Owl's Edge

How to Master Franchise Unit Economics Before You Scale with Todd Recknagel

What happens when a rapid expansion leads to a $100,000 loss in your first year? For Todd Recknagel, that was the moment he truly became a franchisee. Instead of selling a struggling business, he leaned into the "operational trenches," fixed the foundation, and turned a setback into a springboard for a massive career as both a brand leader and investor.  In this episode of The Owl’s Edge, host Susan Black-Beth sits down with Todd to break down the mechanics of "the developer model" and why scaling too fast is the most common trap in franchising. Todd shares the specific, high-stakes lessons he learned while managing three Blimpie locations—insights that now guide his multi-million dollar investments at 320 Capital Group. Together, they dive into the "sandwich shop math" that every leader needs to master: managing labor hours, theoretical vs. actual inventory costs, and why you must have healthy unit economics before you even think about the next location. This is a conversation about the grit required to move from an operator with a job to a leader with a legacy. KEY STRATEGIC TAKEAWAYS  * The "Fixer" Mindset: Why deciding to solve an operational problem rather than exiting is the ultimate turning point for any entrepreneur. * The Unit Economics Rule: Scaling a sick unit only creates a sick system. Todd explains why your first three locations must be profitable and stable before moving into the developer model. * Managing the Margins: A deep dive into the two largest levers in a franchise—labor efficiency and inventory control. If you can’t manage a food cost percentage, you can’t manage a brand. * The Developer Model vs. The Operator Model: Understanding who this model is for (those who want to build systems) and why it works (leverage and professional management). * PE with a Soul: Advice for Private Equity groups on why respecting the unit-level reality is the only way to ensure a successful exit. ACTIONABLE INSIGHTS FOR OPERATORS  * Audit Your Hours: Look at labor not just as a cost, but as an efficiency metric. Are you overstaffed during lulls or understaffed during peaks? * Master the First Three: Focus on making your first three units bulletproof before looking at your next territory. ACTIONABLE INSIGHTS FOR INVESTORS  * Look at the Trenches: When evaluating a franchise investment, look past the high-level EBITDA and examine the unit-level labor and inventory management. * The Operator’s Advantage: Prioritize partnerships with leaders who have "operator's soul"—those who have felt the weight of a personal guarantee and understand the daily reality of the staff. GUEST BIO Todd Recknagel is a seasoned entrepreneur, CEO, and investor with over 30 years of experience in the franchising sector. After starting as a multi-unit Blimpie franchisee, Todd ascended to the franchisor side as CEO of Mr. Handyman, and has since partnered with premier private equity groups as a co-investor. Today, as a Managing Partner at 320 Capital Group, Todd utilizes his "front-line" experience to invest in middle-market franchise companies. He currently serves on the boards of PCRK Group (Massage Envy), Salon Freedom (Sola Salons), and Office Pride, where he continues to advocate for the power of healthy unit economics and strong leadership culture. Support Owl’s Edge Podcast:   Hit the subscribe button, follow the show, and leave a comment with your biggest takeaway!  If you know a franchise owner/operator or an investor who is seeking their business “Edge,”  share this episode with them today.  Show Notes: Follow Auspicious Owl Group on LinkedIn  https://www.linkedin.com/company/auspicious-owl-group/ [https://www.linkedin.com/company/auspicious-owl-group/]  Connect with Susan Black-Beth on LinkedIn https://www.linkedin.com/in/susan-e-blackbeth/ [https://www.linkedin.com/in/susan-e-blackbeth/]  Connect with Todd Recknagel https://www.three20group.com/ [https://www.three20group.com/]

