How to Become a Multi-Unit Franchisee the Smart Way
Owning a single franchise location has a steep learning curve. Is it a big stretch to go from a single unit to multiple locations?
With the right mindset and support, scaling up is possible. Learn how to become a multi-unit franchisee. Follow our tips to streamline operations and drive profitability across locations.
Highlights of Multi-Unit Franchising
Franchising’s proven brand and turnkey business model are designed to be scalable. Fast food dominates the multi-unit franchise landscape.
Multi-unit franchisees own 82% of fast-food locations and 71.5% of beauty-related franchise units, according to Franchise Business Review. Other popular industries for multi-unit franchise ownership are hotels, urgent care clinics, and fitness centers.
Not only major players tackle multi-unit franchising. Smaller franchisees are expanding their portfolios to boost income and market presence by adding additional locations in record numbers.
The number of multi-unit franchisees has jumped more than 112% since 2019. The most recent research from FranData indicates the average multi-unit franchisee has only five locations.
Tips on How to Become a Multi-Unit Franchisee
Becoming a successful multi-unit franchisee starts with choosing the right brand. Your brand needs to provide strong operational support and room to grow within protected territories.
Many franchisors allow you to negotiate multi-unit deals as you get started to guarantee your ability to expand in certain markets. Making this decision allows you to start small and grow as you gain momentum.
Multi-unit franchise owners need to focus on a big-picture strategy. Network with other multi-unit operators in the system to gain insights and hone your management skills. These franchisees can share best practices and insights to improve your operations.
Here are five multi-unit franchising tips to help give you direction:
- Choose the right brand: Select a brand with strong operational support, proven systems, and room to grow within protected territories.
- Be financially stable: Your first location must be stable and profitable before expanding.
- Focus on technology: Leverage technology to standardize processes across locations.
- Build a strong culture: Communicate your vision with your employees and reward hard work to establish a company culture focused on success.
- Track results: Regularly review performance metrics and adapt to trends or challenges.
Advantages of Multi-Unit Franchising
If you’re on the fence about tackling multi-unit franchising, it’s important to understand the pros and cons. While you must cope with higher financial risk and more complicated operations, there are many advantages to multi-unit franchising, including:
- Resource sharing: You can centralize administrative functions, share marketing efforts, and lower supply costs through bulk purchasing.
- Improved employee retention: Owning multiple locations enables you to cross-train employees and promote from within to enhance opportunities for loyal employees.
- Greater market presence: Multi-unit franchising increases brand visibility and improves your market presence.
- Better profit margins: Owning multiple locations increases your revenue potential and streamlining operations decreases the cost per unit.
Bath Tune-Up: A Scalable, Low Overhead Business Model
The U.S. residential bathroom market is forecast to reach $118.4 billion this year. Repair and remodeling spending on bathrooms and kitchens is expected to grow by 2.6%.
Bath Tune-Up franchisees have the tools, training, and ongoing support they need to succeed as multi-unit operators in the booming home services market. Our remodeling franchise features low overhead and is easy to duplicate.
For greater visibility, open a showroom that serves multiple territories, or trim startup costs by operating from a home office with a storage facility. We provide protected territories that start at 41,000 households, enabling you to pursue long-term growth in your market and eliminate competition from other franchise owners.
Start as a single-territory franchisee or purchase multiple territories at a lower rate. The average sales of nine single-territory locations were $303,701 in 2024. The average sales for 10 franchisees with two or more territories were $602,982.*
To learn more about the advantages of multi-unit franchising in the thriving home remodeling industry with Bath Tune-Up, inquire now.
*See Franchise Disclosure Document for details.