What’s it like to start and run a franchise business?

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Whether they are launching a multi-unit enterprise based on their own brands or teaming up with a more established operation, New Jerseyans are finding success through franchising. Of the 33.2 million small businesses in the U.S., roughly 851,000 operate as a fully or partially franchised venture. In 2024, franchised establishments generated $896.9 billion and employed more than 9 million people nationwide, according to the International Franchise Association.

Food service – an area that encompasses both fast food and fast casual – are the largest segment within the franchising industry. Other top categories include retail food, products and services; business services; personal services and commercial/residential services.

NJBIZ recently chatted with several local entrepreneurs who are involved at various levels of a franchise business on the ups and downs of their experiences.

Tony Boys Sandwich House

While the percentage of franchised ventures has slightly declined over the past decade, it remains a popular way for small companies to expand. According to Entrepreneur magazine, an average of 300 businesses begin offering franchise opportunities to potential investors annually.

For example, New Jersey-born Tony Boys Sandwich House is in the midst of a growth spurt via its franchising program. Founded in 2017 by Anthony Marra Jr. as a small sandwich shop in Livingston, the eatery boasts a large menu of sandwiches and salads crafted with premium ingredients.

Along with its signature chicken cutlets and eggplant cutlets, Tony Boys is becoming popular for its unique items. Standout offerings include the Nutty Pig (chicken or eggplant cutlet with warm peanut butter sauce, bacon and jelly) and the Tony Boloney (fried bologna, melted American cheese, lettuce, tomato and mayonnaise).

Marra, who grew up in the restaurant business, created the store with the goal of “redefining the sandwich experience.”

“I wanted to be different and offer things that were fun, interesting and unique, while also taking classic sub-shop staples and making them the way I like to eat them,” he said.

Six years ago, Marra teamed up with Philadelphia-based hospitality group MBB Management to develop a franchise system. Since then, three new Tony Boys locations have opened – Madison, Montville and Montclair.

With a focus on smart, sustainable growth, Marra said he’ll be happy if, 10 years from now, there are 10 stores in New Jersey “with solid business owners.”

That’s a far cry from where Marra was back in 2012, when he had his own full-service Italian restaurant in Livingston. During his first two years, the owner of the Mount Pleasant Avenue shopping plaza where Anthony Marra’s Restaurant & Pizzeria was located approached Marra a few times about coming up with a concept for a vacant space a few doors down.

“And I kind of just kept putting him off. I had enough going on with the restaurant. And then another couple years went by and I eventually told them ‘You know what? I’m going to try a little sandwich place here.’ It was a small space with small rent. So, I figured I don’t have to really do crazy business just to make a couple dollars,” he said.

His plan was to open the sandwich shop during the day, close by 4 p.m. and then open the restaurant by 5 p.m. for dinner, sharing staff between the two locations.

As the sandwiches became more popular, Marra reevaluated his full-service establishment, saying, “It takes a lot out of your life – your personal life, family life, social life, everything.”

“I was pretty much never home at night,” said Marra, noting at the time he and his wife just had their first child.

“When I was in high school, I always said, ‘I want to have an Italian deli or a sandwich shop or catering.’ I never really said ‘I want to open a restaurant.’ It’s just the way things went for me with the opportunities and everything. And it really was lucrative. It was a great restaurant. We were making money, the business was great, but it was taking away from my life,” he said. “I was really looking at that point for a way out of the restaurant. COVID kind of forced me to think a different way.”

After the pandemic hit and most restaurants pivoted to delivery, the sandwich shop became even busier since it already had an established way to get customers their orders at home. Marra then decided to close the restaurant after nine years in business. He also relocated the sandwich shop to his full-service space because it had a bigger kitchen and more storage.

As for franchising, the idea didn’t come up until after a former IT worker who was laid off began working the counter and fell in love with the business. From there, they began discussing the idea of him opening a store in Madison.

“There wasn’t really a thought of a franchise yet – but we were going in that direction,” Marra said.

He went on to note that the move was made even easier by the fact that Tony Boys menu of “simple and fresh” was “already set up for a franchise without me even thinking about that route.”

