GoodSpark

Growing a franchise isn’t just about having a great business — it takes planning, patience and the right approach to finding franchisees who will succeed. In a&nbsp;<a href="https://www.youtube.com/live/qkwD8_wsOZo?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-to-grow-your-franchise-insights-from-francamp-live-2728450" target="_blank" rel="nofollow">recent FranCamp Live webinar</a>, 1851 Founder and Chief Growth Officer&nbsp;<a href="https://www.linkedin.com/in/powills/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-to-grow-your-franchise-insights-from-francamp-live-2728450" target="_blank" rel="nofollow">Nick Powills</a> sat down with&nbsp;<a href="https://www.linkedin.com/in/charles-internicola-42506910/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-to-grow-your-franchise-insights-from-francamp-live-2728450" target="_blank" rel="nofollow">Charles Internicola</a>, CEO of&nbsp;<a href="https://www.goodsparkfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-to-grow-your-franchise-insights-from-francamp-live-2728450" target="_blank" rel="nofollow">GoodSpark Franchise Growth Accelerator</a>, along with&nbsp;<a href="https://www.linkedin.com/in/thanda-win/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-to-grow-your-franchise-insights-from-francamp-live-2728450" target="_blank" rel="nofollow">Thanda Win</a> and Erik Nevius from&nbsp;<a href="https://limehousefranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-to-grow-your-franchise-insights-from-francamp-live-2728450" target="_blank" rel="nofollow">Lime House Sushi &amp; Ramen</a>, to talk about what it really takes to grow a franchise.“We expected the franchise to sell itself, but that’s not how it works,” said Nevius.&nbsp;Instead of chasing rapid growth, they’re refining their strategy, focusing on the right franchisees and leveraging relationships built through FranCamp. Their insights provide an honest, behind-the-scenes look at what it really takes to establish a sustainable franchise.&nbsp;A transcript of the webinar has been provided below. It has been edited for brevity, clarity and style.Nick Powills: Erik and Thanda, tell us about your business. Share your story from a franchise standpoint—who are you, and what do you do?Thanda Win: My name is Thanda Win. I came from Burma 20 years ago with my family. A year later, I became a single mom and focused on becoming a business owner. In 2005, I became a sushi franchisee in a grocery store, worked hard and gained experience.Over time, I wanted to own a restaurant. In 2017, I opened a full-service restaurant with a bar, but I realized I wanted to focus on food, so I transitioned to a sushi and ramen fast-casual concept. I developed the concept before COVID, and when the pandemic hit, it was the right time to move under the Lime House name. After COVID, we opened Lime House Sushi and Ramen, and two months later, we were so busy that SMBs encouraged us to franchise. That wasn’t my original plan, but we became a franchisor quickly.Erik Nevius: Everything fell into place. Customers were already asking if we were a franchise. We connected with SMB, got the paperwork together and then had to figure out how to transition from running a restaurant to running a franchise. That’s how we found FranCamp, which helped us bridge the gap between having paperwork and building a franchise.Powills: Expectations between franchisors and franchisees can be the biggest disconnect. What were your expectations when franchising, and how have they matched up with reality?Win: My expectations came from my experience. When I transitioned from fine dining to fast-casual, everything went well. Our business model was strong, and I enjoyed training and teaching people. Since I was a franchisee before, I understood how much knowledge I needed to succeed. When I became a franchisor, I wanted to train and coach others.Nevius: We thought that once we became a franchise, things would start happening. We expected to hear from people, but it didn’t work that way. After two years, we still don’t have franchisees, but we’ve learned a lot — especially about shifting from running a restaurant to running a franchise. The franchise itself is the product, not the food. We had to rethink our expectations.We’re no longer expecting rapid growth. FranCamp connections helped us understand that finding the right franchisees is critical. Rushing to sign someone just to make money can backfire. Initially, we