Lenny's, which was founded in 1998 by Len Moore, a fatherlooking for a way to pay for his daughter's college tuition, is inan explosive growth mode after being sold to Lenny's Franchisor,LLC two years ago. Heavily concentrated in the south and southeastwith 84 stores, the chain has nailed down franchisee commitmentsfor 600 new restaurants over the next five years, Knight says. Heexpects to have commitments signed by the end of the year for 1,000new units in more than 14 states.

"We wanted to take this concept national, and we think we'vedone it in a smart way," Knight tells GSR. The chain has beenselective in choosing its franchisees, assigning market developersto specific regions with the expectation that each one will developat least five stores. "We're going about our growth differentlyfrom Subway or Quizno's, which typically have franchisees with onlyone or two stores," he says. "Our ideal franchisee is a moresophisticated operator who is well capitalized."

The chain, whose claim to fame is service and personality alongwith oversized sandwiches (the regular-size sub is 7½ inches with ahalf pound of meat and cheese) that are made from hand-slicedingredients and doused with a secret sauce containing hot pepperrelish, recently opened its first stores in Las Vegas through itsmarket developer LVNR. The new franchisee plans to build 25restaurants in the Las Vegas Valley, Knight says, opening up a newregion for Lenny's. "Vegas is a big growth area and sets the stagefor our expansion in the West," he says. The chain has recentlysigned agreements for several new stores in Sacramento, Reno andLake Tahoe.