Issue #14, July 22, 2024)

AZIZ HASHIM

Company: CEO, NRD Capital Management

Brands: Indoor Active Brands, Experiential Brands

Years in Franchising: 30

In 1996, Hashim founded NRD Holdings, a franchise development and holding company. Starting with a single QSR in Atlanta, the company grew into one of the largest restaurant franchisee companies in the U.S. Restaurant brands included Popeyes, KFC, Taco Bell, and Domino’s. In 2014, the same year he founded NRD Capital, a franchise-focused PE firm, he served as Chair of the Multi-Unit Franchising Conference. And in 2016–2017 he was Chair of the IFA. His current initiative is called SocialBites.

Franchising is entering a new era after decades of exponential growth. Franchise growth has often outpaced the natural growth of the U.S. population, fueled by almost two decades of near-zero interest rates and low inflation, further boosted by pandemic-related government subsidies. Franchise unit economics, therefore, were skewed by these abnormal conditions, resulting in lower-than-acceptable adjusted returns on investment for most franchisees. Now that interest rates, input costs, and consumer spending have normalized, those abnormalities—and the decisions caused by them—have been exposed.

I believe that we will likely enter a phase of consolidation that could include a retraction in unit counts to normalize for over-growth and the realities of input costs. This “reset” is normal and necessary and will result in new models in franchising that are more focused on unit economics and delivering better experiences for a more demanding consumer.

What we have chosen to do in our Experiential Brands platform is to try and capitalize on the reset by adaptively reusing excess space—but not by returning to the same business model (i.e., simply replacing one brand with another). Rather, we have opted to be more creative with spaces to give consumers flexibility and choice when they take the time to visit a physical location. We essentially created an entirely new restaurant category, the “Foodhub,” where multiple brands, community experiences (like entertainment, social activities, etc.), and other programming gives consumers more reasons and more value for their valuable time and money. In turn, this highly de-risks the franchisee’s investment as now there are multiple revenue streams in one physical location instead of just one. We have thought about the consumer experience, the franchisee’s cost to open, and increasing the chances of success for a particular location by increasing the number of revenue streams.

On the franchise development fronts, AI and other technological advancements will disrupt more and more jobs, creating the need for the next generation of franchise business opportunities—but the franchisees of the future will also be more discerning as they will have unprecedented access to tools to assess winning business models from less compelling ones. This is a positive trend for great franchise brands that have solid data and Item 19 information to back up their offerings. So, again, a reset in the way things will advance.

You can see that there is much to be excited about, but only if one is prepared to reset. “Business as usual” simply just won’t be that usual in the future. Franchising will always be a wonderful opportunity to achieve financial independence.

MUFC Advisory Board: Franchising Trends and Predictions for 2025 (Issue #26, Jan. 13, 2025)

BROOKE WILSON

Brooke Wilson, a multi-unit franchisee of Two Men and a Truck since 2004, owns and operates markets in Georgia and North Carolina. Although not a restaurant franchisee, she is a member of the Multi-Unit Franchising Conference Advisory Board and offers excellent advice and perspective for growing your franchise business in 2025—no matter what industry you’re in!

For my business, 2025 is about continuing to create value by focusing on brand awareness, enhancing customer experience, and leveraging technology for operational excellence. Succession planning remains a key priority, ensuring that our operations are poised for sustainable growth in a competitive marketplace.

Multi-unit franchisees will face both opportunities and challenges as private equity continues to reshape the franchise landscape. Consolidation is likely to increase, potentially limiting market entry for smaller operators while creating opportunities for larger operators to expand their portfolios.

Economic pressures, such as inflation, labor shortages, and interest rate fluctuations, will continue to strain margins, requiring franchisees to innovate and optimize their operations. Political changes in 2025 may bring new labor policies, minimum wage adjustments, or health care regulations, all of which will demand careful financial planning and adaptability.

Here are 5 ways multi-unit franchisees can prepare their businesses for 2025:

1. Strengthen financial planning. Anticipate potential economic shifts and allocate resources strategically. Evaluate costs, identify areas for efficiency, and maintain liquidity to weather any uncertainty.
2. Focus on succession planning. Whether transitioning ownership or expanding operations, ensure leadership pipelines are in place. Prepare for long-term stability by identifying and training successors or key management staff.
3. Leverage technology. Invest in systems to improve operational efficiency, enhance customer experience, and provide data-driven insights to make informed decisions.
4. Adapt to workforce changes. Stay ahead of potential labor policy adjustments by investing in employee training, offering competitive benefits, and fostering a strong workplace culture.
5. Maintain brand integrity. Work closely with franchisors to ensure alignment with the brand’s long-term goals. Protect the customer experience and community relationships.

