2020-03-01 Entrepreneur Magazine

(Sean Pound) #1

deals with vendors.
Last year, he also opened
a training facility and new
restaurant prototype in
Spartanburg, S.C., not far
from Eggs Up headquarters.
The store demonstrates a
refreshed, contemporary look,
and it has already rolled out
new, Instagrammable items: a
shrimp and grits omelet, baked
peaches and cream pancakes.
To ensure consistency,
Richardson created a team of
franchise consultants, who visit
each store a few times each quar-
ter to check food quality and
ascertain how servers, managers,
and bussers interact with guests
and with the franchisee. “It’s nice
when they stop by,” says fran-
chisee Rob Johnson, who works
alongside his brother, Scott. “It
doesn’t feel like an inspection or
anything hostile.”


But there’s no doubt about
the purpose of the visits. The
corporate office wants to
ramp up profits and sell more
stores. “We’re projecting plus
or minus 18 restaurants open-
ing in 2020, which, compar-
atively, is almost a 50 percent
growth rate,” says Todd Owen,
the company’s new VP of fran-
chise development. “We actu-
ally opened five in January.”
Owen, who previously helped
Qdoba Mexican Eats expand
from 60 to 600 locations, says
he was lured in by Eggs Up’s
strong market position under
WJ Partners. It’s well-funded,
franchisees are stoked about
the brand, and Richardson has
stacked the new executive team
with industry veterans.
Results are already visible.
Recently, Eggs Up signed a
10-store multi-unit deal with a

Wendy’s franchisee. “We want
to be one of the big dogs,” says
Owen. “But we’re not just wish-
ing; we’re getting there.”

FOR NOW, Eggs Up will limit
its growth to the Southeast. “I
look at it like we can’t afford to
make one mistake,” says Owen.
Because if Eggs Up Grill becomes
just another anonymous place to
buy bacon and pancakes, what
does it really have to offer?
The new challenge, then, is
to figure out which parts of the
old regime can help this new
regime grow.
Corn has no regrets about sell-
ing. He likes the new changes
and understands the value of
having a big corporate office
to handle the day-to-day oper-
ations. “Now instead of call-
ing Skip for 50 percent of the
answers and Chris for 50 percent

of the answers, you can call one
of 10 people and get somebody
who’s an expert in that field,” he
says. In a way, that’s what the
two partners always wanted:
better support for franchisees.
And unlike the old owners,
these new owners are very sup-
portive of multi-unit owner-
ship. That’s been great news to
some of Eggs Up’s most ambi-
tious franchisees. Scott and
Rob Johnson are planning to
open a third Eggs Up. Hampton
already did so—and he may
keep going.
“I was probably not going to
do any more stores,” he says.
“But then the new group bought
them. We’re just now getting
ready to take off and watch this
concept grow.”

Clint Carter is a writer
based in New York.

* Data are based on each company’s Franchise Disclosure Documents (FDD) for all franchise centers open in 2017, except for Kumon, which are for centers open at least three years, Learning RX which are centers open in 2018 and Tutor Doctor, which
are for centers open at least one year. We estimate Club Z! revenue from its fi nancial statement as total franchisor revenue, less purchase of trademarked material and software fees, divided by the average royalty rate, then divided by the number of
centers. Grade level results are based on cumulative average gHuntington® students graduating in 2019. rade level increase in reading and math for 17,445 students from 2010 to 2014 using the full set of available student data. SAT, ACT, and scholarship results are based on surveys of 3,289

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