QSR magazine in May unveiled its first Franchisee Advisory Group. This newly formed board will help us direct content and tackle some of the franchise industry’s most-pressing issues. Importantly, it’s all going to come from the perspective of the operator. In the weeks ahead, we’ll introduce you to the members, what got them into franchising, their thoughts on what makes a great franchisor, and more.

Up first is Ryan O’Malley. O’Malley’s restaurant career began in 2007 at Wendy’s of Bowling Green, where he held roles from GM to district manager to director of operations. In 2021, he made the leap to Wendy’s franchisee. Today, O’Malley and his partners operate 137 locations across five states (Indiana, Kentucky, West Virginia, Tennessee, and Alabama). 

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He represents Wendy’s franchisees as a member of the Board of Directors for Wendy’s Franchise Association and is President of the Louisville Franchisee DMA.

Let’s start with some background. How long have you been in franchising? And what got you into the space? 

I have been in franchising for 18 years with the Wendy’s brand. I got into franchising as a second-generation franchisee. The majority of my life I have been exposed to the franchise model and its benefits. 

What led you to Wendy’s. 

Their focus on quality of food is an important attribute. Wendy’s allows their franchisee to own the land they operate on which is a differentiator among other brands. I believe Wendy’s has a strong culture. The brand helps to establish the culture, but the franchise community makes it real. 

From your perspective as a franchisee, what are some of the most valuable qualities of a good franchisor? What do some get right and some get wrong?

The brand needs to be a good partner with the franchisees. Listening is important to understand what is happening in the franchise community. The brand sometimes has competing priorities but should focus on wins shared by both parties. They must hold franchisees to a high standard but also be realistic about what is asked.

The brand sets the standards but sometimes the franchisor can make mistakes. Growth is important but growing too fast can damage the brand. Is the brand ready for that growth and can the operations handle it? Adding franchisees into the system that have lots of money but little to no operational skills can be a mistake. Franchisees join a brand because they have created a proven method. When the brand starts to come up with too many wild initiatives that can be a mistake. If the brand operates restaurants within their system those stores should be the best example of how to operate. Brands poorly running their restaurants give bad excuses to their franchisees. 

If you were offering advice to a franchisee, one store in, who was looking to expand, what would you tell them?

Make sure you are an expert operating your restaurant. If your operations are solid how healthy is your cash flow? Can you afford this expansion without hurting your current business? Do you have an operations team that can help support your future growth? The locations you select and grow in are as important as your operations. Picking a bad location can challenge your business even if you operate great. If you decide to expand, be confident you will succeed. You can do it. 

There are a lot of challenges facing the franchising sector today. But if you had to pick one, what’s been most pressing on your mind of late?

Inflation and the economic pressures of the consumer. America’s consumer sentiment is at one of its lowest points currently. Consumers have always spent around 5 percent of their income on food away from home. They are much more selective about where that 5 percent is going. 

What’s your outlook for the industry for 2025?

Brands are going to focus on improving the quality of their food and the service they provide.  They must do this to outcompete their competition and gain back market share. Challenging times may be ahead so improving their business is a must.

Fast Food, Franchising, Story, Wendy's