3 Power Brands on How to Win at Franchise Growth

What’s the best way to scale your franchise brand and open more units? Well, it depends on whom you ask. 

Three fast-growing franchise brands of different sizes dished on what worked for them in terms of franchise growth in 2019 and what’s ahead in 2020. 

For early childhood education franchise The Goddard School, which currently has more than 525 locations open across 38 states, the growth strategy in 2019 centered around securing real estate where a Goddard School would prove to be successful, CEO Dennis Maple said in an email. 

“As our relationships with large real estate developers have grown, we decided to pivot our strategy to secure the best locations before selecting the ideal franchisee,” Maple said. “We chose this strategy to ensure new franchisees could feel confident in opening a Goddard School where there is a confirmed need for early childhood education. Another pillar growth strategy for us last year was centered around developing ‘live, work, play’ locations. We have a large pool of millennial parents that we serve, many of whom are choosing to reside in urban areas with housing, employment and entertainment all in one place.”

The brand’s 2020 franchise growth strategy will include making sure The Goddard School model is more consistent across all franchised locations, proactively addressing what millennial parents want for their children and keeping abreast of Gen Z parenting trends. 

Reasons to franchise with The Goddard School include the brand’s transparent Item 19 and strong franchisee support, Maple said. Maple noted how the brand currently has 69 multi-unit owners who own a total of 165 locations. 

“Industry-wide, Goddard Systems Inc. is recognized for our highly transparent FDD Item 19, and we are labeled as the ‘gold standard’ in this area of reporting,” Maple said. “We provide a full breakdown by school of earnings and expenses, so potential franchisees can get the full picture of their earning potential. Entrepreneurs also come to The Goddard School for the support we offer our franchisees.” 

Another growth-oriented franchise brand is Indian fast-casual restaurant Curry Up Now, which has 11 locations and plans to open 11 more over the next nine months. The brand plans to leverage its relatively new relationship with FranSmart, which it partnered with in 2018, for continued growth, founder and CEO Akash Kapoor said. He noted that while Curry Up Now is 10 years old, it’s still a franchise startup, and 2020 will be a “banner year” for the brand. 

“I don’t want to say we have a proven system, but we have a store in Irvine,” Kapoor said. “We have a store in Sacramento. We have a store in Atlanta. We have a store in Salt Lake City. We have a store in Hoboken. We’ve learned a lot from these five, so now I’m really excited to kind of go crazy with selling.”

That said, the brand remains highly selective when it comes to prospective franchisees and who will be added to the system. Kapoor noted that he is “super emotional” about the brand he founded and that three generations of his family are involved in the enterprise. 

“We’ve been very selective with our partners and we’re going to continue to be selective,” he said. “We like to say a lot of ‘nos’ before we say the yes, and I think that’s fine because this is a long marriage. We want to make sure we find people with a very similar vision and passion for the business.”

Curry Up Now is a good franchise opportunity because the Indian food segment has never been done right, Kapoor said. 

“There is no Indian brand that’s national,” he said. “Forget international. And believe it or not, there’s really not even Indian brands in India that are doing this well.”

The brand’s optimized operating model accounts in part for its success. Food is sent out to restaurants or trucks from a central kitchen, and a commissary and a manufacturing facility provide about 90% of the products that go to franchise stores. The brand even works with a manufacturing facility in India to help ensure authenticity. Cashiers are trained to make food and cooks are trained to be cashiers and food runners. This labor model has worked well for the brand. 

“We operate six corporate stores in the toughest labor market in this country, which is the San Francisco Bay Area,” Kapoor said. “It’s the most expensive and the toughest. It’s very hard to get people. So the labor model’s worked very well for us because of these things.”

For halal fast-casual chain The Halal Guys, which has approximately 97 locations across the U.S. and abroad, 2020 will be about leveraging the brand’s unique story to build a connection with audiences, CEO Ahmed Abouelenein said in an email. 

“Stories are a powerful communication tool,” Abouelenein said. “They give us an opportunity to share a story that describes the brand’s experience with our audience. They enable us to elicit a response from curious minds to engage with our brand further.”

The brand’s unique offering will continue to be a major selling point in 2020. The brand is interested in opening wherever experienced and qualified multi-unit restaurant operators can be found, and they must be willing to open at least five units, Abouelenein said. 

“Halal food is a flavor profile unlike any other cuisine format,” Abouelenein said. “Much like the United States, American halal food is an impressive melting pot of inspired flavors that are a true culinary experience. The U.S. halal market makes up $20 billion of all food products purchased around the globe, up from $15 billion just a few short years ago. Franchising with The Halal Guys is one way prospects can capitalize on this rapidly growing segment.”

Establishing clear goals, capitalizing on brand differentiators and being selective with franchisees are just three ways franchise brands can emulate the success of The Goddard School, The Halal Guys and Curry Up Now.