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Famous Toastery is Creating a Delicious Legacy
Famous Toastery Franchise With its classic brunch menu and friendly service, the franchise brand is earning celebrity status. Founded by lifelong best friends Brian Burchill and Robert Maynard, Famous Toastery has been hand-crafting a reputation for excellence since 2005. With a menu featuring fresh, healthy fare ranging from cage-free omelets to fresh crab rolls, homemade soups, gourmet sandwiches and more – all made from scratch – the popular brunch concept has earned a name for itself as a local hot spot for all-day breakfast and lunch in neighborhoods across the East Coast for almost two decades. Since franchising in 2013, the concept has expanded beyond its flagship location in Huntersville, North Carolina, to include over 25 Toasteries operating throughout North Carolina, South Carolina and Virginia – with additional locations scheduled to open in Florida later this year. Serving Up Success Considering the level of support offered to its franchisees, Famous Toastery’s ability to scale successfully into new markets isn’t surprising. With a designated corporate team committed to helping franchisees launch and develop their businesses, the brand offers new franchise owners a specialized training program along with site selection and build-out help, marketing support, professional development assistance and more. In addition to supporting franchisees at every step of their entrepreneurial journey, Famous Toastery also prioritizes the communities it serves. For every new Toastery franchise location that opens, the company donates the first two days’ proceeds to local charities after launching – making sure each new restaurant starts on the right foot by giving back where it’s most needed. Famous Toastery's Growth For successful franchise brands like Famous Toastery, maintaining a high level of legal compliance is critical in a heavily regulated industry like franchising. The Internicola Law Firm is proud to be working with the Famous Toastery team since 2022 and we look forward to the continued growth of the brand! To learn about franchising opportunities at Famous Toastery, visit https://bestbreakfastfranchise.com . Learn more about our clients Tint World How Tint World Became a Household Name in Automotive Styling Scoop Soldiers How Scoop Soldiers is Clearing the Way for Entrepreneurs Tipsy Scoop Melissa Tavss Dishes About Franchising her Boozy Ice Cream Business
How to Create a Business Plan for Franchising Your Business
Best practices for creating a dynamic franchise business plan that can allow your brand to scale over time without limiting its ability to change and grow.
Steps to Improve Your Operations Manual
Content strategist Bryan Garner shares tips for creating a custom franchise operations manual tailored to your business. When it comes to growing and scaling your franchise brand, it is important to ensure that your organization’s systems, processes, and standards are applied consistently. One of the most effective methods for getting your franchisees on the same page is creating a franchise operations manual – essentially the blueprint for the franchise system. In the past, that has often meant creating a massive 800-page document filled with technical jargon and an overwhelming amount of information for franchisees to digest. But with new technologies available to streamline and simplify the process, it might be time to start rethinking your operations manual as a franchisor. In this guide, we’ll explore tips for improving your franchise operations manual – and helping your franchisees succeed through better forms of communication. What is a franchise operations manual? A franchise operations manual is the blueprint and how-to guide for a franchise system. One of the five documents to start a franchise , it is a critical resource for franchisees to find detailed information about the organization’s systems and processes, operational requirements, training procedures, suppliers and vendors, and procedures for establishing and running their franchised business. Common Franchise Operations Manual Mistakes to Avoid As a franchisor, making sure your franchise operations manual stays organized and up-to-date is critical for the success of your business. Unfortunately, failing to do so is one of the more common mistakes franchisors make as their brands mature. “One of the biggest (mistakes franchisors make) is being too detailed in the ops manual – going into these very specific SOPs, or the very specific vendors within the ops manual. Those resources exist somewhere else. … It rarely gets updated in the ops manual,” says Bryan Garner, managing partner and content strategist at Manual Makers , a consulting firm that assists franchisors in developing and maintaining operations manuals and other content. Other common mistakes franchisors make when creating a franchise operations manual include: ‘Content chaos’. While every organization struggles with disorganized content at times, a disorderly franchise operations manual can create risks when franchisees or employees need to locate information quickly but are unable to find it. Unnecessary information. Although mature brands can require more detailed information about things like marketing, including too much unnecessary details in your operations manual can contribute to an unhealthy information ecosystem that may overwhelm franchisees. Duplicate or outdated content. When franchisors duplicate content from their operations manual in supplemental manuals about the same topics, often the information only ends up getting updated in one place – creating confusion when different documents offer conflicting guidance. Because a disorganized or outdated franchise operations manual can create legal and operational risks when franchisees are unable to locate the information they need to run their businesses, it’s important for franchisors to follow best practices and avoid mistakes when developing the document. Best Practices for Developing a Franchise Operations Manual When you’re creating a franchise operations manual, it can be tempting to include highly detailed information about every important aspect of your franchise system. However, Garner cautions that unnecessary information can create confusion among franchisees – especially when it conflicts with other internal documents covering similar subjects. “The way that we view the brand standards and ops manuals today, is that it's one piece in your library of franchise communication,” Garner says, suggesting that franchisors simplify their operations manual by utilizing a technology-focused approach that keeps important information organized, accessible and up-to-date across all channels. The following steps