One of the biggest trends for 2021 people are seeing across the franchising community is multiunit ownership. This trend, is driven by a few key factors, including:
- A small but growing number of franchisors are seeking out multiunit owners due to their overall advantages.
- More sophisticated concepts require owners with more experience (and capital) needed to enter the market.
- If a multiunit franchisee has 30 units already, they likely have strong operations, so adding one more will be less risky than a new franchisee with no experience.
- Technological advancements such as video calls, online accounting, and more means that owners can live from anywhere.
Multiunit owners were more likely able to weather the pandemic’s storm and any economic uncertainty that may be coming in the future. Additionally, according to Global Franchise Magazine, “Large territory, multiunit franchisees are the best way for a franchisor to operate a franchise business with less effort put into monitoring franchisees and a much higher return when they sell the company.”
In general, if you are a 150-unit system, it is easier to manage 30 50-unit franchisees than 150 franchisees.
Being a multiunit owner is different since it is less tactical and hands-on and more managerial. We take a look at three successful multiunit systems and how they manage at scale.