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- 💡 Want to Scale? Steal This Strategy
💡 Want to Scale? Steal This Strategy
Power moves a solopreneur used to build a multi-brand empire
Alex Smereczniak
July 23, 2025
Welcome to the Franzy Five — your 5-minute fix on what’s moving in the franchise world.
This week we are talking about scaling. Every multi-unit operator we talk to is chasing the same thing: smart, scalable growth. This week, Kal Gullapalli shares how he went from 2 units to 100+, and the exact playbook behind his rise, from brand selection to team building.
In this edition, we also cover:
🛑 Massive convenience store merger falls through
🔥 Dickey’s gets grilled in a new lawsuit
🥤 MilkShake Factory hits 100 units sold
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🚀 Franzy Insights: A Solopreneur Reveals His Secrets to Scaling Up
We had Kal Gullapalli on the pod to share how he scaled from 2 Orange Theory studios to 140 units across top brands like Dave’s Hot Chicken, PopUp Bagels, and Marco’s Pizza — and the lessons he learned on picking winners, structuring deals, and building for scale.
📊 Here’s the deal:
Kal’s franchise journey began with two Orange Theory studios — but after seeing what the top players were doing, he sold in 2019 and decided to go big.
His playbook starts with talking to 10–15 franchisees per brand to validate the model, dig into P&Ls, and understand location dynamics.
The best brands? Kal says they’re obsessed with franchisee profitability and transparent about how decisions impact the bottom line.
His growth only accelerated once he built a team designed to scale — from new unit opening crews to brand-specific ops leaders.
🔍 Our Take:
Kal didn’t start out trying to build a 100+ unit empire — the spark came when he sold his first two Orange Theory studios and saw what the largest franchisee was doing. “If he can do it, I can do it.” That moment flipped the switch. From there, Kal went all in, but he didn’t scale blindly. He validated every brand through 10–15 franchisee conversations, dug into real P&Ls, and only backed franchisors who were maniacally focused on franchisee profitability. And when it came time to grow, he didn’t just add units; he built an ops team designed for scale. The lesson? Big growth starts with big thinking, but it’s executed through discipline, data, and people.
🛑 7-Eleven Merger Collapses — Now What?
Summary:
Canadian retailer Couche-Tard has withdrawn its $47B offer to acquire Seven & i Holdings, the Japanese owner of 7-Eleven.
After months of stalled talks and public finger-pointing, Couche-Tard cited a lack of “constructive engagement” from Seven & i’s board.
The deal’s collapse ends a potential merger between 7-Eleven and Circle K, which together operate over 15,000 U.S. stores.
Seven & i must now convince investors it can grow without outside help — especially with plans to spin off its U.S. business by 2026.
Our take:
This was more than a failed acquisition — it was a rare peek into the global chess game behind some of franchising’s biggest brands. Seven & i kept control of its crown jewel, but now it has to prove it can unlock value on its own. For franchisees, the takeaway is this: 7-Eleven’s U.S. business is still the core growth engine, and a public listing could bring more capital, more pressure — and more opportunity.
🍦 MilkShake Factory Is Stirring Up Franchising
Summary:
MilkShake Factory has sold over 100 units, with new locations opening across 15+ states.
Franchisees rave about the brand’s culture, streamlined model, and hands-on support from the corporate team.
REP’M Group’s full-service approach has helped accelerate buildouts and successful launches.
Our take:
MilkShake Factory is exactly the kind of brand we get excited about — clear values, a killer product, and a franchise system built for scale. When I interviewed franchisee Jon Bahr on our podcast, his confidence in the brand was obvious. That kind of belief doesn’t come from hype, it comes from support that actually shows up. For buyers, this is the blueprint: find brands that treat you like a partner, not just a check.
🍖 Dickey’s Getting Roasted by a Franchisee
Summary:
A Dickey’s Barbecue Pit franchisee is suing the brand over a failed restaurant build-out and alleged contractor misconduct.
The lawsuit claims Dickey’s approved the contractor who abandoned the project, costing the franchisee hundreds of thousands.
Dickey’s denies involvement, asserting the franchisee independently chose the contractor and lender.
Our take:
Franchise brands aren’t just selling food or services — they’re selling a system. Legal disputes like this are a sharp reminder that due diligence matters. At Franzy, we tell every buyer: don’t skip the fine print. Talk to other franchisees, ask the tough questions, and really dig into the FDD. Not sure where to start? Check out our guide on how to read an FDD — it breaks down the biggest red flags to watch for before you sign.