How Do I Encourage Multi-Unit Ownership? A Franchisor's Guide

Multi-unit growth has become a major focus across franchising, as more experienced operators look to build a larger presence within a single brand. Expansion only works when franchisees have the right support systems, realistic timelines and operational structure in place from the beginning. According to Valerie McCartney, vice president of franchise development for Broken Yolk Cafe, brands need to think about long-term growth early instead of treating multi-unit development as an afterthought.

Start Early With Multi-Unit Ownership

Some franchisors wait to talk expansion until an operator has proven the first restaurant can perform. Broken Yolk Cafe brings up multi-unit growth much earlier in the process. According to McCartney, Broken Yolk Cafe presents multi-unit ownership as an option "from day one. The only time we offer single units is when the area is too small to hold more than one.”

Looking at growth early gives the franchisor and franchisee a clearer plan for the market. Instead of waiting for the next opportunity to come along, franchisees can secure enough territory to build a stronger local presence and create efficiencies as additional restaurants open.

The strategy also appeals to the type of operators Broken Yolk Cafe is looking to partner with. Many prospective franchisees already have experience running businesses, leading teams or operating within other franchise systems. As a result, the idea of owning multiple locations is often less of a long-term aspiration and more of a logical progression.

"We're realistic about keeping development expectations realistic," McCartney said. "Some franchise systems encourage operators to commit to large territories with dozens of locations, but that's not our approach. We typically structure agreements around three or four units, which gives franchisees a manageable path to growth. Once franchisees find success with their first restaurant, expanding to additional locations becomes a natural next step."

That flexibility matters, especially right now. Delays tied to permitting, construction and real estate are common, and rushing development can create operational issues later. Giving operators additional runway can help them focus on securing stronger locations and building more stable operations instead of rushing to meet unrealistic deadlines. McCartney said slower growth usually creates stronger long-term operations. Opening locations too quickly can create problems for everyone involved.

The Systems Franchisees Need Before Expanding

The challenges increase as operators add locations, but McCartney said the fundamentals remain the same.

Expanding too quickly can create new challenges if the fundamentals are not in place. Without strong unit economics, consistent operations and reliable brand support, adding locations can make small existing problems larger. For franchisees to scale successfully, brands must first ensure their infrastructure is working effectively. If a franchisee is still struggling to run one restaurant consistently, adding a second location usually magnifies those issues.

According to McCartney, operators need several fundamentals in place before taking on additional locations:

Consistent training programs
Reliable marketing support
Clear operational systems
Consistent store-level profitability
Realistic development timelines

McCartney said operators who have those pieces in place are typically better positioned to take on additional restaurants.

What Separates Successful Multi-Unit Operators From Struggling Ones

While operational execution often receives the most attention, McCartney said some of the biggest obstacles to expansion originate within the ownership group itself. Disagreements between business partners, including family members, can derail growth plans even when the business is otherwise performing well.

“Oddly and unfortunately, we too often see a fracture in the partnership, sometimes with a family member, that causes a franchisee to not scale,” she said.

For franchisees pursuing multi-unit franchise ownership, strong communication and aligned leadership within the ownership team are often just as important as financial resources or operational experience.

McCartney said operators who expand successfully are usually willing to hand off responsibilities as they grow. Rather than overseeing every detail themselves, they build management teams they trust and allow those leaders to run day-to-day operations.

Other operators struggle once growth starts stretching the business too thin. McCartney shared how disagreements between partners often surface once a second or third location enters development.

When partnerships begin to crumble, both the franchisee and the brand can feel the impact. Internal conflict can slow development and create operational issues across locations. This is why it’s crucial to set standardized practices based on financial qualifications. Potential partnerships should be evaluated for stability and leadership compatibility before continuing with multi-unit development agreements.

Incentives and Territory Strategy Matter

For franchisees thinking about more than one restaurant, territory is part of the decision. Broken Yolk Cafe accounts for that in its development agreements, which include reduced royalty rates for the first two years on the stores covered by the deal.

"The incentives certainly help make expansion more achievable from a financial standpoint," McCartney said. "But growth has to be approached thoughtfully. When brands push operators to develop too quickly, it can create unnecessary pressure on the business. The goal is to provide realistic timelines and strong support systems so franchisees can grow at a pace that's sustainable over the long term."

Practical Takeaways for Franchise Brands

For McCartney, the best way to support multi-unit growth is to make sure franchisees are not scaling on weak systems. Training, operations and development timelines all need to be strong enough to support the next location.

A signed development agreement doesn't guarantee growth. McCartney said the brands that see the best results are often the ones that give franchisees enough time, support and flexibility to open locations the right way.

For franchisors evaluating their own multi-unit growth strategy, consider the following:

Look at whether your training and support systems still work once an operator is managing several locations instead of one.
Build development schedules around real-world factors such as site selection, permitting and construction timelines rather than ideal-case projections.
Assess whether the partners agree on how the business should be run, communication styles and partnership stability before awarding multi-unit agreements.

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