Why Multi-Unit Ownership Takes a Certain Kind of Entrepreneur, According to Franchising Expert

John Francis comes from a family that has been deeply involved in franchising for decades on both sides of the contract. He and his relatives owned 30 Cost Cutters and City Looks salon units in the ‘80s and ‘90s. In the early 2000s, Francis owned multiple units of the design and printing company PostNet. As a franchisor, he was involved with Sport Clips* salon and Office Pride janitorial service company. 

After spending decades scaling and selling businesses, Francis now works as a franchising coach, advisor and board member for multiple brands. He has earned his nickname title of “Johnny Franchise,” and he is well-versed in what it takes to own multiple franchise locations and has an extensive portfolio, both from personal experience and from championing others in their journeys.

Multi-unit ownership is not for everybody, and it takes a specific mindset to invest in several business locations. The more operations one has, the more work. But it also brings more reward. 

“Here's the reality: one unit is busy, but having multiple units is valuable,” said Francis. “It's not easy, but you can really leverage your opportunities and manage the risk. I think it's strategically a good way to go, but you need time, money and talented people.”

Having a good team is critical. To be a multi-unit owner, the franchisee can’t have an operator's mindset. They must hire a manager for each location and then a regional or district manager after a few units are established. Creating a hierarchy of authority is key to focusing on growing.

“When you have multiples, you have to put somebody else in charge. If you get a good manager who can run 90% of the front end, that's how you scale,” Francis said. “There are only so many hours in the day, and so much you can only do physically. You have to have people, and you have to have good systems.”

He said he was able to open over two dozen salons in Minnesota and Pennsylvania years ago because he had a “rockstar manager” and good stylists. With a great team handling things, there was not much in the stores he had to do, which allowed him to manage the bigger picture.

“It's a real commitment. You’ve got other people relying on you on a different level. It's kind of next-level thinking where you have to look at the long term,” Francis said.

Francis also outlined how to ensure the business is growing at a healthy and sustainable rate. Only decide to scale if you are making money at the first few locations, and realize that not every business model is scalable. As franchisees, there are a number of questions you can ask of a brand to ensure that investing in multiple units is a safe and smart option.

“Ask them, ‘Do you have multi-unit owners today, and are they successful? Do you have multi-unit training and support structures? Do you have manager-level training? What do they do to facilitate consolidation inside of the brand?’” he said.

And be sure to ask what incentives there are for being a multi-unit owner with a company, Francis advised. Many brands discount the franchise fee depending on how many units are signed. Multi-unit owners also have bigger buying power with suppliers and can get discounts on equipment, vendors and more. Weigh all these numbers and then devise a strategic plan for scaling. 

“When you're scaling from zero to one, two and three, it's a lot. I would say get there and stabilize. Then add a few and stabilize again,” said Francis. “But then, you look for how to go to five at a time, ten at a time? How do I grow exponentially?”