Franchising can be a powerful path to entrepreneurship—but it's not without its challenges. In a recent Rising Tide discussion hosted by Full Course CEO Lauren Fernandez, franchisee Tim Paslawski (Chicken Salad Chick and Vicious Biscuit) and Jonathan Martin (Pivotal Accounting) shared real-world advice for restaurant operators and hospitality professionals preparing to scale.
Their insights offer a valuable blueprint for success—and a few cautionary tales—whether you're opening your first location or expanding into multiple brands.
Why Franchising? The Draw for Entrepreneurs
For many operators, franchising offers the ideal blend of proven systems and entrepreneurial freedom.
"We had an engine but no car around it," said Tim Paslawski, reflecting on his journey into franchising. "We knew we could bring energy and passion, but we wanted a model that we could build around."
Jonathan Martin agreed, pointing out that franchising is far larger than most realize, contributing nearly 8–9% of U.S. GDP. "Helping franchisees grow from one to multiple units is one of the most satisfying parts of my work," he shared.
Both emphasized that franchising provides structure—but still demands entrepreneurial spirit.
Scaling Smart: When Is It Time to Grow?
Scaling too soon—or without the right infrastructure—can be a fatal mistake.
Tim explained that their decision to expand from one store to multiple locations was driven by real estate opportunities and a clear internal structure. "We realized early that if we didn’t build a strong bench of managers, either my wife or I would have to run stores ourselves, which wasn’t sustainable."
Jonathan added that clean, reliable financials are a critical signal of readiness for growth. "If your books aren’t tight, banks won’t finance you. Period. Clean accounting is non-negotiable."
Managing Financial Growth: What Operators Must Know
When it comes to growth financing, both speakers emphasized the value of strong banking relationships.
"We built a personal relationship with a local bank, and it’s been a massive resource for us," Tim noted. He also shared a personal preference for minimizing debt, saying, "I'm not a fan of taking on unnecessary loans."
Jonathan pointed out broader industry trends: “Private credit funds and alternative lenders are rising because traditional bank financing is tightening. Operators need to be flexible but careful."
He also stressed the value of setting up a management company early when scaling beyond a few units, which can help organize overhead expenses and keep unit-level profitability clean for future sales or financing.
Retaining Top Talent: The Hidden Driver of Growth
While financing and real estate are important, both experts agreed that people are the real foundation for scaling.
Tim shared that retention comes down to more than pay. "We connect with our team members personally—birthdays, family milestones, all of it. People don't just work for money. They want to feel part of something bigger."
Jonathan echoed that sentiment: "Whether it’s your employees or your accounting team, you need people around you who know the industry and who care about the outcome."
Key Takeaways for Restaurant Operators and Franchisees
Final Thoughts
Franchising can be a powerful vehicle for entrepreneurial success—but only when approached with intention, structure, and heart. As Lauren Fernandez reminded participants, "Buying into a franchise is a long-term commitment—often longer than the average American marriage."
The right financial practices, operational planning, and people strategy can make all the difference between struggle and sustainable success.