While many franchisees are content owning and operating just one business, some have greater ambitions to expand to multiple locations or territories, or even own multiple franchise brands. Owning multiple units isn’t for everyone—it requires a different mindset and skill set than owning a single unit—but when done right, it may be a very rewarding entrepreneurial path. If you’re considering this path, you’ll find the right franchise opportunity to pursue it on our list of the best brands for multi-unit owners.
To determine this rating, we considered each company’s 2024 Franchise 500 rating, which is based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability. But we also considered aspects that relate specifically to owning a multi-unit franchise inside each brand: Are there any discounts for multi-unit owners? Does the brand only sell multi-unit or master license agreements? What percentage of franchisees own multiple units? How many units does the average franchisee own? And what percentage of the brand’s total units are owned by multi-unit franchisees?
The resulting list may be a great start line for someone considering owning multiple units or for an existing multi-unit franchisee looking for recent brands to add to their portfolio. However, it mustn’t be considered a advice for a specific brand. Always do your homework thoroughly before investing. Read the company’s legal documents, seek the advice of with an attorney and accountant, and talk to current and past franchisees to see if the opportunity is right for you.
We asked the masters of many units
How specifically does your brand encourage and support multiple ownership?
“It starts with the candidates’ goals: Do they have larger, imperial visions? If so, we put a development plan in place to align with their goals. We believe in a gradual approach to launch. We don’t want to burden them with upfront costs and jeopardize the entire plan, so the development of each territory is split, allowing the first territory to prepare the second for success.” — Suave Brachowski, Brand President, USA Insulation (No. 36)
“We work with each franchisee on a financial and operational plan to add additional territory at the right time. We also have financial incentives in the form of lower royalties and bundled fees, so they can use the extra money to invest. Some franchisees also choose to vertically expand within the same territory by adding a sister brand, Bath Tune-Up.” — Heidi Morrissey, President, Kitchen Tune-Up (No. 51)
“We use an automated replenishment system that ensures that the necessary products and supplies are consistently available in stock. This not only streamlines operations, but also increases the overall efficiency and profitability of each location, making having multiple units a more manageable and attractive proposition.” — Josh Robinson, Vice President of Franchising and Corporate Store Operations, Pearle Vision (No. 67)
What characteristics should a franchisee have to achieve success in multiple unit ownership?
“Franchises who perform at a high level are those who focus on people—keeping a stable management team, investing in good compensation and benefits, and keeping their team members happy. Successful multi-unit franchisees are in their stores, visible, and actively engaged in encouraging their teams to focus on the fundamentals of our business.” — Hoyt Jones, president of Jersey Mike’s Subs (#4)
“Having the ability to navigate and adapt to the challenges that come with having unique locations is important when you own multiple units. Franchisees need to be able to evolve with the changes in multiple locations and turn them into a strategic advantage.” —Bill Luce, president of Transworld Business Advisors (#64)
“Multi-unit ownership requires the ability to scale and effectively build an organization that, while hyper-local, is still larger than the individual. They must demonstrate and practice daily resilience, determination, leadership, perseverance, positivity, and trust. The ability to delegate and build a team is key, which means owners must be able to inspire and lead.” — Justin Waltz, President, The Junkluggers (No. 134)