Owning Multiple Franchises – What Do You Need To Know?

While how much you can make as a franchise owner depends on various factors, owning multiple franchise units is ideal for those seeking to make lots of money.

A multi-unit franchise model is when a franchisee operates several franchise locations, either within the same or different brands. Multi-unit franchise owners oversee the overall operations and focus on growth while management teams at each location run the day-to-day. These franchisees are often experienced business owners or investors with a previous record of success in business growth and management. 

Learn more about master franchising, which is a multi-unit model that some franchises will use to quickly expand their brand’s presence. 

What Are The Pros and Cons to Multi-Franchise Ownership?  

Owning multiple franchises can be lucrative, but it also requires an individual to invest a significant amount of time and resources to achieve their goals. It’s important to evaluate the pros and cons to multi-franchise ownership as it relates to your particular situation.   

3 Benefits of Owning Multiple Franchises  

You’ve probably heard it said not to put all your eggs in one basket. This statement proves true when you consider the advantages of owning multiple franchise locations.

1 – Increased Revenue Potential 

Owning multiple franchises allows for economies of scale, which means that a business can reduce costs and increase profitability as production grows and becomes more efficient. Bulk purchasing, shared marketing costs, and streamlined operations help achieve this, and they are all characteristics of a multi-unit ownership model. 

Additionally, if you only own one franchise location and it fails, then your whole business venture fails. However, when you operate multiple franchise units you can achieve success even if some locations don’t do as well as others. Having multiple income streams means you can divest, relocate, or close the units that aren’t doing well while growing your other locations. 

2 – Enhanced Brand Recognition 

Naturally, you will increase your presence in the market with each franchise location you own. As the brand grows, all of your franchise locations will benefit. 

Growing the brand across multiple locations will also give you greater marketing insights allowing you to tailor your marketing efforts around each location. 

3 – Streamlined Operations 

Running a multi-unit franchise means that you can focus on strategy and high-level operations while delegating the day-to-day operations to a trained team of managers and employees. 

In addition, having multiple locations means they can share resources as needed. For example, if one location has low staffing, then another location can temporarily send employees over to help out until the situation is resolved. 

3 Difficulties of Owning Multiple Franchises 

Again, it’s important to assess your specific circumstances when deciding if multi-franchise ownership is right for you. You will need sufficient finances and a personality that is well-suited for running multiple franchise locations. Here are a few things to consider:

1 – Higher Financial Investment 

It goes without saying that owning multiple franchise units will cost more than owning a single unit. Franchisees that want to operate multiple units will be responsible for more fees (initial and royalty). They will also need to purchase a number of territories while investing in additional equipment, inventory, and staff. 

2 – Increased Workload and Responsibility 

Pursuing multi-unit franchise ownership is not a decision to take lightly. Even though you can delegate many of the day-to-day operations to local managers, you will still be responsible for effectively operating multiple franchise locations. You are also more likely to encounter personnel and HR challenges than a single-unit owner.  

3 – Risk of Overextension  

Overseeing a larger staff naturally comes with increased operational complexity, which can be time-consuming and require additional management resources. 

You will also need to have a strategy when opening multiple franchise locations in order to avoid saturating the market, which would be counterproductive to your success. 

Looking for a Multi-Franchise Opportunity? (H2) 

Whether you’re looking to buy one franchise or five franchises, a solid business plan is key. It’s also important to have an expert to help you navigate the process. That’s where FranNet comes in. Our franchise consultants will provide you with the resources and guidance you need to make an informed decision. We can help you evaluate which franchise opportunity is right for you. Even better, you won’t have to pay us a dime! Schedule your free consultation today. 


Sep 28, 2023