Embrace the Multi-Unit Benefits

Did you know that multi-unit franchisees control more than 50% of all franchised locations in the U.S.? The most successful franchise owners aren't stopping at one location—they're scaling strategically, building wealth, and creating financial freedom.

If you're still operating a single franchise unit, you might be leaving money, influence, and freedom on the table. Owning multiple locations isn't just about bigger profits—it's about leveraging systems, teams, and resources to build a business that works for you, not the other way around.

But scaling isn't as simple as signing another franchise agreement. The difference between struggling multi-unit owners and thriving ones comes down to strategy. In this guide, we'll break down why the top franchisees expand, what you need to have in place before scaling, and the key mistakes to avoid along the way.

Four benefits

The best franchisees don't stop at one unit because they understand the compounding advantages of multi-unit ownership. Here's why scaling is the ultimate power move:

• More revenue, more profitability. One store means one income stream. But with multiple locations, you diversify your revenue and increase your earning potential. A slow month at one store can be offset by another, giving you more financial stability.
• Bigger leverage with your franchisor. Franchisors love multi-unit operators because they simplify operations. As a result, multi-unit owners often get better deals, incentives, and support than single-unit franchisees.
• Lower costs, higher margins. With multiple locations, you can negotiate bulk pricing on inventory, share staff across locations, and streamline operations, all of which increase profitability.
• The freedom to step back. If you're running a single-unit business, you're likely in the trenches daily—managing employees, handling customers, and solving problems. Multi-unit ownership allows you to build a leadership team, so you can work on the business, not in it.

Are you ready to scale? 

Before you sign another franchise agreement, ask yourself these five critical questions:

• Is your first unit profitable and running smoothly? Expanding won't fix a broken business. If your first location isn't financially strong and operationally efficient, adding another will only multiply your problems.
• Do you have scalable systems in place? Growth requires standardization. Are your hiring, training, and operations processes streamlined? If not, your second location will struggle.
• Have you built a strong leadership team? You can't be everywhere at once. If you don't have reliable managers, scaling will turn into chaos.
• Are you financially prepared for expansion? Opening a new unit requires capital for real estate, inventory, staffing, and marketing. Make sure your finances are strong before taking the leap.
• Are you expanding in the right market? A great location in a weak market won't succeed. Make sure you're expanding into a high-demand area with room for multiple locations to thrive.
• Not sure if you're ready? Use this Scenario Planning Guide to make sure your expansion is calculated, strategic, and set up for success.

Scale the right way

Want to know what separates successful multi-unit franchisees from those who struggle? Here are key strategies used by top operators:

• Expand intentionally, not opportunistically. Just because a new location is available doesn't mean it's the right move. The best franchisees have a long-term expansion plan rather than jumping on random opportunities.
• Market first, location second. Your location matters, but your market matters more. A good market can sustain multiple locations while a bad one will leave you struggling no matter how prime your real estate is.
• Hire (or promote) a district manager ASAP. Once you hit three or more locations, managing everything yourself is nearly impossible. A district manager keeps operations running smoothly across all locations, ensuring consistency and profitability.
• Consider multi-brand ownership (strategically). Many of the most successful franchisees own multiple brands, allowing them to diversify revenue streams while leveraging existing operational systems. However, don't expand into a second brand until your first one is running seamlessly.
• Standardize and automate everything. The best franchisees treat their businesses like machines. They develop repeatable processes for hiring, training, and daily operations, allowing each new location to run efficiently without constant oversight.

Avoid expansion mistakes

Many franchisees fail not because they expand, but because they expand the wrong way. Learning from these mistakes will set you apart from struggling operators:

• Expanding too fast without the right systems in place
• Hiring the wrong people or failing to train leaders properly
• Ignoring financial planning—growth is expensive
• Choosing new locations randomly instead of strategically
• Trying to be too hands-on instead of building a leadership team

Are You Ready?

The most successful franchisees don't grow by accident; they scale strategically. If you're serious about expanding your franchise empire, the time to start planning is now.

"When multi-unit franchisees are able to develop a team that will take over the operations of their business, they will no longer have to work in the business. Instead, they will work on the business, developing their organization, expanding their portfolio, and ensuring long-term success," says Aicha Bascaro, CEO of the American Franchise Academy and author of Multi-Unit Franchising: The Key to Achieving Financial & Time Freedom.

If you're serious about expansion, it's time to start thinking like a true multi-unit operator—not just a single-store owner.

Will you take the leap, or will you stay stuck in a single-unit mindset? The choice is yours.

Kendall Rawls with Rawls Succession Planners knows and understands the challenges that impact the success of a complex, privately held, and family-owned business. Contact us today to arrange a consultation and discover how we can empower you to overcome obstacles and achieve lasting success. Whether you're navigating regulatory shifts or striving to build a top-tier team, we're here to help you thrive in today's multi-unit franchising landscape. For more information, visit seekingsuccession.com or email [email protected].