The franchised concepts run by Doherty Enterprises range from giants like Applebee’s to relative newcomers like Noodles & Company, but they had to sport similar traits to end up in the fold. Here are the tests Ed Doherty sets for any chain looking to become a part of his operations.
How strong is the franchisor’s management?
Doherty’s standard question: “Do I respect the CEO, the COO, the business plan?”
How do they stack up against the competition?
Are they leaders in their segment, or wannabe followers?
What’s the sales-to-investment ratio?
The correlation of development costs to projected sales is critical.
What’s the customer’s perspective?
Mathematical projections can only take you so far. Doherty says he asks himself, “Do they have a concept or brand that resonates with the public, that the guest will like?”