Nearly all are owned and managed by franchisees. The company plans to open another 50 stores by year-end. Schlotzsky's Turnkey Program has aided a move away from strip mall stores to freestanding, upscale restaurants. Through this program, the company has developed about 40 new stores, most of which have now been sold. About 50 new properties are now in development.
Insiders still own more than a third of the stock.
Take a good franchising concept with a profitable history. Now shift it into overdrive through rapid expansion. Chances are good the franchisor will capture Wall Street's attention, and probably a Double. That doesn't necessarily mean you're looking at a good investment, but ambition counts for something. In Schlotzsky's case, ambition was also creating triple-digit growth with rising margins, which you could have spotted in the Foolish Workshop beginning in July 1996.