An Introduction to Multi-Unit Franchising

14 April 2017

Multi Unit Franchising: What is it?

When a franchisee owns and operates multiple units, typically in the same general vicinity, it is called a multi unit franchise. These multiple units are often run like a corporate house that has its eyes set on long term growth.

How Does it Help You?

This business model offers an entrepreneur an excellent way of growth, while minimising the risk of having to startup and develop a new brand from scratch. In multi unit franchising, the owner will focus more on managing multiple units instead of working on the daily operations of a single location.

Stick With One Brand

When you start expanding your franchise stores in larger numbers, managing all of them will be complex enough. Multiple brands will only add to the complexity. That’s why it is a better idea to stay with just one brand at the outset. Once you have a firm foothold in the market, you can add more brands under your multi- franchise umbrella.

Also, don’t be in a rush to add more outlets. It is always more prudent to perfect one store before setting up the next. A larger number of mediocre stores will not bring in more money than a smaller number of exceptionally well set-up multi unit franchise stores.

Risk-proofing your Business

On an interesting side note, during the last recession, several operators of single units struggled to stay afloat. However, multi-franchises in general weathered the storm and came out in a much better shape.

"Don’t put all your eggs in one basket”, says the adage. A multi-unit franchise is always a safe bet during challenging times.

Multi Franchise Popularity on the Rise

To grab the attention of franchisors, you need to show them that you are capable of buying territory sufficient for several units and building them up in a rapid manner. Although it is still a tight-knit community, there are exhibitions and conferences where you can showcase what you can bring to the table for multi-unit franchisors.

This business model is definitely receiving more attention than it used to even a few years ago, as proved by the fact that over half of the franchise units in the US are now multi franchise owners. The number is higher still for franchised restaurants, where over three quarters of all such restaurants are held by multi-unit franchisees.

For more information on the Multi Unit Franchise model, Click Here.

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