New Data Sheds Light on Multi-Unit Franchising

Experienced multi-unit franchisees advise those contemplating becoming one to think long and hard about doing so prior to taking the leap. They know that being a successful multi-unit franchisee requires a certain type of personality, financial wherewithal, and corporate support. It’s crucial to do extensive research to determine if a franchise brand can properly support you as a multi-unit operator and to understand what it is like being a multi-unit operator. 

Franchise Business Review recently surveyed 9,125 multi-unit franchisees representing 317 franchise brands to determine the brands that had high enough franchisee satisfaction to make its 2017 Top Multi-Unit Franchises list. Brands that made the list such as Checker’s & Rally’s, Miracle Method Surface Refinishing, Right at Home*, Sport Clips* and TWO MEN AND A TRUCK* highlight the wide array of franchise sectors that exist.

Below are findings from the firm’s research that shed light on what its like to be a multi-unit franchisee.

Traits of Multi-Unit Franchisees 

Gender

• 65% male
• ?24% female
• 11% male/female partnership

Education

• 67% have bachelors degree or higher
• 22% have an advanced degree (overlap with above)
• 20% have no college degree

Multi-Unit Franchise Owner Pre-Tax Income Data

Based on # of Units

• 2 units - $98,300
• 3 units - $123,400
• 4 units - $138,300
• 5+ units - $177,300

Based on Years in Business

• <2 years - $59,200
• 2-5 years - $87,500
• 6-9 years - $132,900
• 10+ - $191,800 

Top Three Most Lucrative Multi-Unit Franchise Sectors

• Real Estate
• Food
• Senior Services

What Multi-Unit Franchisees Think About Their Franchising Experience

• I enjoy operating this business - 90%

• ?I enjoy being part of this organization - 88%
• Overall satisfaction with franchise - 84%
• Overall satisfaction with franchisor and the opportunity provided - 84%
• Would recommend their franchise brand to others - 83%
• I respect my franchisor - 83%
• Would "do it again" knowing what they know today - 80%
• I believe my franchisor acts with a high level of integrity - 79%
• Is meeting financial expectations - 63%

To learn what to look for in a franchise from a multi-unit investment perspective, how to finance multi-unit expansion, and receive advice from both multi-unit franchisees and franchisors regarding achieving multi-unit success, read Franchise Business Review’s Top Multi-Unit Franchises guide.