can help franchisors improve their operations manual’s contents: Take a digital-first approach. By utilizing a learning management system to create a digital library for the operations manual and other documents, your organization’s content can be easily accessed, maintained and updated from a single digital location. Simplify the content. Include only necessary content and make sure to identify the “who, what, when, where, why and how” behind each procedure. Put someone in charge. Appoint a subject matter expert to oversee your operations manual and its content, including routine updates. Schedule regular updates. Create an editorial calendar and schedule content updates at regular intervals to keep your operations manual aligned with organizational changes and growth. Maintain an archive. Keep an archive of previous versions of your operations manual on file to track changes as your brand matures. In terms of simplifying the process of writing a franchise operations manual, Garner suggests approaching the document as a resource for locating more detailed information about specific topics elsewhere. What should franchisors include in an operations manual? The contents of a good franchise operations manual should be tailored to the specific needs of the franchise brand and its industry. Typically, the amount of detail included in the manual will also depend on the brand’s maturity. “The ops manual becomes this information broker. It tells people where to go, how to use the resources available to them so that they can comply, and so that they can get the full services of the franchise company,” Garner says. For most franchisors, the franchise operations manual should include important information that includes, but isn’t limited to, the following topics: Training, systems and processes. A franchise operations manual should include detailed information about the systems and processes that franchisees, employees, etc. are required to adhere to as part of daily operations, as well as training and business development procedures. Policies and brand standards. Include details about brand standards and organizational policies that franchisees and employees must adhere to. Marketing and social media guidelines. Although detailed content about marketing procedures can be addressed in supplemental manuals, it’s important to include marketing and business development information in the operations manual, as well as social media policies. Where to find additional resources. The operations manual should serve as a guide connecting franchisees to resources that will support them in their success. Make sure to include contact information and the location of documentation that can thoroughly address their questions. Custom content. Your franchise operations manual should be tailored to the needs and goals of your brand. Remember to include any specific information that is unique to your brand. When developing the contents of your franchise operations manual, it can be helpful to work with an experienced consultant to ensure its contents are comprehensive and aligned with industry standards and best practices. Legal Considerations for Your Franchise Operations Manual In addition to being an important business resource, the franchise operations manual also serves a legal purpose as the franchisor’s primary tool for communicating the mandatory systems and processes that franchisees must follow according to regulatory requirements. Although the material contained in the franchise operations manual is typically confidential, federal franchise laws require that its table of contents be included in the Franchise Disclosure Document (FDD) , an important legal document that must be provided to franchisee buyers at least 14 days before selling a franchise or receiving any fees. “There are three different areas (of legal compliance to address). There's the letter of law, the ambiguity of the law, and then the ‘we're-making-law,’” says Garner. In the franchise operations manual, content that addresses those issues typically includes, but isn’t limited to: Franchise agreement requirements. The franchise agreement defines the relationship between the franchisee and franchisor, including the rights and obligations of each party. Your operations manual should include the details of those legal requirements, as well as any procedures associated with them. Regulatory compliance. The franchise industry is regulated by both federal franchise laws and state franchise laws . Because of that, it’s important to include regulatory compliance information in the operations manual based on the location of your business. Employment and staffing policies. When creating organizational rules and policies, franchisors should think carefully about how they will enforce rule violations among franchisees and employees, with an emphasis on consistent application. By simplifying the contents of your franchise operations manual and ensuring that its information is updated regularly along with other supplementary documents, you can support your franchisees in achieving their goals over time – and help your business thrive. Learn more about the franchise documentation and content management services offered by Manual Makers at manualmakers.com . If you'd like more information about growing your franchise system, contact our team at (800) 976-4904 or click the button below. Learn more
What Steps to Follow After You Franchise Your Business
Learn about the journey to building a thriving franchise system from the ground up. When launching a new franchise system, it can be tempting to look for ways to skip the line and jump straight to success. But differentiating good advice from bad can be tricky for new franchisors. From one-stop-shop developers promising to handle every aspect of franchising for fees that are too good to be true, to a seemingly endless stream of books, articles, workshops and events, separating real information from gimmicks – and knowing what will work for your business – can be daunting. “The tough reality is, there's no magic bullet. There's no secret sauce. (New franchisors) are not missing something. It's not like somebody just needs to tell them what to do, and they can do it. It's different for everybody,” says Laura Coe, the founder of Snapology , a children’s enrichment franchise with over 180 territories across the globe, whose private equity exit made headlines in 2021 . Still, there are some steps new and emerging franchisors can take to make sure they’re starting their franchising journey out on the right foot … and heading in the right direction. Steps to take after you franchise your business: Embrace the challenges of franchising Lay a strong foundation for your franchise system Learn into marketing and technology Focus on organic franchise