Every week, the headlines look shiny.

“40 new stores opening in Florida.”
“New leadership team promises a comeback.”
“Parent company rebrands to launch multi-brand platform.”

It’s exciting stuff. But headlines don’t pay your debt service, and they don’t guarantee same-store sales. Operators and investors know the truth: not every rocket reaches orbit.

The Problem With Hype

Franchisors and media love to talk about:

  • Units opened.

  • New franchise deals signed.

  • Private equity money raised.

But what actually matters? Stability and profit over time.

That’s where our Guiding Lights framework comes in.

🧭 The Pressure Test Framework

When you see hype, here’s how to pressure test it:

1. Growth vs. Stickiness
  • Hype: “100 units opened last year.”

  • Test: How many also closed? Net growth is what counts.

2. Average vs. Quartiles
  • Hype: “Average AUV = $1.6M.”

  • Test: What’s the bottom quartile doing? If it’s $700K, most operators are struggling.

3. Margin Reality
  • Hype: “Sales are growing.”

  • Test: What’s EBITDA at maturity? A $2M unit at 7% margins is weaker than a $1.5M unit at 18%.

4. Operator Stability
  • Hype: “New franchise deals are rolling in.”

  • Test: What % of operators stick around 5+ years? Churn tells the real story.

5. CapEx Cycles
  • Hype: “We’re rolling out a fresh new look.”

  • Test: How much will that remodel cost? And how often is it forced?

🔍 Case Study: Wayback Franchising’s “Hubspoke Brands”

Recently, Wayback Burgers rebranded its parent company as Wayback Franchising and announced a new platform called “Hubspoke Brands.”

Why it looks like a rocket:
  • Sounds like growth: multi-brand, bigger infrastructure, more opportunities.

  • Appeals to investors: The word “platform” typically implies scalability.

How to pressure test it:
  • Are Wayback’s core units strong and consistent across quartiles?

  • What’s their closure and transfer rate in the last 3 years?

  • Can a smaller chain truly provide the back-end support required for multiple brands, or will operators end up stretched too thin?

💡 Takeaway

Headlines are designed to pull you in. That’s marketing’s job.

But operators can’t afford BS.

The real job is to pressure test: margins, churn, quartiles, tenure, and remodel cycles. That’s how you separate rockets that burn out from systems that actually reach orbit.

👉 Get started today by analyzing any brand with our Guiding Lights principles.
And if you want the exact 21 questions real operators use, feel free to download the Free Playbook.

📋 21 Must-Ask Questions.pdf

📋 21 Must-Ask Questions.pdf

177.51 KBPDF File

Wishing you the best in cutting through the noise — and spotting the headlines that truly deserve a green light.