1851

In this episode of&nbsp;<a href="https://www.youtube.com/watch?v=N26xjcObGao&utm_source=1851franchise.com&utm_medium=article&utm_campaign=laynes-chicken-fingers-ceo-garrett-reed-offers-a-franchise-opportunity-built-on-simplicity-quality-and-real-estate-expertise-2728137" target="_blank" rel="nofollow">“Franchisor Hot Seat,”</a>&nbsp;<a href="https://www.linkedin.com/in/powills?utm_source=1851franchise.com&utm_medium=article&utm_campaign=laynes-chicken-fingers-ceo-garrett-reed-offers-a-franchise-opportunity-built-on-simplicity-quality-and-real-estate-expertise-2728137" target="_blank" rel="nofollow">Nick Powills</a>, founder and publisher of 1851 Franchise, interviewed&nbsp;<a href="https://www.linkedin.com/in/garrett-reed-5a724a152?utm_source=1851franchise.com&utm_medium=article&utm_campaign=laynes-chicken-fingers-ceo-garrett-reed-offers-a-franchise-opportunity-built-on-simplicity-quality-and-real-estate-expertise-2728137" target="_blank" rel="nofollow">Garrett Reed</a>, CEO of&nbsp;<a href="https://layneschickenfranchising.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=laynes-chicken-fingers-ceo-garrett-reed-offers-a-franchise-opportunity-built-on-simplicity-quality-and-real-estate-expertise-2728137" target="_blank" rel="nofollow">Layne&#x2019;s Chicken Fingers*</a>. 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,&nbsp;<a href="https://1851franchise.com/layneschickenfingers/info">Layne’s Chicken Fingers</a> has become a Texas A&amp;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&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-laynes-chicken-fingers-franchise-costs-fees-profit-and-data-2724314">$446,500 to $1,015,000</a>, 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&nbsp;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&nbsp;<a href="https://www.youtube.com/watch?v=N26xjcObGao&utm_source=1851franchise.com&utm_medium=article&utm_campaign=laynes-chicken-fingers-ceo-garrett-reed-offers-a-franchise-opportunity-built-on-simplicity-quality-and-real-estate-expertise-2728137" target="_blank" rel="nofollow">YouTube</a> 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:<ul><li><a href="https://1851franchise.com/jeff-brazier-drives-kiddie-academys-growth-with-strategic-leadership-and-franchisee-support-2728033">Jeff Brazier Drives Kiddie Academy’s Growth with Strategic Leadership and Franchisee Support</a></li><li><a href="https://1851franchise.com/childrens-lighthouse/shelly-pair-childrens-lighthouse-franchise-2727877#stories">VP Shelly Pair Shares How Children’s Lighthouse Sets Itself Apart with Hands-On Franchisee Support</a></li><li><a href="https://1851franchise.com/phoenix-franchise-brands-vp-kevin-longe-share-his-journey-from-corporate-america-to-multi-brand-franchisor-2727776">Phoenix Franchise Brands VP Kevin Longe Share His Journey from Corporate America to Multi-Brand Franchisor</a></li><li><a href="https://1851franchise.com/how-the-ceo-of-hot-palette-america-found-his-passion-in-franchising-and-built-a-consulting-empire-2727048">How the CEO of Hot Palette America Found His Passion in Franchising and Built a Consulting Empire</a></li></ul>

 Layne's Chicken Fingers: Franchise Opportunity Rooted in Simplicity, Quality, and Real Estate Expertise

1851 Franchise

https://www.youtube.com/embed/N26xjcObGao

With a proven track record, high-quality product, and franchisee-focused infrastructure, Layne’s Chicken Fingers is poised to become a leader in the fast-casual space.

