Buying in Bulk: Multi-Unit Franchise Ownership

Imagine driving through your home town and you notice several of the same franchise brand within a short distance from one another. You might wonder how these stores compete with one another being so close together. But the truth is that they don’t really compete with one another because they all have the same owner. This is what is meant by multi-unit franchise ownership.

Why would a franchisee purchase more than one unit?

A franchisee who is interested in scaling their business or developing a territory would be interested in a multi-unit ownership opportunity. In some cases, a franchisee will begin their franchise ownership journey by investing into multiple units from the start. Other times, a franchisee may begin with just one unit in the hopes to expand in the future once they’ve experienced some business success.

Depending on the Canadian franchise you’re interested in, there may also be a discount on the initial franchise fee with the purchase of additional units. You may also experience greater buying power with suppliers as you scale your business and greater negotiating power when it comes to real estate.

Why would a franchisor want to sell multiple units?

There are also a number of benefits of multi-unit ownership to the franchisor, including:

  • Being able to build their brand very quickly.
  • Having less franchisees to train and manage and therefore being able to operate more smoothly and efficiently.
  • Working with franchisees who are already familiar with the brand and have established professional contacts within their communities.

Should I become a multi-unit franchise owner?

Multi-unit franchise owners are typically people who are already well experienced in the business world. If you are new to the franchise world, chances are you will be better off investing in a single unit to start – but there is no reason why you can’t invest in a single unit with the long term goal of owning multiple units.

If this is your goal, you need to think ahead about how feasible this might be within your chosen Canadian franchise.

Before you invest, it is best to talk to a qualified franchise consultant from FranNet. A franchise consultant can discuss your long-term goals with you and help to match you with the franchise that not only suits your personality and skillset but also leaves you room to grow into a multi-unit franchise owner.

About FranNet Canada

FranNet is a 27-year-old company with roots in the U.S. Its purpose being to nurture every entrepreneur’s dream of business ownership. We actively employ a specific profiling and consultation method. This method is geared to each investor with a specific business model and based on franchise trends typically found in Toronto, Ontario, Vancouver, British Columbia, or Calgary, Alberta. The most lucrative Canadian franchise opportunities are waiting for you. For more details visit –  

Jan 28, 2016