Forbes: Franchising Through Multi-Unit Expansion

In a recent article written for Forbes, Steve Beagelman, founder of SMB Franchise Advisors, one of the top franchise consulting agencies in the U.S., dives deep into a massive trend in today’s franchising industry: multi-unit franchising. In 2022, multi-unit owners accounted for a whopping 53.9% of all total franchise units. This trend makes sense, Beagelman says, as multi-unit franchising comes with an array of benefits for the individual owner and the franchisor.

For the franchisee, multi-unit franchising offers the ability to “build a larger management team and leverage them over more than one operation, streamline advertising and marketing expenditures for all of your locations, and increase sales to build more financial wealth,” Beagelman writes.

Additionally, Beagelman notes that many brands offer franchise fee discounts for multi-unit franchise agreements and are more willing to agree to a specific timeline for opening.

When it comes to benefits for the franchisor, Beagelman says, “multi-unit expansion can be a great strategy as it typically helps with accelerated growth of the franchise brand. This is a significant commitment for the franchisor to make so you need to find the right multi-unit franchisee who can expand the brand, opening additional units as promised on the development timeline.”

By developing long-lasting and trusted relationships with a few multi-unit owners, instead of constantly making new connections with single-unit owners, franchisors can avoid unnecessary challenges, create strong operational stability and enjoy a more organized growth plan.

So, who is multi-unit franchising right for?

“No matter which side you are on, it is important to look at multi-unit franchising from the perspective of your goals, adequate access to capital, and the right level of support to make the brand and each individual business a success,” Beagelman writes.