Do you prefer to grow through acquisitions, conversions, or new builds? Why?

You’re looking to grow your portfolio. But what’s the best path to achieve your goals? Acquire an operating unit? Convert an existing site? New build?

To cite a well-worn maxim, “It depends.” It depends on so many factors and variables that, rather than list them all here we asked five very different multi-unit restaurant franchisees what they prefer. (Besides, you know them already!) Two are Past Chairs of the Multi-Unit Franchising Conference (MUFC), and one is the Incoming Chair for MUFC 2026. Looking to find the best way to grow? See what they have to say!

Franchisee Bytes: What is your best business decision?

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MITCH COHEN

Company: Partner, PerforMax Franchisee Advisors; CEO, Management 360 LLC

Brands: 8 of 10 Jersey Mike’s open, 2 more coming; 3 of 10 Sola Salon Studios open, 4th under construction

Years in franchising: 40 

Mitch Cohen is the incoming Chair of the 2026 Multi-Unit Franchising Conference. He is a board member of the IFA and of the Multi-Unit Franchising Conference. He is the CEO and founding partner of PerforMax Franchisee Advisors.

My preference is always to try to grow through a mixture of both new builds and acquisitions. We also look at 2nd-gen locations that fit the specifications of the two brands we currently are a franchisee of. Obviously, new builds are costly at this time with tariffs, supply chain uncertainty, and the cost of money.

Today we’re looking more at acquisitions than new builds. Sometimes it becomes more affordable to do an acquisition than a new build. I say this because in the time frame it takes for new builds—between planning, architectural design, engineering, and permitting—there could be a lot of time lost for business. This becomes an added expense, especially if you’re using financing. With an acquisition you can probably close those deals a lot quicker and have immediate results in terms of investment—and get to your ROI a little quicker.

Similarly, when we look at 2nd-gen conversions, there could be really good cost savings, depending on the availability of the current equipment. It’s always important to work with the franchisor on this to be sure they’re on board with any equipment requirements for the one you’re keeping. If everything aligns properly in a 2nd-gen conversion, it could ease the pressures of permitting, which would give us the opportunity to open sooner and start the process of generating our ROI.

DAVID OSTROWE

Company: Founder & CEO, O&M Restaurant Group

Brands: Taco Bell

Years in franchising: 34 (24 on the franchisee side, 10 on the franchisor side)

David Ostrowe, Chair of Franchise Update Media’s 2025 Multi-Unit Franchising Conference, is the founder & CEO of O&M Restaurant Group, a Taco Bell franchisee. In addition to his successful franchise operations and related businesses, he’s served as Oklahoma’s Secretary of Digital Transformation and Administration, and was Chairman of the Board of Trustees for Oklahoma’s Lottery Commission.

I’ve done all three, and each has its pros and cons:

• Acquisitions are ideal because you’re buying existing cash flow. You get the P&L history, customer data, and an established team. As long as you don’t disrupt operations, it’s typically all upside. The trade-off? You’re paying a premium.
• Conversions work well if the franchisor minimizes remodel costs. I’ve reflagged locations for as little as $50,000 and as much as $1 million. The upside is you eliminate a competitor while entering a new trade area. Combining acquisitions with conversions is a winning strategy.
• New builds are the riskiest. They come with land costs, due diligence, architectural plans, engineering, feasibility studies, and long construction timelines. If the site underperforms, the losses can be significant. I always have at least one store in development, but I don’t recommend this as a first growth strategy.

JOHN METZ

Company: CEO & Founder, RREMC Restaurants

Brands: 60 Denny’s, 5 Hurricane Grill & Wings, 2 Wahoo’s Fish Taco, 3 Keke’s Breakfast Cafe

Years in franchising: 23

John Metz is Past Chair of the 2012 Multi-Unit Franchising Conference and former franchisor of Hurricane Grill & Wings, which he sold to FAT Brands in 2018.

1. Conversions
2. Acquisitions
3. New builds

I rarely do a new build, but right now it’s different: I’m swamped with 5 new Denny’s builds. Why? Because Denny’s is offering us $300,000 for each Denny’s we open. I’m opening one in Naples, Florida, on May 12, another in Fort Lauderdale is under construction, and I’m looking to build 3 more. I like to buy used diners, mothball them, and then move them to another site, clearing the land for a new concept. This way I get to build the new Denny’s essentially for the cost of the land.

I also have one Keke’s under construction, have signed a lease for another, and I’m negotiating a third lease. All my Keke’s are conversions. I don’t want to look at raw space because it costs too much to build from scratch. I’m a licensed contractor and have hired a VP of construction to get it all done.

I love acquisitions because I (usually) know what I’m getting. Normally, I look at ground-up new builds only for drive-thrus.

JIGNASH PATEL

Company: Potbelly franchisee, Partner, KAVIR NA PB LLC

Brands: Potbelly Sandwich Works (signed agreement for 15 in 8 years, first 3 leases about to be finalized)

Years in franchising: 20+

When it comes to growth, our clear preference is for new builds, aligned with Potbelly’s franchise-led strategy and the brand’s robust infrastructure for market planning, site selection, and opening execution. New builds allow us to introduce Potbelly’s latest prototype, an efficient, digitally enabled 1,800/2,000- sq. ft. layout into prime locations across the greater Austin area. From day one, we’re able to optimize for operational flow, guest experience, and digital integration.

