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Buying multiple units is fast becoming the norm in franchising

Research firm FranData estimates that multiunit franchisees now own more than 53% of the 450,000 franchise businesses in the United States. There’s an entire conference for multiunit franchisees and a magazine dedicated to the practice.

More and more brands have decided that focusing on franchisors willing to develop multiple stores makes business sense, with some newer brands choosing only to work with franchisees willing to buy multiple locations or territories. Many older brands also are revamping their business models to favor franchisees buying bulk.

Brent Dowling, CEO of RainTree, a franchise development firm, says that most of the 15 emerging franchises he works with focus primarily on finding multiunit franchisees.

“Multiunit franchisees are usually more sophisticated buyers,” he explains. “We find that multiunit franchisees are more invested in their business. They give it everything they’ve got.”

But these franchisees aren’t necessarily seasoned veterans or millionaire investors. They come from varied backgrounds, display a strong work ethic and have enough savings and credit to finance one or two franchise units to get started. They intimately understand the old small-business maxim that in order to succeed, they need to work on their business- not just in their business.

 

For more information about RainTree, please follow this link.