 Layne’s Chicken Fingers CEO Garrett Reed Offers a Franchise Opportunity Built on Simplicity, Quality, and Real Estate Expertise

This brand page has been paid for by 1851. Content within this page that is paid will showcase a Sponsored icon. This means the brand has engaged 1851 FRANCHISE to write the content. Content without the Sponsored Icon is aggregated media placements the brand earned. Questions can be sent to editorial@1851franchise.com

laynes-chicken-fingers-ceo-garrett-reed-offers-a-franchise-opportunity-built-on-simplicity-quality-and-real-estate-expertise

Comfort Keepers

What Care Services Do Comfort Keepers® Franchisees Provide? A Look at Personalized In-Home Care and Owner Responsibilities

comfort-keepers-franchise-personalized-care-services

Wild Bill's Craft Beverage Company

Wild Bill's San Diego Signing - Drew St. Cyr - 1851 Franchise

From Marine to Franchise Owner: Why Drew St. Cyr Is Bringing Wild Bill’s to San Diego

franchise-san-diego-drew-st-cyr

Layne's Chicken Fingers

Photo of Layne's Chicken Fingers franchisees, UW-La Crosse alums, Luke and Josh Bergeson

Why These University of Wisconsin-La Crosse Alums Bought Into Layne’s Chicken Fingers

uw-la-crosse-alum

Right at Home

Right at Home Margaret Haynes?Named 2026 McKnight’s Women of Distinction Hall of Honor Honoree

Right at Home Leader Margaret Haynes Named 2026 McKnight’s Women of Distinction Hall of Honor Honoree

right-at-home-leader-margaret-haynes-named-2026-mcknights-women-of-distinction-hall-of-honor-honoree

How This Franchisee Built a Sustainable Business With Wild Bill’s Craft BeverageCo.

craft-soda-franchise-success-andrew-hollander

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

The Top 10 Low-Cost Franchises With High ROI 

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

McDonald’s and Burger King Take the QSR Burger Wars to Social Media

mcdonalds-and-burger-king-take-the-qsr-burger-wars-to-social-media

Yum! Brands Pizza Hut Sale - 1851 Franchise

Possible Pizza Hut Sale Signals Shift in Yum! Brands’ Franchise Strategy

yum-brands-pizza-hut-sale

Restaurants Stand Out in 2025 Hiring as Consumers Look for Simple Treats

restaurants-stand-out-in-2025-hiring-as-consumers-look-for-simple-treats

Photo of SONIC franchise logo against blue sky backdrop

KBP Brands Acquires 78 SONIC Locations Across Five States

kbp-brands-sonic-acquisition

IFA Releases 2026 Franchising Economic Outlook Report, Predicting Over 12,000 New Franchised Businesses This Year

2026-franchising-economic-outlook-report

Ellianos Coffee Franchise Costs, Fees, Profit and Data for 2025

Franchise Opportunity Deep Dive: A drive-thru specialty coffee franchise focused on speed, quality and Southern hospitality.

ellianos-coffee-franchise-costs-fees-profit-and-data

No-H2O Franchise Deep Dive - Costs, Fees, Profit and Data - 1851 Franchise

Franchise Opportunity Deep Dive: No-H2O is a waterless, app-driven car-care model with mobile, pop-up or static formats, low infrastructure, quick ramp-up, matched marketing and systemwide accounts.

No-H2O Franchise Costs, Fees, Profit and Data for 2025

no-h2o-franchise-deep-dive

Window Genie Franchise - Deep Dive 2025 - 1851 Franchise

Franchise Opportunity Deep Dive: Window Genie is an owner-led, multi-service exterior cleaning brand with recurring demand and Neighborly backing that simplifies operations and supports growth.

Window Genie Franchise Costs, Fees, Profit and Data for 2025

window-genie-franchise-deep-dive

Sparkle Dog Care Franchise Costs, Fees, Profit and Data for 2025

Franchise Opportunity Deep Dive: Sparkle Dog Care is a membership-based pet grooming franchise that blends wellness-focused hygiene services with small-box retail and community engagement.

