1851

As a franchisor, expanding into a new market is a beautiful thing. With each growth opportunity, the brand awareness spreads, new customer bases are unlocked and potential franchisees learn more about the business. But it’s not as easy as just deciding to take the franchise to a new state, signing a lease on a storefront and opening for business.There are hours of research, due diligence and leg work to be done to make sure that this new market has everything the franchise needs to be successful. Many franchises have additional considerations to take into account such as special real estate needs, local regulations on their industry and demand for the services they provide.Pet franchises are a perfect example of this. Here are some of the things pet franchises need to look for when expanding into a new market.<h4>Pet-Friendly Demographics and Market Data</h4>One of the first questions a pet franchise needs to answer before moving into a new location is: Are there enough people — and the right types of people — in this area to support the business? Of course, this means looking at the number of pet owners, but helpful data also includes income levels, commute distance, housing type, and overall economic growth of the region.&nbsp;Usually, pet franchises aim to be near at least mid-sized cities with reasonable travel times to and from higher density areas. People in the market also need to have enough disposable income to spend on things like pet daycare, boarding, grooming and training.“When we’re looking to grow our footprint in a new market, the natural first step is to look at the dog-to-human ratio,” said <a href="https://www.linkedin.com/in/linton-dowling/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-do-pet-franchises-look-for-in-a-new-market-2716477" target="_blank" rel="nofollow">Linton Dowling</a>, marketing director of <a href="https://raintreesales.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-do-pet-franchises-look-for-in-a-new-market-2716477" target="_blank" rel="nofollow">Raintree</a>, franchise development partner of doggie daycare franchise <a href="https://www.houndstownfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-do-pet-franchises-look-for-in-a-new-market-2716477" target="_blank" rel="nofollow">Hounds Town USA</a>. “We then move into the economic prospects of that state and demographics. If we’re trying to project growth potential, we look at a number of economic data points such as employment rate, apartment/housing booms, employment growth and interstate population growth.”Even though a new market might not have widespread awareness for the brand yet, ensuring that there is a solid potential customer base in the area will set franchisees and the company up for success as a whole.<h4>State and Local Regulations for Pet Care</h4>State and local laws can vary wildly across the country, especially when it comes to the pet care industry. Franchises and their legal teams should spend ample time researching not only state laws but county, city and town laws to ensure there aren’t any regulations that would inhibit operations.“Every municipality has different regulations and zoning requirements,” said <a href="https://www.linkedin.com/in/mike-gould-50220986/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-do-pet-franchises-look-for-in-a-new-market-2716477" target="_blank" rel="nofollow">Mike Gould</a>, founder of <a href="https://1851franchise.com/houndstownusa">Hounds Town USA</a>. If you’re pushing into a new state, find out their general regulations. When it comes to running a pet care business, some markets are antiquated with laws made in the 60s and 70s that haven’t been updated. Since our type of business (doggie daycare and boarding) didn’t really exist then, there may be some extra bureaucratic things to sort through before opening.”<h4>Real Estate Space for Pets</h4>Most franchises in the pet care industry need more than a typical retail storefront. For example, daycares and boarding facilities require large industrial spaces and groomers need space for specialized equipment. Once an agreement has been signed, franchisors typically work with local real estate brokers who know the area to find the right spaces in the best locations.“Real estate inventory is a challenge,” said Gould. “Hounds Town USA franchises need a certain space, typically warehouse or industrial, which is a unique need and hard to find in certain markets. It’s also hard to predict when that sort of real estate will be available.”For mobile pet franchises, however, it’s not so much real estate that’s the issue, but the commute. <a href="https://dogtrainingelite.com/franchise?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-do-pet-franchises-look-for-in-a-new-market-2716477" target="_blank" rel="nofollow">Dog Training Elite*</a>, the 34-unit dog training franchise, operates on-the-go, traveling from client to client to provide services.“Due to the mobile nature of our business, some markets will pose a challenge getting around the city,” said <a href="https://dogtrainingelite.com/franchise/about-us?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-do-pet-franchises-look-for-in-a-new-market-2716477" target="_blank" rel="nofollow">Aidan Rosequist</a>, franchise support director. “Take New York City, for example. Traveling from one client to another may take quite a while, even though they may be a short distance apart.”<h4>Opportunity to Meet the High Demand for Pet Care</h4>The demand for pet services has never been higher, especially after the <a href="https://www.washingtonpost.com/nation/2020/08/12/adoptions-dogs-coronavirus/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-do-pet-franchises-look-for-in-a-new-market-2716477" target="_blank" rel="nofollow">high adoption rates</a> during the pandemic, which means expanding into new markets makes perfect sense for pet franchises. Doing so helps spread awareness of the brand overall and opens the business up to an entirely new customer base.“Post-COVID, the need for daycare has never been greater,” said Gould. “But besides the growing number of pets, there isn’t a city or area of our country that isn’t in dire need of quality pet care. We’re growing leaps and bounds in every market. From my perspective, the country is wide open for development.”Besides increasing sales and growing the franchise business, expanding to a new market means the pet franchise has the opportunity to add value to the community in its own unique way.“One thing I try to get across to new franchisees is that dogs are now the equivalent of children,” said Rosequist. “Because of that, the pet industry is booming, and there is a huge demand to make sure those ‘children’ are good members of society. Relationships with other animal organizations can also be rewarding. The therapy and service dogs that we train can be valuable to the franchisee's community.”

