Which Franchise Sectors Are Best Suited for Multi-Unit Franchise Ownership?

Numerous companies offer multi-unit franchise opportunities today in a wide range of industries. However, it is important to be strategic when investing in multiple franchises, and some industries are more suited to this model than others. 

Sectors with clear-cut models, flexibility and absentee ownership opportunities are great places to start in industries ranging from food to personal care. 

Quick Service Restaurants (QSRs)

Many of the businesses with the highest concentration of multi-unit franchisees are found in the food service space — particularly QSR and fast food brands. According to FRANdata research, 82% of franchised QSR businesses were controlled by multi-unit franchisees as of 2019. 

Because these types of franchise models are typically comprehensive enough for all locations to share near-identical qualities and offerings, from the menu to design layout, they are a good option for franchisees looking to own more than one. 

Fitness Franchises

The fitness industry saw a boom as people began focusing on healthy living when the world started opening back up post-pandemic. Because of this demand, fitness franchises are a great opportunity for prospective franchisees. Even better for those looking to get into multi-unit development. 

Fitness franchises can be much simpler to operate than other types of businesses because of their opportunities for absentee ownership. Workout Anytime, for example, notes that its model lends itself to franchisees looking to delegate many of the day-to-day responsibilities of operating their gym to their trusted employees. While there are, of course, some tasks franchisees need to handle personally, there is less obligation to be at one location on a daily basis. 

Home Services

The home services market has been thriving over the last several years and is currently worth more than $500 billion in the United States. These recession-resistant businesses allow owners to join in on a booming market with plenty of room for multi-unit growth. And because many home services brands are mobile, it is a lot simpler to have multiple units without all the overhead cost that comes with a brick-and-mortar location. 

Because of these factors, multi-unit ownership is common among these types of businesses. One example is at United Water Restoration Group, a premier water restoration and reconstruction franchise, where an impressive 62% of franchisees are multi-unit operators.

Beauty and Personal Care

By owning multiple units of the same beauty or personal care franchise, especially within the same area, owners can benefit from factors such as running a single marketing program that benefits all locations and sharing human resources and staff between locations. Additionally, if inventory is running low at one location, it can easily be taken from another, while bulk purchasing can benefit a number of stores at a time.