Do you have brands in different segments? Why/Why not?

Operating brands in different segments is a proven path to diversification for many multi-unit franchisees—but it’s not for everyone. Some prefer to expand with a single brand in their home market, growing beyond only when they’ve achieved market saturation. Just ask Nadeem Saleem Bajwa, CEO of the Bajco Group, which operates more than 200 Papa Johns and has signed to open 50 more over the next 5 years. We did! (See below.)

To adapt an old saying, “There are many paths, but all paths lead to growth.” And, for many successful franchisees, the path to growth leads to Las Vegas for the annual Multi-Unit Franchising Conference, now just 4 weeks away. Why attend? Let’s hear from David Ostrowe, a veteran multi-unit franchisee and this year’s Conference Chair:

“The MUFC is the premier venue for networking with fellow franchisees, franchisors, developers, deal-makers, lenders, and landlords. It’s where you’ll discover systems and strategies to help you grow your business and, more importantly, increase profitability.”

So no matter which path to growth you’ve chosen, you’re sure to find someone who’s farther along the journey among the more than 2,000 attendees and 300+ franchise brands on display in the Exhibit Hall. It’s time to invest in your future.

Franchisee Bytes: How close are you to operations?

NADEEM SALEEM BAJWA

Brands: 207 Papa Johns

Company: CEO, Bajco Group

Years in franchising: 22

I only operate Papa Johns franchises currently. I have looked at some others in the QSR space but have not felt comfortable with any other brand yet. Outside of QSR franchises, I own businesses in real estate, business process outsourcing, information and communication technology, and construction.

MIKE JAMES

Brands: 122 Sonic, 20 Zaxby’s, 3 Take 5 Oil Change

Company: Founder/Managing Partner, Guernsey Holdings

Years in franchising: 5.5

While most of our brands are in the food and restaurant industry, we also own three Take 5 Oil Changes. A partner offered us an opportunity, and we wanted to dabble outside of restaurants. After testing the waters, we envision going into more businesses in industries other than restaurants.

YOUSUF NABI

Brands: 10 Mrs. Fields, 10 Sbarro, 4 TCBY

Company: Owner/CEO, Gotham IP Inc.

Years in franchising: 5

Yes. I have franchise concepts in the dessert and pizza sectors. I also have my own bonding company throughout California. That’s because I believe it’s important to diversify your business portfolio.

MILO LEAKEHE

Brands: 3 Crumbl Cookies, 1 Tropical Smoothie Cafe, 1 PayMore Store, 1 Rolling Suds, 1 ICX call center, 1 Solve Pest Pros

Company: Managing Partner, Imbue Capital

Years in franchising: 6

Yes. Currently, we have two QSR brands, two home services brands, one tech company, and one B2B service provider. A lot of times, I have people ask me why in the world we decided to spread ourselves over so many business segments. The most honest answer is that it is way more fun this way. Every day, I get to learn something new and learn how different businesses function. A more practical reason is that we get to cross-pollinate each business with the industry secrets we learn from the other businesses.

JACOB WEBB

Brands: 22 Marco’s Pizza, 4 Tropical Smoothie Cafe 

Company: Franchise owner, MPUT Holdings LLC

Years in franchising: 11

Yes, we operate 22 Marco’s Pizza locations and recently expanded into Tropical Smoothie Cafe. The two brands complement each other well. Marco’s dominates the dinner segment while Tropical Smoothie thrives during breakfast and lunch. Both leverage the same labor pool, which helps streamline hiring and scheduling. Adding Tropical Smoothie has enabled us to continue growing while mitigating the risk of market saturation with Marco’s.

JEROME JOHNSON

Brands: 10 Dunkin’, 4 Sonic Drive-In, 4 Baskin-Robbins, 1 Jersey Mike’s Subs 

Company: Multi-Unit Franchisee, John Cove Management and Jbar Inc.

Years in franchising: 21

Not at the moment, but my wife and I have looked into getting into the beauty industry.

BILL ASEERE

Brands: 17 Donatos Pizza, 3 Guthrie’s Chicken, 2 Whit’s Frozen Custard

Company: CEO, Space Cowboys Restaurant Group

Years in franchising: 8

Yes. We own three different brands because it helps us diversify during slow/busy times. We take great ideas from other brands and implement them across our company. It helps us in the community by offering more than one brand to the people we love.

PHILLIP SCOTTON

Brands: 23 Ben & Jerry’s, 2 Starbucks

Company: COO, Primo Partners

Years in franchising: 11

Both of our brands fall into the food and beverage space. We find that they both align with our business ideals and our passion for community activism.

FRANCHISEE BYTES

How close are you to operations?

As we’ve grown, I’ve taken myself out of the operations role and have a full-time director of operations. I keep my finger on the pulse of the business through daily and weekly reports on key metrics. I also still visit several stores each week to experience the customer perspective and hear my team’s feedback. My focus now is primarily on development and growth.
—Bryce Bares, Franchise Owner, QSR Services LLC, 30 Dunkin’, 1 Baskin-Robbins

You will definitely find me directing traffic at new store openings. And any given day, you can find me pulling shots of espresso at 7 Brew, making a Double Steakburger or Turtle Sundae at Freddy’s, or tidying up around the stores. I have to pull myself away because I love the operations and could do it every minute of the day.
—Alex Carney, Vice President/Franchisee, TR Hospitality Group, 11 Freddy’s Frozen Custard & Steakburgers, three 7 Brew Drive-thru Coffee

Very close. Some of the best ideas come from being inside the four walls, directly interacting with the day-to-day operations.
—Keith Johnson III, COO/Franchisee, Amazing Food Concepts, 20 Qdoba Mexican Eats, 15 Captain D’s, 1 Epic Wings

While I’m not in the stores every day, I consult with my chief of operations several times during the day to ensure he, the general managers, and my marketing manager have what they need to operate successfully.
—Stephanie Moseley, President, Pisa Pie Enterprises, 6 Marco’s Pizza

I’m very close to our COO, and he keeps me in the loop on what is going on at Vibe Restaurants operationally. All three founders started working inside our Little Caesars, and we have never forgotten the importance of running great restaurants. Our COO Michael Trifari’s views are in line with that, and under his leadership, we have continued to raise the bar.
—Irfaan Lalani, CEO/Co-Founder, Vibe Restaurants, 76 Little Caesars, 60 Wingstop, 3 Whataburger

I’m quite involved with operations, having run some shifts during Covid, and I continue to lend a hand whenever needed when I’m in a store.
—James Brajdic, President, Customer Maniacs & Green Bay A Dub, 13 A&W

I have weekly pulse calls with every operating partner who reports to me. We go over the scorecard and issue list and review our goals. I delegate much of the operations to the operating partners. My primary responsibility now is to design the systems and resources that allow our operating partners to thrive.
—Milo Leakehe, Managing Partner, Imbue Capital, 3 Crumbl Cookies, 1 Tropical Smoothie Cafe, 1 PayMore Stores, 1 Rolling Suds, 1 Solve Pest Pros

Very, very, very close. I speak to my chief operating officer probably three to four times a day. I am in market in both brands several times during the month as well. Without operations, you have nothing, so if you’re not involved, your business is at risk.
—Randy Pianin, CEO, Royal Restaurant Group, 61 Burger King, 4 Potbelly