How Franchises Grow Fast

 Quick over expansion is easy. But preparing for strong, lasting growth? That’s harder.

- Jason Daley

Some franchise brands seem to pop up overnight, filling every empty storefront in a city. Curves, the women’s circuit-training gym, went from zero to 10,000 franchise units in seven years. Quiznos sandwich shop started in 1981 and had more than 5,000 units by the late 2000s. But franchises that shoot up quickly often come down quickly. Quiznos now has only 2,100 restaurants, closing most of them after franchisee lawsuits and a bankruptcy. Curves is down about 4,000 clubs from its peak after many franchisees found it difficult to turn a profit.

But rapid growth isn’t always a formula for disaster. In fact, many strong franchises reach a point of maturity where rapid growth almost takes care of itself. Jimmy John’s Gourmet Sandwiches, for instance, went from 500 units in 2007 to more than 2,000 today. They didn’t close a single unit in 2014 or 2015, and have plans to add thousands more in the coming years. Ditto for Five Guys Burgers and Fries, which began franchising in 2003 and now has 1,200 locations and another 1,000 in the pipeline.

Here’s the important thing to know about these rapid-growth success stories: It looks as if these brands came out of nowhere, but they didn’t. They spent a long time incubating, perfecting their system and developing a loyal customer base before opening up the throttle. Jimmy John’s spent almost 25 years reaching that 500 mark. Five Guys started in 1986 and perfected their concept before franchising. There are plenty of other examples—franchise systems that laid down a strong support structure, chose the right markets and partners, and then wowed everyone who wasn’t paying attention. A brand that came out of nowhere? No. It came from a lot of under-the-radar hard work.