growth Align with the right people 1. Embrace the challenges of franchising For franchisors that are new to the industry, adopting the right growth-based mindset is critical. That means embracing the challenges of franchising and accepting that success doesn’t usually happen overnight. Instead, it often requires years of hard work – and a five-year success plan to keep things on track. Some factors that can make a difference in eventually achieving success as a franchisor include, but aren’t limited to, the following: The right time. It’s important to determine the right time to franchise your business . Make sure your numbers are strong, your systems and processes are solid and your business is properly capitalized. The right product or services. Offering the right product at a time when there’s enough public interest can help create momentum. The right attitude. Franchising is different from owning a business, and it’s important to adopt a mindset that’s based on growth, supporting franchisees and closing deals. For Coe, who says she believes franchising success is 90% perseverance and 10% luck, embracing the industry’s challenges also means being unafraid to experiment with new strategies, even if they don’t necessarily work for competitors. “I think the key is to try different things and double down on what works for you. Because what works for you may not be what somebody told you to do. It may not be what worked for somebody else – even somebody else in your industry,” Coe says. 2. Lay a strong foundation for your franchise system Although the foundation for every franchise system will depend on its industry and budget, it’s important to make sure your new business is legally compliant, properly structured and able to grow over time. To establish a strong foundation for your franchise system, consider the following: Laws and regulations. Work with a franchise attorney to build a rock-solid legal foundation for your business and ensure compliance with state and federal franchise laws. Systems and processes. Develop a replicable business model and an operations manual to answer franchisees’ questions about procedures and processes. Adaptability. Your brand won’t look the same on day one as it will during its fifth year in business, so it’s important to make sure your business structure can adapt to change. It’s also important to remember to continuously update and improve your franchise operations manual as your brand matures. “The operations manual is a living, breathing document. For us, it lived on Google Drive. It was in a Google Document, and the leadership team at Snapology always had access to it. And so anytime something would happen, or maybe even just like a help desk question, somebody would be like, ‘Boy, that should really be in our operations manual,’” Coe recalls. 3. Learn into marketing and technology In an increasingly online world, having a digital presence is critical for growing your brand and attracting new business. When it comes to marketing and technology best practices, it can be helpful to work with a professional marketing team to develop strategies for promoting your brand, including the following: An optimized website. Beyond a good design, making sure your franchise sales website is SEO-friendly can increase its discoverability in a competitive online marketplace. A well-crafted story. By sharing a compelling brand story that focuses on your journey from business owner to franchisor, you can attract like-minded franchisees and loyal clientele to your brand. An established sales process. When a prospective franchisee candidate reaches out, it’s critical to have a franchise sales discovery process in place that can convert leads . A marketing strategy. Whether you handle it yourself or work with an agency, having a marketing strategy is critical for growth. At Snapology, Coe says she preferred working with marketing professionals to ensure the brand’s website was optimized and could reach prospective franchise buyers and customers effectively, and brought the marketing team in-house as soon as it was feasible. 4. Focus on organic franchise growth While many new franchisors may wonder if working with franchise brokers is a good idea , focusing on organic growth is often the best course of action when you’re just starting in the industry – particularly due to the fees associated with broker-related sales. “Some years, 100% of my franchise fee went to pay the brokers, and in other years, typically about 75%, so you've got to have a good website to get some of that organic growth so that you can have that revenue to invest in other areas,” Coe says. Still, working with brokers can have benefits due to the expanded sales opportunities and momentum they can provide. Because of that, new franchisors should take time to understand what franchise brokers look for when evaluating a franchisor before working with one. 5. Align with the right people Although new franchisors often feel like they need to be able to handle every aspect of their franchise system, it’s important to identify your strengths and weaknesses – and to know when to ask for help. New and emerging franchisors might benefit from the support of experts in areas including, but not limited to: Legal. Franchising is a heavily regulated industry, so it’s critical to work with an experienced franchise attorney to ensure compliance with franchise laws . Franchise development. If you’re unfamiliar with the franchise industry, it can be helpful to work with experienced professionals to grow your business. Marketing. Having a team that understands how to reach your target demographic can be invaluable when you’re getting started in franchising. Technology. Developing digital solutions for customers and franchisees can be a game-changer when scaling a brand. Accounting. Tracking your brand’s financial performance is critical for growth. Franchise sales. Depending on your experience and position in your industry, building trust with franchise brokers can be valuable. Although one-stop-shop franchise developers sometimes claim to offer every service new franchisors need to launch a new franchise brand, those promises can sometimes be unrealistic – and can even set franchisors up for potential liability in the future. Instead, it’s a good idea to do due diligence and conduct careful research to ensure that you’re working with experienced, well-qualified professionals who have your brand’s best interests in mind. For anyone just getting started as a franchisor, it’s also a good idea to set realistic expectations and know that you don’t have to be an expert in every area of your brand. Remember that franchising – like everything in business – is a journey that requires time, dedication and a willingness to learn and grow from mistakes. “I always had – what do they call it, ‘imposter syndrome.’ I always felt like, I don’t know what I'm doing, what am I missing? If only I had more franchise experience, if only I had more experience in fran dev, then I'd be successful. But nine times out of 10, that's not the case,” Coe says. Ready to take your new franchise brand to the next level? Our team is here to help! Contact us now. Learn more
