What is multi-unit franchising?

Multi-unit franchising is where a franchisee operates multiple franchise businesses at once.  An attractive proposition for ambitious entrepreneurs, this can be multiple units of the same franchise or units across several different franchise brands.

Typically, a franchisee will have achieved success in their first franchise venture and be keen to replicate it with further franchise investments.  Opting to stay within the same brand, multi-unit franchisees can operate the same business model across multiple territories.  Carrying their experience and know-how to a new franchise territory is often the easiest route to multi-franchising and is actively encouraged by many franchises. It also provides the added benefit of economies of scale; products can be purchased in bulk and costs such as marketing can be spread across the units.

Investing in a franchise from a different brand (multi-brand franchising) is another option. However, some franchises may not allow franchisees to invest in rival businesses (check your contract!). Many who choose to invest in multiple franchises often pick complementary brands. For example, experience garnered running a franchise in estate agency may lend well to a property investment or management franchise.

Multi-tasking is a key skill required for multi-brand franchising.   Not only do you need to be able to maintain each brand’s identity and run their concepts simultaneously, but you also need to be able to finance and forward plan for each business.  Multi-branding within the same territory also provides the advantage of being able to market your products to the same audience and gain a keen understanding of your customer base.

Multi-unit franchisees often seek out management franchises.  These are franchises where the franchisee concentrates on managing the business rather than the day-to-day running of it.  Appealing to those who have already proven their business acumen for franchising, this enables franchisees to utilise their management expertise to enter new sectors and successful grow a portfolio of multi-use franchises.