Are you adjusting timelines for multi-unit openings while meeting your development agreements?

Franchisees often enter into development agreements with their franchisors that require them to open multiple restaurants within a specified period. While staying on schedule and maintaining growth plans are important, factors such as real estate, construction, and market conditions can sometimes make those timelines difficult to meet. How problematic can delays or changes to the development schedule be, and how can franchise owners effectively navigate and manage these challenges?

Franchise Update asked several multi-unit franchisees whether they are adjusting the timelines for their restaurant openings. While they recognize the importance of meeting their development commitments, many said they are taking a more strategic approach to the timing of new openings, weighing market conditions and other factors before moving forward with each location.

The common theme is not to rush the opening of a new restaurant and to make sure the timing is right for each new market. Franchise owners need to assess whether they have the capacity to operate another unit and whether the market is ready to support a new location. While growth remains important, the ultimate goal is to position each new restaurant for long-term, sustainable success rather than simply opening another unit to meet a development target.

In this week’s Franchisee Bytes section, we asked several multi-unit restaurant operators about their biggest management challenges. Some pointed to familiar operational pressures, including inflation, rising expenses, and hiring and retaining staff. Others highlighted challenges unique to multi-unit operators, such as maintaining consistency, culture, and operational excellence across multiple locations. See some of their top challenges below and how they are working to address them.

Andrea Wells

Company: Wells Pie Group
Brands: 6 Your Pie Pizza
Years in Franchising: 11

Yes. As a multi-unit operator, there’s a delicate balance between meeting our development commitments and making sure each growth decision is right for the long-term health of the business. Now that we have a strong, established infrastructure, we can integrate an acquisition relatively easily, whereas a new build requires significantly more time, resources, and financing.

Because of that, we approach growth with both short- and long-term goals in mind. There may be times when it makes sense to postpone a new build in a market we’ve committed to developing while we acquire a few higher-performing existing locations. Those acquisitions can strengthen our financial position and better prepare us to make the larger investment required for a new build.

We are experiencing that now. We’ve committed to developing a market where we believe a new build is ultimately the right path, but rather than settling for a less-than-ideal site simply to meet a timeline, we’ve continued growing through acquisitions while waiting for the right location to become available.

Fortunately, we’re part of a brand that understands that balance and works with us. For us, it’s not about slowing down development; it is about being strategic with the timing and making sure growth is sustainable.

Amy Boesen

Company: AK89 LLC
Brands: 6 Rock N Roll Sushi
Years in Franchising: 21

The goal is always to get the doors open on time, but opening the doors is only part of the equation. It’s more important to make sure the team understands the brand, believes in it, and is prepared to execute at a high level. I’m sure we’ve missed a deadline or two along the way, but never without good reason. Sometimes slowing down to make sure the foundation is right is what allows the brand to grow the right way. For us, it’s not just about opening another location. It’s about building a strong team, protecting the brand, and creating something that can be successful for the long term.

Sam Batt

Company: Batt Enterprises
Brands: 15 TCBY and 2 Mrs. Fields
Years in Franchising: 16

We’re always trying to balance the commitments we’ve made with making sure we’re opening the right stores, not just more stores. I don’t think it makes sense to rush into a location simply to meet a deadline if the real estate or economics aren’t right. At the same time, our development agreements keep us accountable and motivated to continue looking for opportunities. I’d much rather have an open conversation with the brand about timing and ultimately open a great location that is successful for everyone.

Brad Steven

Company: 3B Lodge
Brands: 9 Twin Peaks
Years in Franchising: 4

We take a disciplined approach to development and evaluate each opening based on the market, real estate environment, and operational readiness. Meeting our development commitments is important, but so is making sure every new restaurant is positioned for long-term success. We would rather be thoughtful about the timing and execution of an opening than compromise the quality of the operation.

Moe Moustafa

Company: LES Wings Partners
Brands: 3 Atomic Wings
Years in Franchising: 5

We've actually been ahead of schedule. A lot of that comes from feeding off the momentum we've built in New York, since our newer territories are close by. It hasn't been easy, but staying organized has made the difference, and I have support from the franchise team along the way. Our founder, Zak Omar, in particular, is very hands-on and spends a lot of time in the greater New York area, which helps keep everything on track.

Franchisee Bytes

What is your greatest management challenge?

Staffing our stores with great people. Before Covid, we could be selective in our hiring process, and many employees were high school and college age. Now, the quality of the hiring pool is different. People have less of a connection to the brand. It is now more difficult to identify people and develop them.
-Tom Lovelace, Owner/President, Tom Lovelace Group, 96 Papa Murphy’s

Maintaining consistency across 19 locations while growing leaders fast enough to meet our demand.
-Andy Kumar, Multi-Unit Franchisee, Kumar McDonald’s, North Texas, 19 McDonald’s

Scaling culture. As we grow, it’s important to make sure every new shop feels like part of the same family and carries the same energy and values that define Playa Bowls. We focus on this by staying closely connected with our teams, prioritizing communication, and making sure every new hire understands the “why” behind what we do.
-Misha Punwani, Multi-Unit Franchise Owner, Playa Bowls, 16 Playa Bowls

Managing the unexpected. This applies to everything in life and is important to work through. In the restaurant industry, specifically, it can be the equipment fails during a lunch rush, a supplier runs short, or a storm knocks out power. Managing the unexpected means you keep a calm head, make quick calls, and train your people to problem-solve rather than freeze.
-Chris Aslam, CEO & Principal, Rock Strategies and various entities, 59 Jack in the Box, 5 Golden Chick, 5 Hawaiian Bros Island Grill

Relinquishing control of certain responsibilities to allow for growth as a team and as individuals.
-Nadeem Bajwa, Co-founder and CEO, Bajco Group, 270+ Papa Johns

Maintaining excellence across a large and growing organization while staying committed to quality over quantity. As you scale, staffing becomes critical. The challenge is making sure every store has the right people delivering great service, great food, strong leadership, a winning culture, and an experience that wows our customers every day.
-Brian Bailey, CEO, Team Bailey, 160 Domino's

It used to be a challenge to find people who are loyal to you, but that is now my greatest strength. I have a core team that has been loyal to me for more than 10 years. Currently, I would say factors that are out of my control, such as inflation and the costs of goods.
-Shak Patel, Multi-Unit Franchisee, Breaking Bread LLC, 6 Potbelly, 1 The Halal Guys

Balance. I want to be the best businessperson, humanitarian, mother, daughter, and friend to all. My desire is to be available, and that also requires boundaries.
-Lisa Starnes, Franchise Owner, Starnes Holdings, 8 Captain D’s