sparkle-dog-care-franchise-costs-fees-profit-and-data

How much can franchisees make? It’s a question many prospective owners ask before investing in a franchise. While earnings tend to be driven by variables such as industry, location and general management skills, a proper understanding of the key factors driving profitability can help franchise owners develop expectations that are realistic.&nbsp;Multi-unit franchisee&nbsp;<a href="https://www.linkedin.com/in/mangesh-patel-9368569/">Mangesh Patel</a>, who’s readying the launch of six&nbsp;<a href="https://www.beefobradysfranchise.com/">Beef ‘O’ Brady’s</a> restaurant locations in the Macon, Georgia area, shares insights from his franchising experience.<h2>Understanding Franchise Income</h2>Keeping operational costs in check can have a major impact on overall earnings. Taking a proactive approach to expenses such as food and labor, as well as payroll and scheduling, can help align actual franchise income with general expectations for the business.“I just had a meeting with a couple of people, and they said, ‘You talked about a 25% profit margin, but I’m only doing 12%.’ So, I looked at the figures they sent me,” Patel said. “Their&nbsp;<a href="https://1851franchise.com/calculate-restaurant-franchise-profit-2730476">restaurant</a> food cost was running at 37%, which should be around 30%. The national average is about 32%. If I do things correctly, my average food cost needs to be at or below 30%. And payroll should run around 18%. But many people run 25 to 28%.”So,&nbsp;<a href="https://1851franchise.com/unraveling-franchise-earnings-how-much-can-you-really-make-2723935">how much can franchisees make</a>? Here are five areas to consider.<h2>Practical Tips for Prospective Franchisees</h2><ol><li>Control Costs From Day One:&nbsp;It’s important to monitor payroll, food and supply costs closely. Overstaffing and inefficiencies can quickly reduce profits.</li><li>Plan For The Opening Surge:&nbsp;Traffic within the first few months of opening is likely to be higher. It’s important to adjust staffing and inventory accordingly, and pay close attention to how those levels change as time goes on.</li><li>Invest In Training:&nbsp;Properly trained workers can help reduce waste and improve overall service, which has a direct effect on net income.</li><li>Understand Your Market:&nbsp;Each market is unique and revenue potential will vary depending upon location, demographics and competition.</li><li>Track Metrics Regularly:&nbsp;Food cost percentages, labor ratios and weekly sales data act as key indicators operations may need to be adjusted.</li></ol><h2>What Profitability Really Comes Down To</h2>Patel notes that if franchise owners manage labor and costs properly, it’s not impossible to achieve strong cash flow even in the first year, bucking some franchising trends.So,&nbsp;<a href="https://1851franchise.com/how-much-can-you-make-as-a-franchise-owner-2724761">how much can franchisees make</a>? While results tend to vary, careful planning, disciplined operations and a proactive approach to assessing initial costs are essential. But by grasping and guiding the elements that drive franchise profitability, franchise owners can maximize overall business earnings, scaling a business that’s sustainable financially over the long term.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

How much can franchisees make? This guide explains what drives franchise earnings and how to manage costs, with expert tips from multi-unit owner Mangesh Patel on maximizing your franchise income.

