Teriyaki Madness CEO reveals 4 secrets to fueling franchise growth

By Michael Haith, Teriyaki Madness CEO

In the world of franchising, one is always a student. After starting as a franchisee of a small restaurant group in 1989, I have spent the last two decades partnering with the founders of several franchise companies, including Maui Wowi Hawaiian, KidCreate, Doc Popcorn, Franchise Sherpas and Raintree Franchise Sales. In 2012, I joined the board and invested in Teriyaki Madness to help expand nationwide and I eventually purchased the concept in 2016. At that point, the brand had seven shops in Las Vegas, and today we are at nearly 125 shops nationwide. While I am incredibly proud of that growth, I always seem to be learning something new and developing a deeper understanding of franchising.

Here are a few of the primary lessons I've learned along the way.

1. Stand out from the crowd

A solid franchise system is all about having a successful business model product or service that has a unique differentiator that resonates with customers and creates a buzz. If you want to appeal to franchise owners, a unique "hook" that is different from all other business options and an unrelenting focus on meeting franchisee expectations is "table stakes."

It never ceases to amaze me how many franchisors say: "Here is how everyone else does it, so we should do it that way, too." Whether it is branding, franchise marketing, operations — you need something that catches peoples' eye, both from a consumer perspective and from a franchisee perspective. Don't get me wrong, most systems, processes and procedures are best emulated from those who have come prior, but in order to really speak to an audience, you may have to be a little bit risky. Don't be scared to be different. From there, it is about creating visibility, especially as an emerging brand. You must let candidates know you exist through every tool possible, including PR, portals and brokers. Too many emerging brands will put marketing on the backburner to focus on operations, but they need to be exercised in conjunction.

2. Prioritize professionalism above all else

Taking risks doesn't mean being reckless. Professionalism is one of the true keys to healthy franchise growth. Everything the leadership team does needs to exhibit the brand's professional culture and core values. As a franchisor expands and more people start learning about the brand, one needs to be responsible on the development side.

That means being responsive and proactive with every single candidate that reaches out. We follow up on leads within five minutes. But it's not just because we want the sale. We aim to maintain a high level of structure and organization within our company to pay respect to the hard work we've put into building the business model, and franchisee candidates recognize that immediately. Professionalism isn't as universal as one might think in the world of franchising, so being reliable and true to your word goes a long way in appealing to candidates.

3. Don't be greedy

There is nothing more important than doing right by the franchisee — that is the primary job of the franchisor. In this way, transparency between the franchisor and the franchisee is essential. We are proud of our numbers and eager to share our performance in any way we can through the FDD and Item 19. It is also our job to clearly train franchisees on how they will need to run the business to achieve that profitability.

We currently have a staff of 60 people supporting 125 shops, which is a number we are very proud of. A good franchisor should also be a communication liaison between franchisees, teaching, sharing best practices and overcoming challenges. It is our job to protect the brand and make sure everyone stays "in the fairway".

4. Hire a team that understands franchising

One of the most common mistakes I see emerging franchisors make is the decision to hire outside of the franchising world. Simply put: a franchisor's sales team needs to come from a background in franchising. You can't just hire your friend who sells real estate or works for an ad agency. This is a very specialized business, and sales professionals need to understand the experience, benefits and psychology of franchisees so they can answer the question of: "Why should I invest a significant amount of resources into your business over someone else's?"

Overall, franchisors need to ensure there is a franchising professional in each department, whether it be marketing, sales, lead generation, real estate, training, etc. Having those experts in place can make all the difference in the world as emerging brands start to grow their footprint and begin the journey of franchising.

Good Luck and remember, if the franchisees are successful at meeting their goals, you will find success as well.