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Franchisees Multiply Units through Local Contribution

Potential franchisees size up potential franchisors to gauge which system will endure market changes and which is most aligned with personal interests. Potential franchisors size up potential franchisees in much the same way. Will this potential franchisee endure changes in the market and is this franchisee willing and able to adapt to industry shifts?  Is this potential franchisee compatible with the brand concept and if so why?

The portfolio of potential first-time franchisees is usually inspected even more closely than that of existing franchisees, and this applies even when opening additional units beyond the first.  Often this is the case because franchisors wish to ensure the success of each and every location. 

More numerous than any other category of franchise management, single unit operating franchisees have locations trading throughout the US in various states. Nevertheless, single unit operation is only a start for many franchisees. Expanding to operate more units is attainable and attractive for many single unit operators.  

Though the majority of US based franchisees manage one unit, a huge portion of franchisees operate between two and four franchise units according the FRANdata research. This means that more US based franchisees own at least one to four franchise units than any other number of units. 

Appealing to many franchisees operating within this bracket is the benefit of taking on additional units after experience has been established working within their franchise system for some time.  Thus expanding to operate one to three additional units bolsters personal and financial benefits in familiar territory, while respecting each individual franchisee’s abilities, coexisting responsibilities, and financial capacity.

Franchisees ready to expand are often welcomed to do so by franchisors when they offer promising success for each additional location due to existing performance strategies. These strategies at their core attain and maintain local love for the brand. This requires contributing to local events such as charity functions, fundraisers for causes that locals are involved in, and generally spreading awareness of the brand’s presence in the community.  


Having a lasting impact within a local area is one of the key ways that multi-unit franchise operators create clout not only with franchisors but with loyal customers. Quality and attention to maintaining the experience of each customer is the foundation of brand image in any given area. For this reason, many franchisors only make multiple unit expansion available to franchisees that pay the utmost attention to how each location affects customers, for better or worse, so that the brand’s integrity is promoted and left standing over time.

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