How Much Can Franchisees Make? A Guide for Prospective Franchise Owners

how-much-can-franchisees-make-a-guide-expert-tips

For&nbsp;<a href="https://1851franchise.com/trubluehomeserviceally/why-these-tenured-franchisees-continue-to-grow-with-trublue-2726985">Tim and Kay Diemont</a>, owning a&nbsp;<a href="https://www.trubluefranchise.com/">TruBlue Home Service Ally</a> franchise in Yorktown, Virginia, is a shared purpose. Over the past decade, the couple has built one of&nbsp;<a href="https://1851franchise.com/trubluehomeserviceally/info">TruBlue’s</a> most successful and enduring operations, all while strengthening their marriage, deepening their community connections and setting an example for what family-owned franchising can achieve.By the time TruBlue came into their lives, both Tim and Kay were ready for a new chapter.“Tim was working as a regional director of stores and in charge of the East Coast. I had been with the same architectural firm for 20 years,” Kay said. “Tim was tired of the corporate demands, traveling and wanted to be home more. He also wanted to be doing something that would be rewarding and help in our community — the community where we raised our two sons. My employer was getting ready to retire and, since [Tim and I] had always wanted to work together, the timing seemed perfect for both of us.”The couple’s shared vision aligned perfectly with&nbsp;<a href="https://1851franchise.com/trubluehomeserviceally/why-trublue-is-a-strong-franchise-choice-in-the-growing-senior-industry-2728519">TruBlue’s mission of helping seniors and busy families maintain their homes with ease and peace of mind</a>.<h2>From Marriage Partners to Business Partners</h2>Transitioning from life partners to business partners came naturally to the Diemonts.“Since we were already partners, this new partnership was an easy transition,” Kay said. “Tim knew how to manage people and had been in a leadership position for many years. I was already trained administratively and had worked in marketing for both the architectural firm and for a local mayor. So, my community connections were very strong in this area.”Their complementary skill sets have proven invaluable. A U.S. Air Force veteran originally from Michigan, Tim brought strong operational and leadership experience from his years managing retail teams. Kay, who has lived in the Yorktown area her entire life, leveraged her local relationships and administrative background to handle marketing and office management.The couple’s oldest son, Derrick, is a systems engineer who has contributed to the business over the years. “His expertise with setting up our computer needs and just his overall help with the business was and continues to be a huge plus,” Kay said.The Diemonts say that working together has improved their&nbsp;<a href="https://1851franchise.com/strategicfranchising/work-life-balance-as-a-franchise-owner-is-it-possible-2728825">work-life balance</a> rather than complicating it. “Since we work together, our schedules are the same,” Kay said. “We can take as much time off as we want or need, and we enjoy traveling extensively every year.”<h2>Choosing TruBlue for Their Family’s Next Chapter</h2>When the Diemonts first began exploring franchise ownership, they were drawn to opportunities that allowed them to&nbsp;<a href="https://1851franchise.com/the-top-25-franchise-brands-committed-to-serving-their-communities-2724335">serve their community</a>.“Tim was looking into a senior care franchise and at the time the one he was interested in pursuing was already taken in our area,” Kay said. “The person he was speaking with at&nbsp;<a href="https://strategicfranchising.com/">Strategic Franchising</a> mentioned a new franchise they were developing. It sounded like a perfect fit for someone who already knew managerial and handyman skills. We were one of the first to open a TruBlue, and we have been the proud owners since 2013.”The TruBlue model — focused on home maintenance, handyman services and senior safety — felt like the right blend of purpose and practicality. “Tim always had faith and knew we would be a success,” Kay said. “The model for TruBlue was perfect! Our co-workers, family and friends loved the concept, and we had customers lined up before we ever purchased our territory.”<h2>Family Ownership in Action</h2>As business partners, the Diemonts run their franchise with the same&nbsp;<a href="https://1851franchise.com/how-a-franchisor-can-cultivate-a-strong-franchise-community-2722789">teamwork and communication</a> that have defined their marriage for nearly five decades.“We have great partners, who are like-minded to bounce ideas through,” Kay said. “All our employees know they can come to either one of us with a question or a problem and 98% of the time, they will get the exact response from us. The other small percentage is only due to Tim’s knowledge of certain handyman jobs and mine would be administrative questions regarding invoicing or payroll.”That united front has helped them build a loyal team and a strong reputation throughout Yorktown and the surrounding Peninsula communities. “Our client base is strong because we provide our customers with a good service at a great value, and it is continually growing,” Kay said. “Our employees are happy to be a part of our team and we are sure all of them would stay with or continue with any new owner, whether it be family or someone new.”<h2>Building a Family Legacy</h2>After more than 10 years in business, the Diemonts have watched TruBlue grow from a small emerging concept into a&nbsp;<a href="https://1851franchise.com/trubluehomeserviceally/trublue-accelerates-growth-in-2025-with-record-breaking-midyear-momentum-2730055">nationally recognized brand</a>. But for them, the most important growth has been personal — and local.“Hopefully, we have built a business that either one of our sons would be proud to carry on in the future,” Kay said. “Our client base is strong because we provide our customers with a good service, at a great value and it is continually growing.”The couple takes special pride in supporting local seniors, veterans and busy families. “Making our customers and employees happy and doing something good within our community for our seniors and veterans has been the most rewarding,” Kay said. “As a veteran and family-owned business, we take great pride in providing a service to those who have served our country and to their families. For our seniors and busy adults, providing them with peace of mind and someone they can trust in their homes is a very big deal to us as a company and as a family. Everyone’s home is their castle, and we always hope TruBlue of Yorktown makes them feel that way.”<h2>The Rewards of Working Together</h2>When asked about the hardest or most surprising part of running a family business, Kay didn’t hesitate: “Probably how easy it has been to work together. Nothing has been hard about it for us personally. Our skill sets matched pretty good.”For Tim and Kay, the past decade has been defined by collaboration, connection and community — and the next one promises more of the same.“Overall, everything we dreamed about running our own business has come true,” Tim said. “This is a great way of life.”