What is the True Cost to Franchise Your Business
Learn about the common expenses associated with starting a franchise. Key Points: The cost of franchising a business can vary, but there are common expenses every prospective franchisor should know about. Making informed decisions and spending strategically can help new and emerging franchisors avoid budgeting pitfalls. Selecting the right team can strengthen the foundation of your brand and ensure that every dollar you spend counts. If you’re considering franchising your business, you’re probably wondering how much it costs to become a franchisor – and how to set your new brand up for financial success. The truth is that the cost of franchising a business is often higher than aspiring franchisors think it will be. From franchise development to regulatory compliance, legal fees, marketing, franchisee support and more, the expenses associated with starting a franchise can add up quickly. Because of that, new franchisors need to budget appropriately and establish solid economic strategies based on realistic numbers before entering the franchise space. Expenses New Franchisors Pay When Franchising Their Business: Phase One: Franchise Development Franchise Disclosure Document (FDD) Development: $15,000-$45,000 Operations Manual: $0-$30,000 Corporate Entity Formation: $400 Audited Financial Statements: $2,500-$5,000 State Registration and Filing Fees: $0-$750 Trademark Registration Filing Fees: $350-$525 per class Phase Two: Going to Market Franchise Sales Website: $2,500-$15,000 Franchise Sales Presentations: $0-$3,000 Public Relations and Validation: $15,000-$25,000 Advertising: $0-$20,000 Franchise Broker Organizations and Networking: $5,000-$10,000 In this guide, we’ll explore the real-world costs of franchising your business, and discuss strategies for deploying capital effectively while getting your new franchise system off the ground. Phase One: Franchise Development As a new franchisor, it can be helpful to think about the franchising process in two phases: the initial development phase and the later go-to-market phase. However, it’s important to remember that those phases aren’t necessarily sequential and can even overlap sometimes. The franchise development phase involves the seven steps to franchising your business . During this phase, costs will typically be centered around developing your new franchise system. While it’s common to hear terminology about franchise developers, franchise lawyers, sales, marketing, operations manuals and other legitimate industry phrases throughout this phase, sometimes those buzzwords can get confused or conflated by dubious development companies looking to make money off of inexperienced new franchisors. To avoid getting taken advantage of by unscrupulous franchise developers, it’s critical to know what costs to expect during the development phase of franchising your business. It’s also important to identify who is qualified to perform various development-related tasks. 1. Franchise Disclosure Document Development Regulated under the Federal Trade Commission’s Franchise Rule , the Franchise Disclosure Document (FDD) is a mandatory legal document all franchisors are required to disclose to prospective franchise buyers at least 14 days before selling a franchise or receiving any fees. The cost to develop an FDD can range from $15,000 to $45,000, depending on whether you’re working with a less experienced or lower-cost franchise developer that utilizes boilerplate documents, or a more experienced firm that offers direct legal counsel or comprehensive services tailored to your business. Although a higher price tag doesn’t necessarily guarantee better work, it’s a good idea to ensure your money is well spent, regardless of budget. When comparing development packages, consider whether the developer offers options for competitively positioning your FDD , such as the following: Franchise fee modeling Territory structure modeling Royalty structure modeling Competitor evaluations Some firms also offer additional development services and access to educational resources, like The Internicola Law Firm’s masterclasses and guides for new and emerging franchisors. 2. Operations Manual Development The franchise operations manual is a confidential how-to guide for your franchise system. Its contents organize and communicate the company’s operational requirements, systems and procedures and should cover everything from employee training to running the franchised business. The cost to prepare a franchise operations manual can range from $0 to $30,000, depending on whether you prepare the manual yourself or hire an expert. Fees can also vary depending on the experience level of the professional you hire, and whether your manual is published in a digital learning management system. Regardless of the format of your operations manual, it’s important that the document is tailored to your business and conveys specific information about the management, systems and daily operations of the franchised business. Because boilerplate operations manuals can lack critical elements, new franchisors should consider working with a specialist to develop their initial operations manual. Whether you create your franchise operations manual or hire an outside expert, remember that it is a living document that should be updated regularly as your brand matures. 3. Corporate Entity Formation Another common cost of franchising your business is forming a new corporate entity. Your new franchisor entity must be separate from your existing business and have its own bank account, tax ID number and balance sheet. As a new franchisor, the cost of corporate entity filing fees is typically around $400. However, you should also be prepared to deposit between $3,000 to $20,000 into the new corporate entity’s bank account, depending on regulatory requirements in your location. 4. Financial Statement Preparation As a new franchisor, a certified public accountant will have to conduct an audit of your new corporate entity as part of the legal compliance process. Your CPA will use the results of this audit to prepare financial statements for your FDD and other filings. The cost of financial statement preparation typically ranges from $2,500 to $5,000. 