Multi-Unit Franchising

3 Reasons Why Multi-Unit Franchising Makes Sense

Go big or go home. That adage applies to many life situations, especially multi-unit franchising. Find out how “going big” by opting for multiple franchise units versus single-unit ownership actually fosters more stability and success.

What is Multi-Unit Franchising?

Just like its name implies, multi-unit franchising is when you as the franchisee operate more than one unit within a defined territory. In fact, according to June 2019 FRANdata statistics, this model is taking the franchise industry by storm as more than half of all U.S. franchisees now own multiple units.

Why Multiple is Better Than the Single Unit Model

There are three main reasons why multi-unit is a wiser franchise ownership option than being a single-unit operator:

1. More stable, more profitable. There is actually more risk associated with opening a single unit. Say you own a single restaurant and it’s been doing well, but a 9-month construction project is happening on your road. That scenario could wipe you out before the new road is in. Sure, the initial investment and risk associated with opening multiple franchise units is greater, but the end-result is a more diversified mix of units where revenue can fluctuate yet the bottom line is still more profitable.
2. An experience and staffing advantage. Whether you have a built-in knowledge base because you previously owned a franchise or you’ve received significant support from the franchisor, you have a definite advantage as a multi-unit owner. Previously owning an independent business or franchise also makes you savvy at staffing the right people who will help take you to the next level. Franchisors also benefit from selling multiple versus single units—with fewer owners, these companies can better focus on the services and training you need to succeed.
3. Vendor and volume perks. The more units you own, the more opportunities you have in the vendor arena. With multiple units, you’re more apt to meet a vendor’s minimum order requirements that couldn’t be met with just a single unit. Owning more units means you may also qualify for wholesale discounts and reduced administrative fees.

Despite these three benefits, remember that multi-unit franchise ownership is not an “overnight success” endeavor. It’s more of a long-term strategy you should grow conservatively and wisely. Work with us at Fulcrum and take time to gain the knowledge you need to grow your business as a CEO-level leader with a talented team managing your units’ operations.

One Source for Multi-Unit Ownership: Fulcrum Franchise Development

At Fulcrum Franchise Development, we’ve helped several professionals like you find multi-unit success. Learn more about our available franchises, then call 920.342.8239 or email us to set up a complimentary consultation.