Top Franchise Development Executives of 2024: Kelli Schroeder, VP of Franchise Development, WellBiz Brands

Kelli Schroeder is an accomplished leader in the franchising industry, currently serving as vice president of franchise development at WellBiz Brands, the largest wellness and beauty franchisor in the United States. With a portfolio of brands like Drybar, Amazing Lash Studio, Radiant Waxing, Fitness Together and Elements Massage, Schroeder plays a key role in overseeing new development, franchise resales and development marketing.

Her journey into franchising began with a role at Brinker International, where she helped expand the company’s presence from 28 to 40 countries over four years.

With a background in international public relations and communications, Schroeder has brought a fresh perspective to franchising, emphasizing sustainable growth through market analysis, strong financial liquidity and finding multi-unit, multi-brand operators. Her focus on franchisee engagement and deep understanding of market trends have made her a significant figure in the industry.

1851 Franchise spoke with Schroeder to learn more about her story, as well as to learn about some common mistakes she sees franchisors making in today’s industry.

1851 Franchise: Tell us about WellBiz, your history there and some of your accomplishments.

Kelli Schroeder: WellBiz Brands is the largest wellness and beauty franchisor in the United States. We're a portfolio company with five brands: Drybar, Amazing Lash Studio, Radiant Waxing, Fitness Together and Elements Massage. We focus on a one-to-one service model, and all of our brands have been around for 10, 15, 20 or even 25-plus years.

At WellBiz, I am vice president of franchise development. I oversee new development, the resale department and franchise development marketing. I've been with the company for about a year and a half.

1851: How did you get into franchising?

Schroeder: I definitely fell into it. I had a really good friend who worked at Brinker International at the time on the global side of the business. She moved to the domestic side and told me they were looking for a global development manager. At the time, I was working in international public relations, and I went to business school for communications. She thought I had a unique background that could transition into that role, so I flew out and interviewed.

I was up against paralegals and people with industry experience, but my boss at the time — who's now a mentor and a great friend — took a chance on me. He liked that I was coming from a different background and had a fresh perspective. So, I moved to Texas and spent 10 years building out the organization for Brinker. We were in 28 countries and grew it to 40 in four years. That’s really where my franchising journey started.

1851: Are there any keys to consistent franchise growth?

Schroeder: The key to consistent franchise growth is growing sustainably. That starts with thorough market mapping and analysis to see the potential for the brand in any market. You need to be proactive and look ahead, seeing what trends will look like five years from now and forming your area development schedule around that.

Next, find franchisees who want to develop and own that market. Some brands sell territories on top of each other, which divides the labor pool and resources. It's better to focus on how you can scale and fully penetrate a market, maybe with one or a few franchisees.

Lastly, having strong financial liquidity is crucial. You need to be in a strong cash position to reinvest in the business, and that gives you more leverage to borrow from third-party lenders or even consider seller financing. This positions you to weather downturns or macroeconomic changes.

1851: How does WellBiz reach the right franchisees?

Schroeder: At WellBiz, we've shifted to a three-unit-plus model. We no longer work with people who want to own just one location. We look for multi-brand operators — people who might already have franchises in fast food, schools or home health care and want to diversify their portfolios into beauty and wellness.

We want franchisees who have the capital and operational infrastructure to grow. They need to have boots on the ground in the market they’re developing and be in their business, especially during the first year.

We're a service brand offering blowouts, waxing and massage therapy, so franchisees need to be close to the business to drive the membership model. You can’t buy into a franchise and expect to only work five hours a week. Recently, brokers and franchise salespeople have been selling franchises to people with full-time jobs, claiming it can be manager-led from day one. That's egregious. We want franchisees who are engaged with their shops and studios.

1851: What are the biggest hurdles to successful franchise growth right now?

Schroeder: The biggest hurdle is the cost of capital and interest rates. It knocks out a lot of people who would want to get into entrepreneurship but simply can’t afford it. Inflation has also had an impact.

Real estate access is another challenge. In the last six-to-eight months, it’s become incredibly hard and competitive to find real estate. The demand outweighs the supply. This delays the timeframe for opening a new location, which can now take nine, twelve or even sixteen months. You don't want to compromise on site location, but you also don’t want to sit on a territory and suffer from analysis paralysis.

Labor continues to be a challenge as well. For a brand like Elements Massage, you need to recruit massage therapists and there’s a limited number entering the labor force. You’re constantly recruiting, hiring and training employees while driving marketing efforts for membership.

For Drybar, we don’t need credentialed cosmetologists because all we do is wash, dry and style hair. So, there’s access to a larger labor pool, but labor is still a challenge in our industry.

1851: Are there any common mistakes you see franchisors making when trying to grow?

Schroeder: Overselling licenses without preparing the infrastructure for growth is a common mistake. Many brands sell territories just to build the pipeline, but they don’t have the infrastructure to support that growth. You’ve got to parallel-path those things — selling while also building the infrastructure and thinking long-term.

It’s important to have a human capital strategy and make sure you’ve got the right people in place as you scale. You might even need to take your foot off the gas and focus on proof of concept, especially if you're a newer brand. Get it right with the first dozen franchisees before trying to scale to 300 locations when you’ve only got a team of five.

1851: What is your number one goal at the moment?

Schroeder: My number one goal is to educate people about franchising. It’s the most brilliant business model for driving capitalism and business ownership in the United States. Many people don’t realize that the businesses they frequent are owned and operated by local franchisees.

Franchising has unlocked generational wealth, job opportunities and career opportunities for so many people. It allows you to be in business for yourself but not by yourself, with the support and guardrails of a national brand. But it’s more than that — you become a part of your community. You're the mayor of your town, giving back and making an impact, and that’s how people keep coming back to you.

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