Advantages of Multi-Unit Franchise Ownership in New York

Some people find that franchise units are like tattoos – they can’t have just one. Have you ever been driving through a neighborhood and passed a franchise unit – then passed another unit of the same franchise only five or ten minutes later? If you have, there is a pretty good chance that those units were owned by the same person. In fact, multi-unit franchising is more common than you might think – accounting for an estimated 53% of all franchises and a whopping 76% of all restaurant franchises. ¹


Why Is MultiUnit Franchise Ownership in New York So Popular?

Purchasing a franchise unit can seem like a pretty big investment – especially if you are a first time business owner. So you might be wondering why someone would take on the added responsibility and expense of becoming a multi-unit franchise owner in New York.

There are in fact a number of reasons why franchisees invest in multiple units:

  • Buying at a discount – Have you ever been to a buy one, get one (BOGO) sale? You know, where you buy one pair of shoes and buy the second pair at a discount. Well, franchisors often have similar sales with respect to initial franchise fees allowing franchisees to purchase their second, third or fourth location at a lower rate than their first.
  • Higher profits – As long as each unit is successful, multi-unit franchise owners can expect to see higher profits than their single unit owning counterparts.
  • Lower costs – As a franchisee begins to build their business empire they will experience greater buying and negotiating power with their suppliers. They can also be more influential in negotiating real estate deals.
  • Lower labor costs – In addition to getting better deals on supplies and real estate, multi-unit franchise owners in New York can typically get better deals on labor. For example, it will not be a lot more expensive to have a bookkeeper manage the accounts for two units than it will be to have them manage the accounts for one.


What Are the Benefits to the Franchisor?

The franchisee is not the only one to benefit from multi-unit franchise ownership. There are several reasons why some franchisors actually prefer to sell to investors who will purchase more than one unit.

These benefits include:

  • More sophisticated and business savvy franchisees – Entrepreneurs who purchase multiple franchise units need to have the business acumen and capital to do so. This means they are usually more business savvy and already have established a number of professional contacts in their community.
  • Less franchisees to train and manage – when a franchisor can sell several units to the same investor, it means that they have a smaller team of franchisees to manage. This helps to make their whole operation run more efficiently.
  • Faster brand development – Especially if the business is a newer franchise, it is easier to develop brand recognition when there are several stores that pop up quickly in a concentrated area.


Should I Become a MultiUnit Franchise Owner?

If you already have a solid foundation in business and can afford to do so, then multi-unit franchise ownership in New York may be for you. If you are new to the business world, this may not be the place for you to start, but you can still invest with the long-term goal of owning multiple units.

If multi-unit franchise ownership is your goal, you should discuss it with a qualified franchise consultant from FranNet. They will help to match you with the business that best suits your present needs and future goals.

¹Source: Darrell Johnson via MultiUnit Franchisee


About FranNet NJ NYC


FranNet of New Jersey and New York City has several franchise experts to help you explore the world of franchise ownership. At FranNet, we provide no-cost guidance, information and support to individuals who are interested in purchasing a franchised business. We are experts in helping our clients evaluate the various types of franchise opportunities in the marketplace today. Our goal is to not only help entrepreneurs’ dreams of business ownership come true but to help people make sound business decisions that give them the best chance for future success. Learn more about your options for business ownership with a free, no-obligation consultation.

Feb 9, 2016