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How to Build Franchise Empires That Last
Large multi-unit franchisees ensure a thriving legacy through succession planning
Welcome to Franzy Five, the 5-minute weekly summary of franchise news π.
At Franzy, we match aspiring owners with their ideal franchises through personalized recommendations and transparent metrics. Think match-making, but for your business future. Our platform shows you opportunities you'll actually care about, complete with the numbers that matter.
π And since itβs March, check out Franzyβs Franchise Madness Bracket.
This Week's Franzy Five:
πͺ Creating a Franchise Legacy That Outlives You
The stats are sobering: 75% of family businesses fail during the transition to the second generation, and a staggering 99% don't make it to generation three. But multi-unit franchise operators like Gary Avants of Zaxby's and McLain Hoogland of Marco's Pizza are determined to beat those odds through strategic succession planning.
Key Highlights:
At Hoogland Restaurant Group (131 Marco's Pizza locations across 16 states), family members must earn undergraduate and master's degrees plus work four years at director-level positions outside the company before joining the family business.
Potbelly's former CEO Bryant Keil returned to the brand as a franchisee specifically to build a legacy business with his son Hampden, who grew up in the brand and was already succeeding in the restaurant industry.
Zaxby's multi-unit operator Gary Avants hired a family succession consultant who worked with the family for several years, helping identify each child's unique strengths before placing them in operations, HR, and marketing roles.
The father-son Urban Air Adventure Park franchisee team of Pat and Coleman Curry uses a family partnership structure and strategic trusts to preserve assets and minimize tax issues across generations.
Many successful franchise families are establishing formal family councils to maintain alignment and communication as they grow beyond simple parent-child structures into larger family enterprises.
ποΈ Why It Matters:
As the first wave of multi-unit franchisees reaches retirement age, succession planning has become an urgent priority across the industry. Those who create formalized plans now β rather than relying on assumptions or vague intentions β will position their families to build true generational wealth while preserving the operational excellence that made them successful in the first place.
π From Classroom Insecurity to Franchise Fortune
Each summer, California teacher Casey Furtado would face the same dreaded conversation: "We're not sure we can keep you." After years of job insecurity in private education, he found stability in an unexpected placeβa school fundraising franchise that let him keep his passion for education while multiplying his income by five.
Key Highlights:
Furtado now owns six Apex territories across San Diego and the Bay Area, servicing more than 130 schools and raising over $10 million annually for education funding.
The franchise modernized school fundraising by replacing paper pledge forms with digital payments.
Despite his executive role overseeing multiple teams, he still occasionally substitutes in schools to stay connected to what drew him to education initially.
Apex CEO Jamie Krasnov calls Furtado "a beacon" who shows other franchisees what's possible through his relationship-building skills and grit.
His advice to aspiring franchisees: "You can plan and research forever, but eventually, you've got to get in the boat and row."
ποΈ Why It Matters:
Furtado's journey proves franchise ownership can deliver both financial stability and fulfillment for professionals craving career control. His win proves that in franchising, passion, determination, and using a proven system are key, not just tech skills.
πͺ Why 24/7 Unstaffed Gyms Never Go Out of Style
While boutique fitness concepts come and go faster than you can say "hot yoga," one model has quietly proven its staying power: the 24/7 unstaffed gym. Vanguard Key Clubs has been perfecting this approach for three decades, focusing on what founder Craig Annis calls "lasting fitness industry trends rather than fleeting fads."
Key Highlights:
Vanguard's unstaffed model eliminates hiring hassles entirely, using independent contractors for cleaning and maintenance while personal trainers actually pay the gym for referrals and space.
The equipment philosophy is equally pragmatic β focus on four essential categories (cardio, selectorized strength, plate-loaded strength, and free weights) with no requirement for specific brands.
Franchisees are encouraged to use warrantied, re-manufactured equipment rather than splurging on brand-new gear with tech that can break and create maintenance headaches.
The semi-absentee model allows owners to remotely manage multiple 10,000-12,000-square-foot locations, creating true work-life balance while generating multiple revenue streams.
Convenience remains king β members access facilities with electronic key cards any time of day or night, meeting the enduring consumer demand for accessibility.
ποΈ Why It Matters:
The Vanguard approach could be the antidote to franchise burnout in an industry obsessed with reinvention. By stripping away trends and staffing complications, franchisees can focus on sustainable, long-term growth rather than constant reinvestment in the next fitness fad.
ποΈ Podcasting Is Franchising's New Secret Weapon
Despite podcasting's 20-year history, franchise expert Jack Monson insists we're still in its Golden Age β especially for franchising. More brands are discovering that audio content builds awareness and nurtures prospects in ways traditional advertising simply can't match.
Key Highlights:
Podcasts excel at top-of-funnel brand awareness while also serving as powerful validation tools when they feature franchisee success stories that candidates can access 24/7.
Local franchisees are using podcasts to establish themselves as community experts.
Gen Z listeners overwhelmingly prefer audio-only podcasts (76%) over video formats, contradicting assumptions about younger audiences' media consumption habits.
The formula for podcast success isn't complicated: consistency (minimum one year commitment), brevity (15-20 minutes max), and focused expertise (stay in your unique knowledge lane).
ποΈ Why It Matters:
In a franchise development landscape where digital ad costs continue to skyrocket, podcasting offers an affordable long-game approach to building genuine connections. While it won't generate immediate leads, it creates the kind of brand awareness and trust that makes your sales process dramatically more effective when prospects do enter your funnel.
βοΈ Snippets
Entrepreneur's top part-time franchises for 2025 range from mobile tool shops to cleaning services, with investments starting at just $2,590. The list includes established brands like Snap-on Tools and emerging players like Signal, which grew 103% over three years. (Source: Entrepreneur)
&pizza founder Michael Lastoria, who once vowed never to franchise, now aims to add 250-300 franchised locations by 2030. With investment costs between $400,000-$800,000 and top stores averaging $1.4M in sales, they're targeting college towns and underserved markets. (Source: FranchiseTimes)
The 2024 Annual Franchise Marketing Report reveals three-quarters of franchises rely on online reviews to gauge reputation, with social media mentions (54%) and website traffic (52%) following behind. Most brands (59%) handle reputation management at the corporate level rather than leaving it to individual franchisees, with "managing negative feedback" cited as the biggest challenge. (Source: Entrepreneur)
40% of externally hired executives last fewer than 18 months despite companies investing hefty search fees (typically one-third of the first year's compensation). The culprit isn't just poor hiring but inadequate onboardingβmost organizations invest less than 10% of their search budget into ensuring a new executive's success after they arrive. (Source: QSR Magazine)