In this episode of “Franchisor Hot Seat,” Nick Powills, founder and publisher of 1851 Franchise, interviewed Garrett Reed, CEO of Layne’s Chicken Fingers*. The conversation delved into Layne’s origins, Reed’s unconventional path into franchising and how the brand’s focus on real estate fundamentals and franchisee success is driving its growth.

Founded in 1994 in College Station, Texas, Layne’s Chicken Fingers has become a Texas A&M legend thanks to its small-town charm, iconic chicken fingers and secret sauce. The brand’s leadership spent years perfecting operations in corporate-owned locations before launching its franchise model. Franchise opportunities range from $446,500 to $1,015,000, with flexible buildout options available, and the company is rapidly expanding while prioritizing franchisee success.

Reed, a seasoned real estate developer, never planned to lead a franchise brand. His background in site selection, construction and working with restaurant franchisees gave him a deep understanding of what drives location success. Reed shared his vision for Layne’s future, highlighting the importance of sustainable growth over aggressive expansion. By 2030, Layne’s aims to have several hundred locations while maintaining its commitment to quality, simplicity and franchisee support.

A transcript of Powills’ interview with Reed has been provided below. It has been edited for clarity, brevity and style.

Nick Powills: All right, Garrett. We’ll actually start with you and then talk about Layne’s. As simple as this question may sound, everybody has a unique response. How did you accidentally fall into franchising? What’s your personal background story in franchising?

Garrett Reed: Yeah, so my personal background is that I’m actually a real estate developer by trade. I’ve been in that industry for over 20 years. I got into franchising after having the opportunity to work with a lot of franchisees and people on the restaurant side of things over the years. I got to see the process from site selection to construction, equipment ordering and all that kind of stuff. Then, I got to watch those operators thrive and be successful. It always kind of intrigued me.

I made a lot of friends in the restaurant and franchising space. We built a lot of shopping centers and over time, I started thinking, “Hey, the grass looks greener over there.” I had a buddy who owned a restaurant concept, and I wanted to be a part of it. Initially, I thought I’d just partner up and help out — contribute however I could. But that evolved into a very different role. It all stemmed from market planning, site selection, construction, development and just watching people thrive. I thought, “Hey, that looks pretty easy. Why can’t I do that?”

Powills: There’s a lot to unpack here, but I want to start with real estate. I was walking down a street in Chicago about ten years ago with a powerful multi-unit franchisee. We passed a yogurt brand and a bubble tea brand. He said, “The yogurt brand should be doing $1.5 million, maybe $1.7 million, based on its location and buildout. But the bubble tea concept, one block off the beaten path, won’t make it.” And he was right. The bubble tea concept is long gone, despite being a good brand. It all came down to real estate selection. When you think back to the operators you’ve worked with, does it ever come down to just going cheap on real estate and underestimating the long-term impact?

Reed: One hundred percent, Nick. Too many franchisees and franchisors miss that finer point. I’ve spent hours sitting in parking lots, debating things like, “Is it on the going-home side of the street?” — especially if it’s a coffee concept. Ingress, egress, visibility — all these things matter. When I worked with Starbucks in the late ’90s, we always said, “We want to be on the going-to-work side of the street, through the light and on the right.”

Why? Because people stop at lights, giving them a chance to look around and notice the location. Being two stores down off the corner makes a huge difference. Real estate choices can affect sales by 10-15%, which could be the difference between success and failure. A store projected to do $1 million might only do $850,000 if you pick the wrong location. That’s why we always look at the optimal spot in a trade area and work backward, assessing visibility, accessibility, and other factors.

Powills: It sounds like this is your superpower — real estate. Without this foundational knowledge, franchisees might make bad decisions on both real estate and marketing.

Reed: I don’t know if I’d call it a superpower. Maybe I’m the Robin of superheroes, not Batman. But yes, real estate and site selection are areas where I have years of experience. And I think you touched on something important — the psychology of the customer. It’s not just about high traffic or visibility. You need to understand who your customer is and their traffic patterns. For instance, fast food needs to be near daily needs like grocery stores. A high-end lifestyle center might be visible but attract monthly shoppers, not daily customers. It’s not about building a billboard; it’s about serving your customer.

Powills: Do franchisees respect this institutional knowledge? What I’m hearing is that Layne’s doesn’t just sell chicken fingers — you’re selling real estate expertise and operational simplicity.

Reed: That’s a great question. Above my office, there’s a sign that says, “Protect the brand and protect the franchisee.” That’s our core mission. Everything we do here is about supporting franchisees. We’re not just in the chicken fingers business; we’re in the business of serving our franchisees.

For our current franchisees, I think this approach resonates. As for potential franchisees, we’re working hard to communicate it. Last year, we built a strong infrastructure to support franchisees, from marketing to IT to real estate. We’re not just selling a product; we’re building a system to ensure franchisee success.

Powills: Let’s talk about the product. How proud are you of Layne’s chicken fingers?

Reed: I think we absolutely have the best product on the market. Our chicken fingers are hand-battered and our sauces are made in-house. Everything we do is focused on quality. It’s a craveable product, and that’s key in this industry. People don’t eat chicken fingers every day, but when they think about chicken fingers, we want them to crave Layne’s. Our milkshakes, fries and chicken are second to none, and that’s what keeps customers coming back.

Powills: It sounds like you’ve mastered the combination of craveability, real estate selection and operational simplicity. Even if a customer visits just one more time because of your strategic location, that can skyrocket unit economics.

Reed: Absolutely. Success isn’t just about one thing; it’s about all the pieces coming together. You need great real estate, exceptional food and flawless execution. We’ve designed Layne’s to be one of the simplest brands to operate, but you still need to focus and execute. Simplicity doesn’t mean foolproof.

Powills: Let’s touch on the investment. How much does it cost to get in and how much can a franchisee make?

Reed: I’ll be careful here because of franchising regulations. Our Item 19 in the FDD [Franchise Disclosure Document] lays out financial performance data, and costs can vary depending on the real estate. Are you leasing or building from the ground up? What’s the cost of land and utilities in your market? We want franchisees to recoup their investment within three to three and a half years, and we’ve been able to achieve that so far.

Powills: Your focus on supporting franchisees — from site selection to ROI — is impressive. It’s clear you’re betting on their success.

Reed: Exactly. At the end of the day, our job is to protect the brand and the franchisee. If we do that, success will follow.

Powills: What’s your vision for Layne’s over the next year and beyond?

Reed: By the end of next year, we aim to have 40-43 units open. By 2030, we’d love to have several hundred units, but more important than growth is unit-level success. If our franchisees are thriving, that’s the real win. Layne’s is a family business with no exit strategy. We’re in it for the long haul.

Powills: Garrett, it’s clear you’re building Layne’s the right way. Thanks for sharing your story. I’m looking forward to watching the brand’s growth.

Reed: Thanks, Nick. We’re having fun and doing cool things. I appreciate the conversation.

Watch the full interview with Reed above or on YouTube to learn more about Layne’s Chicken Fingers and why it’s one of the most exciting franchise opportunities in the market today.

For more interviews with those influencing the franchise industry, check out these stories on 1851 Franchise:

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Luca Piacentini

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Luca Piacentini

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1851 Managing Editor