Discover how Tim and Kay Diemont leveraged their personal partnership to create a thriving, lasting legacy in the home maintenance franchise space.

Why This Couple Left Corporate America to Build a Community-Focused TruBlue Business in the Town Where They Raised Their Sons

why-this-couple-left-corporate-america-to-build-a-community-focused-trublue-business-in-the-town-where-they-raised-their-sons

<a href="https://hardeesfranchising.com/">Hardee’s</a>, a 65-year-old burger chain best known for its Thickburgers and breakfast biscuits, is facing a fast-moving round of closures driven by a franchise dispute rather than a bankruptcy filing.&nbsp;<a href="https://www.inc.com/ava-levinson/hardees-shutting-dozens-restaurants/91282586">Inc. recently reported that</a> 77&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-hardees-franchise-costs-fees-profit-and-data-2721286">Hardee’s</a> restaurants are expected to close within two weeks as one of the brand’s largest franchisees exits the system.&nbsp;According to the report, Hardee’s is suing&nbsp;<a href="https://www.arcburger.com/">ARC Burger</a> — a franchise operator owned by&nbsp;<a href="https://www.highbluffcap.com/">High Bluff Capital Partners</a> — alleging the company fell behind on required payments and other contract obligations. Twenty-eight locations had already gone dark as of late December, with remaining sites scheduled to shutter across eight states: Alabama, Florida, Georgia, Illinois, Missouri, Montana, South Carolina and Wyoming.&nbsp;At the center of the complaint is the franchising “stack” of ongoing fees and pass-through costs that keep a system running. ARC Burger allegedly owes more than $6.5 million, including royalties, advertising fund contributions, technology and training fees, rent and taxes, and that payments stopped in December 2024. Hardee’s also argued in the lawsuit that the franchisee’s cash flow was not being used to bring accounts current.&nbsp;Hardee’s, for its part, is framing the shutdowns as a contractual enforcement issue, not a brand-wide retrenchment. “These closures are a result of ARC Burger’s failure to cure its defaults under its franchise agreements, despite solid sales,” a Hardee’s spokesperson said.&nbsp;The situation highlights a familiar franchising pressure point: unit economics. Inc. reported that Hardee’s operates more than 1,800 U.S. restaurants and that average annual sales per location are less than $1.2 million, well below averages cited for&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-wendys-franchise-costs-fees-profit-and-data-2722520">Wendy’s</a> and&nbsp;<a href="https://1851franchise.com/how-much-does-it-cost-to-buy-a-mcdonalds-franchise-2724654#stories">McDonald’s</a>. Lower volumes can leave franchisees with less room to absorb higher labor, food and occupancy costs while staying current on fees.&nbsp;Hardee’s said it is working to limit fallout for workers and communities and is looking for ways to reopen closed restaurants. For franchising, the next chapter will likely involve finding replacement operators, transferring sites and rebuilding compliance — a reminder that franchise growth depends as much on franchisee solvency and execution as it does on consumer demand.Read the original article&nbsp;<a href="https://www.inc.com/ava-levinson/hardees-shutting-dozens-restaurants/91282586">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="https://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

Hardee's Franchise - ARC Burger Lawsuit - 1851 Franchise

The closures stem from alleged unpaid royalties and missed franchise obligations by a major operator, not a broader chainwide collapse for the Hardee’s system.