5. Filing and Registration Fees The franchise industry is heavily regulated at the federal and state levels. Because of that, compliance with franchise laws is critical. Depending on the locations that you choose to operate in, you should plan for the following costs as a new franchisor: In the Franchise Registration States , franchisors are required to register their FDD with state regulators. While costs vary by location, plan to spend between $250 and $14,000 on state registration fees if you will operate in those states. In franchise filing states , franchisors must submit a franchise filing with state regulators. Filing fees vary by location and typically range from $50 to $1,000 in those states. It’s important to note that state franchise registrations and filings must be renewed according to local laws. Consult a franchise attorney to determine the specific regulations in the states where your franchise system will operate. Trademark Registration Your business name, logo and slogans are how customers identify your brand. Because of that, it’s critical to register and protect your trademarks with the U.S. Patent and Trademark Office as early as possible. Because the trademark registration process can be extensive – often requiring hours of research, detailed applications and legal reviews – the cost of protecting your trademarks can vary depending on your lawyer. Some franchise attorneys include the cost of trademark registration in their franchise development packages, so it’s a good idea to ask your lawyer if those options are available to you. Learn about our franchise development and trademark registration services. Phase Two: Going to Market Although completing the initial development phase of franchising your business can be exciting, it isn’t time to celebrate yet. Instead, think of development as a stepping stone to the next phase of your franchising journey: going to market. As you begin to enter the franchise world, it’s time to learn about the industry and make informed decisions about concepts including, but not limited to, the following: Franchise sales process Onboarding franchisees Hiring (and supporting) the right people Legal compliance Continuous improvement Alongside those topics, it’s also important to spend capital efficiently by developing a go-to-market strategy that supports your brand’s growth over time. 1. Franchise Sales Website As a franchisor, telling a compelling brand story is the key to attracting like-minded franchisees and customers. A great way to do that is to create a franchise sales website that communicates your founder story alongside your brand’s purpose, opportunity profile and transformation potential for prospective franchisees. The cost of building an initial franchise sales website can range from $2,500 to $15,000, depending on content and your web developer’s experience level. As your brand matures, it will be important to continue improving your website with updated content. 2. Franchise Brand Positioning As a new franchisor, positioning your brand for franchise sales is critical for growth. Competitively positioning your franchise system often includes, but isn’t limited to, the following: Brand strategy development Establishing a franchise sales process Differentiation from competitors Research and content development Depending on whether you choose to handle parts of the process yourself or hire industry experts, you can typically expect to spend between $0 and $2,500 on brand positioning during your first year as a new franchisor. Check out our guide to positioning your brand to win at franchise sales. 3. Franchise Sales Presentations Franchise sales are a critical part of business growth. One of the biggest franchise sales mistakes emerging franchisors make is failing to identify their brand’s franchise opportunity profile – and develop strategies to present it to prospective franchise buyers and brokers. The cost of franchise sales presentation development during your first year in business, including the creation of marketing materials, usually ranges from $0 to $3,000, depending on your strategy and hiring outside experts. 4. Public Relations and Validation Although not all franchisors need a public relations strategy, for those who decide it’s worth it, leveraging PR and digital media to jumpstart franchise sales can be valuable. While working with a PR firm typically won’t impact sales directly, it can help new franchisors reach new audiences, develop a brand narrative and increase validation. New franchisors should expect to spend between $15,000 to $25,000 during their first year working with a reputable PR agency. 5. Advertising Franchisors often choose to advertise their brands in different ways, depending on their industry. Popular options include digital advertising tools like pay-per-click ads, social media and sponsored content. Depending on budget and strategy, new franchisors can expect to spend between $0 and $20,000 on advertising during their initial launch phase. 6. Franchise Broker Organizations and Networking In your journey as an emerging franchisor, you might find it valuable to join broker groups or attend franchise conferences to gain knowledge and network with industry professionals. New franchisors can expect to invest between $5,000 to $10,000 in those efforts during the first year. How can new franchisors avoid common budgeting mistakes? As a prospective franchisor, it’s important to remember that franchising your business often costs more than you think. With initial development expenses ranging from $18,150 to $94,000, and go-to-market costs ranging from $22,500 to $75,500, launching a franchise is a serious investment that requires extensive financial resources. By spending strategically during both phases of the franchising process, you can utilize your capital more efficiently. Keep in mind that going straight to a franchise developer, or working with a franchise broker, can result in higher costs due to “middleman fees” or referral commissions. In some cases, those fees might add up to $20,000 to $30,000. Because of that, it can be a good idea to incorporate organic growth into the first couple of years of your five-year success plan . To avoid wasting time and money, it’s also critical to work with qualified professionals when franchising your business. Before hiring a franchise developer, always perform due diligence to ensure they have the proper credentials and experience. Although some one-stop-shop developers may claim to offer legal services, working directly with a licensed franchise attorney can prevent potentially costly legal mistakes. Are you ready to franchise your business? Our team can help! Contact us now by calling (800) 976-4904 or click the button below. Learn more
How to Effectively Improve and Use Your Franchise Operations Manual
Learn how to leverage your operations manual to support franchisee consistency, compliance and success.