This approach also gives us the flexibility to design each location intentionally, tailoring each to local demand, implementing the latest remodel innovations, and preparing for long-term AUV optimization. It supports our goal of clustering stores in high-growth submarkets in our territory, which enhances both brand visibility and operational scalability.

While we remain open to strategic conversions or acquisitions when the right opportunity presents itself, new builds are our core path forward. They give us the best platform to deliver consistent quality, tap into Potbelly’s growing national momentum, and contribute meaningfully to the brand’s broader franchise-led expansion growth.

Ultimately, our focus is on growing not just fast, but smart, creating a network of well-positioned, high-performing shops that meet today’s consumer expectations and tomorrow’s potential.

WES SWANEY

Company: The Electronics Agency, LLC

Brands: Previously had 7 Little Caesars, now developing 8 PayMore locations with 3 stores open & a 4th under contract

Years in franchising: I was involved with the Little Caesars brand for over 35 years, managing and operating locations

Our preference is new builds. While acquisitions and conversions can offer benefits in certain situations, we believe that new builds provide the greatest upside for ROI. By developing locations from the ground up, we have full control over site selection, design, and operational setup, allowing us to maximize efficiency and profitability.

Additionally, new builds enable us to establish the culture and procedures we want from day one. Rather than adapting to an existing system or overcoming legacy challenges, we can create a streamlined, customer-centric operation that aligns with our vision. This level of control ensures consistency across locations and strengthens our brand identity in the long run.

FRANCHISEE BYTES

Best business decision?

When we pivoted from being employees to owning our own restaurants and becoming franchisees of El Pollo Loco.
—Phong Huynh is the 2025 American Dream MVP for achieving remarkable success in his new country. He is co-owner of Fuego Investment Inc., which operates 30 El Pollo Loco restaurants. He’s been in franchising for 15 years.

One of the best business decisions I made was in 2003 when I had the opportunity to open a Taco Bell Express within my existing deli. We were able to increase sales both for the deli and online. Taco Bell did more business than the two standalone locations nearby that were eventually closed.
—Sam Chand is the 2025 Multi-Brand Leadership MVP for achieving brand leadership with multiple brands. He is CEO of Jasam Enterprises, which operates 35 KFC and 25 Checkers & Rally’s. He’s been in franchising for 27 years.

To build companies based on values and gratitude. Our mission is to create opportunities using our God-given gifts. Every day, we focus on how we can create new opportunities for our team and communities where we operate businesses.
—Nick Crouch is co-winner of the 2025 Single-Brand Leadership MVP for achieving leadership with a single brand. He is co-CEO of Dyne Hospitality Group, which operates 118 Tropical Smoothie Cafe locations. He’s been in franchising for 13 years.

Becoming a second-generation owner of the A&W franchise.
—James Brajdic is co-winner of the 2025 Single-Brand Leadership MVP for achieving leadership with a single brand. He is president of Customer Maniacs and Green Bay A Dub, which operates 13 A&W restaurants. He’s been in franchising for 23 years.

Owning real estate wherever possible and leveraging my brand to fill affiliate-owned small shopping centers.
—Bryce Bares, Franchise Owner, QSR Services LLC, which operates 30 Dunkin’ and 1 Baskin-Robbins locations. He’s been in franchising for 13 years.

Without a doubt, hiring April Miller as my VP of operations was one of the best business decisions I’ve made. She’s an equity business partner and my right-hand woman. I can always rely on her to manage day-to-day operations with precision and care. Her leadership, combined with the efforts of the entire team, has been instrumental to our success. On a more personal note, marrying my wife was the best decision that shaped my life. She has been my biggest cheerleader throughout my entire career and entrepreneurial journey, helping me balance work and personal life and providing unwavering encouragement every step of the way. I’m fortunate to be surrounded by the wisdom and talents of strong women.
—Jacob Webb, Franchise Owner, MPUT Holdings LLC, which operates 22 Marco’s Pizza, and 4 Tropical Smoothie Cafe locations. He’s been in franchising for 11 years.

Listening to my college professor and opening my first Dunkin’ in the Pentagon. I remember being conflicted about leaving school, but my professor told me that I could always come back to school, but this opportunity may not ever come again. I took his advice and, a few months later, enrolled in Dunkin’ Donuts University. I later went back and earned my degree from the University of Phoenix.
—Jerome Johnson, franchisee, John Cove Management and Jbar Inc., with 10 Dunkin’, 4 Sonic Drive-In, 4 Baskin-Robbins, and 1 Jersey Mike’s. He’s been in franchising for 21 years.

Taking calculated risks led my business to grow as quickly as it did. Understanding industry demands and looking for unique opportunities, such as second-generation spaces rather than taking on complete buildouts, positioned me to take calculated risks that I hoped would pay off. Expanding during the Covid lockdowns was a risk within itself, but I had faith that things would eventually normalize, and I’m thankful they did.
—Yousuf Nabi is Owner & CEO of Gotham IP Inc., which operates 10 Mrs. Fields, 10 Sbarro, and 4 TCBY locations. He’s been in franchising for 5 years.