Preparation before expansion – Without documented processes, support systems, and KPIs, growth quickly becomes chaotic and unsustainable.
Consistent quality – It is better to have fewer strong units than many weak ones. Every underperforming unit damages the reputation of the entire network.
Transparency builds trust – Franchisees want a realistic picture, not a polished sales presentation. That is the only way to attract serious, long-term partners.
Focus on scalable industries – Koala Insulation proves that even less glamorous sectors (such as insulation and energy efficiency) can grow explosively when the model is designed correctly.
From Zero to 350 Units: The Explosive Growth of Koala Insulation and Lessons for Franchisors
In the “From 0 to 350: The Rapid, Explosive Growth of Koala Insulation”, Cory Lyons — CEO of Koala Insulation and a franchise industry veteran with over 20 years of experience — shares how his brand grew to more than 350 franchise units in less than four years. It is one of the fastest expansions in recent franchising history and offers valuable lessons for entrepreneurs considering how to scale their brands.
A Growth Rate That Impresses — and Raises Questions
Koala Insulation launched in 2020, at the very beginning of the global pandemic, and reached over 350 units in less than four years. This pace is almost unimaginable in traditional franchising, where growth is typically measured in dozens, not hundreds, of new locations per year. However, such rapid expansion also brings challenges: sustainability, quality control, and consistency become critical issues.
Systems Before Speed
Cory Lyons emphasizes that explosive growth would not have been possible without carefully designed systems and KPIs. Franchisees enter the business with clear metrics, precise operational procedures, and structured know-how that enable a fast and confident start. These systems include standardized processes for sales, installation, training, and marketing — reducing uncertainty and accelerating scalability.
For emerging brands, the message is clear: before even thinking about multi-unit expansion, knowledge must be codified into operational manuals, standards, and measurable success indicators.
Quality Over Quantity
Despite opening hundreds of locations, Koala Insulation was not afraid to close underperforming units. In 2022, approximately 10% of locations were shut down. Rather than seeing this as failure, the company treated it as a consolidation phase. By 2023, closures dropped to just one unit out of 326 active locations — showing that lessons were learned and the system stabilized.
This is an important reminder for any franchisor: growth at all costs can damage the entire system. It is better to grow more slowly and ensure every unit is properly supported than to chase numbers that later collapse.
Financial Transparency
One of Koala Insulation’s key strengths is openness with franchisees. The average unit generates around $717,000 in revenue, top performers exceed $3 million, while lower performers are closer to $100,000. This level of transparency builds trust because candidates see both the potential and the risks clearly.
Many franchisors hesitate to share financial performance openly, yet transparency is exactly what attracts serious investors and long-term franchise partners.
Key Lessons for Franchisors
Conclusion
Koala Insulation is proof that with the right systems, courage, and discipline, a franchise can grow rapidly even in challenging times. At the same time, their story is a reminder that the number of units is not everything — sustainability, quality, and trust must remain at the core of every franchise system.
If you are considering franchising your own brand and would like free consultation on how to build a system that enables growth while maintaining quality and profitability, feel free to contact us at [email protected].
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