Turning Your Restaurant Into a Technology and Relationship-Driven Franchise System
Crust Pizza Co. CEO Carl Comeaux reflects on scaling a restaurant brand into a franchise system that works. When it comes to doing business, Carl Comeaux knows a thing or two about what it takes to succeed. “I've always (had) a leader mindset. I've learned I'm a serial entrepreneur,” says Comeaux, CEO of Crust Pizza Co. , a restaurant concept specializing in traditional Chicago-style thin-crust pizza made with fresh, high-quality ingredients. Self-employed since high school, Comeaux’s lifelong journey as an entrepreneur has followed a winding path that started at the age of 16 with a personal training business he operated around his school and athletic schedule. After college, Comeaux founded a cell phone repair business alongside Nicholas Fontenot, a friend turned business partner, in his hometown of Lake Charles, Louisiana, that quickly took off and became scalable. It wasn’t until 2015, though, that the pair would get their first taste of franchising success after opening a juice and smoothie shop that exceeded their financial expectations and led to the sale of 50 units before turning their attention toward helping the co-founders of Crust Pizza Co. scale their brand a few years later. Today, with 32 locations across the U.S. and seven more in the works, that business is showing signs of surpassing Comeaux’s previous business ventures. And while the path that took him from an ambitious high school entrepreneur to the grown-up CEO of a thriving franchise brand hasn’t always been easy, Comeaux has leaned into those challenges – and found a way to build a franchise system that works. A slice above … and beyond Despite his earlier success as the co-founder of two scalable brands, owning a restaurant hadn’t been on Comeaux’s radar until a chance encounter in 2016 changed his mind – and the course of his journey as an entrepreneur. That year, after relocating to The Woodlands in Texas while developing the juice and smoothie business, Comeaux’s wife suggested getting pizza for dinner after spending the day unloading their moving truck and beginning to unpack their belongings in their new home. While searching for local options in the family’s new neighborhood, Crust Pizza Co. popped up. “I go pick (the pizza) up. It was amazing. It was different. There was a pizza I've never had before,” Comeaux recalls. Intrigued by the discovery, Comeaux took his family back to the restaurant the following week, hoping to learn more about the brand and whether there were any opportunities to buy a franchise. “Another month goes by, and I ended up meeting Mark (Rasberry) and Clint (Price), the founders that in 2011 started this concept, and they became friends. They wanted to scale but they didn't know how,” Comeaux says, noting that the independent chain had three locations at the time. Drawing from his past experiences growing the cell phone repair business and the fast-casual juice concept he’d scaled to 50 units alongside Fontenot, Comeaux offered to help the Crust Pizza Co. founders create a franchise operations manual and navigate the documents to start a franchise . By 2018, Crust Pizza Co. had transitioned to a franchise model while, at the same time, Comeaux and Fontenot had decided to exit the juice franchise they’d founded to pursue new opportunities. As Comeaux prepared to return to Lake Charles with his family, he suggested opening a Crust Pizza Co. location there, where he could continue helping its founders develop the brand. But when his offer was declined out of concern that the brand wouldn’t perform well with the area’s demographics, Comeaux and Fontenot refused to take “no” for an answer. “We ended up creating a concept called Rush Pizza. We trademarked it. We spent $150 grand on research and development, on building that thing up and signing a lease for Rush Pizza. And two days before (signing the lease), I get a call from Clint,” Comeaux recalls with a laugh. As it turned out, the Crust Pizza Co. founders had changed their minds. They wanted to expand the brand into Lake Charles – and they wanted Comeaux’s help. Developing a recipe for growth After building the Lake Charles location into the best-performing store in the Crust Pizza Co. chain and joining the company as equal partners, with Comeaux at the helm and Fontenot overseeing technology, the pair got to work readying the restaurant to grow and scale as a franchise . “There's a lot of things that you have to build as a franchise. You can't just start scaling. I mean, you have to build a team, and you have to do things the right way,” Comeaux says. Part of the process of franchising the restaurant included condensing the chain’s 60-plus-item menu down to 35 offerings that could be reproduced across multiple locations. It also meant updating the restaurant’s decor to appeal to a “hip” demographic while making adjustments to the space’s architectural design. Drawing on lessons from past mistakes with earlier business endeavors, Comeaux says the Crust Pizza Co. team also focused on bootstrapping its way to success using profits from the high-performing Lake Charles store, rather than relying on risky debt to grow the brand. “I told the Crust guys … we're going to stay out of the (private) jets and we're going to do things bootstrapped. We're not going to get private equity money. We're going to do things the right way. We're going to grow slow and steady. We’re going to build a foundation,” Comeaux says, stressing the importance of making sure the first few locations of any new franchise system are profitable before scaling further. Baking success into the business model Beyond building a strong foundation for the business while avoiding debt, Comeaux says metrics have also played a critical role in Crust Pizza Co.’s success. “It’s all about data. It's all about optics, making sure you have optics in front of you daily, hourly, to make sure that you can make a better decision,” Comeaux says. To better understand performance and areas for improvement, Comeaux encourages franchise owners to track labor, costs of goods, year-over-year daily sales, payroll, customer feedback and other KPIs – an initiative the company’s proprietary software, which is built in-house and tailored to the needs of franchisees and customers, is uniquely positioned to support. While the company’s innovative tech-first approach