Growing a Franchise
With nearly two decades in franchising, LaRue brings a selective, franchisee-first approach to growth, prioritizing culture, operational readiness and sustainable development.
Franchise Sales Leader: Mike LaRue
Brand: Angry Chickz
Mike LaRue’s introduction to franchising began with curiosity. Nearly two decades ago, after eating at a restaurant called Rockin’ Baja Lobster, LaRue happened to see a job posting for a franchise development position with the brand. He had no restaurant background and, at the time, did not even know exactly what franchise development meant.
Still, the description caught his attention. “It was talking about franchising, franchise development, dealing with entrepreneurs, and that was it,” LaRue said.
What followed was a career that gave LaRue an unusually clear view of both the potential and pitfalls of franchise growth. His earliest years in development taught him lessons he still carries today, particularly around what happens when brands prioritize signing agreements over finding the right franchisees and building the infrastructure required to support them.
“I always say I learned what not to do as an emerging brand,” LaRue said.
Today, as vice president of franchise development for Angry Chickz, LaRue has the opportunity to apply those lessons to a growing Nashville hot chicken concept, taking an intentionally selective approach to the people the brand brings into the system.
One of the central ideas shaping LaRue’s development philosophy is that a large pipeline does not automatically equal a healthy franchise system.
He has seen brands generate excitement by announcing enormous development agreements without adequately considering how many units will actually open, whether those owners have the resources to execute and whether the franchisor can support them once they enter the system.
That has made LaRue wary of franchise development built primarily around hype.
“You’ll never hear me say, or any of our PR say, ‘We’re the hottest this’ or ‘We’re the fastest-growing this,’” LaRue said. “I want to stay under the radar, focus on what we’re doing, focus on ourselves, not compare ourselves or go crazy about what everyone else is doing.”
For LaRue, the better measure is whether signed franchisees actually open restaurants and continue developing.
“The focus was more on, okay, we need to really grow within our current franchisees and the territories that are available around their markets,” LaRue said. “A lot of times it’s, ‘We need new deals, we need new deals, we need new deals.’ But what’s the ultimate goal? To sell as many franchises as possible or actually get restaurants open?”
That long-term mindset also means LaRue is willing to turn down candidates who might look attractive on paper.
“We’ve actually turned down a few multi-unit operators,” LaRue said. “They would have been a good franchisee, someone we wouldn’t have to worry about, but they just didn’t fit what we’re specifically looking for.”
That selectivity reflects one of the biggest lessons LaRue learned early in franchising: Having capital or an impressive résumé does not automatically make someone the right franchisee.
The wrong partnership can create challenges for both sides long after the initial franchise fee is collected.
For LaRue, responsible development means looking beyond whether someone can finance the investment and asking whether they genuinely fit the brand, its culture and its long-term direction.
As Angry Chickz expands, LaRue wants the culture that attracted him to the business to remain intact. “I’m a feel person,” LaRue said. “If you can create a feeling with a brand, you will attract the people who believe in that.”
The company has continued investing in corporate restaurants while remaining selective about franchise partnerships outside California. That gives the organization the financial flexibility to choose the right operators rather than franchising simply because it needs development fees.
“Our focus and intention on just culture, people first, is a big part of who we are,” LaRue said.
That people-first mentality extends from corporate leadership to restaurant teams and ultimately to the guest experience. LaRue believes creating a brand people genuinely want to associate with requires alignment throughout the organization, not simply a strong logo or menu.
Given LaRue’s franchisee-first perspective, he is particularly conscious of what happens when franchise brands are built primarily for a near-term sale. An ownership transition can significantly affect the operators who invested in the original system.
So during his own interview process, LaRue asked David Mkhitaryan, founder of Angry Chickz, about his exit strategy.
The founder’s answer was essentially that he might consider selling someday if his children did not want the company. Given their young ages, LaRue viewed that as a sign of a very long-term horizon.
“When you have, call it, a 100-year plan, you make decisions differently than if you were saying, ‘Hey, we’re looking to sell this in six to eight years,’” LaRue said.
That perspective fits naturally with LaRue’s own approach to franchise development. Instead of optimizing around the biggest announcement or fastest deal velocity, he is focused on building a system where franchise partners, corporate operators and leadership can grow together over time.
After nearly 18 years in the industry, LaRue said Angry Chickz has given him an opportunity to put many of the lessons he has accumulated into practice.
“I’ve always been kind of against the grain of typical franchise sales and how brands are developed,” he said. “This is kind of my first opportunity to actually be able to put that in play.”
Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit www.1851growthclub.com and start your journey.
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