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Franchise Exploration

Why You Should Invest in Multi-Unit Franchising

Since the beginning of franchising, single-unit franchises have been the bread and butter of the franchising industry. However; in recent years, multi-unit franchising has quickly risen in the ranks as the most popular franchising opportunity. To date, multi-unit franchises account for 53 percent of the 450,000 franchise units in the U.S. and it doesn’t show signs of stopping.

You might be wondering if you should invest in multi-unit franchising, and the answer is yes! Let’s go over a few reasons why.


It Offers Stability

While a multi-unit franchise requires a higher investment upfront than a single-unit franchise does, but it also provides more stability and an even higher chance of success. In fact, some companies and entrepreneurs like multi-unit franchises as a means to protect and grow their wealth. One of those reasons is that your franchise’s success does not rest on one location, instead, it’s based on the overall success of your multiple locations.


Lowers Expenses

With multiple locations comes an increased need for supplies, equipment, and ingredients. A benefit to owning a multi-unit franchise is that you often get deals from vendors and suppliers on must-need items when you buy in bulk. This can save you significant amounts of money over time, especially if you notice patterns and can predict what you’ll run out of and when.

Marketing is also cheaper when you have a multi-unit franchise versus a single-unit franchise. For the cost of a single-unit ad, you can run radio, print, and web ads that point customers to all of your locations instead of just one.


Your Area is Protected

When you sign on to become a multi-unit franchisee, two of the papers you have to sign are an individual franchise agreement and an area developer agreement. The latter document outlines the number of units you agree to open, in what time span, and in what specific area.

What makes this a reason you should invest in multi-unit franchising is that it protects the territory you’ve agreed upon from being taken by other franchisees or another business. That is if you hold up your end of the bargain and stick to the agreed-upon plan. If not, the territory opens up to other franchisees.


Helps You Establish a Stronger Brand

We all know the saying that there’s strength in numbers. Owning multiple franchises with the same brand enables you to establish a presence in your community, helps customers associate good things with your brand, and effectively grows your customer base.

It can also increase your influence and presence within the franchise system. If your locations are successful, your franchisors will take greater notice of your feedback and needs and may even ask you to be a resource to other franchisees in the system.


You Can Diversify

When you envision what a multi-unit franchise looks like, chances are you’re thinking about multiple locations of the same brand (for example, three Taco Bell locations). And while that’s an option should you desire it, multi-unit franchising opens the door to mixing and matching franchising types and categories. You can own two laundromats and an automotive franchise.


Been There, Done That

Not every franchisee starts off as a multi-unit owner. Some start as single-unit owners and graduate to multiple units. These owners have an advantage and a greater likelihood of success because they’ve long experienced the trial and error that comes with owning a franchise and can apply their knowledge to their newest venture.


More Career Opportunities

If you’re one who loves to help others grow in their careers, then multi-unit franchising offers an excellent way to invest in your employees’ talent and career growth. Different franchises provide different ways to find personal success. If an employee has a specific career goal in mind, they can work at any of your franchises to achieve it. Plus, multiple locations also give your employees the chance to work closer to home if there’s a better location.




Hundred Acre Consulting

Multi-unit franchising is a promising business venture for newcomers and veteran business owners alike. With so many franchise options, it may be hard to decide which ones are best for you. That’s where our team at Hundred Acre Consulting comes in. Not only can we help you find the perfect franchise for you, but we can guide you through every step of your journey.

Are you interested in learning more about multi-unit franchising or our services? Contact us today!