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<p style="  text-align: justify;"><span style="Helvetica Neue&quot;,&quot;serif&quot;; background:white">For years now, the franchising industry has seen a marked shift toward multi-unit growth. Numbers from FRANdata show that multi-unit franchise owners now own more than half of franchise all units in the U.S., and the trend shows no signs of slowing down. It makes sense. Multi-unit growth pr</span><span style="Helvetica Neue&quot;,&quot;serif&quot;;background:white">e</span><span style="Helvetica Neue&quot;,&quot;serif&quot;;background:white">sents an attractive opportunity for both franchisees and franchisors to grow, penetrate markets and divers</span><span style="Helvetica Neue&quot;,&quot;serif&quot;;background:white">i</span><span style=" Helvetica Neue&quot;,&quot;serif&quot;;background:white">fy their business.</span></p><div style=" ">&nbsp;</div><div style=" "><span style=" Helvetica Neue&quot;, serif; background: white;">The benefits for both sides are many. For franchisees, owning multiple businesses results in i</span><span style=" Helvetica Neue&quot;, serif; background: white;">n</span><span style=" Helvetica Neue&quot;, serif; background: white;">creased profitability and better efficiencies. Multiple locations give franchisees the ability to leverage their resources across units and across customer bases. They can cross-train employees, for example, or cross-market to their existing client base. For franchisors, working with fewer experienced fra</span><span style=" Helvetica Neue&quot;, serif; background: white;">n</span><span style=" Helvetica Neue&quot;, serif; background: white;">chise owners allows them to focus on growing in the places&#8212;and at the pace&#8212;that they want. Plus, it allows them to achieve greater consistency across their locations. In addition, rapid growth can lead to increased visibility for brands, which in turn helps attract franchisees with a proven track record of managing multiple units.</span></div><div style=" ">&nbsp;</div><div style=" "><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">As with most everything in business, however, multi-unit growth also comes with risks, so fra</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">n</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">chisees and franchisors must work well together and be able to rely on each other to carry out their business</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">&#8217; </span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">vision for growth.</span></div><div style=" ">&nbsp;</div><div><span style=" Helvetica Neue&quot;, serif; background-image: initial; background-attachment: initial; background-color: white; background-size: initial; background-origin: initial; background-clip: initial; background-position: initial; background-repeat: initial;"><strong>Five Steps to Achieving an Effective Multi-Unit Strategy</strong></span></div><div>&nbsp;</div><div><span style=" text-align: justify;"><span style=" Helvetica Neue&quot;, serif; background-image: initial; background-attachment: initial; background-color: white; background-size: initial; background-origin: initial; background-clip: initial; background-position: initial; background-repeat: initial;"><strong>Have A Clear Vision</strong></span></span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;"><strong>:</strong> Having a clear vision is an important element of achieving growth. For fra</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">n</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">chisors, communicating their vision with franchisees and getting behind that vision is essential to meet goals. For franchisees, having a vision they can clearly communicate to their units as they grow allows them to maintain consistency across their businesses.</span></div><div>&nbsp;</div><div><span style="text-align: justify;  Helvetica Neue&quot;, serif; background-image: initial; background-attachment: initial; background-color: white; background-size: initial; background-origin: initial; background-clip: initial; background-position: initial; background-repeat: initial;"><strong>Find The Right People</strong></span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background-image: initial; background-attachment: initial; background-color: white; background-size: initial; background-origin: initial; background-clip: initial; background-position: initial; background-repeat: initial;"><strong>:</strong> Whether you</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background-image: initial; background-attachment: initial; background-color: white; background-size: initial; background-origin: initial; background-clip: initial; background-position: initial; background-repeat: initial;">&#8217;</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background-image: initial; background-attachment: initial; background-color: white; background-size: initial; background-origin: initial; background-clip: initial; background-position: initial; background-repeat: initial;">re a franchisor or a franchisee, it</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background-image: initial; background-attachment: initial; background-color: white; background-size: initial; background-origin: initial; background-clip: initial; background-position: initial; background-repeat: initial;">&#8217;</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background-image: initial; background-attachment: initial; background-color: white; background-size: initial; background-origin: initial; background-clip: initial; background-position: initial; background-repeat: initial;">s important to surround yourself with people who share your vision and values. As a franchisor, you want to find franchisees that have the infrastructure to manage various locations and have an understanding of business pri</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background-image: initial; background-attachment: initial; background-color: white; background-size: initial; background-origin: initial; background-clip: initial; background-position: initial; background-repeat: initial;">n</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background-image: initial; background-attachment: initial; background-color: white; background-size: initial; background-origin: initial; background-clip: initial; background-position: initial; background-repeat: initial;">ciples, management and hiring practices. They have to be a right fit for your culture and share your vision for growth. At Driven Brands, we look for multi-unit operators with keen financial unde</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background-image: initial; background-attachment: initial; background-color: white; background-size: initial; background-origin: initial; background-clip: initial; background-position: initial; background-repeat: initial;">r</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background-image: initial; background-attachment: initial; background-color: white; background-size: initial; background-origin: initial; background-clip: initial; background-position: initial; background-repeat: initial;">standing of franchising who are interested in contiguous growth. By contiguous growth, we mean owners who want a development agreement