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

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 recent FranCamp Live webinar, 1851 Founder and Chief Growth Officer Nick Powills sat down with Charles Internicola, CEO of GoodSpark Franchise Growth Accelerator, along with Thanda Win and Erik Nevius from Lime House Sushi & Ramen, 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. 

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. 

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 1851francamp.com.

Watch the full webinar above or on YouTube.