thought things would take off quickly, but we’ve realized that franchising doesn’t happen overnight.Are we disappointed? Honestly, I’m relieved. Right now, it’s just Thanda and me running the franchise. If we had 50 franchisees, how could we manage that? We expected the franchise to sell itself, but that’s not how it works. We had to stop casting too wide of a net and focus on finding the right franchisees.Powills: Do you have any candidates in the pipeline?Nevius: We now have a structured pipeline. Through FranCamp, we made strong connections and found people to help us build it. We have target markets, landing pages and the necessary components to attract franchisees. This officially kicked off on January 1st.Powills: But no candidates yet?Nevius: Not yet, but we feel more confident. Instead of throwing flyers out there, we now have a structured approach. Our initial focus is on Rochester, New York. Even though we’ve been working on this for over two years, this feels like day one of real franchising.Powills: Your investment tops at $700,000. Are you disclosing anything in Item 19?Nevius: Yes, but we don’t have updated numbers for this year.Win: Last year, revenue was just under a million, with around a 30% profit.Powills: You’re positioning this as a low-investment opportunity. I’d rethink that. A $700,000 investment isn’t low-cost, and positioning it that way could attract the wrong candidates. You need franchisees who are well-capitalized and ready to invest in marketing. I’d also consider a conversion model — approaching mom-and-pop sushi or ramen spots near you. Many independent operators struggle to break even. You could offer resources and support to help them become part of Lime House.Operational complexity is another factor. Sushi is more complex than ramen. While I’m not suggesting dropping sushi, focusing on streamlining operations could create more opportunities. Aligning these factors and setting milestones will build a sustainable franchise system.Nevius: The conversion model is a great idea. If someone already has sushi or ramen skills, half the battle is won. The key is making sure they’re willing to follow the model.Powills: That comes down to culture fit. Some brands require potential franchisees to work a shift before signing on. It’s an extra step, but it ensures they’re the right fit.Charles Internicola: At FranCamp Dallas, we’ll focus on identifying your biggest growth challenge for 2025 — your X factor. Emerging brands need to zoom in on finding that one perfect franchisee. Casting too broad of a net can make you miss out on the right candidates.Nevius: That’s been one of our biggest struggles — reaching a market we can support. We want franchisees close enough to connect with them in person.Internicola: The real value isn’t going wider, but deeper. You’re not just selling a business — you’re selling your journey. That’s critical.Powills: Have you analyzed how your operating hours impact sales?Win: You mean identifying peak hours?Powills: Yes, but more than that. You’re open 63 hours a week. If you generate a million dollars, that’s about $300 per hour. What if you adjusted hours to improve efficiency and align with your values? For example, closing during an off-peak period could reinforce your brand’s family focus while optimizing operations.Your backstory, culture and business model should all work together to differentiate Lime House. Fine-tuning these details makes your franchise opportunity stronger.Internicola: The road to franchisee number one is tough. FranCamp is about refining fundamentals and continuously improving. Thanda and Erik, you’re committed to this journey, and I believe you’ll succeed.Nevius: We’ve talked a lot about networking, but the FranCamp workbooks are valuable. They force us to reflect on what we’re doing. After each event, we go through our notes and implement changes. When we arrive in Dallas, we’ll be ready to build on what we’ve learned.Powills: For those watching, go register at&nbsp;<a href="http://1851francamp.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-to-grow-your-franchise-insights-from-francamp-live-2728450" target="_blank" rel="nofollow">1851francamp.com</a>.Watch the full webinar above or on&nbsp;<a href="https://www.youtube.com/live/qkwD8_wsOZo?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-to-grow-your-franchise-insights-from-francamp-live-2728450" target="_blank" rel="nofollow">YouTube</a>.

