4 Tips for Attracting More Multi-Unit Franchisees

4 Tips for Attracting More Multi-Unit Franchisees

Every franchisor wants to attract a "certain type" of franchisee. Lately, the type of franchisee every franchisor seems to want is a multi-unit franchisee.

Okay, maybe not every brand wants to sell more units to fewer franchisees, but it's something I'm hearing about more and more: franchisors looking to attract deep-pocketed investors rather than hands-on moms and pops. And it makes sense. In theory, multi-unit franchisees are easier to manage, bring in more money, and in some cases, are more satisfied with the brand overall. What's common practice in food franchising - requiring franchisees to commit to opening multiple units as part of their franchise agreement - is now becoming common outside of food. But attracting multi-unit franchisees and keeping them happy isn't as easy as just changing your franchise agreement.

  • Post everything you can online. Multi-unit franchisees tend to be business-savvy entrepreneurs looking for the next best business opportunity. As one successful area developer told us, he's constantly researching different franchise opportunities, and the bulk of his research is online. As a franchisor, you need to put everything you can online - financial info, franchisee satisfaction data, testimonials from current operators. We give this same advice for attracting single-unit franchisees, but for multi-units, it's even more important.
  • Make sure your franchise system is set up for multi-unit ownership. Most franchise systems want to sell multiple units to fewer franchisees, but that doesn't mean you should. Do you have the resources and systems in place to actually support multiple-unit operators? You must make sure the brand's business plan, marketing, systems, corporate management, and culture are all set up to support franchisees who will be managing more than one store.
  • Connect current multi-unit franchisees with prospective ones. The only way for prospective franchisees to know whether the franchise system really does work for multi-unit operators is to ask multi-unit operators. So it's your job to make these conversations happen. Highlight for candidates which franchisees own multiple units and encourage them to contact these franchisees as part of the validation process.
  • CEOs, meet with candidates. I attended a great panel discussion on multiple-unit ownership at last fall's Franchise Leadership and Development Conference. For the franchisees on this panel, unavailable CEOs were a deal-breaker. As one franchisee put it, "If I'm going to drop millions on a franchise brand, the CEO better be willing to meet with me early in the process. If he's not, then I'm not investing." CEOs, if you really want serious area developers to be a part of your brand, you'd better be willing to talk to them.

Molly Rowe is the editorial director at Franchise Business Review and reports regularly on today's top franchise opportunities and the latest trends in franchising. She oversees FBR's research and the publishing of its annual Top Franchises Guide, Top Low-Cost Franchises Guide, and many other specialty franchise reports. Contact FBR at info@franchisebusinessreview.com or 603-433-2270.

Published: August 21st, 2014

Share this Feature


comments powered by Disqus
Golden Corral

Franchisor Topics »

Premium Services

Proven Match Business Opportunity

Proven Match
Proven Match provides science-based insights and screening tools to...

AXIS Integrated Business Opportunity

AXIS Integrated
With over 25 years of experience in the franchise industry, AXIS...

IMN Business Opportunity

IMN creates engaging and relevant lifestyle, entertainment, and industry...

Konnect Business Opportunity

Konnect is an agency with unmatched business acumen that provides public...

Xpressdocs Business Opportunity

Xpressdocs' proprietary marketing platform houses a diverse mix of...

Hot Dish Advertising Business Opportunity

Hot Dish Advertising
From lead generation to increasing sales, Hot Dish Advertising is the pro...

Best Franchisee of the World Business Opportunity

Best Franchisee of the World
Best Franchisee of the World will focus on the Franchisees, entrepreneurs...

ApplePie Capital Business Opportunity

ApplePie Capital
ApplePie Capital provides a fresh new approach to franchise financing that...

Franchise Update Magazine

A targeted, quarterly magazine that takes CEO's, VPs and Sales Executives to the cutting edge of franchise development.

Subscribe to Franchise Update Sales Report

A Franchise Update Media Production
Franchise Update Media | P.O. Box 20547 // San Jose, CA 95160 // PH. (408) 402-5681
Copyright © 2001 - 2017. All Rights Reserved.

In Loving Memory Of Timothy Gardner (1987-2014)