Award, Don’t Sell: James Young on Building Enduring Franchise Systems

The franchisors who scale sustainably aren't the ones who sell the most units. They're the ones who adjust pace when systems and processes are starting to break. In this episode, Susan sits down with James Young, one of franchising's most quietly remarkable operators, for a conversation that pulls no punches on what actually builds an enduring franchise system and what happens when leaders stop paying attention to important signals. James has lived both sides of the franchise-growth equation. He scaled a telecom franchise to 120 units in 15 months only to watch its parent company go bankrupt. That education sent him to Spring Green Enterprises, where he eventually became president, grew the business to over $120 million in systemwide sales, and helped architect one of the cleanest family succession stories in the industry while building one of the most sophisticated marketing and data engines in home services franchising. The conversation covers what actually matters. James breaks down why unit level economics sound great in a diligence meeting but fall apart when franchisees lack the financial infrastructure to produce clean data, and why smart operators know the difference between awarding a franchise and selling one. That distinction, more than almost anything else, determines whether you're building something enduring or just collecting fees. They also dig into the role of company-owned units as sources of innovation, the dangerous gap between the promise and reality of semi-absentee ownership, and why James is watching the family office space more closely than traditional PE when it comes to franchise investing longevity.  Key Themes Why data quality matters and how it impacts growth, valuation, and decision-making The difference between selling and awarding a franchise How franchise fees and broker models can affect long-term unit success Why company-owned units are key considerations for testing and protecting the system The realities and risks behind semi-absentee ownership How thoughtful succession planning supports long-term stability FOR OPERATORS (Franchisors & Franchisees): Why focusing on awarding the right partners is the key to growth How to stay grounded in the financial realities of managing franchisees Why you want to test and refine new ideas before scaling changes FOR INVESTORS (Private Equity, Family Offices, Independent Sponsors): Why you need to look beyond surface-level metrics and understand how the data is built A key metric to evaluate growth with operator success How investing in systems with strong foundations is better that fast expansion Guest Bio: James Young is a seasoned franchise executive with decades of experience across franchise development, operations, and multi-brand leadership. He has played a key role in scaling franchise systems within the home services space, including leadership positions with Spring-Green Lawn Care and Pet Butler. Known for his practical, operator-first approach, James brings deep expertise in unit-level economics, franchise growth strategy, and building infrastructure that supports long-term success. His leadership focuses on aligning strategy with real-world execution, ensuring both franchisors and franchisees are positioned to grow sustainably. Support Owl’s Edge Podcast:   Hit the subscribe button, follow the show, and leave a comment with your biggest takeaway!  If you know a franchise owner/operator or an investor who is seeking their business “Edge,”  share this episode with them today.  Show Notes: Follow Auspicious Owl Group on LinkedIn  https://www.linkedin.com/company/auspicious-owl-group/ [https://www.linkedin.com/company/auspicious-owl-group/]  Connect with Susan Black-Beth on LinkedIn https://www.linkedin.com/in/susan-e-blackbeth/ [https://www.linkedin.com/in/susan-e-blackbeth/]  Connect with James Young https://www.linkedin.com/in/jyoungfranexec/ [https://www.linkedin.com/in/jyoungfranexec/]

