Becoming a Multi-Unit Franchisee: How To Grow Your Franchise?

Where to Begin?

If you own one successful franchise, them becoming a multi-unit franchisee seems like the next logical step. Owning multiple franchises can offer a clear path to financial success, especially if you’ve started and excelled at the first! Owning several of the same franchise can prove to be a smart business endeavor. Not only do you know exactly what it takes for one to succeed, you know how to handle any problems that might creep up along the way. Instead of delving into a completely new industry, you’re already well versed at the one you’ve succeeded in. Here are some tips to becoming a multi-franchise owner.

Benefits of Owning Multiple Franchises

You already understand the benefits of owning one franchise, so looking into becoming a multi-unit franchisee might be a perfect fit for you. A lot of the same benefits that come with being a franchise owner also translate into opening multiple locations of the same franchise. You’ll get the same built-in support that you experienced with your first location like marketing help, training resources, and more. The best part is that you’ve already opened one successful location, which means that you’re prepared for any bumps along the way.

In addition to the experience you already have, your operation is streamlined across multiple franchises. That first franchise taught you the dynamics of a successful team and the innerworkings of quality relationships with your staff and customers. You’ll be able to open your second location without the mistakes of the first. Another thing that matters in business is vendor relationships. By owning multiple franchises, you’ll be able to access even more vendors that may have minimums that you couldn’t meet with just one location. You’ll be able to get new discounts or reduced fees as a result of your larger orders.

Clearly, one of the best parts of becoming a multi-unit franchisee is your increase in profit. Double the square footage in theory means double the profit. Since you’ll spend less time figuring out what works with your second location, you’ll spend more time earning revenue. You won’t be wasting your investment on trial and error this time, which saves money in the long run.


There are a number of benefits to owning multiple franchise locations. How so? Look no further:

The Benefits of Multi-Unit Franchise Ownership


How to Own Multiple Units

Opening another franchise is very similar to what you went through to get the first one off the ground. You’ll still need to be approved and pay a franchise fee for your second location, though proving why you’re fit to own a franchise may be a bit easier with your experience from the first. But just because you’ve been successful with one franchise, doesn’t mean you don’t have to pay another franchising fee or will even receive a discount on it. However, some franchises offer multi-franchise agreements that do discount the overall franchising fee if you agree to open a certain number of locations. For example, if you wanted to sign on to open an additional three locations, you may see a slight reduction in the franchising fee for each but you are then bound to open three separate locations simultaneously.

Before jumping into becoming a multi-unit franchise owner, you should prepare yourself for a few things that goes along with it. While you’ll see an increase in profit, you’ll also see an increase in workload, at least in the beginning. You may be used to being a semi-absentee franchise owner, but when opening a new business, you’ll need to be a bit more hands on. Once you get your new location off the ground and operational, which will take less time than before, you can wean yourself off of being so involved in the daily business.

When to Go Multi-Franchise

So, how do you know when it’s time to open another location? The answer isn’t exactly cut and dry for every scenario, but there are some key points that may lead you toward becoming a multi-unit franchisee. Before you sign on the dotted line, ask yourself the following questions:

Why do I want to open another location?

Are you looking to become a multi-unit franchisee to serve an entirely new market? Or are you interested in satisfying existing customer demand? Sometimes franchise owners don’t properly think through where their new location will be in reference to their original location which can cause saturation. Opening another location to serve existing demand is great, though you need to understand where your customer base lives, travels from, and is willing to travel to in order to fulfill this quest. If you’re interested in opening another location to serve a completely new market, you may be taking more of a risk but the reward can be great. You won’t truly know how the new market will treat your business until you’re in it, but doing research beforehand is key.

What’s my cash flow?

You must be realistic about when you think your new location will begin to generate revenue without additional investment. Do you have reserves to fund the location until it can survive on its own? Is your first location really generating enough revenue to warrant a second location regardless of market? Financial forecasting is a big factor when it comes to deciding when is the right time to open up another franchise.

Deciding when you should become a multi-unit franchise owner relies on a variety of factors, but first and foremost, you have to want it. Whether you’re doing it because you want additional revenue or you just believe in the brand and want to expand your reach, opening another franchise location can be ultimately rewarding. Do you research, make a plan, and enjoy the fruits of your labor!

Ready to open another location?

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