Once a framework was in place, it paved the way for Tony Boys to open its first-ever franchised outpost in January 2020.

“The Madison location was someone that I had a history with, so it was in a way easier for them to put trust in me. But with these other stores, it’s a different feeling when you have somebody just really putting faith into you and your brand, especially when you don’t have much to show them,” he said. “It’s easier when you’re somebody that has a hundred stores and can say ‘look what we can do for you.’”

“It’s really exciting and scary. You want to make sure you’re during everything you can to help them and watch them grow,” Marra explained. “The hardest part about these businesses – any business really – is growing it. No one’s going to be lining up when you open. It takes a while, and you’ve got to build it. And the reason why I went to franchise route is I can’t physically be in four stores.”

Marra said his focus remains on making sure infrastructure is in place to support continued growth.

“It’s a learning curve for me too, because obviously it’s the first time I did this, so there’s a lot to it and I want to make sure it’s done right. And the last thing I want to do is put something in one of the stores that’s not right for them,” he said.

“For example, right now we do certain things, like our vodka sauce and our chicken parm sauce out of our Livingston location and getting distributors to distribute it to other stores. But at some point – if I had, say, 50 stores – I can’t obviously do it all. I would need a manufacturer. So, we’re in the process now … of basically just getting everything to make sure we’re all on the same consistency levels,” he said.

Marra admitted he likes the slower pace because it means he can give his full attention to the existing locations – especially Montclair.

“What I like to pride myself on is that I’m the guy you’re calling and I’m there for you. And it’s going to be like that for the foreseeable future because I’m right around the corner,” he said.

While Marra has fielded interest about setting up shop in faraway states like Florida, he isn’t quite ready to do it yet. Without the necessary systems in place, he believes it wouldn’t be fair to owner-operators.

“I’m not trying to be a Dunkin’ Donuts where I’m everywhere. I’m more focused on keeping the brand consistent where I want it to be and having good owner-operators in the stores,” Marra said. “It’s more important for me to have a good person in a store running it the proper way and representing the brand in a positive way. My success really is determined by their success.”

When it comes to local competition, Marra said, “If I go to a place and I see that there’s a Jersey Mike’s and Five Guys, they’re there for a reason – they know what business is in the area.”

It’s more important for me to have a good person in a store running it the proper way and representing the brand in a positive way. My success really is determined by their success.
– Anthony Marra Jr., Tony Boys Sandwich House founder

“No one’s going to eat my food every day. I don’t expect people to eat my food every day, but they’re certainly not going to eat my competition’s food every day either. So, if it’s dense enough and there’s enough business there, I think they’re going to go everywhere. And especially if you could offer that variety, you’re going to get them a little more maybe than someone else,” he said.

According to its website, Tony Boys’ initial franchise fee is $30,000 with an overall average estimated initial investment of $75,000 to $195,000.

McDonald’s

For many entrepreneurs, investing in or purchasing a franchise may come with less risk than starting a business from scratch. Because it provides the security of an established business model and corporate support, it is often a popular choice.

The most famous and lucrative U.S.-based franchise is undoubtedly McDonald’s. In 2024, McDonald’s reported over $130 billion in global systemwide sales across its 38,000 locations. Approximately 93% of those restaurants are owned and operated by independent local business owners.

To become a franchisee, the company has extensive requirements, including a minimum of $500,000 in unencumbered liquid assets, the ability to pay a $45,000 fee to the franchisor and at least $100,000 of working capital for each restaurant purchased. McDonald’s estimates that the overall initial investment to acquire one of its franchises ranges from $1 million to $2.2 million.

There’s also a training program that can take up to two years to complete on all aspects of owning and operating a McDonald’s, including running a restaurant, employee recruitment and development, maximizing performance and growing the business.

In New Jersey, a large franchise group for McDonald’s is the Gillis Organization, a family-operated business that runs 15 locations across the state. Julio Morgan Gillis, a second-generation McDonald’s operator, and his mother, Marty Gillis, also have six restaurants in the Upstate New York market. Altogether, the Gillis Organization’s workforce totals more than 1,200 employees.