Why Unit Economics are the Foundation of Franchise Growth with Jessica Wescott

What happens when you combine the discipline of a CFO with the people-first reality of franchise operations? You get a leadership style that uses data as a tool for clarity, alignment, and real profitability. In this episode, host Susan Black-Beth sits down with Stellar Service Brands CEO Jessica Wescott to talk about what it really looks like to step into the visionary seat while staying grounded in strong unit economics. Drawing from their history working together, they explore how to scale with intention, lead with clarity, and keep franchisees at the center of every decision. Jessica shares insights from her journey through brands like Fuzzy’s Taco Shop and Mooyah Burgers, Fries & Shakes, and how those experiences shaped her approach to leadership, blending analytical thinking with real empathy for operators in the field. Together, they break down how to build systems that support growth, create alignment across brands, and use data in a way that empowers people at every level. Key Themes: * Why understanding the “why” behind the numbers strengthens leadership * How a focus on unit economics drives long-term, sustainable growth * What it takes to maintain brand consistency while honoring each brand’s unique identity * How transparency with data builds trust and confidence across a franchise system For Operators (Franchisors & Franchisees): * Know your numbers and use them to guide confident decisions * Communicate the vision clearly and consistently so your team can move with you For Investors (Private Equity, Family Offices, Independent Sponsors): * Look for leaders who connect financial performance to real-world operations * Support thoughtful, well-paced growth backed by strong infrastructure  GUEST BIO Jessica Wescott is the Chief Executive Officer of Stellar Service Brands, where she leads the strategic growth and operational improvements of a multi-brand home services platform. She previously served as the company’s Chief Operating Officer and Chief Financial Officer. Prior to Stellar, Ms. Wescott built an extensive career in franchising, holding key leadership and finance roles at brands like Fuzzy's Taco Shop and Mooyah Burgers, Fries and Shakes. Support Owl’s Edge Podcast:   Hit the subscribe button, follow the show, and leave a comment with your biggest takeaway!  If you know a franchise owner/operator or an investor who is seeking their business “Edge,”  share this episode with them today.  Show Notes: Follow Auspicious Owl Group on LinkedIn  https://www.linkedin.com/company/auspicious-owl-group/ [https://www.linkedin.com/company/auspicious-owl-group/]  Connect with Susan Black-Beth on LinkedIn https://www.linkedin.com/in/susan-e-blackbeth/ [https://www.linkedin.com/in/susan-e-blackbeth/]  Connect with Jessica Wescott Jessica Wescott | LinkedIn [https://www.linkedin.com/in/jessica-wescott-50ba6663/]

07 Keys to Becoming a Successful Franchise CEO with Christina Russell

How can leaning into the human element of franchising actually lead to more disciplined growth and better investment returns? Host Susan Black-Beth welcomes her pal Christina Russell, a leader who has navigated nearly every corner of the franchise world - from multi-unit franchisee to CEO of some of the industry's most influential service brands.  Christina shares how her journey through brands like Radiance Holdings, Pure Barre, and Camp Bow Wow taught her that while smart technology is helpful, it can never replace the high-touch, relational nature of service-based franchising. Drawing from their collective decades of experience, Susan and Christina discuss the importance of risk mitigation - both in business and in life - and why the most successful leaders are those who stay grounded in their non-negotiables.  Key Themes Include: * Why a brand’s mission doesn’t matter if the unit economics don't work. * Why sitting in a room, breaking bread, and looking at KPI reports together creates a magical level of insight that Zoom calls and emails simply cannot replicate. * Understanding why private equity firms often panic in the first year and why taking a beat to right the ship is better than rushing to install a new team. * Worries, Wins, and Words: A simple, high-impact framework for executive listening that ensures leaders are hearing what is actually happening in the field. Practical Insights: For Operators (Franchisors & Franchisees) * Identify Your Non-Negotiables: Be intentional about how your time is structured so your work doesn’t suck up the moments that matter most. * Focus on Consistency: The health of a brand is found in its performance variance. Look for consistency in how units ramp up and perform across the entire system, not just the top 10%. For Investors (Private Equity, Family Offices, Independent Sponsors) * Ask About the Fails: When vetting a brand, ask what the biggest franchisee failure was. If the franchisor only blames the franchisee, it’s a red flag. * Respect the Analog Process: Encourage your executive teams to get into the field. The most important decisions roll up from the people who are actually sitting in the offices and operating the units. GUEST BIO Christina Russell is a board director and former multi-brand franchise CEO with more than 20 years of experience scaling consumer services platforms and leading private-equity-backed growth strategies. She currently serves on the board of Scenthound and the board of the International Franchise Association Foundation.  Ms. Russell was previously Co-Founder and Chief Executive Officer of Radiance Holdings, a private-equity-backed beauty and wellness platform built in partnership with PNC Riverarch and successfully sold to TSG Consumer Partners. She has also served as CEO of Sola Salon Studios and Pure Barre and as President of Camp Bow Wow. Ms. Russell holds an MBA from the University of South Florida and is a Certified Franchise Executive. Support Owl’s Edge Podcast:   Hit the subscribe button, follow the show, and leave a comment with your biggest takeaway!  If you know a franchise owner/operator or an investor who is seeking their business “Edge,”  share this episode with them today. @AuspiciousOwlGroup [https://studio.youtube.com/channel/UCIOwmcmy6in5m6au-dRHejQ]  Show Notes: Follow Auspicious Owl Group on LinkedIn  https://www.linkedin.com/company/auspicious-owl-group/ [https://www.linkedin.com/company/auspicious-owl-group/]  Connect with Susan Black-Beth on LinkedIn https://www.linkedin.com/in/susan-e-blackbeth/ [https://www.linkedin.com/in/susan-e-blackbeth/]  Connect with Christina Russell https://www.linkedin.com/in/christinakayrussell/ [https://www.linkedin.com/in/christinakayrussell/]  Learn More About IFA Foundation’s Franchise Ascension Initiative: https://pages.franchise.org/ifa-franchise-ascension-initiative/ [https://pages.franchise.org/ifa-franchise-ascension-initiative/]

