Franchise Development Leaders: Michael Flaum of Grimaldi’s Pizzeria

Michael Flaum joined Grimaldi’s Pizzeria following more than a decade of experience as an owner, area developer, and multi-unit franchisee of Cold Stone Creamery. Flaum led the development of 125 Cold Stone Creamery locations, assisting in site selection and buildout as well as mentoring and providing ongoing support to franchisees. Flaum has leveraged his extensive experience in franchise development as both a franchisee and a franchisor in his current role overseeing domestic franchise development for Grimaldi’s, a family-friendly yet upscale full-service concept with 42 stores in 11 states. The Grimaldi’s model is built around its signature New York-style pizza. 

1851 caught up with Flaum to learn about how his vast experience in the franchising industry influences his current work and what makes a great franchisee.

1851: How did you first get into franchising? 

Flaum: As far as franchising in its infancy, my first job was at McDonald’s at the age of 16. I worked there through high school and actually graduated from Hamburger University at their corporate headquarters. 

After graduating college with an accounting degree, I got involved with franchising again as part of the leadership team of several retail automotive businesses. I’ve been touching franchises in many different fields for quite some time. Upon selling my business back to Cold Stone, I independently provided business strategy and consulting services to franchisees and a few franchisors. 

I’m excited about my new chapter with Grimaldi’s, a brand I joined in July 2019. I wanted to associate myself with a brand I could get behind 100%. With all of my experience, I had a lot of tough questions for the leadership team, and they were very transparent. I have been a franchisee before and I know the characteristics of a successful franchisee, so I’m going to use my knowledge and experience to refine the process of selecting qualified candidates to grow Grimaldi’s franchising program. 

1851: What do you love about the industry? 

Flaum: The franchising model is wonderful, and it really offers a franchisee the ability to grow under a common brand and share in the proven benefits of a larger organization. It’s very exciting and rewarding to me to work with franchisors and franchise candidates through their due diligence process and discovery phase. I’ve gone through it myself, so I know the benefits of the model and I embrace it and I look forward to doing that with new franchisees. 

I love the restaurant and hospitality business, as well. Some people think it’s in your blood, but I think what has drawn me to it is the fast pace and dynamic environment. It is challenging to be operationally excellent every day, and I love the outcome when we truly create memorable guest experiences. 

1851: What do you wish that you could change about the industry? 

Flaum: I think one of the biggest challenges in multi-state franchising is adapting the model to local laws that vary from state to state. At Grimaldi’s, we’re utilizing a proactive compliance program to monitor and analyze these differences. Obviously, it would be much simpler if there was one standardized set of laws, but it just makes our job that much more challenging. 

1851: What is the biggest challenge franchisors are currently facing in franchise development and what are you doing to overcome it? 

Flaum: I can answer that from the perspective of both a franchisor and franchisee. Quite honestly, it’s about doing the due diligence process slowly. Being transparent and allowing both parties to understand what the expectations are sets everyone up for success. 

You have to match the right franchisee with the right franchisor, but the franchisee is going to have challenges within any full-service restaurant. The restaurant space is pretty saturated as it is, and there is a lot of competition for both guests and great team members, especially when considering rising labor costs. The culture at Grimaldi’s is based on three key priorities: People, product and service. With so much competition for great team members, we want our employees to feel valued and for our franchisees to have great team members. 

Grimaldi’s continues to develop tools and technology for all of its employee groups to achieve employee satisfaction. If we don’t deliver an exceptional employee experience, it’s hard to deliver an exceptional guest experience—that’s why it's important for franchises to position themselves as an employer of choice.

1851: What do you think the biggest trend in franchise development will be in 2020?

Flaum: Third-party delivery has made a huge impact on franchises in the restaurant and retail worlds. Traditionally, Grimaldi’s has been a dine-in restaurant where families come to experience not only the food, but the atmosphere. Off-premise, third-party delivery isn’t as relevant to Grimaldi’s as it is to other brands, but is has changed some of the ways we operate. I’m excited about finding ways to really execute elements of the dining experience through these third-party partnerships—I believe that the technology, convenience and customization that these businesses provide is going to be big not just next year, but in the next 10 years. 

1851: What makes a great franchisee? 

Flaum: Being a franchisee myself and bringing many franchisees into brands, I’ve been able to look back and ask myself, “What are the traits of top performers?” People join a franchise because they want to buy into that system. They embrace the product and the brand, so you have to find coachable, system-oriented people. 

The restaurant industry is not easy work either, so you really have to find people who are driven, love what they do and have strong people skills. They not only have to promote the brand to the public, but also manage a workforce successfully. A good franchisee is someone who strives for operational excellence in every aspect of the brand.

1851: What's the No. 1 thing that sells franchises?

Flaum: I don’t sell franchises—I think of it as awarding franchises to people who are passionate about the brand. The reason I say that is because, in my lifetime in franchising, I’ve had plenty of people who met the financial qualifications, but weren’t truly committed to the brand or interested in being a part of something bigger. It’s a mutually beneficial relationship wherein the brand supports the franchisee to execute best practices, and the franchisee in turn is able to build a business of their own according to a set a standards that are proven to be successful.