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New Report Looks at Growing Trend of Franchisees Buying Multiple Locations
  • USA - English


News provided by

Franchise Business Review

Apr 08, 2014, 07:00 ET

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Portsmouth, NH (PRWEB) April 08, 2014 -- More and more franchise owners are buying up multiple stores and territories—sometimes within multiple brands, according to a new report out today from Franchise Business Review (FBR).

The report looks at franchisee satisfaction of more than 6,600 multi-unit franchisees from more than 300 franchise companies to determine the best brands for owning multiple locations. Franchisors told FBR researchers they are seeing more interest in multi-unit ownership from prospective franchisees than ever before.

“It may cost a little more in the beginning, but, ultimately, multi-unit franchisees can make more money and be more satisfied than single-unit owners.”

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“In the past couple of years, we’ve really seen an uptick in the number of people researching franchises for multi-unit ownership or looking to own franchises at multiple brands,” said Franchise Business Review president Michelle Rowan. “It may cost a little more in the beginning, but, ultimately, these franchisees can make more money and be more satisfied than single-unit owners.”

To compile the data for this report, Franchise Business Review invited all North America-based franchise companies to participate in a free franchisee satisfaction study. All active franchisees within the participating systems were given the opportunity to answer questions ranking their franchise in the areas of financial opportunity, training and support, leadership, operations and product development, core values (e.g., honesty and integrity of franchisor), general satisfaction, and the franchisee community. Data from franchisees who own three or more units within the same brand were analyzed to form the basis of Franchise Business Review’s new report and to name the top brands for multi-unit ownership.

The list of top companies (50 in all) includes Sotheby’s International Realty, Budget Blinds, Snap-on Tools, Sport Clips, and Liberty Tax Service, to name just a few. The full report and list of Top 50 Multi-Unit Franchises are available at http://www.FranchiseBusinessReview.com.

Multi-unit ownership has always been common among food franchisees, which benefit greatly from establishing economies of scale, but multi-unit franchising has become hugely popular with all types of franchisors and franchisees in recent years because of the many benefits that come with size. Prospective and existing franchisees recognize the significant revenue potential in owning three or more units, and franchisors usually find it is easier to manage these relationships (partly because multi-unit owners tend to be more invested in their brands).

“For the right type of person, multi-unit ownership provides a great business opportunity, but it also involves a bigger investment and more risk,” Rowan said. “People considering a multi-unit investment must do even more due diligence than single-unit candidates to determine if a brand can properly support them and if the culture is the right fit.”

Franchise Business Review’s report is designed to help prospective franchisees research multi-unit franchise opportunities, and it looks closely at the factors that make a brand a good choice for multi-unit ownership. The 50 franchises featured in the report have a proven track record for growing and supporting successful multi-unit owners.

About Franchise Business Review

Franchise Business Review is a national franchise market research firm that performs independent surveys of franchisee satisfaction and franchise buyer experiences. The firm’s services include commissioned franchise research projects, as well as industry-wide studies of franchisee satisfaction. Franchise Business Review is headquartered in Portsmouth, NH, and can be reached at (603) 433-2270. Visit http://www.FranchiseBusinessReview.com for more information.

Molly Rowe, Franchise Business Review, +1 (603) 433-2270, [email protected]

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