To Attract Multi-Unit Operators, Franchisors Must First Prove Success with Smaller Franchisees

Franchise leaders share insights on attracting multi-unit operators during a panel discussion at the Restaurant Finance & Development Conference in Las Vegas.

Las Vegas, November 11, 2025 — At this year’s Restaurant Finance & Development Conference held at the Bellagio, Las Vegas, a panel of leading franchise executives and finance experts shared valuable insights into one of the most pressing challenges in franchising today — how to attract and retain multi-unit operators.

The consensus was clear: before franchisors can appeal to large, multi-unit investors, they must first prove their model works at the single-unit level.

The Power of the First Store

Moderated by Dan Holland of Cadence Bank Franchise Finance, the panel featured Brian Sommers, Chief Development Officer at Jersey Mike’s; Chris Dull, CEO of Freddy’s Frozen Custard & Steakburgers; and Scott Deviney, CEO of Chicken Salad Chick.

“There’s still plenty of space for the little guys,” said Sommers. “The top three franchisees in our system started with just one store. Any single-unit franchisee can become a major player.”

While mega-operators often dominate headlines, the panel agreed that small, committed operators are still the foundation of successful franchise growth. Their success stories, when nurtured properly, become the most powerful selling points for attracting larger investors later.

Jersey Mike’s: From One Store to Thousands

Recently acquired by Blackstone, Jersey Mike’s continues to expand aggressively, with more than 3,200 units and big plans ahead. Sommers said the brand’s early success came from allowing small franchisees to grow organically — giving them time, mentorship, and market opportunity.

“We’re only starting to grow,” he said. “The key is maintaining a path for the single-unit operator who wants to evolve. That’s where the real scalability comes from.”

Freddy’s: Flexibility Fuels Growth

At Freddy’s Frozen Custard & Steakburgers, CEO Chris Dull emphasized that flexibility and clear communication with potential operators have been essential to the brand’s expansion.

“When I joined Freddy’s four and a half years ago, we had about 40 franchisees,” said Dull. “Now, we’re nearing 90 operators with visibility to reach 800 locations within the next five years.”

The company’s success, he said, comes from meeting franchisees where they are — offering multiple development models, including double drive-thru, in-line, and freestanding restaurant formats.

“It was about building the right development team, spending on targeted marketing, and showing operators the real opportunity,” Dull explained.

Chicken Salad Chick: Growth Rooted in Culture

For Scott Deviney, CEO of Chicken Salad Chick, success starts with culture — not just numbers. The brand, which began in Auburn, Alabama, has grown to over 300 locations across 22 states, maintaining a balance between single-unit owners and multi-brand operators.

“I don’t care if you have one store or a thousand,” Deviney said. “If you’re a great culture fit — you take care of your team, your community, and you’re passionate about the brand — then you’re right for us.”

Chicken Salad Chick’s disciplined approach to expansion also plays a key role. The company grows regionally and strategically, refusing to overextend into distant markets until a nearby presence is established.

“People contact us every day wanting to open in California or Washington,” Deviney said. “We’ll get there — but only when the time is right.”

Proving the Concept: The Foundation of Scale

Across all three brands, the takeaway was clear: franchise systems must demonstrate proven success at the unit level before expecting multi-unit operators to invest at scale.

Deviney summed it up best:

“You have to prove that the model works and that franchisees are successful. Once you do that, the right people start coming to you.”

A Balanced Franchise Ecosystem

The conversation also highlighted a crucial balance in today’s franchise landscape — where both small and large operators play essential roles. Single-unit franchisees bring passion, local engagement, and strong community connections, while multi-unit operators bring capital, efficiency, and growth acceleration.

Successful franchisors, panelists agreed, are those who can nurture both segments — helping smaller franchisees thrive while building an infrastructure that attracts professional investors ready to scale.

About the Conference

The Restaurant Finance & Development Conference, organized by Restaurant Finance Monitor, Franchise Times, and Food On Demand, brings together industry leaders, financiers, and franchise executives to discuss trends shaping the restaurant and franchising sectors. The 2025 event runs through November 12 at the Bellagio, offering sessions on finance, development, innovation, and growth strategy.