Serial Franchisees - These Partners Buy ‘Em, Build ‘Em, And Sell ‘Em

Area Developer:

Hank Huth didn’t set out to be in franchising. As a matter of fact, he was a banker. But in the mid-1980s, he was introduced to some executives at then-emerging Blockbuster Video and decided to ‘take a leap of faith’ and give franchising a try. He called on his high school buddy Tim Nolan, who had managed some McDonald’s franchises, to be his partner.

The relationship has blossomed, and Huth and Nolan have now overseen the development and growth of 5 different franchise concepts over the past 20 years. At one point, that meant 60 Blockbuster Video franchises in Connecticut, New Jersey, and New York.

‘All of our locations have always been within a 100-mile radius of downtown Manhattan,’ says the 49-year-old Huth. They still adhere to that strategy today.

In 1993, Huth became the very first Boston Chicken franchisee, building 75 units before selling them back to the franchisor in 1996. In 1997, he opened his first Einstein Bros Bagels, building that group up to 40 stores before selling. He tried his hand at Corners Custom Framing in 1999, reaching 40 units before selling back in 2001. His company then concentrated on its Blockbuster stores until signing on with Palm Beach Tan in 2005. Today, Huth has 7 Palm Beach Tan stores, 3 more in construction, and a plan to open another 15 to 20 during 2007.

‘We’re real estate guys,’ says Huth. ‘In our market, good locations are hard to find. The market here is built up, crowded, and real estate is stagnant, so we have to work hard and be savvy at finding good sites.’ But as their track record shows, they know the area and how to make it work, regardless of the concept.

Huth says one of his philosophies is to ‘build for cost and sell for cash flow.’ That explains his system of building chains to critical mass and then selling them. ‘We really try to look at getting into a new franchise every two or three years,’ he says.

But ultimately, Huth says, the company can’t succeed without good people at all levels. ‘We know that to be successful we need terrific people who share our goals and enthusiasm for this company.’ He says his people are his greatest asset, from the top on down. And he’s got plenty of long-timers to prove it.

‘Successful franchise development relies on a good brand and good people. That’s what we try to emphasize inside our organization.’