Your Restaurant Franchise Tips

The 6 Advantages of Multi-Unit Franchising


Investing in a franchise is exciting and very lucrative. However, a multi-unit franchise business opportunity offers double or more of the benefits of a single-unit franchise. Today, many people have discovered these merits, and that has increased the number of multi-unit franchises. Let's explore the advantages that come with such business arrangements.


Once you learn the ropes of the initial franchise unit, it will become easy to manage the additional ones that you invest in. You will be experienced in the business, which is unlike someone who is buying a franchise for the first time. In short, the successful model that has brought you profits in the past will be replicated in your new unit. You will also not need to get new training from the franchisor since you already have the information first-hand.


Even if times are tough economically, your business is likely to succeed if it is a multi-unit franchise than its single unit alternative. The reason is your large infrastructure and access to a large pool of capital. Interestingly, studies show that multi-unit franchises fared very well due to such aspects while their counterparts struggled. Know more about franchising at


Your return on investment will increase considerably because you can spread out expenses to the various units under your ownership and control. For instance, the cost of professional services such as lawyers, payroll specialists, and accountants will be minimal since the same expert will handle the affairs of the several units.


Additional profits will originate from your leveraged purchasing power. Your ability to buy supplies in bulk will get quantity discounts. As a plus, your sound finances will enable you to buy in cash, and that will qualify you for cash discounts. The cost of transporting these items will be reduced since you will purchase them less often, but in bulk. Losses can be reduced by moving slow-moving products to other units where their demand is high.


There is similarity of processes across all the franchise locations at That feature is advantageous because your employees can work at any of the units in your ownership. Therefore, you can request several staff members from one unit to help ease the backlog at another location. Also, if one employee misses work due to one reason or the other, you just have to replace him or her with someone from another of your outlet.


You will, in most cases, pay a discounted fee for every additional unit you purchase after the initial one. That means that your capital requirements will be significantly lower if you opt to buy another franchise at unit than if you choose to invest the funds elsewhere.