in adjacent states. For example, with MAACO, we s</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background-image: initial; background-attachment: initial; background-color: white; background-size: initial; background-origin: initial; background-clip: initial; background-position: initial; background-repeat: initial;">e</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background-image: initial; background-attachment: initial; background-color: white; background-size: initial; background-origin: initial; background-clip: initial; background-position: initial; background-repeat: initial;">cured a development agreement for the entire West Coast. </span><span style=" text-align: justify; Helvetica Neue&quot;, serif;">Multi-unit owners also need to find the right talent to help them sustain a large operation. Therefore, it is crucial that these owners start the hiring pr</span><span style=" text-align: justify; Helvetica Neue&quot;, serif;">o</span><span style=" text-align: justify; Helvetica Neue&quot;, serif;">cess with a clear idea of what they are looking for and what their needs are.</span></div><div>&nbsp;</div><div><span style=" text-align: justify;"><span style=" Helvetica Neue&quot;, serif; background-image: initial; background-attachment: initial; background-color: white; background-size: initial; background-origin: initial; background-clip: initial; background-position: initial; background-repeat: initial;"><strong>Find The Right Partner:</strong></span></span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;"> Franchisees looking to grow must also be sure that they have, in the fra</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">n</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">chisor, a good partner. Do they offer franchisees the tools they need to grow? What type of support do they provide? What is their leadership like? Are there coaching programs that will help them su</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">c</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">ceed? Do they have the infrastructure to support their growth?</span></div><div>&nbsp;</div><div><span style=" text-align: justify;"><span style=" Helvetica Neue&quot;, serif; background-image: initial; background-attachment: initial; background-color: white; background-size: initial; background-origin: initial; background-clip: initial; background-position: initial; background-repeat: initial;"><strong>Be A Good Leader:</strong> </span></span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">Running multiple units is completely different than running just one. As your company grows, your role in the business changes. You may no longer be involved with all dec</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">i</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">sions. You may not be able to be as hands-on as you were with your first store. That</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">&#8217;</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">s when having good leadership skills become critical. Become a mentor for your key people, communicate that v</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">i</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">sion, delegate, and hold your people accountable. The same is true for franchisors. In order to grow the system, companies need be good leaders too. Having a clear strategic plan, open lines of comm</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">u</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">nications with franchisees and a solid multi-unit program in place are some of the key things franch</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">i</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">sors need to lead a successful multi-unit franchise model.</span></div><div>&nbsp;</div><div><span style=" text-align: justify;"><span style=" Helvetica Neue&quot;, serif; background-image: initial; background-attachment: initial; background-color: white; background-size: initial; background-origin: initial; background-clip: initial; background-position: initial; background-repeat: initial;"><strong>Think About Funding:</strong></span></span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;"> Having the capital to expand from one to multiple locations is, of course, necessary for growth. Franchisees must have funding, whether from their own pockets, or through business partners or lenders. These days, however, it&#8217;s common for private investors to fund multi-unit franchise units. For us, at Driven Brands, it&#8217;s important to find investors who have multi-unit retailing experience but not necessarily industry experience. We recently signed a territory develo</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">p</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">ment agreement with a large private equity firm who is looking to diversify from hotels and resta</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">u</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">rants into the automotive aftermarket. We also look for &#8220;patient equity.&#8221; That is, long-term inves</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">t</span><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">ments that will be patient and stick to the </span><span style=" text-align: justify; Helvetica Neue&quot;, serif;">brand vision in moments of aggressive growth and moments of moderate development.</span></div><div>&nbsp;</div><div><span style="text-align: justify;  Helvetica Neue&quot;, serif; background: white;">Even though multi-unit growth</span><span style=" text-align: justify; Helvetica Neue&quot;, serif;"> carries risks, by keeping these factors in mind, both franchisors and fra</span><span style=" text-align: justify; Helvetica Neue&quot;, serif;">n</span><span style=" text-align: justify; Helvetica Neue&quot;, serif;">chisees can increase their chances of success and ensure that they</span><span style=" text-align: justify; Helvetica Neue&quot;, serif;">&#8217;</span><span style=" text-align: justify; Helvetica Neue&quot;, serif;">re prepared to keep up with the rapid pace of growth so ubiquitous in franchising these days.</span></div><div>&nbsp;</div><div><em style=" text-align: justify;"><span style="Helvetica Neue&quot;,&quot;serif&quot;">Jose R. Costa is Group President for Driven Brands where he leads </span></em><em style=" text-align: justify;"><span style="Helvetica Neue&quot;,&quot;serif&quot;; color:#2B2E2F">MAACO&#174;</span></em><em style=" text-align: justify;"><span style="Helvetica Neue&quot;,&quot;serif&quot;">, CARSTAR and </span></em><em style=" text-align: justify;"><span style="Helvetica Neue&quot;,&quot;serif&quot;; color:#2B2E2F">Drive N Style&#174;</span></em><em style=" text-align: justify;"><span style="Helvetica Neue&quot;,&quot;serif&quot;">. Collectively, these brands operate more than 1,000 body shops across North America, generate more than $1.2 billion in annual system sales and further establish Driven Brands as a leader in the automotive aftermarket space.</span></em></div>

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To make multi-unit growth work, franchisees and franchisors need to work together. 

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