Julio Gillis began his journey with McDonald’s in 1997 at the age of 15, working in his mother’s first location in Neptune. After earning a bachelor’s degree in computer science information systems from Stockton University, Gillis went on to work with the state’s Division of Gaming Enforcement and New Jersey Casino Control Commission.

Following eight years in the casino gaming industry, Gillis realized it wasn’t his true calling. Instead, he wanted to follow in his mother’s footsteps and become part of the McDonald’s franchise system. Ahead of his exit, Gillis earned an MBA in business administration and began taking courses through McDonald’s entrepreneurship programs to develop the skill set needed to be a future owner-operator.

In 2012, Gillis left his job, joined the family business on a full-time basis and began as general manager of the same restaurant he worked at while he was a teenager. Six years later, he was accepted into the McDonald’s Next Generation program, which helps children of franchisees learn how to grow their parents’ businesses.

“When I first decided I was coming on board, my mom told me ‘You don’t know how to run a store, so you’re going to go in and be general manager and learn this business. And you’re going to be general manager until you develop someone to replace you,’” he recalled.

“I’ve kept that philosophy with me as we’ve gone from five to 22 locations. It is truly the development and growth of our people that allows us to have the expansion that we’ve had in place,” Gillis said. “We really try to emphasize to the employees that work for us that this is more than just a job. This can be a career and a very fruitful career. Our focus on development and people really is what we’ve been able to leverage.”

Gillis believes McDonald’s continues to be one of the top franchises because of its “best in class” system.

“They’ve shown that time and time again … They view it really as a joint venture between the franchisor, franchisee and the supplier,” he said. “There have been others that have tried, but they just haven’t been able to duplicate the same success that McDonald’s has. And I think that the track record has shown why the Golden Arches is No. 1 when it comes to the franchising model.”

As for consumers, Gillis believes McDonald’s remains a beloved destination because of its ability to reinvent itself “time and time again.”

“I think that’s always been what McDonald’s secret sauce with the consumers is — we know what they want and we can do it and execute it better than our competitors,” he said. “While it is McDonald’s brand, it’s the owner-operators who are the ones who run 95% of the restaurants in the system. And, while the brand is shining bright, it’s the operators who are the face of the community. And I think we all – and I can say that in our organization – enjoy that.”

As chief operating officer of the Gillis Organization, he is responsible for developing and executing the company’s strategic plan for growth in sales, guest counts and profitability. Gillis also prides himself on the company’s people-first culture, which invests in employees and gives back to communities where they do business.

“I loved working for the Division of Gaming Enforcement and Casino Control Commission, but it was just a lot of routine, mundane work,” he said. “There wasn’t a lot of excitement. And I feel like in this business, or anyone who’s running the business, you have to really love it. And I do. I love this. And part of the reason why I love [it is] every day there’s a new challenge in front of me. And when I say challenge, that doesn’t necessarily mean it has a negative connotation to it, but there’s always something that is in front of me that I have to solve or work with the people that are in my organization,” said Gillis.

“Some of the challenges are easy and some aren’t as easy. But I believe that being trained by my mom, as well as the tools McDonald’s has provided me, has allowed me to face these challenges head on,” the husband and father of two added.

The company recently celebrated the grand opening of its newest location – a new 24-hour McDonald’s at Rutgers Plaza in Somerset. The 4,500-square-foot restaurant with double drive-thru lanes was developed on a site formerly occupied by Burger King.

The Little Gym

According to a recent study by small business financing firm Guidant Financial, there is a growing trend among women toward franchise ownership. In 2024, female entrepreneurs accounted for 39% of new franchise locations that opened while an additional 9% of women business owners invested in existing franchise sites, the report said.

Along with a structured model, brand recognition, support and marketing resource access, franchising gives business owners a wide range of industries to get involved in, like fitness- or beauty-related concepts, sports & recreation, travel & hospitality, health care and food. Compared to their male counterparts, women from Generation X and Generation Y are particularly interested in ownership of franchises — especially those aligned with their passions and values, according to Franchise Insights. After launching their businesses, female franchisees are also outperforming men in several areas, including employee satisfaction and work-life balance, Franchise Business Review found.

