1851

In the world of franchising, growth is the name of the game. Every franchise brand is an explicitly growth-oriented enterprise. But there’s no industry-wide agreement when it comes to the optimal speed of growth. Some brands deliberately maintain a single-digit unit count for years, perfecting their model and propping up their early franchisees before breaking into new markets. Others aim to saturate their market right out of the gate, relying on increasing brand recognition and multiplying royalty fees to establish and protect their niche.&nbsp;<a href="https://www.houndstownfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-speed-of-franchise-growth-how-fast-should-you-expand-2712430" target="_blank" rel="nofollow">Pet-care franchise Hounds Town USA</a> has taken the former approach, establishing just 11 franchise units since its founding in 2001.&nbsp;“I believe that it is imperative for franchises to grow slowly,” said Jackie Bondanza, President of Hounds Town, Inc. “It can take years for a system to truly understand and optimize its own inner workings, to get the model right so that it can be adopted seamlessly and successfully by franchisees.”That strategy has paid off for <a href="https://1851franchise.com/thesaladstation">Hounds Town USA</a>, which has enjoyed an average year-over-year sales increase of over 32%. But now Bondanza says the franchise is ready to ramp up its growth.“2021 is ‘go time’ for us,” she said. “After this year, in which we expect to bring on about 12–15 new franchisees, we’re going to start expanding much more quickly, bringing on an additional 20–30 units every year.”<a href="https://thesaladstation.com/franchising?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-speed-of-franchise-growth-how-fast-should-you-expand-2712430" target="_blank" rel="nofollow">Self-serve restaurant concept The Salad Station</a> has established nearly twice as many units as Hounds Town USA in roughly half the time, but Franchise Development Director John Mike Heroman is similarly focused on the long game.&nbsp;“You don’t want to outpace what you are able to support,” Heroman said. “In the first two or three years, you have to be growing because your revenue stream depends on having franchisees, but you need to be focused on building the foundation for something larger.”Heroman holds 20 units as the elbow of the growth curve for most franchise brands, which is exactly where his franchise stands today.&nbsp;“Once you get past 20, you’ve proven the foundation is there,” he said. “We are in a position now to grow at whatever pace we like. That wasn’t the case two or three years ago when we weren’t as firmly established. Today, if we can find a location that meets our area requirements and a good franchisee to run the business — there is nothing holding us back.”According to Michael Wagner, President of <a href="https://poolscoutsfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-speed-of-franchise-growth-how-fast-should-you-expand-2712430" target="_blank" rel="nofollow">pool-service franchise Pool Scouts*</a>, franchises need to be more focused on the health of initial franchise locations than on growth, which he says will follow if early adopters are well taken care of.“Being an early franchisee has some benefits and challenges,” he said. “Usually the cost to get in is significantly lower, but there’s more risk, and there’s always some growing pains. If the model is tight and you help those early franchisees find success, then fast growth becomes a much more viable option.”Like Hounds Town USA and <a href="https://1851franchise.com/thesaladstation">The Salad Station</a>, <a href="https://1851franchise.com/poolscouts">Pool Scouts</a> is preparing to increase its rate of expansion in the coming years, but Wagner said there is a limit, eventually.“We don’t plan to slow our growth any time soon,” Wagner said, “but we see about 500 viable, solid territories around the country. We’ve sold 42 so far, with 31 open, so we have a lot of room to grow.”Heroman sees no such ceiling for The Salad Station.&nbsp;“We see a tremendous demand for what we’re offering in the marketplace, and we don’t expect that to change,” he said. “As long as it doesn’t, the sky’s the limit.”Each of the brands we spoke to underscored the advantages of their models for growth — Pool Scouts prides itself on the enviably industry-savvy leadership team of their backer, Buzz Franchise Brands; The Salad Station has a unique operational model that requires less labor than competitors in its segment; and Hounds Town USA boasts one of the lowest costs of entry of any pet-care franchise — but each emphasized the fundamental importance of selecting the right early franchises for their brand.“It’s crucial that we are extremely particular about who we bring into our system,” Bondanza said. “We view our franchisees as an extended family. We understand that not every franchisee candidate feels the same way, but that’s what works for our system.”That alignment between franchisee and franchisor is essential for successful growth at any speed, Heroman said, and to ensure that alignment, a franchisor should first study their own brand.“You have to be honest to the core about what your brand is, which markets it can work in, and who your franchisees are,” he said. “You have to be brutally honest with yourself about what your model is, what your brand is and what kind of growth you can expect, and then you plan accordingly.”

