💰 From Corporate Grunt to Franchise Mogul

Plus: the new industries franchises are pushing into

Author

Chris Wright
January 23, 2025

Welcome to Franzy Five, the 5-minute weekly summary of franchise news 👋.

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.

💼 How a $200 Investment Turned Into a Franchise Factory

Starting with just $200 and a shared hatred for their day jobs, two college roommates built Proforma, a $700M printing and merchandising franchise empire. Now their franchisees keep landing on Inc. 5000's fastest-growing list. Here's how.

Key Highlights:

  • The company switched to a franchise model in 1986, focusing on turning existing businesses into franchises (aka conversion franchising)

  • Their secret? Flip the franchise rulebook - no territories, no standardization, complete operational freedom.

  • The company's tech stack does the heavy lifting - shared operating systems, e-commerce platforms, and back-office support keep franchisees focused on growth.

👉️ Why It Matters:

While most franchisors micromanage everything from store layout to napkin count, Proforma's hands-off approach is rewriting franchise growth strategies. Their model proves you can scale big without squashing the entrepreneurial spirit that drives small business success.

💥 New Franchises That Just Crashed the Franchise 500 Party

The franchise world just got eight new official categories in this year's Franchise 500 ranking. From pouring your own pint to specialized autism care, these newcomers are showing us where the serious money is heading.

Key Highlights:

  • Healthcare franchising explodes. Autism services centers seeing waitlists nationwide as diagnosis rates outpace care options.

  • Real estate investing franchises find their niche by targeting affordable homes under 1,400 square feet, filling the critical first-time buyer gap.

  • Tech-enabled services lead the way. Self-pour bars and 24/7 hydraulic services show how automation and data are reshaping traditional business models.

👉️ Why It Matters:

These new categories aren't just random additions - they're showing us exactly where franchise innovation is headed. From healthcare to tech-enabled hospitality, successful franchises are targeting serious market gaps with scalable solutions. The common thread? They're all solving real problems that traditional businesses haven't cracked.

💪 Planet Fitness Flexes Its 20M-Member Milestone

America's largest gym chain just reached a milestone with 19.7 million members across 2,722 locations. Now they're setting their sights even higher, with plans to nearly double their footprint across the United States.

Key Highlights:

  • Franchise model continues to drive expansion with 90% of locations operated by franchisees

  • Equipment sales create additional revenue stream, generating $56 million in EBITDA from $234 million in sales in 2023

  • New leadership targets 5,000 US locations, aiming to surpass established chains like Chipotle (~3,400) and KFC (~3,800)

👉️ Why It Matters:

Planet Fitness has mastered the high-volume, low-price model by understanding a simple truth: many people value the option of working out more than the workout itself. The recent 50% price increase and franchisee-friendly changes signal a bold push toward nationwide dominance in the fitness industry.

After three CEOs in one year and declining sales, Papa John’s is hitting reset on its franchise relationships. New chief Todd Penegor spent his first 100 days on a listening tour and handed out his personal cell number to operators.

Key Highlights:

  • Sales are sliding: North America comp sales dropped 4% in Q4 2024, with both transactions and average ticket down 2%.

  • The company admitted its "Back to Better" plan backfired when it made local advertising optional, dissolving crucial regional co-ops.

  • Restaurant operations became overly complex with too many menu additions and insufficient training.

  • New loyalty program launched in Q4: customers now earn $2 for every $15 spent, down from previous $10 for $75.

  • Growth continues despite challenges. Chain opened 122 net new restaurants in Q4 and hit milestone 6,000th location.

👉️ Why It Matters:

Papa John's course correction shows how even established franchisors can lose their way by overcomplicating operations and breaking local market connections. Their new focus on operational simplicity and franchisee relationships could provide a blueprint for other chains facing similar challenges.

✂️ Snippets

Skin Experts by Brentwood Spa is betting big on the membership model, offering luxury treatments at regular-joe prices. With 65% margins on their proprietary products (crushing the industry standard 50%) and LED therapy included free, they're targeting the booming $22.9B skincare market. (Source: FranchiseWire)

After years of false starts and market retreats, the fire-grilled chicken chain is trying again - this time with a fresh game plan. New CEO Liz Williams is ditching the LA-centric branding and betting on $5 value meals and AI voice ordering. With store margins climbing back to 16.7% and a slimmed-down prototype ready, they're eyeing expansion beyond their 500-unit West Coast comfort zone. (Source: Franchise Times)

Former Deloitte exec-turned-franchise expert Mark Siebert drops truth bombs about franchise sales tactics. His key warning? When franchisors say they'll "award" you a territory, they might just be playing sales psychology. Find out his 23 must-ask questions before signing anything. (Source: Entrepreneur)

International Franchise Association just dropped its 2025 roadmap targeting five major pain points - from joint employer standards to estate tax elimination. Fresh off their 2024 NLRB court victory, they're pushing for permanent small biz tax breaks and streamlined regulations. (Source: Entrepreneur)