has helped keep managers on the floor and out of their offices, Comeaux says another key ingredient for the brand’s growth has been developing an internal culture that’s focused on giving back to local communities while respecting colleagues and working together as a team. “One thing we implemented just this year was creating a franchise advisory council. So that way, we could have a stronger connection, and the communication could be even clearer between us and the franchisees,” Comeaux says. That strong internal culture wasn’t accidental. To foster a sense of unity within the organization, the brand’s recruiting team has been selective about the people it’s brought on board since franchising. In addition to working with The Internicola Law Firm to ensure they’re backed up by a seasoned franchise attorney who understands compliance and can navigate the franchise space’s unique legal challenges, Crust Pizza Co. has focused on hiring the right corporate team members to lead the company’s growth. Comeaux says the brand’s franchisee recruiting process also hones in on owner-operators who share the brand’s values, love its products, take leadership seriously and are willing to put in the work necessary to succeed in the limited-service pizza space – a strategy that has helped Crust Pizza Co. grow from a small local pizza chain into a thriving, tech-forward franchise brand that’s positioned for future growth and innovation in the restaurant space. “You have to have the right person in the right seat. So, to have a strong culture, you have to make sure that everyone you're hiring, if it's a franchisee or if it's a manager for a store, are they the right person? Do they have those values that you live by?” Comeaux says. To learn about franchising opportunities with Crust Pizza Co., visit https://crustfranchise.com . Ready to franchise your restaurant concept but don’t know where to start? Contact our team today! Learn more
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How to Create a Franchise Territory Map
The right franchise territory structure can optimize your brand's potential. KEY TAKEAWAYS: Properly defined franchise territories are critical for the growth and success of any franchise system. Franchisors can improve their franchise territory structure and support franchisees by using mapping software and following industry best practices. By staying flexible and updating their franchise territory maps regularly, franchisors can optimize their brand’s future market potential. As a franchisor, how you define your franchise territories can make or break the growth of your business. From establishing flexible geographical boundaries and tracking demographic data to choosing the right software and keeping maps up-to-date, your approach to franchise territory management can make the difference between building a healthy, thriving franchise system or owning a brand that misses the mark. Because of that, it’s important for new and emerging franchisors to learn how to map franchise territories properly early on. To learn about best practices for franchise territory mapping, The Internicola Law Firm sat down with Tracey Matchett, former sales director of Gbbis , a mapping software company that offers territory management solutions for franchisors, to discuss strategies for optimizing franchise territories for sustainable growth. What is a franchise territory? A franchise territory is a geographically designated area within which a franchisee is authorized by a franchisor to establish and operate a franchised business under the terms of a franchise agreement and Item 12 of the Franchise Disclosure Document (FDD) . The scope, size and levels of protection provided to franchisees within their designated territory often vary between franchisors. Why are franchise territories important? Franchise territories define the market, scope and geographic boundaries within which a franchisee’s business is permitted to operate. For franchisors, well-defined franchise territories are critical for enhancing their brand’s growth potential and attracting qualified franchisee candidates to their offering. Common Mistakes Franchisors Make When Mapping Franchise Territories For new and emerging franchisors, it can sometimes be tempting to offer large territories to new franchisees or even make up territories as they go. However, it’s best to take a strategic approach to franchise territory mapping to avoid missteps. “When some of the franchise brands come to us, they have either not done mapping before and they want to understand the best practices, or they've done mapping and they've given away way too much territory to their initial franchisees, or they've worked with other systems that are difficult and cumbersome,” says Matchett. To position your brand for success, it’s important to avoid common mistakes when mapping your franchise territories, including the following: Not using mapping software Mapping your own franchise territories can waste valuable time, energy and resources. By choosing the right software to meet your brand’s needs, you can save time while helping franchisee candidates understand their franchise territory options during the sales process. Relying on outdated data Using incomplete or out-of-date data to map franchise territories can cause inaccurate projections of market potential. They can also prevent franchisors from getting a clear picture of who their competitors are. Instead, make sure you’re working with data that is current and specific to your brand’s needs. Giving away too much territory too soon It’s not uncommon for new franchisors to give away too much territory to their first franchisees. Still, those missteps can negatively impact franchisee success and limit future sales and growth potential, so it’s important to establish proper territories before offering your first franchises. Best Practices for Mapping Franchise Territories As a franchisor, it’s important to get clear about your goals and vision for your brand before mapping its franchise territories. For new and emerging franchisors, it can also be helpful to create a five-year success plan . “The first thing I do is really understand the client – their needs, their goals, what their expansion plans are and the data that they currently have. If they have any member data, if they have any patient data, if they have any customer data, and really what their vision is in the next year, two years, five years,” says Matchett. Next, it’s critical to follow industry best practices for mapping your franchise territories. By choosing the right software and leveraging data and analytics to boost your brand’s growth potential, you can set your franchisees up for success while scaling your business. 