NOW LIVE: The second episode of Smart Franchising with Fransmart is now live featuring Don Fox. Listen now!

Why Franchise with Us

You may ask yourself, “Why should I franchise with Fransmart?” We give you the tools, the tactics, and a strong portfolio of brands when making your franchise investment.

How to Buy a Franchise

Fransmart’s proven 10 Steps to Franchise Ownership is the perfect how to guide for entrepreneurs looking to build wealth through franchising.

Franchise Investor Case Studies

Fransmart has decades of experience in pairing experienced franchisees and qualified entrepreneurs with successful franchise brands.

Coming soon

Become a Franchise Owner

Our portfolio of brands with leading concepts ripe for expansion and best-in-class unit economics.

Franchise Your Business

We are the global leader in franchise development and grow global brands better than any other franchise firm. Learn how to become one of our brands.

Capital Investments

We love investing in early stage brands! We are smart, strategic investors and are always looking for emerging, early stage brands to invest in.

Franchisee Resources

Want To Learn More About Franchising? Learn From The Experts At Fransmart. There’s no better collection of franchise resources and experts.

Apply to Franchise Your Business

We help our brands develop practical franchise development expansion plans with measurable results.

See All Franchise Opportunities

Our portfolio of brands with leading concepts ripe for expansion. Our brands have best-in-class unit economics and a large runway for growth.

About Us

We are proud to work with authentic brands who make people happy. We accelerate the growth of the brands that put smiles on people’s faces.


With decades of franchising experience, our team of franchising experts excels at giving emerging brands the tools to become a profitable franchise.


Whether you’re playing the field or already have one of our brands in mind, we are ready to put you on the right path to building franchise wealth.

Franchisee Resources

Want To Learn More About Franchising? Learn From The Experts At Fransmart. There’s no better collection of franchise resources and experts.


Smart Franchising with Fransmart Video series, where you can get the latest in our thought leadership on all franchise-related topics.


Dan Rowe, the founder and CEO of Fransmart, has grown brands to more than 100 locations. No one knows more about franchise growth than him.

See All Franchise Opportunities

Our portfolio of brands with leading concepts ripe for expansion. Our brands have best-in-class unit economics and a large runway for growth.

Why Most Ghost Kitchens Will Fail in 2021

Nov 19, 2020

This year, every  franchise is grappling with decisions about . But the fact is, delivery was a priority even before the pandemic, with 78 percent of respondents in last year’s National Restaurant Association survey looking to focus on their off-premise strategy.

This year, 33 percent of customers report that they are ordering more take-out, creating a significant new revenue stream for restaurants willing to double-down on delivery.

 — professional cooking facilities created for the preparation of delivery-only meals — enable restaurants to rapidly start delivering food to their customers. These kitchens exploded in popularity this year, but the question remains, are ghost kitchens here to stay, or will they go the way of the food hall and crumble like a house of cards?

What’s in it for the restaurant?

From a value perspective, it’s easy to understand the appeal of a ghost . By cutting out the expense of front-of-house operations and dining rooms, restaurant operators can significantly reduce rent and labor costs. Delivery is also difficult for most brands to do well on their own, and facilities like DoorDash Kitchens in  already have the infrastructure and agreements in place to enable third-party delivery for their tenants.

What’s in it for the ghost kitchen?

The most successful ghost kitchens, typically operated by a separate parent company, use their own staff of delivery drivers and offer a variety of cuisine from a single location. These companies operate several of their own proprietary food brands out of their ghost kitchens (i.e., a generic Mexican, Chinese or burger concept).

Customers typically aren’t familiar with the generic ghost kitchen brands, and consumer behavior trends confirm that younger customers prefer brands with a soul and a strong reputation. A significant 90 percent of millennials say authenticity is important when choosing which brands to support. To solve their credibility problem and keep their generic brands afloat, ghost kitchen companies are choosing to lease some of their space to well-known brands with existing, loyal customer bases.

The bottom line

On the surface, ghost kitchens are a win-win. Fast-growing, popular restaurant concepts can quickly ramp up delivery, and ghost kitchens can boost their credibility and, by extension, visibility and sales for their generic brands. However, a closer look reveals that the benefits are one-sided.

As soon as a ghost kitchen brings a franchise  on board, they are looking for an exit strategy. Ghost kitchens will only pay fees and royalties to a brand long enough to get market share. As soon as they do, they bring everything back in-house to sell their own proprietary brands.

Ghost kitchens need the street cred of an established brand but fail to offer enough upside. Third-party delivery fees add up quickly, limiting a brand’s ROI and stifling its growth. A recent New York Times report found that the base fees large delivery services charge small restaurants can add up to 20-30 percent of each order. For concepts already operating with razor-thin margins, the juice isn’t worth the squeeze.

What’s next?

Ghost kitchens will likely follow the 80/20 rule. Eighty percent will fail, and 20 percent will succeed — but only those that enlist a brand with a soul to join their facility. There will be too many ghost kitchens — and too many without a reputation backing them — to make it.

For franchisors, leasing space in a ghost kitchen is a short-term solution to a long-term problem. Delivery will still be a priority in a post-Covid world, so restaurants should avoid third-party ghost kitchens and instead consider investing in their own off-premise operations.

Tech-forward brand Wow Bao is leading the pack with their delivery strategy. They adopted an off-premise platform allowing other restaurants to sell their product through third-party delivery — essentially transforming any kitchen into a ghost kitchen. Wow Bao’s new model offers a significant opportunity for restaurants to create a new revenue stream and easily diversify their offerings.

By investing in their own ghost kitchen or off-premise platform, franchisors can get the best of all worlds — a strong delivery operation, the opportunity to strengthen their brand reputation and the best possible ROI.

Your Franchise Journey Starts Here

Whether you’re just starting out or already know the right brand for you – you’ve come to the right place. Fransmart helps franchisees use the power of compounded returns to own and operate multiple franchise locations throughout your desired market to grow franchise wealth.