Multi-Unit Franchise: 5 Benefits and Tips for Successful Business

June 19, 2023

Multi-unit franchise ownership means more business and bigger profit. Read about the benefits of owning multiple franchises and how to decide if it's right for you.

Bolstered by private equity investments, multi-unit franchising is on the rise. Focus on expansion and amenability of franchisors contributes to the growth of multi-unit franchisees. Multi-unit franchise owners make up 54% of all franchised units in the U.S., according to FRANdata. While the majority of franchises with more than one location own foodservice establishments, more entrepreneurs in other industries are concentrating on scaling their businesses. The average franchisee with multiple units owns five locations, reports FRANdata. Multi-unit franchising is particularly common in the South and Midwest.

Advantages of Multi-Unit Franchising

There are advantages and disadvantages of multi-unit franchising. To understand if signing a multi-unit development deal is right for you, let’s explore the pros and cons of owning multiple locations.

  1. Improve efficiency. Multi-unit franchising allows you to expand your portfolio without starting from scratch each time, which accelerates growth and enables you to generate higher revenues.
  2. Control. Multi-unit franchising puts you in the driver’s seat of the locations in your area. You have control of their customer service and performance. As a bonus, you don’t need to compete with any other franchisees in the system for real estate.
  3. Enhance earnings potential. By operating multiple units, franchisees can take advantage of economies of scale, resulting in lower costs for goods and services, increased negotiating power with suppliers, and improved efficiency.
  4. Build a solid leadership team. Multi-unit franchising requires superior management skills to oversee multiple locations. It can help franchisees develop managerial skills and improve their ability to lead large teams.
  5. Reduced risk. Operating multiple units allows franchisees to diversify their revenue streams and reduce dependence on any single location or market.

 Multi-unit franchising does have some drawbacks. Expanding into multiple units requires a significant capital investment, including costs for real estate, equipment, staffing, and training. Owners need to have solid management and organizational skills to succeed as multi-unit franchisees. The steep learning curve may be an adjustment for new business owners breaking into entrepreneurship for the first time. Corporate executives can transfer many skills they learned in their previous roles to managing multiple franchise locations.

Mobile Leather Repair VansCCI’s Multi-Territory Appeal

CCI is the mobile leader in leather and vinyl restoration and repair. Technicians fix rips, tears, burns, scratches, and fading in leather and vinyl at homes and businesses. Our franchise owners rely on a mobile van to serve customers and conduct back-office administration from a home office. Single-unit franchise owners purchase the rights to operate the brand in a designated territory with a population of approximately 300,000 people.

If your talents lie in business management, sales and marketing, and developing successful concepts, becoming a CCI Executive Model Franchise Developer may be an ideal choice. Our program is suited for investors who want to own and operate at least three franchise territories with 10 to 12 vans. Executive model developers can take part in training as service technicians, similar to our single-unit franchise owners, to get a hands-on feel for daily operations. CCI’s executive model franchise owners provide technicians with billing and collection services, technical support, and the development of routes.

Getting started as an area developer with CCI requires an initial investment of $170,980 to $186,410, including a startup fee of $34,500 and an initial development fee of $133,500. CCI partners with Guidant Financial to help make multi-unit franchising accessible. Guidant’s Audeo™ plan allows clients to purchase a franchise using retirement funds without being subject to taxes or penalties. In addition, Guidant facilitates the process of obtaining an SBA loan, home equity line of credit, or unsecured loan up to $75,000 through its nationwide professional network.

Learn More About CCI

To learn more about the benefits of CCI’s multi-unit franchising program, fill out the online form to request franchise info and connect with a franchise expert from our team.