In franchising, the expansion alternatives are countless. You could possibly purchase one unit — after which, should you succeed, you could possibly purchase a second. Then a 3rd. Then onward into the tons of and even hundreds!
The franchise trade is stuffed with individuals like that. Greater than 40% of all franchise models are owned by multi-unit franchisees, and the typical franchisee owns 2.4 models. (That is knowledge we collected from candidates for our 2025 Franchise 500 rating.) There’s loads of variation inside the trade, in fact, with some programs nonetheless dominated by single-unit house owners and others made up solely of multi-unit franchisees. However finally, there is no doubt that multi-unit franchise possession continues to realize recognition, which is why we have ranked the highest manufacturers for current and potential franchisees who’re fascinated by it.
To try this, we first took into consideration every firm’s 2025 Franchise 500 rating, which relies on an evaluation of greater than 150 knowledge factors within the areas of prices and charges, measurement and progress, help, model energy, and monetary energy and stability. Then we checked out components associated extra particularly to multi-unit possession, reminiscent of reductions provided for multi-unit franchisees, whether or not manufacturers promote solely multi-unit or grasp license offers, what proportion of a model’s franchisees personal a number of models, what proportion of a model’s whole models are owned by multi-unit franchisees, and what number of models the typical franchisee inside every model owns.
This checklist shouldn’t be seen as a advice of any specific model. However whether or not you are simply beginning to consider shopping for a franchise and have already got your sights set on multi-unit possession, or whether or not you are an skilled proprietor trying to develop your portfolio, it may well function an important jumping-off level on your personal analysis. At all times learn the corporate’s authorized paperwork, seek the advice of with an lawyer and an accountant, and speak to current and former franchisees earlier than investing.
Associated: How I Constructed a Multi-Unit Franchise Operation With out Leaving My Day Job
We Requested Multi-unit Champions
What are some particular methods your model encourages and helps multi-unit possession?
“We assist facilitate connections amongst our multi-unit house owners by conferences, regional conferences, and on-line boards, permitting them to share greatest practices and construct precious relationships. We even have franchise enterprise coaches specializing in supporting our franchisees with greater than 10 models.” — Matt Stanton, chief improvement officer, Function Manufacturers (Anytime Health), No. 28
“We actively help multi-unit possession by a versatile and scalable enterprise mannequin, together with rewarding progress with diminished royalty payment percentages based mostly on retailer depend and gross sales, providing growth planning help, and leveraging a point-of-sale system that may be configured for multi-store operations.” — Gary Skidmore, chief working officer, Large O Tires, No. 47
“If an proprietor has the suitable mindset and a transparent imaginative and prescient, we assist construct a sensible, achievable plan for growth. The PuroClean Elevations Program is a strategic initiative designed to help franchise house owners in scaling their enterprise responsibly. It strengthens operations, improves profitability, and prepares them for sustainable progress.” — Tim Courtney, vice chairman of franchise improvement, PuroClean, No. 79
Associated: Contemplating Changing into a Multi-Unit Franchise Operator of a New Model? Here is What You Ought to Know First.
What qualities does a franchisee have to succeed at multi-unit possession?
“Managing a number of groups throughout totally different places requires the flexibility to encourage, delegate, and construct a cohesive tradition. We have seen that efficient operators empower their groups and foster a way of belonging and possession throughout their eating places.” — Jake Barden, senior vice chairman of franchise gross sales, Dine Manufacturers (IHOP), No. 10
“In the end, it is about shifting from being the most effective operator to changing into the most effective coach of operators. Multi-unit success is all about main by others and figuring out find out how to construct, belief, and develop a crew. The franchisees who do that whereas additionally staying extraordinarily engaged within the enterprise are essentially the most profitable ones.” — Susan Valverde, model president, Sylvan Studying, No. 81
“A transparent long-term imaginative and prescient is crucial. Understanding the place you wish to be in 5 or 10 years helps information good decision-making. A robust give attention to the visitor expertise can be key. Profitable franchisees know find out how to determine and empower retailer managers who’re captivated with delivering nice service.” — Geoff Henry, president, Gong cha Americas, No. 139
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In franchising, the expansion alternatives are countless. You could possibly purchase one unit — after which, should you succeed, you could possibly purchase a second. Then a 3rd. Then onward into the tons of and even hundreds!
The franchise trade is stuffed with individuals like that. Greater than 40% of all franchise models are owned by multi-unit franchisees, and the typical franchisee owns 2.4 models. (That is knowledge we collected from candidates for our 2025 Franchise 500 rating.) There’s loads of variation inside the trade, in fact, with some programs nonetheless dominated by single-unit house owners and others made up solely of multi-unit franchisees. However finally, there is no doubt that multi-unit franchise possession continues to realize recognition, which is why we have ranked the highest manufacturers for current and potential franchisees who’re fascinated by it.
To try this, we first took into consideration every firm’s 2025 Franchise 500 rating, which relies on an evaluation of greater than 150 knowledge factors within the areas of prices and charges, measurement and progress, help, model energy, and monetary energy and stability. Then we checked out components associated extra particularly to multi-unit possession, reminiscent of reductions provided for multi-unit franchisees, whether or not manufacturers promote solely multi-unit or grasp license offers, what proportion of a model’s franchisees personal a number of models, what proportion of a model’s whole models are owned by multi-unit franchisees, and what number of models the typical franchisee inside every model owns.
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