What Do Pet Franchises Look For in a New Market?

1851 Franchise

Pet care is in high demand, and franchises are looking into new territories to expand their footprint. Here are a few special considerations these franchises need to consider before breaking into new markets.

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Layne's Chicken Fingers

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A Franchisee Partner, Not Just a Franchisor: How Layne’s Leadership Teams Work Alongside Operators

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Busy Bee Jumpers

Jump Ahead: How Busy Bee’s Technology Gives Franchisees a Booking and Deployment Edge

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Jollibee

How Jollibee’s Flexible Real Estate Strategy Is Opening Doors in Nontraditional Markets

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Mellow Mushroom

How Mellow Mushroom’s Flexible Formats Help It Adapt to Every Market Opportunity

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HomeTeam Inspection Service

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Top 5 Reasons to Buy a HomeTeam Inspection Service Franchise in 2026

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RF Investment Partners and Burlington Capital Join Forces to Acquire Top Precision Garage Door Franchise

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Private Equity Fuels Jiffy Lube’s Next Chapter as Monomoy Strikes $1.3 Billion Deal

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

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Yum! Brands Pizza Hut Sale - 1851 Franchise

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

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

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<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

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The fast-food “burger wars” have gained new momentum following the launch of&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-mcdonalds-franchise-costs-fees-profit-and-data-for-2025-2720737">McDonald's</a> newest oversized menu item, the&nbsp;<a href="https://www.mcdonalds.com/us/en-us/product/big-arch-burger.html">Big Arch Burger</a>. The sandwich is designed to appeal to customers who want a larger burger than the traditional Quarter Pounder offerings, and it represents a major product push for the company. CEO&nbsp;<a href="https://www.linkedin.com/in/chriskempczinski/">Chris Kempczinski</a> has been closely associated with the launch and even promoted the burger on his Instagram channel, where he frequently posts videos about menu items, travel and career advice.Kempczinski posted a promo video where he filmed himself with the Big Arch Burger, commenting on its size before finally taking a bite. But let's just say social media wasn't buying it.&nbsp;<figure class="media"><div data-oembed-url="https://www.instagram.com/p/DUTZ_ilDl41/"><div class="iframely-embed"><div class="iframely-responsive"><iframe src="//cdn.iframe.ly/api/iframe?app=1&amp;api_key=fd3b6b3731f34f55ba1fe3&amp;url=https%3A%2F%2Fwww.instagram.com%2Fp%2FDUTZ_ilDl41%2F" frameborder="0" allow="autoplay; encrypted-media" allowfullscreen=""></iframe></div></div></div></figure>People immediately criticized the clip, suggesting his tiny bite and general way of acting seemed fake. The video blew up and became a big meme, with people poking fun at the whole moment and wondering if the CEO's reaction was even real.<figure class="media"><div data-oembed-url="https://x.com/TrungTPhan/status/2028174448646594902"><div class="iframely-embed"><div class="iframely-responsive"><iframe src="//cdn.iframe.ly/api/iframe?app=1&amp;api_key=fd3b6b3731f34f55ba1fe3&amp;url=https%3A%2F%2Fx.com%2FTrungTPhan%2Fstatus%2F2028174448646594902" frameborder="0" allow="autoplay; encrypted-media" allowfullscreen=""></iframe></div></div></div></figure>Rival chain&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-burger-king-franchise-costs-fees-profit-and-data-2720751">Burger King</a> seized the opportunity to poke fun at the situation. The company reposted a video of its North America president,&nbsp;<a href="https://www.linkedin.com/in/tom-curtis-43646018">Tom Curtis</a>, taking an exaggeratedly large bite of a Whopper — complete with mayonnaise on his face — in a playful jab at McDonald’s viral moment.&nbsp;<a href="https://news.bk.com/blog-posts/burger-king-elevates-its-most-iconic-product-the-whopper-r">Burger King recently updated its Whopper recipe</a>, making the timing of the social media exchange particularly fitting.<figure class="media"><div data-oembed-url="https://www.instagram.com/p/DVZoZQJjti8/"><div class="iframely-embed"><div class="iframely-responsive"><iframe src="//cdn.iframe.ly/api/iframe?app=1&amp;api_key=fd3b6b3731f34f55ba1fe3&amp;url=https%3A%2F%2Fwww.instagram.com%2Fp%2FDVZoZQJjti8%2F" frameborder="0" allow="autoplay; encrypted-media" allowfullscreen=""></iframe></div></div></div></figure>Criticism aside, the video sparked chatter at the perfect time, just ahead of the Big Arch Burger’s nationwide launch. The takes were all over the map, but the attention lift was real for both brands. These days, the burger wars don’t just happen at the counter — they happen in the feed.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

A viral video of McDonald’s CEO’s tiny bite sparks online jokes, brand rivalry and fresh buzz as the Big Arch Burger enters the fast-food battle.