How to Grow Your Franchise: Advice from FranCamp Live 

1851 Franchise

https://www.youtube.com/embed/qkwD8_wsOZo

Growing a franchise takes patience, strategy and the right franchisees. Lime House Sushi & Ramen is focusing on sustainable growth by refining its approach and finding the right candidates.

Building a Franchise, Not Just a Restaurant: Lessons in Sustainable Growth

how-to-grow-your-franchise-insights-from-francamp-live

CONSULTANT INFO

Contact

About GoodSpark

Emerging Leaders in Franchise Support

What It Really Means to Franchise Your Business

Are You Ready To Franchise?

Learn

Visit Website

GOODSPARK

Facebook

Instagram

LinkedIn

Youtube

SOCIAL MEDIA

Why Franchise Systems Break And How to Fix What’s Holding You Back 

Why Franchise Brands Stall After Launch, and the Playbook to Start Scaling Again

GOODSPARK MOST READ STORIES

1851 LOGIN

GROWTH CLUB LOGIN

ABOUT GOODSPARK

CONTACT GOODSPARK

facebook

instagram

linkedin

youtube

First Name

Last Name

Email

Phone

Message Please enter your comments.

How can we help you - Select an Option Below?

⚡ Ready to Spark Growth?

It’s easy for franchisors to assume that once they start selling units, growth will come naturally. But in reality, the success of a franchise system depends less on how many locations are sold and more on how well those locations perform over time.One of the biggest downfalls of emerging brands is their failure to use franchisee data effectively.&nbsp;“It all comes down to franchisee profitability,” said&nbsp;<a href="https://www.goodsparkfranchise.com/">GoodSpark Franchise Growth Accelerator&nbsp;</a>CEO Charles Internicola on a recent&nbsp;<a href="https://www.youtube.com/watch?v=AYYC023TYsI">podcast</a>. “And for franchise systems, sometimes the biggest disconnect is getting to the franchisee data and your most important obligation, which is coaching franchisees to profitability, which enhances your royalties and creates validation.”<h2>Why Data Collection Breaks Down</h2>The issue for many brands is not really a lack of data, but a lack of consistency. Franchisees might report financials at different times, use different general ledger structures or fail to provide complete information altogether. That level of inconsistency makes it hard to create an Item 19.&nbsp;“We are on the tail end of FDD renewal season, and we are always reiterating with our clients, the most important thing you can do is tell a story with the data,” said&nbsp;<a href="https://www.linkedin.com/in/gretchenjohnson27/">Gretchen Johnson</a>, franchise relationship manager at&nbsp;<a href="https://t2bbsolutions.com/">Top 2 Bottom Business Solutions</a>. “Don't just slap copies of PNLs into Item 19. Help paint the picture for what you want prospective franchisees looking at your system to see.”&nbsp;Without standardized data, franchisors have to compare incomplete or mismatched data, which makes putting together an Item 19 difficult and limits their ability to coach franchisees and identify problems early.&nbsp;<h2>Standardization Is the First Step&nbsp;</h2>Start by ensuring that every franchisee uses the same chart of accounts and reports on the same cadence. Johnson said this is often one of the first issues her team addresses when working with franchise brands.“I think it comes down to a very foundational level of are all of your franchisees using the same chart of accounts?” she said. “Most brands have one put together. They provide it to their franchisees, but then it's a matter of whether their bookkeeper adheres to that. Are they using that consistently?”Ensuring that all locations are using the same template from day one is a huge first step. That way, you can compare apples to apples between locations. Brands are also beginning to formalize this by requiring financial reporting as part of their franchise agreements.There’s also software that automatically aggregates financial data and generates dashboards with key performance indicators. This technology is a great way to get on a schedule without having to put everything in manually.&nbsp;“We're big proponents of bringing those into systems so that it's an automated process, and on the same day, every month, panels are getting pulled and analysis is being run,” Johnson said.&nbsp;<h2>Turning Data Into Coaching and Growth</h2>Collecting data is only the starting point. What’s even more important is how franchisors use that information to coach. One of the most effective strategies is to group franchisees by common factors, giving them a chance to learn from each other and problem-solve.&nbsp;“We've seen it done based on geography. Different regions in the U.S. have very different landscapes when it comes to cost of living, labor costs, supply costs, shipping costs, and things along those lines. So sometimes it makes sense to break down by geography,” Johnson said. “Other times, it makes sense to break down based on top-line revenue. So your 5 million plus locations, your one to $2 million locations, especially, you know, a lot of brands talk about, how do I get my franchisee to that first million?”Pairing franchisees together in these groups creates opportunities for peer-to-peer learning, where owners who have solved specific challenges can help others facing the same issues.Beyond remote coaching, there are times when franchisors should take a more hands-on approach by spending time in local markets, observing operations firsthand and asking employees for feedback to better understand what may be holding a location back.<h2>The Financial Metrics That Matter Most</h2>Every brand is different, but there are a few financial categories that usually show if a franchisee succeeds or struggles. These include:&nbsp;<ul><li>Cost of goods sold</li><li>Labor</li><li>Marketing spend</li></ul>Marketing, in particular, is often misunderstood.&nbsp;“Even though it's really painful and hard if you're not seeing that top line revenue yet, the last thing you should cut is your market spend,” Johnson said. “That's what's going to help continue to generate demand for you to this.”&nbsp;Emerging brands sometimes contribute to the problem by underestimating how much franchisees need to spend in the early stages and not coaching franchisees on how much and where they’re going to spend those marketing dollars.<h2>Building a More Scalable System</h2>As franchise systems grow, the brands that really separate themselves are the ones that take the time to build a strong foundation behind the scenes. That usually comes down to having clean, consistent data, being transparent about performance and staying closely involved with franchisees to help them improve.&nbsp;When you have better data, you make better decisions. Better decisions lead to stronger performance at the unit level, and that’s what drives real growth.Watch the full podcast above or on&nbsp;<a href="https://www.youtube.com/watch?v=AYYC023TYsI">YouTube</a>.For more information on GoodSpark and its services for developing franchises, visit&nbsp;<a href="https://www.goodsparkfranchise.com/.">https://www.goodsparkfranchise.com/.</a>&nbsp;

A lot of common issues in franchising stem from poor data collection, no standardization in reporting and not using data to coach franchise owners well.  

Building a Franchise, Not Just a Restaurant: Lessons in Sustainable Growth

MORE STORIES LIKE THIS