Multi-Unit Ownership: QSR and Beauty-Related Concepts Lead the Charge

The franchising landscape in the U.S. has witnessed a significant shift over the past decade, marked by a notable increase in multi-unit franchisee ownership. According to recent data from our franchisee database, there are approximately 42,891 multi-unit operators (MUO) in the U.S., collectively managing an impressive 241,380 units. This means that MUO's now control 56% of all franchised units, a testament to their growing influence within the industry. On average, an MUO today owns 5.5 franchised units, up from 4.9 units a decade ago. This increase represents an annualized growth rate of 1.1%, reflecting the steady expansion of multi-unit ownership.

The penetration of multi-unit ownership is not confined to a single sector; it spans both food and nonfood industries. QSRs lead the charge, boasting the highest percentage of MUOs and the most units controlled by these operators as seen in this year's MU50 ranking. Following closely are beauty-related concepts, indicating a broadening scope of multi-unit ownership across various sectors.

A noteworthy development within this trend is the rise of multi-brand operators, who now make up 13.8% of all MUOs. These franchisees are not just sticking to affiliated or sister concepts of major franchisor companies but are increasingly diversifying their portfolios across different categories and sectors. This diversification strategy highlights a more sophisticated approach to franchising, where seasoned brands are more inclined to sign development deals over single-unit deals, especially in specific industries.