<a href="https://kbpbrands.com/">KBP Brands</a>, the multi-brand franchisee group with over 1,100 restaurants across 32 states,&nbsp;<a href="https://www.prnewswire.com/news-releases/kbp-brands-doubles-down-on-sonic-with-78-restaurant-acquisition-302695591.html">has announced</a> its acquisition of 78 additional SONIC units. The new units are spread across Ohio, Kentucky, North Carolina, Tennessee and Virginia.This is the second SONIC acquisition KBP has completed in less than two years, and it makes KBP the fourth-largest SONIC franchisee in the system with 164 total locations across eight states.“We’ve had a successful five-year partnership with Inspire Brands and have seen strong results from our initial SONIC purchase,” KBP CEO&nbsp;<a href="https://www.linkedin.com/in/mike-kulp-820820">Mike Kulp</a> said in a statement. “We look forward to expanding that with a larger footprint and additional operational efficiencies.”KBP is one of the country’s largest franchisee groups, reporting approximately $1.5 billion in annual sales across its portfolio, which includes KFC, Taco Bell and Arby’s, another Inspire Brands franchise."Our relationship with KBP Brands continues to grow due to their operational excellence and our shared commitment to guest satisfaction and a culture that champions innovation," said&nbsp;<a href="https://www.linkedin.com/in/john-kelly-b48426b">John Kelly</a>, brand president at SONIC. "KBP's expansion with SONIC demonstrates their dedication to our vision and the brand's long-term growth."Read the full press release&nbsp;<a href="https://www.prnewswire.com/news-releases/kbp-brands-doubles-down-on-sonic-with-78-restaurant-acquisition-302695591.html">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

Photo of SONIC franchise logo against blue sky backdrop

The franchisee group, which already operates over 1,100 units, is growing its portfolio with the quick-service brand, becoming one of SONIC’s largest franchisees.

KBP Brands Acquires 78 SONIC Locations Across Five States

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<a href="https://www.yum.com/wps/portal/yumbrands/Yumbrands/">Yum! Brands</a> is considering a potential sale of Pizza Hut and plans to close 250 underperforming U.S. locations, according to a&nbsp;<a href="https://simplywall.st/stocks/us/consumer-services/nyse-yum/yum-brands/news/yum-brands-weighs-pizza-hut-sale-as-portfolio-reset-accelera">recent article on Simply Wall St</a>. For the franchising industry, the significance is less about the stock and more about what it says about how large franchisors are managing brand portfolios in a high-cost operating environment.<a href="https://1851franchise.com/pizza-hut-franchise-deep-dive-2722519">Pizza Hut</a> is one of the most recognizable names in franchising. If Yum! decides to sell it, that would be a notable shift for a company built on a multi-brand platform. For years, large brand groups have argued that operating multiple concepts creates advantages, including shared resources, stronger purchasing power and the ability to invest in technology across the system. A sale would suggest Yum! believes those benefits no longer outweigh the effort required to improve Pizza Hut’s performance.The planned closures may have the most immediate impact on franchisees. When a franchisor reduces its footprint, it can change how the brand performs in local markets. Fewer locations can mean less convenience for customers, which can hurt overall traffic. It can also weaken the effect of local advertising when there are fewer restaurants supporting promotions in the same trade area.Closures can also affect store-level economics in ways that go beyond the locations that shut down. In some markets, remaining franchisees may pick up some displaced demand. In others, customers may switch to competitors. The changes can also affect local co-op advertising budgets and, depending on how purchasing and distribution are structured, can influence costs tied to volume.The move comes as competition in pizza remains intense, with&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-dominos-pizza-franchise-costs-fees-profit-and-data-2725506">Domino’s</a> and&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-papa-johns-franchise-costs-fees-profit-and-data-2724607">Papa Johns</a> continuing to push delivery, digital ordering and value-focused offers. Simply Wall St notes Yum! has been rolling out its Byte digital platform across brands. If Yum! changes Pizza Hut’s role in the portfolio, it could also change where the company focuses its technology and marketing investment.For franchise systems watching from the outside, Yum!’s review is a reminder that growth is not always the main priority. Sometimes the bigger decision is whether a legacy brand can be improved inside a platform or whether it will perform better under a different owner and a different plan.Read the original article&nbsp;<a href="https://simplywall.st/stocks/us/consumer-services/nyse-yum/yum-brands/news/yum-brands-weighs-pizza-hut-sale-as-portfolio-reset-accelera">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.

Yum! is reviewing the brand and closing 250 U.S. locations, a move that could affect franchisees and reshape its restaurant portfolio.

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

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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

Franchise Opportunity Deep Dive: A fast-casual restaurant brand serving made-from-scratch sandwiches, salads, soups and pizzas rooted in Southern hospitality.


Newk’s Eatery Franchise Costs, Fees, Profit and Data for 2026

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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

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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.

What Do Pet Franchises Look For in a New Market?

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