HenDough Identifies Charlotte, North Carolina as Prime Market for Franchise Growth

Fueled by a record-breaking year for sales despite the pandemic, HenDough, the chicken and donut restaurant brand founded in Hendersonville, North Carolina, is launching a franchise opportunity — and they have their sights set on Charlotte. HenDough founders Paul and Sarah Klaassen are looking to bring their made-from-scratch menu and unique flavor pairings to the Queen City.

HenDough Aims To Fill Untapped Demand in Charlotte and Build On the Brand’s Reputation in the Carolinas

Paul says Charlotte is at the top of the list when it comes to markets they’d like to enter for a few reasons. First, there are several chicken and waffle restaurants in the Charlotte area, as well as one restaurant that offers both chicken sandwiches and donuts, which means there is a general demand in the area for the brand’s unique offering.

However, while there is this small selection of similar restaurants in Charlotte, there are certainly no similar franchise concepts, so prospective HenDough franchisees don’t have to worry about major competition in the sector. Plus, as one of the top 10 fastest-growing cities in the country, the Charlotte community’s demand for differentiated restaurant offerings is only going to increase.

“There are fried chicken restaurants everywhere and donut shops everywhere, but there are very few places that do both as well as we do,” said Paul. “Customers can treat HenDough like a donut shop in the morning and can then come back and enjoy a totally different meal for lunch and dinner.”

For any prospect worried about bringing a relatively unprecedented menu combination to the Charlotte area, HenDough’s previous success speaks for itself.

“We weren’t sure how customers would respond at first, but as we geared up for opening and spread the word, we really started to feel the momentum build in the area,” said Paul. “The first day we opened, we were out of food by 1:00 p.m. We even ended up cutting out dinner and focusing solely on lunch and breakfast because we couldn’t keep up with the demand. The first year we opened, we exceeded our expectations in revenue by 50%, making $450,000 in revenue instead of our projected $300,000.”

Prospective franchisees can also build on the brand’s established momentum and reputation in the Carolinas, as HenDough has been mentioned in local publications such as Citizen Times, Southern Living and Atlanta Magazine.

Since the brand is new to franchising, the HenDough team is specifically targeting Charlotte so incoming franchisees will be close enough to benefit from hands-on support. The Klaassens hope to open another location in the Greenville area and use it as a flagship store where the first few franchisees can come to check out the concept, attend Discovery Day and go through a comprehensive training program.

How HenDough Positions Franchisees for Success With Local Vendor Partnerships, Affordable Real Estate and a Resilient Business Model

The proven business model and heightened consumer demand aren’t the only benefits that come with a HenDough franchise. Since HenDough partners with local vendors, businesses, breweries and dairy farms to source their products, the business model is a great way to get involved with the local business community. The brand is still trying to decide if they will expand their established partnerships for franchisees or will help them find vendors in their own area, but Charlotte’s close proximity to Greenville could help streamline the process.

HenDough also doesn’t have to conform to normal real estate standards and can keep construction costs low. “Our restaurant has succeeded in a 100-year-old house and a food hall, so the team has the experience needed to help franchisees thrive in unique and nontraditional sites,” said Paul. “The relatively small average footprint of 2,500-3,500 square feet also means we can keep real estate affordable while retaining the personality of the brand.”

Last year, HenDough proved itself to be uniquely resilient against even the toughest economic challenges. Paul says the brand was able to successfully pivot to off-premise service after the COVID-19 pandemic hit, seeing a major uptick in take-out business. Despite the limitation of operating primarily as a take-out service, the Hendersonville restaurant had its best sales year yet in 2020, and Paul and Sarah expect to see a 25% to 30% growth in revenue in 2021 as they reopen dining rooms and roll out a new dinner menu.

HenDough’s Strategic Growth Plans Include Doubling Footprint Every Year

Long-term, Paul says HenDough hopes to open two new corporate stores and double its footprint every year through franchising for the next five to 10 years. In addition to Charlotte, there are a few markets in the Carolinas primed for growth, including room for eight to 10 stores overall. Other target markets outside of the region include the neighboring states of Florida, Georgia and Tennessee.

“The ideal HenDough franchisee is someone who is heavily involved in their community and able to go with the flow and be flexible,” said Sarah. “For the first few locations, franchises should have some experience in the restaurant industry and be willing to be part of the day-to-day operations. We are looking for single-unit operators to start who will hopefully be able to evolve into multi-unit owners moving forward.”

For enthusiastic, qualified franchisees in Charlotte, HenDough offers the chance to introduce a fresh restaurant concept to a thriving food scene while utilizing the brand’s proven systems to drive profits and growth.

The total initial investment required to open a HenDough restaurant is $205,500-$643,500 (multi-developmental initial investment $235-500-$778,500). The initial franchise fee is $30,000 for one establishment and $15,000 for each additional restaurant. For more information, visit: https://hendough.com/franchise/