Sometimes, more really is better. When it comes to franchising, a recent report indicates the more franchise units you own, the happier you may become.
The report, released by Franchise Business Review, examined the level of franchisee satisfaction of multi-unit franchisees from more than 300 franchise concepts. The purpose of the report was the determine which brands are the best for multiple franchise unit ownership.
According to the report, franchisees who owned more than one unit within a single brand tended to be more satisfied overall than single-unit franchise operators.
The most probable reason? Profitability. Franchisees who own more than one unit tend to make more money, as they have more than one income stream. That said, the surveyed multi-unit franchisees rated their franchise systems higher on every category– training and support, leadership, marketing, advertising, communication and technology.
Multi-unit ownership has always been common among restaurant franchises, but the participating franchise concepts weren’t limited to any particular subindustry in order to be a part of Franchise Business Review’s report. The presence of real estate, junk removal, painting franchises , home services and, of course, food franchises speaks to the prevalence of multi-unit franchising within the franchise industry.
While owning multiple franchise units within the same brand can result in greater income, it involves a bigger investment and more risk early on in the franchise ownership process. One of the benefits of owning a franchise is the proven track record and support, but it remains imperative for each individual owner to evaluate the risk factors associated with operating multiple units.