06 Learn the Multi-Unit Franchise Growth Mindset with Mitch Cohen

How can a franchisee maintain the same level of quality and connection when scaling from a single location to being a multi-unit, multi-brand operator (MUMBO)?  In this episode of Owl’s Edge podcast, host Susan Black-Beth sits down with Mitch Cohen, a franchise veteran who has lived the journey from the inside for nearly forty years. From his start as a Baskin Robbins franchisee to scaling into multi-unit, multi-brand operations with brands like Dunkin’ and Jersey Mike’s, Mitch shares the hard-earned wisdom of what it takes to grow. Susan and Mitch discuss the reality of operational excellence, why the guest doesn’t care how many stores you own, and why your biggest investment must always be in your people. Key Themes Include: * Why walking the floor is the most important data point for a multi-unit operator * How to ensure the guest experience remains consistent whether you own one store or fifty * Learn the 1% difference that separates a surviving system from a thriving one * Why investment in people and training precede the desire for rapid expansion Practical Insights for Success For Operators (Franchisors & Franchisees) * Focus on Local Store Marketing: The most successful operators are those who are deeply involved in their local communities and build relationships at the neighborhood level. * Shift from Managing to Leading: You have to move from being the one doing the work to the one empowering and training others to do the work at a high level. For Investors (Private Equity, Family Offices, Independent Sponsors) * Look for Operator-Led Expertise: When evaluating a brand, seek out advisors who have lived it and understand the nuances of unit-level economics and franchisee relations. * Assess the Health of the Support System: Ensure the franchisor is reinvesting in the tools and training necessary for multi-unit operators to succeed. ABOUT MITCH COHEN: Mitch Cohen is someone who has lived the franchise journey from the inside for nearly four decades. Mitch began as a Baskin-Robbins franchisee, eventually becoming one of the first operators to scale into a multi-unit, multi-brand Dunkin’ and Baskin-Robbins franchisee in New York. Today Mitch operates Jersey Mike’s locations on Long Island, is developing Sola Salon Suites, and is a founding partner at PerforMax Franchisee Advisors, where he and his business partners support brands and franchisees in building healthier systems. Mitch serves on the board of the International Franchise Association and is the Chairman of the 2026 Multi-Unit Franchise Conference. Support Owl’s Edge Podcast:   Hit the subscribe button, follow the show, and leave a comment with your biggest takeaway!  If you know a franchise owner/operator or an investor who is seeking their business “Edge,”  share this episode with them today. @AuspiciousOwlGroup [https://studio.youtube.com/channel/UCIOwmcmy6in5m6au-dRHejQ]  Show Notes: Follow Auspicious Owl Group on LinkedIn  https://www.linkedin.com/company/auspicious-owl-group/ [https://www.linkedin.com/company/auspicious-owl-group/]  Connect with Susan Black-Beth on LinkedIn https://www.linkedin.com/in/susan-e-blackbeth/ [https://www.linkedin.com/in/susan-e-blackbeth/]  Connect with Mitch Cohen on LinkedIn Mitch Cohen | LinkedIn [https://www.linkedin.com/in/mitch-cohen-b1a84b51/]