1. Use mapping software to create and manage franchise territories The right software is critical for creating and managing franchise territories. To make sure you have everything you need to get started, look for the following features: Ease of use. Mapping software should be easy to use and easy for franchisee candidates to follow along with. Variables. Look for software that allows you to map territories based on variables like ZIP codes, geographical boundaries and more. Flexibility. As markets expand, your software should show you where to grow next. By choosing simple, flexible mapping software to manage your franchise territories, you can save time during the sales process and streamline your brand’s marketing efforts. 2. Strive for balance and equity As a franchisor, creating fair and balanced franchise territories is important. Although it might seem like a good idea to base your territory map solely on geography, prioritizing market opportunity can create more equitable sales revenue potential across your franchise system. 3. Leverage advanced demographic analytics Because people move, grow older and experience shifts in budgets and lifestyles, consumer demographics change frequently. To keep up with those changes, it’s important to update territory maps regularly using fresh data. In addition to basic information about population, foot traffic, crime, visitors and location, consider the following data when mapping your franchise territories: Competitor data Local demographics Member, patient or client data Visitor cell phone tracking data Other data tailored to your brand or industry By regularly performing advanced data analytics and predictive modeling using up-to-date data, you can ensure that your franchise territory maps reflect recent changes in different markets. 4. Collaborate with your marketing team Before opening a new franchised location, it’s important to work with your brand’s marketing team to identify “hot spots” within its designated territory to focus marketing efforts on. By assessing heat maps and honing in on target demographics, you can ensure that your brand’s marketing initiatives will be effective in every territory. 5. Pay attention to territory size and structure Because giving away too much territory to individual franchisees can have a negative impact on franchisee performance and limit your brand’s growth potential, remember to pay close attention to the size and structure of the territories you offer to franchisees. To avoid giving away too much territory, evaluate the following data: Key demographics. Assess basic demographics for each territory, like population and household income. Sales and expenses. How are existing franchisees performing and spending in different markets? Competitors. How are your competitors positioned in the market? Visitors. Use cell phone data to track visitors and traffic within different territories. Complementary brands. Which local businesses will drive traffic to your brand? Territory type. Assess the radius of travel to other businesses, and whether the territory is an urban or suburban market. Other relevant data. Think of unique factors that might influence market performance and opportunities in specific territories. Keep in mind that territory sizes may differ depending on how many locations already exist within your franchise system. Still, by carefully mapping the size of your franchise territories, you can promote future growth and prevent territory cannibalization. Final Thoughts Franchise territory mapping is an important part of building a successful, thriving franchise system. Still, territory maps require time, effort and attention to detail. To properly map a franchise territory, it’s critical to consider size, geography, demographics, revenue potential, market opportunities and nearby businesses – including competitors and complementary brands that could drive traffic to your location. Because demographics change frequently, it’s also important for franchisors to update franchise territory maps regularly using current demographic data. By choosing flexible, easy-to-use mapping software, leveraging advanced data analytics and following industry best practices, franchisors can create franchise territory maps that are optimized for growth and support franchisees in their success. Frequently Asked Questions About Franchise Territory Mapping What are the fundamental elements of franchise The foundational elements of mapping franchise territories include easy-to-use software, current demographic data and flexible territory structures. It’s also important for franchisors to update franchise territory maps and demographic data regularly. Which basic demographics are needed to map franchise territories? Common variables used to map franchise territories include population density, household median income, spending, crime, visitors, foot traffic and more. Franchisors might also look at specific data related to their industry. Do franchise territory maps differ between industries? There is no one-size-fits-all solution for franchise territory mapping. Because a food truck company would likely need a different territory structure than a restaurant chain or wellness brand, understanding your target demographics, competitors, market, location and expansion goals can help you tailor your franchise territory map to your business. About Gbbis Gbbis is a software company that offers franchise territory mapping solutions. Learn more about Gbbis at Gbbis.com . About The Internicola Law Firm Powered by a team of experienced franchise attorneys and experts, The Internicola Law Firm is a national law firm that specializes in helping entrepreneurs build winning franchise brands. From legal support and franchise development to state and federal regulatory compliance, The Internicola Law Firm is dedicated to empowering franchisors at every stage of their journey. Learn more about how our team can help you grow your franchise by calling (800) 976-4904 or by clicking the button below. Learn more
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