5 Encouraging Facts to Know About Multi-Unit Franchising

There's a convincing case to owning more than one location.

The popularity of multi-unit franchising is no longer up for debate. Data from some of the leading market researchers in the franchising industry have been analyzing this trend and have found hard evidence that owners with more than one location are more common than you think. It’s estimated that there are now 45,000 multi-unit owners in the U.S., amounting to 228,000 units, which accounts for more than half (54.8%) of all franchise business units.

If you’re just beginning the investigative process, or you’re a current franchise owner considering expansion, here are five encouraging facts about multi-unit franchising.

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The popularity of multi-unit franchise ownership is no overnight phenomenon. In fact, interest in owning more than one unit appears to have happened over the last decade. Not only are singleunit owners looking to expand their territorial footprint, but this proposition has picked up interest among the investor class. For multi-unit franchise operations (MUOs), the average number of units rose from 4.8 to 5.1% over the past 10 years

IT’S NO RECENT TREND, FAD OR PHASE

While large franchisors and an ever-increasing amount of private equity groups have a formidable stake in the establishment of multi-unit franchises, they’re not the most dominant players. A look at the average share of units controlled by franchisees reveals that almost half (42 3%) only own between two and five units These owners make up more than twice the amount of the next closest group at 19 6% (owners of more than 50 units) And from 2010 through 2018, there was a 23% increase in entry-level multi-unit operators.