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<p>In the world of franchising, an industry ripe with successful entrepreneurs and forward-thinking business people, there are those that choose to take things to the next level by buying more than one franchise. These ambitious multi-unit franchisees are often the Holy Grail for franchise developers, so knowing how they think and why they buy is crucial for franchisors.</p><div><span style="">Greg Cutchall, CEO and founder of Omaha, Nebraska based Cutchall Management Co., is a big player in the franchise world with 50 franchise locations across 9 different brands, and he has some advice for potential multi-unit franchisees and franchisors alike.</span></div><div>&nbsp;</div><div><span style="">According to Cutchall, whose portfolio currently boasts Sonic, Dominos, Paradise Bakery, Famous Dave's, Lolos Chicken &amp; Waffles, Burger Star, First Watch, Tin Star Taco Bar, and Jams American Grill, there are a number of factors he considers before buying into a new franchise.</span></div><div>&nbsp;</div><div><span style="">&#8220;Success and track record of the company, the franchisee support system, return on investment, and the way the brand fits with our corporate structure,&#8221; said Cutchall. &#8220;These are just a few of the many things I factor in when considering a new brand.&#8221;</span></div><div>&nbsp;</div><div><span style="">If there is one insight franchisors should take from a big multi-unit franchisee like Cutchall, though, it is that they should expect to be dealing with a savvy investor and that an outbound approach is unlikely to work.</span></div><div>&nbsp;</div><div><span style="">&#8220;I am usually sold on the concept before I contact someone about a franchise,&#8221; said Cutchall. &#8220;For every franchise I have ever bought I had a location in place or picked out before I even called.&#8221;</span></div><div>&nbsp;</div><div><span style="">&#8220;At the end of the day it's about good chemistry and good business ethics,&#8221; Cutchall said. &#8220;For example, I would question any restaurant franchise that would sell a franchise to someone who has never been in the restaurant business. That is a recipe for failure.&#8221;</span></div><div>&nbsp;</div><div><span style="">When it is all said and done, big multi-unit franchise owners are going to be looking past a catchy sales pitch into the heart of the business by speaking with current franchisees and doing due diligence on all aspects of the brand.</span></div><div>&nbsp;</div>

1851 Franchise

Multi-unit franchisees are often the Holy Grail for franchise developers, so knowing how they think and why they buy is crucial for franchisors.

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