From Founder to Franchisor: Capital, Competency and the Right Franchisee

A well-funded franchisee can still be the wrong franchisee. In restaurants, the money may get someone to opening day, but it won’t help much if they are not ready for the pressure of running the business once the doors open.

Chad Coulter, founder and CEO of Biscuit Belly, evaluates franchise candidates through a simple question: Can this person actually run the business?

“We'd take someone with less money and more operational chops every single time,” Coulter said. “Capital matters, but it doesn't run a restaurant. If you can't manage a team, hold your standards on a slammed Saturday morning, and get your hands dirty when it counts, it doesn't matter what's in your bank account. That restaurant will eventually fail, and our brand is on the door. We have to protect that.”

That approach shows up in Biscuit Belly’s franchise recruitment process. Coulter said the brand is looking for owners who plan to be close to the business and visible in the market, not investors who expect the restaurant to run itself.

“We're also not looking for someone who wants to own one location and collect a check,” Coulter said. “We want operators who are going to be in the community, grow with us and build toward multiple locations. This isn't a portfolio play. It's a business you run.”

Why Operational Experience Matters More Than Capital

Coulter said it becomes pretty obvious when a candidate does not fully understand what running a restaurant actually looks like day-to-day. That is why Biscuit Belly requires candidates with limited restaurant experience to work shifts inside an operating restaurant before moving forward in the process. The goal is not to test whether they can cook or serve tables. It is to see how they respond to the pace of a busy restaurant environment.

“We put candidates with thin restaurant experience in one of our restaurants for a shift or two on a busy weekend morning,” Coulter said. “What happens next tells us everything. We've had people walk out mid-shift, not call us the next day to bow out or leave in the middle of a rush because they had no idea what they signed up for.”

Coulter would rather see that mismatch surface early than discover it after a franchise agreement is signed and a location is already struggling. “Honestly, that's the best outcome for everyone,” he said. “Better to find that out before they write a check than six months into a struggling location that's hurting the brand.”

The Best Franchisees Are Operators First

Money may get a candidate into the conversation, but Coulter said the strongest prospects usually stand out in how they talk about the work itself. They understand the pace of the restaurant and expect to be involved, not watching from a distance.

“We want people who can lead a team when things get busy and still jump in where they’re needed,” Coulter said. “A breakfast restaurant is hard work. The best candidates we’ve seen have run busy, people-heavy businesses before, and they ask good questions about staffing, training and what the day-to-day actually looks like.”

Equally important is local involvement. Coulter said the franchisees who perform best are deeply connected to their markets and visible inside their restaurants.

“We also want someone who's going to be a real presence in their community, not a landlord with a logo,” Coulter said. “The franchisees who thrive with us are known in their markets. They're in the dining room. They know their regulars. That stuff matters.”

That emphasis on operator engagement also affects how Biscuit Belly evaluates candidates during discovery. Coulter said the questions candidates ask often reveal whether they truly understand the demands of ownership.

“The working shift is our best filter,” Coulter said. “You can say all the right things across a conference table, but put someone on the floor during a two-hour wait on a Sunday and you see who they really are fast.”

Protecting the Brand Through Franchisee Selection

For emerging franchisors, the temptation to prioritize growth can create pressure to approve financially qualified candidates even when operational concerns exist. Coulter said that is a mistake.

“If someone has real operational experience and genuine community roots but needs to work through the capital structure a bit, we'll have that conversation,” Coulter said. “What we won't do is approve someone with money but no ability to actually run the business. Capital doesn't fix a bad operator.”

That is the risk Biscuit Belly is trying to avoid. Once a franchisee opens, the guest does not separate the operator from the brand. If the restaurant is poorly run, the damage can reach well beyond one location, which is why Coulter said the working shift requirement stays in place.

“We've built something worth protecting, and the working shift requirement isn't us being difficult,” Coulter said. “It's us making sure that before anyone puts their name on a Biscuit Belly, they know what they're walking into and they're ready to lead it.”

Want to learn more about how 1851 helps franchisors grow their franchises with confidence? Visit www.1851growthclub.com and see what we can do for you.