By remaining proactive, adaptable, and focused on creating value, multi-unit franchisees can thrive in a rapidly evolving economic and franchise landscape.

FRANCHISEE BYTES

Vision meter: Where do you want to be in 5 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 5-year stretches because there is so much change in the restaurant industry.
—Phong Huynh is the 2025 American Dream MVP for achieving remarkable success in his new country. He is co-owner of Fuego Investments, which operates 30 El Pollo Loco restaurants. He’s been in franchising for 15 years.

Ten 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.
—Nick Crouch is co-winner of the 2025 Single-Brand Leadership MVP for achieving leadership with a single brand. He is Co-CEO of Dyne Hospitality Group, which operates 118 Tropical Smoothie Cafe locations. He’s been in franchising for 13 years. Current annual revenue is $150+ million.

In 5 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.
—Chad Given is Brand President of Sizzling Platter, which operates 361 Little Caesars, 107 Little Caesars Mexico, 185 Wingstop, 92 Jamba, 33 Jersey Mike’s Subs, 31 Dunkin’, 7 Sizzler, 5 Red Robin, and 1 Cinnabon. He is the 2025 Mega-Growth Leadership MVP for achieving excellence in growth and expansion and has been in franchising for 25 years.

I’d like my children to decide how far they want to take my small enterprises. Stay tuned.
—Sam Chand is the 2025 Multi-Brand Leadership MVP for achieving brand leadership with multiple brands. He is CEO of Jasam Enterprises, which operates 35 KFC and 25 Checkers & Rally’s. He’s been in franchising for 27 years.

In 5 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.
—Carrie and Josh Ayers are the 2025 Veteran Entrepreneurship MVPs for outstanding performance, leadership, and innovation by military veterans. They operate 6 Playa Bowls and have been in franchising for 5 years.

In 5 years, I’d like to double our units. In 10 years, I’d love to exit and move into consulting.
—Chanel Grant is Co-Owner of Healthy Living Ventures, which operates 6 Tropical Smoothie Cafe, 3 Hand & Stone Massage and Facial Spa, and 1 Vio Med Spa locations. She is the 2025 Diversity, Equality, and Inclusion MVP for her demonstrated exceptional commitment to the promotion of diversity, equity, and inclusion in her organization and has been in franchising for 10 years.

I want to own and operate more than 50 Mrs. Fields and TCBY shops across different nontraditional locations.
—Yousuf Nabi is Owner & CEO of Gotham IP Inc., which operates 10 Mrs. Fields, 10 Sbarro, and 4 TCBY locations. He’s been in franchising for 5 years.

I’m living my dream now, but I’m still young and have a new goal of $50 million in annual revenue.
—Jerome Johnson, franchisee, John Cove Management and Jbar Inc., operates 10 Dunkin’, 4 Sonic Drive-In, 4 Baskin-Robbins, and 1 Jersey Mike’s. Current annual revenue is about $20 million. He’s been in franchising for 21 years.

We are going to add five stores within our current DMA. We are also looking to remodel some restaurants within the market to help drive sales. In the 10-year plan, we would like to consider developing an additional market.
—James Brajdic is co-winner of the 2025 Single-Brand Leadership MVP for achieving leadership with a single brand. He is president of Customer Maniacs and Green Bay A Dub, which operates 13 A&W restaurants. He’s been in franchising for 23 years.

We aim to operate 30 Marco’s Pizza locations and 15 Tropical Smoothie Cafe units. Looking 10 years ahead, we’d like to scale up to 75 units, possibly including a third brand in our portfolio. Diversification will help us sustain growth while mitigating risks associated with market saturation.
—Jacob Webb, Franchise Owner, MPUT Holdings LLC, which operates 22 Marco’s Pizza and 4 Tropical Smoothie Cafe locations. He’s been in franchising for 11 years.

In 5 years, I’d like to have a diverse franchise and real estate portfolio generating at least $75 million in revenue. In 10 years, I would like to generate $150 million in revenue.
—Bryce Bares, Franchise Owner, QSR Services LLC, which operates 30 Dunkin’ and 1 Baskin-Robbins locations. Current annual revenue is around $30 million. He’s been in franchising for 13 years.