Patience Was Key to This Franchise's Slow Growth StrategySteady wins the race.

ByTracy Stapp Herold

This story appears in theMarch 2017issue of狗万官方.Subscribe »

Freddy's Frozen Custard

This article is included inEntrepreneur Voices on Growth Hacking, a new book containing insights from more than 20 contributors, entrepreneurs, and thought leaders.

On November 8 last year,Freddy's Frozen Custard作出了自己的历史。第一次做伴奏any opened five restaurants across the country in one day, from Orange Park, Fla., to San Marcos, Calif. "It truly was a team effort," says Zach Woodburn, Freddy's director of franchise support. "Everyone in the company wanted to pitch in, including other Freddy's franchisees; several of them extended offers to send team members from their own restaurants to help. That's what makes us Freddy's: We're a family."

Related:Meet This Year's Fastest Growing Franchises

That concept of being a family -- not just a franchise system -- is central to the Freddy's brand, according to Andrew Thengvall, VP of strategic growth. The company even calls its annual convention the Freddy's Family Reunion. Since the restaurant's founding by brothers Bill and Randy Simon and friend Scott Redler in 2002, that family has grown to include 60 employees at the Wichita, Kans., headquarters, and around 55 franchisees with more than 200 locations in 30 states.

Unlike some brands that come out of the gate running, though, Freddy's started slow. It was three years before the company opened its fifth restaurant, and 10 before it reached 50 units. But itsgrowthhas been increasing exponentially year after year. That's by design. "We've tried to grow slowly and consistently," says Thengvall, "and to make sure we can support our franchisees as they grow."

Related:5 Must-Know Tips for Franchising Your Company

Although the company requires all franchisees to sign area development agreements, Thengvall explains, "we don't ask them to open three or four restaurants a year right away." Instead, they're encouraged to focus on getting their first restaurant running smoothly and take their time finding just the right sites before opening their second and third units. After that, the franchisees have built up the infrastructure and capital necessary to open multiple restaurants on an annual basis.

In 2016, that patient strategy evolved into a company that is now growing at a full sprint. To wit, the Freddy's family opened a total of 59 restaurants last year and has its eyes on opening more than 70 this year.

Wavy Line
Tracy Stapp Herold

Entrepreneur Staff

Tracy Stapp Herold is the special projects editor at狗万官方magazine. She works on franchise and business opportunity stories and listings, including the annualmanbetx2.0客户端下载 .

Editor's Pick

Related Topics

Money & Finance

Want to Become a Millionaire? Follow Warren Buffett's 4 Rules.

企业家是不能过度指狗万官方望太多a company exit for their eventual 'win.' Do this instead.

Business Solutions

Learn to Program an AI Chatbot for Your Business in This $30 Course

Get back-to-school savings on this AI coding course.

Growing a Business

We're Now Finding Out The Damaging Results of The Mandated Return to Office — And It's Worse Than We Thought.

Companies knew the mandated return to the office would cause some attrition, however, they were not prepared for the serious problems that would present.

Business News

Netflix is Hiring an AI-Focused Role—and the Starting Salary is up to $900,000

The streaming giant is looking for a leader in its machine learning department.

Data & Recovery

Get 1TB of Cloud Storage for Life for $119.97 With This Back-to-School Sale

This 1TB Cloud Storage Solution Is Only $119.97 for Back to School

Business Ideas

55 Small Business Ideas to Start in 2023

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2023.