Hardee’s Lawsuit Targets Franchisee as 77 Restaurants Prepare to Shut Down

hardees-franchise-closures-arc-burger-lawsuit

As the health and wellness business in America continues to fill out, the fitness industry is growing alongside it. The industry now generates&nbsp;<a href="https://www.ibisworld.com/united-states/industry/gym-fitness-franchises/5599/">over $7 billion</a> in annual revenue, with a revenue increase of nearly 3% in 2023 alone.Rebounding since COVID, both big box and boutique franchises have shown&nbsp;<a href="https://athletechnews.com/fitness-franchising-by-the-numbers-10-key-stats/">membership growth</a>, with premium establishments up 21% compared to a whopping enrollment bump of almost 70% on the budget gym side.&nbsp;&nbsp;<h3>The Pros And Cons Of Big Box Gyms</h3>When it comes to choosing the right fitness franchise, there are pros and cons to each.Big box gyms are able to cast a wider net, attracting a clientele ranging anywhere from newbie to seasoned veteran, with a lower cost of entry potentially attracting even the marginally curious to the idea of a well-established, properly marketed brand.&nbsp;Big box and other low-cost fitness franchises are also able to capitalize on services like personal training and retail amenities, increasing revenue.Driven by recurring membership fees, big box gyms generally cost less. However, the wider net cast in terms of building a clientele, tends to require more equipment in a bigger space, increasing costs like rent. And with a wider array of workout machines to both service and maintain, additional costs tend to follow.<h3>The Pros And Cons Of Boutique Fitness Concepts</h3>On the boutique side, franchises are typically able to offer a more personalized fitness experience, catering to niche markets with an eye on community, quality and loyalty. However, a more hands on approach to management and day-to-day operations may also be necessary to deliver the more customized, immersive experience often demanded of the more boutique environment.As a result, boutique fitness concepts are typically able to capitalize on a more premium pricing model driven by the idea of exclusivity.But, while less equipment in a smaller space can help rein in expenses, it can also be difficult to build the more specific clientele required by the boutique experience, rendering selection of proper location crucial.<h3>Finding The Right Fit</h3>As potential franchisees assess the available opportunities in the fitness franchise realm, it’s important to ponder a number of factors which can impact the bottom line.In terms of budgeting, a full understanding of both initial investment and ongoing operational costs is crucial.&nbsp;Getting to know the customer and surrounding area can help franchisees assess just how much the consumer is looking to pay for a gym membership, helping clarify the big box versus boutique decision when it comes to the question of how to buy a franchise.There’s also market saturation, with big box gyms in particular becoming an increasingly crowded marketplace.On the management side, it’s important for franchisees to seize upon a specific approach, whether it’s applying a more hands on style to the level of personal interaction required on the boutique side or focusing on the moving parts in play in the larger, more complex big box environment.&nbsp;When it comes to buying a fitness franchise, an understanding of the consumer, proper assessment of the marketplace and specific approach to management can go a long way towards avoiding potential risk, helping franchisees find success as they ponder entrepreneurship via fitness franchises.For more info on fitness franchises, check out these related stories on 1851 Franchise:<ul><li><a href="https://1851franchise.com/fitness-franchises-2025-trends-opportunities-2729600">The Rise of Fitness Franchises in 2025: Trends, Opportunities and What to Expect</a></li><li><a href="https://1851franchise.com/top-health-and-wellness-franchises-2729821">Top 15 Health and Wellness Franchises Opportunities for 2025</a></li><li><a href="https://1851franchise.com/fitness-wellness-franchise-guide-2729443">How To Choose the Right Fitness or Wellness Franchise for You</a></li></ul>

Buying a fitness franchise, people exercising

As the fitness industry continues to grow fast, the decision for potential franchisees lies in whether to invest in big box or boutique gym franchise opportunities.

Layne’s Chicken Fingers CEO Garrett Reed Offers a Franchise Opportunity Built on Simplicity, Quality, and Real Estate Expertise

MORE STORIES LIKE THIS