Multi-unit franchising can lead to bigger profits than a single location. Learn the benefits of multi-unit and multi-brand franchising, why kitchen and bath franchises make the best pairs, and how to invest in both.

Multi-Unit Franchise vs. Multi-Brand Franchise

Instead of managing a single franchise, a multi-unit owner takes on the responsibility for multiple locations, often within a specific geographic area. Having numerous locations allows franchisees to expand their operations and increase revenue potential by leveraging their experience and resources across multiple units.

There are more than 43,230 multi-unit franchisees in the U.S. managing 227,244 locations. And the number of large players is climbing, particularly in the quick-service restaurant industry. Multi-unit owners with more than 50 locations have jumped 112% since 2019.

Multi-brand franchising is simply when a franchisee owns units from more than one franchise brand. Unless you’re pursuing vertical expansion, often dubbed brand stacking, most franchisees who own and operate multiple brands are also multi-unit franchisees.

Advantages of a Multi-Unit Franchise

Owning multiple locations has many advantages. To help you decide if it’s the right option for you, let’s explore the benefits:

  • Economies of scale: By operating multiple units, franchisees can often reduce costs through bulk purchasing, shared marketing efforts, and streamlined operations.
  • Higher earnings potential: Multiple units typically lead to higher total revenue, although that also comes with increased responsibilities and complexities. You’ll need to implement a more sophisticated management structure, often involving district or area managers, to oversee the operations of multiple locations.
  • Territory advantage: With more than one location, you can corner a market and limit competition from other franchisees.

Having owners with more than one location is also advantageous for franchisors. It allows for faster brand expansion and may lead to more stable franchise operations.

Finding Complementary Brands

To increase your earnings potential, look for complementary opportunities that share a similar customer base, operational requirements, and consumer demand. For instance, home services like remodeling, flooring, painting, and landscaping are complementary. These businesses all target homeowners who want to improve their property, allowing for cross-promotional opportunities. If you own a fitness franchise, adding a spa franchise enables you to build a strong foothold in the health and wellness industry. Restaurant franchises also offer countless opportunities to add new brands that cater to a variety of dayparts and cuisines.

When researching multi-franchise ownership, consider seasonality. Don’t double down on brands that generate the bulk of their business during the same time of year. You run the risk of overloading your workforce and lack a consistent income stream. Choose businesses that fill in gaps for each other: A power washing franchise and a Christmas lights franchise will enable you to have year-round potential, for example.

Achieve Multi-Unit Success with Bath Tune-Up

If you want to maximize your wealth as a multi-unit owner, Bath Tune-Up can help you achieve your entrepreneurial goals.  And when you pair it with our sister brand, Kitchen Tune-Up, you’ll build a one-stop remodeling resource for homeowners. Homeowners invested $463 billion in home renovations during the first quarter of 2024, and kitchens and bathrooms are some of the most commonly targeted areas for remodeling.

Bath Tune-Up provides a full range of custom design options as well as curated concepts for every level of bathroom remodel. Our business model makes it possible for you to run a successful bathroom renovation franchise with no remodeling experience. Kitchen Tune-Up focuses on affordable kitchen upgrades.

Our franchisees scale by adding additional territories to their line-up — each Bath Tune-Up territory has a minimum of 41,000 households. The initial investment for Bath Tune-Up ranges from $104,930 to $158,850. Your investment includes a territory fee of $45,000. We offer a discount to franchisees who sign a franchise agreement for two territories.

Inquire now to learn more about franchising with Bath Tune-Up and we’ll connect you with someone from our franchise team.

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