However, launching a franchise – like any business – involves hard work and risk. That’s what Danielle Sporcic learned when she and her husband, Timothy, opened their first location of The Little Gym in Jersey City six years ago. After growing the Newark Avenue center to become one of the system’s top revenue-generators in the country, the couple recently opened their second gym in Florham Park in partnership with the longtime director of The Little Gym’s Montclair site. Between the two facilities, they employ about 40 to 50 workers and serve hundreds of local families, she said.

With 400 locations across 31 countries, The Little Gym is an enrichment and physical development center for children ages 4 months through 12 years old. The Unleashed Brands-owned concept’s three-dimensional curriculum includes physical activities, cognitive skills, and social and emotional learning all aimed at creating opportunities for kids to build self-confidence and achieve.

According to its website, The Little Gym’s initial franchise fee is $59,500 with an estimated start-up cost range of $506,197 to $673,197.

After graduating from New York Law School, Sporcic began a career in Manhattan in the securities industry. However, after becoming pregnant and giving birth to her son in 2018, Sporcic’s perspective dramatically shifted.

“I loved my job, I enjoyed what I was doing. And then my son was born in 2017, and it really changed everything. I had never considered being a stay-at-home mom, and that wasn’t really an option at the time either. But I knew that I couldn’t go back to an office environment. I wanted to have flexibility and to be able to spend time with him,” she said.

While on maternity leave, Sporcic had an epiphany during a Mommy & Me class she attended with her son.

“I couldn’t believe how many people were participating in this class on a Wednesday morning. And I was like, ‘Wow, this is so fun. I could totally see myself doing this,’” she said.

While she didn’t have any formal background in child care, Sporcic reached out to a former classmate from high school whose parents own The Little Gym location in Wayne to learn more about the world of child-service oriented franchises.

“And they welcomed me with open arms. They were so helpful. My son started taking their classes and I really fell in love with the curriculum and just the mission and philosophy of The Little Gym,” she said. “It turned out that the territory where I lived – which was Jersey City at the time – was available. So, it was honestly perfect. I never went back to work after having my son. We just immediately started the process of opening up the gym, and it did take a while. It took us 18 months from the time we bought the franchise.”

Sporcic said she was drawn to The Little Gym brand because it’s “not a play place or somewhere your child goes because you have nothing else to do.”

“We have an amazing curriculum that’s designed to help your child become well-rounded and focused on physical, social and cognitive skills,” she said. “And it’s disguised as fun. All the skills that the kids are learning are tied to milestones that the American Academy of Pediatrics sets out.”

Sporcic credits The Little Gym’s support system and other franchisees for helping her learn the ins and outs of ownership. She also made a point of teaching classes at every single age group “to become an expert by doing it so I could train my team.”

Make sure that you’re passionate about what you’re going to be selling. I think that’s a make-or-break.
– Danielle Sporcic, The Little Gym franchisee, offers advice to others considering franchise ownership

“And I really feel that by studying the curriculum, you learn so much. And it helped me become a better mother too, because I knew how to help my son get a leg up and how to help him reach his milestones,” she said.

In addition to their 7-year-old son, Sporcic also has a 4-year-old daughter. And her husband is getting ready to leave his job at American Express to handle their business’s financials full-time, she said. “He also wanted the freedom of not just being tied down to corporate America. And so, it’s risky, obviously, because it’s been great that he’s had his solid job, and he’s really enjoyed that too. But we really need him, too,” she said.

As for advice for others who are considering franchise ownership, Sporcic said, “Make sure that you’re passionate about what you’re going to be selling. I think that’s a make-or-break. If you feel passionate about what you’re doing, failure is not an option because you’re going to be so good at what you do that you’re going to succeed.

“You also have to do your research if you really want to understand your territory. You want to make sure you have a territory that is viable and that your franchisor is helping you protect your territory so that someone else can’t come in. You don’t want it like Dunkin’ Donuts where they’re on every block,” she said.