{"id":3594,"date":"2018-11-20T07:30:17","date_gmt":"2018-11-20T12:30:17","guid":{"rendered":"https:\/\/www.franchisesolutions.com\/blog\/?p=3594"},"modified":"2018-12-05T16:21:43","modified_gmt":"2018-12-05T21:21:43","slug":"multi-unit-franchise-ownership","status":"publish","type":"post","link":"https:\/\/www.franchisesolutions.com\/blog\/2018-11\/multi-unit-franchise-ownership\/","title":{"rendered":"In Franchising for the Long Run &#8211; Multi-Unit Franchise Ownership"},"content":{"rendered":"<p>While driving down the road, have you noticed there are more of the same franchises popping up in surrounding areas? Perhaps you\u2019ve seen three Dunkin Donuts within a 10 mile radius. These are likely owned by a multi-unit franchisee.<\/p>\n<h2>What is Multi-Unit Franchise Ownership?<\/h2>\n<p>A multi-unit franchise involves an agreement which provides a franchisee with the rights to develop more than a single unit. Multi-unit franchisees are people who can buy a territory with several units. Many franchise owners build them over a relatively short period of time, say, six months to a year.<\/p>\n<h2>Why People Become Multi-Unit Franchisees<\/h2>\n<p>Just like retail stores attract customers with a BOGO (buy one get one free) offer or a discounted sale price for multiple items. Franchisors offer reduced rates per unit when buying more than one.<\/p>\n<p>For example, <a href=\"https:\/\/www.franchisesolutions.com\/franchise\/akt\" target=\"_blank\" rel=\"noopener\">AKT, a fun, unique dance-based concept<\/a>, and <a href=\"https:\/\/www.franchisesolutions.com\/franchise\/cyclebar\" target=\"_blank\" rel=\"noopener\">CycleBar, the only indoor cycling franchise<\/a>, offer the same tiered pricing structure for multi-unit franchisees. When AKT and CycleBar award franchisees the right to open multiple units, they charge a onetime development fee which depends on the number of units a franchisee opens. Here&#8217;s an example of the breakdown:<\/p>\n<ul>\n<li>1 for $49,500<\/li>\n<li>3 for $41,667 per unit<\/li>\n<li>4-5 for $40,000 per unit<\/li>\n<li>6-9 for $35,000 per unit<\/li>\n<li>10 or more $30,000 per unit<\/li>\n<\/ul>\n<p>Anna Kaiser, founder of AKT and celebrity trainer, says \u201cMy mission has always been to bring a new model for fitness to a wider audience. I truly believe our classes provide the best of fitness today in a fun and supportive atmosphere and help our members see the results they never thought possible. I am beyond excited to expand AKT and share this incredible workout with the world.&#8221;<\/p>\n<p>Some franchisors, especially <a href=\"https:\/\/www.franchisesolutions.com\/health-and-fitness\" target=\"_blank\" rel=\"noopener\">in the health and fitness industry<\/a>, found the way to succeed in the competitive boutique space was to rely on multi-unit franchisees. Therefore, today, many successful franchises award contracts to multi-unit franchisees.<\/p>\n<p>As a multi-unit franchise owner you can:<\/p>\n<ul>\n<li>See a much greater financial gain in the long run<\/li>\n<li>Have increased negotiating power with real estate developers<\/li>\n<li>Receive preferred pricing on supplies, products and marketing services<\/li>\n<li>Realize cost savings on labor because you can house human resources and accounting departments under one roof<\/li>\n<\/ul>\n<p>From the franchisor\u2019s perspective, the benefits of offering multi-unit franchises are:<\/p>\n<ul>\n<li><strong>It develops the brand quicker. <\/strong>This is especially important when introducing a new concept or theme \u2013to be the first to appear \u201con the scene\u201d<\/li>\n<li><strong>The franchisees are more sophisticated<\/strong> and often have existing relationships with vendors and real estate professionals<\/li>\n<li><strong>A smaller group of owners to train and manage. <\/strong>Efficiency is key \u2013 it is easier to train 1 experienced person than a dozen with different levels of experience<\/li>\n<li>Access to capital, infrastructure and human resources<\/li>\n<\/ul>\n<h2>Facts and Stats<\/h2>\n<blockquote><p>According to FranData, multi-unit franchisees currently own 53% of the 450,000 franchise units in the U.S.<br \/>\nMulti-unit owners now control 76% of franchised restaurants.<\/p><\/blockquote>\n<h2>Multi-Unit Franchise Ownership in a Flash<\/h2>\n<p>Want to view some interesting tidbits about multi-unit franchise ownership? See below for a useful\u00a0Franchise Solutions\u2019 infographic. Get a quick snap shot of the sector including trends, statistics and a comparison of multi-unit and single-unit ownership.<\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/www.franchisesolutions.com\/directory\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-3618 size-full\" src=\"https:\/\/www.franchisesolutions.com\/blog\/wp-content\/uploads\/2015\/11\/Multi-Unit-Buyers.jpeg\" alt=\"Franchise Solutions Multi-Unit Ownership Infographic\" width=\"1236\" height=\"3123\" srcset=\"https:\/\/www.franchisesolutions.com\/blog\/wp-content\/uploads\/2015\/11\/Multi-Unit-Buyers.jpeg 1236w, https:\/\/www.franchisesolutions.com\/blog\/wp-content\/uploads\/2015\/11\/Multi-Unit-Buyers-119x300.jpeg 119w, https:\/\/www.franchisesolutions.com\/blog\/wp-content\/uploads\/2015\/11\/Multi-Unit-Buyers-237x600.jpeg 237w\" sizes=\"auto, (max-width: 1236px) 100vw, 1236px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"While driving down the road, have you noticed there are more of the same franchises popping up in surrounding areas? Perhaps you\u2019ve seen three Dunkin Donuts within a 10 mile radius. These are likely owned by a multi-unit franchisee. What is Multi-Unit Franchise Ownership? A multi-unit franchise involves an agreement which provides a franchisee with&#8230; <a class=\"view-article\" href=\"https:\/\/www.franchisesolutions.com\/blog\/2018-11\/multi-unit-franchise-ownership\/\">Read More &raquo;<\/a>","protected":false},"author":2305,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[971],"class_list":["post-3594","post","type-post","status-publish","format-standard","hentry","category-franchise-growth","tag-multi-unit-franchise-ownership"],"yoast_head":"\n<title>In Franchising for the Long Run - Multi-Unit Franchise Ownership - The Franchise Solutions Blog<\/title>\n<meta name=\"description\" content=\"What&#039;s a Multi-Unit Franchise? 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These are likely to be owned by a multi-unit franchisee.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.franchisesolutions.com\/blog\/2018-11\/multi-unit-franchise-ownership\/\" \/>\n<meta property=\"og:site_name\" content=\"The Franchise Solutions Blog\" \/>\n<meta property=\"article:author\" content=\"http:\/\/www.facebook.com\/kerry.crocco.1\" \/>\n<meta property=\"article:published_time\" content=\"2018-11-20T12:30:17+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2018-12-05T21:21:43+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.franchisesolutions.com\/blog\/wp-content\/uploads\/2015\/11\/Multi-Unit-Buyers.jpeg\" \/>\n<meta name=\"author\" content=\"Kerry Crocco\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kerry Crocco\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n","yoast_head_json":{"title":"In Franchising for the Long Run - Multi-Unit Franchise Ownership - The Franchise Solutions Blog","description":"What's a Multi-Unit Franchise? 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