The Speed of Franchise Growth: How Fast Should You Expand?

1851 Franchise

Leaders from three brands at three different stages of growth discuss their strategies.

the-speed-of-franchise-growth-how-fast-should-you-expand

Onigilly Japanese Kitchen

Unlocking the Potential: How Much Can You Earn as an Onigilly Franchisee?

unlocking-the-potential-how-much-can-you-earn-as-an-onigilly-franchisee

Filta Environmental Kitchen Solutions

DeWitts Ignite New Chapter for Filta Environmental Kitchen Solutions in Reno 

Grease, Grit, and Growth: DeWitts Ignite New Chapter for Filta Environmental Kitchen Solutions in Reno, Nevada

grease-grit-and-growth-dewitts-ignite-new-chapter-for-filta-environmental-kitchen-solutions-in-reno-nevada

Layne's Chicken Fingers

Layne's Chicken Fingers-50 Unit-Wendy's-Franchisee-June-2025

Why This 50 Unit Wendy’s Franchisee Is Betting on Layne’s for His Next Big Move

wendys-franchisee-expands-with-laynes-chicken-fingers-texas

CapitalSpring

CapitalSpring’s Jim Balis Talks Growth, ROI and the Future of Fast Casual on “Rock My Restaurant”

capitalsprings-jim-balis-talks-growth-roi-and-the-future-of-fast-casual-on-rock-my-restaurant

Children's Lighthouse

Children’s Lighthouse Ramps Up Growth in First Half of 2025 With Strategic Expansions, Franchise Signings, and New Headquarters

childrens-lighthouse-ramps-up-growth-in-first-half-of-2025-with-strategic-expansions-franchise-signings-and-new-headquarters

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

What ALEC-Laffer's Report Means for Franchising

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

What June’s Jobs Report Means for the Franchise Industry

what-junes-jobs-report-means-for-the-franchise-industry

Drone Delivery Takes Flight in QSR: The Future of Franchise Operations?

drone-delivery-takes-flight-in-qsr-the-future-of-franchise-operations

Chick-fil-A Tops Customer Satisfaction Rankings for 11th Year as Challenger Brands Gain Ground

chick-fil-a-tops-customer-satisfaction-rankings-for-11th-year-as-challenger-brands-gain-ground

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Rising Jobless Claims Could Signal Challenges — and Opportunities — for Franchising

rising-jobless-claims-affect-franchising

Hardee’s Lawsuit Highlights the Risk of Going Off-Model in Franchising

hardees-franchise-lawsuit-paradigm-investment-group

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise

How Vishal Juneja Turned a Family Tradition Into a Paris Baguette Franchise Built on Heart and Community

paris-baguette-franchise-rockaway-new-jersey-vishal-junjea

petbar Franchise Costs, Fees, Profit and Data for 2025

petbar-franchise-deep-dive

Design with outline of three houses and people working on laptops within them

Top 10 Low-Cost Home-Based or Mobile Franchises for 2025

low-cost-home-based-mobile-franchises

Franchisee spotlight graphic with photo of Juan & Whitney Fernandez & family, BIGGBY COFFEE logo

From Chiropractic to Coffee: These BIGGBY® COFFEE Franchisees Are Brewing Something New in Troy, Ohio 

biggby-coffee-franchise-coming-to-troy-ohio

The Speed of Franchise Growth: How Fast Should You Expand?

MORE STORIES LIKE THIS