How to Catch the Big Fish: Finding Multi-Unit Franchise Owners

When brands have aggressive scaling plans, one of the best ways for them to achieve company goals is through partnering with multi-unit investors. These kinds of entrepreneurs do everything on a large scale and are the perfect avenue for growing a franchise. They continually reinvest in the business, help to expand locations and territories and further the brand’s customer base. 

How do franchise systems stick out as a suitable opportunity to candidates who are in the market for a multi-unit deal? With a long list of brands to choose from, it can be easy to get lost in the mix. That’s why companies need to explore different routes to connect with investors and reel them in for the discovery process.

Look to Owners Under the Same Umbrella

One of the best sources for brands to find franchisees who will build a sizable portfolio are those already within its system. Companies have great success re-partnering with current owners to open more units because they already know and trust the system, have seen that it works and have reaped the rewards already. 

Similarly, multi-brand franchisors will often see owners that invest in multiple brands under the umbrella. At Threshold Brands, parent company of Pestmaster, Patio Patrol, Men In Kilts, MaidPro, USA Insulation, Heating + Air Paramedics, Plumbing Paramedics, Sir Grout and Granite Garage Floors, this is a common occurrence. The company offers delayed financing, which alleviates barriers and allows owners to grow quickly.

“Our franchisees are able to reinvest and scale their portfolios through Threshold Brands’ different offerings and business opportunities,'' said Hagan Kappler, CEO of Threshold Brands. “Many of our owners come to us to talk about starting up a second brand after getting one up and operating.”

“We have gained significant traction in multi-unit interest with our cross-brand initiative - a focus on supporting a franchisee’s interest in opening a new unit within another portfolio brand,” added R. Scott Sutton, chief growth officer at Threshold Brands. “The adoption was incredible and led to the addition of over 30 new units across our portfolio of brands. It provides a path to diversifying business portfolios.”

Outsourcing Franchise Sales Efforts 

Many companies work with franchise sales outsource (FSO) organizations or franchise brokers to handle the candidate matchmaking process. These specialists support brands in getting their opportunities out there and showcase them to clients who hire them looking for a good fit. 

“What they do is they act as your sales team, they generate leads for you and take them through the entire process from start to finish, and then there is a done deal by the time it gets to the franchise group,” explained Gwyn O’Kane, consultant at FranDecision.

“We see the franchise broker community as an extension of our franchise development team,” said Sutton. “They’re having conversations with the next great franchisee on a daily basis. We want to make sure Threshold Brands is in the mix for those franchise buyers desiring to enter the home services segment.”

Networking Through the Industry 

Franchises can meet entrepreneurs who are looking for their next multi-unit deal at industry events like conferences and webinars, which are designed to connect companies and candidates. Franchise Update Media hosts the 2023 Multi-Unit Franchising Conference every year; this year it takes place in Las Vegas at the end of April. There are plenty of other expos and conventions all throughout the country where brands can focus on big-picture deals. 

Marketing Development Opportunities

Having a robust marketing and advertising strategy for franchise sales is vital. It begins with having an informative development website that clearly lists the opportunity available and encourages candidates to request further details from the brand. In addition, setting up social media campaigns, drip campaigns and tracking lead generation are other great ways to broadcast to multi-unit entrepreneurs what the brand has to offer.  

“It's critically important that a franchise development program relies on the expertise of a savvy, up-to-date marketing department to advertise the highlights of the opportunity,” explained Iric Wexler, former chief development officer for Premium Service Brands and Authority Brands.