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The recognition of multi-unit franchising is not up for debate. Knowledge from a few of the main market researchers within the franchising trade have been analyzing this pattern and have discovered exhausting proof that homeowners with multiple location are extra frequent than you suppose. It’s estimated that there are actually 45,000 multi-unit homeowners within the U.S., amounting to 228,000 models, which accounts for more than half (54.8%) of all franchise enterprise models.
For those who’re simply starting the investigative course of, otherwise you’re a present franchise proprietor contemplating enlargement, listed here are 5 encouraging information about multi-unit franchising.
1. It’s no current pattern, fad or part
The recognition of multi-unit franchise possession isn’t any in a single day phenomenon. In actual fact, curiosity in proudly owning multiple unit seems to have occurred over the past decade. Not solely are single-unit homeowners trying to increase their territorial footprint, however this proposition has picked up curiosity among the many investor class. For multi-unit franchise operations (MUOs), the common variety of models rose from 4.8 to five.1% over the past 10 years.
Associated: How Many Franchise Places Ought to You Personal?
2. A degree enjoying discipline
Whereas massive franchisors and an ever-increasing quantity of personal fairness teams have a formidable stake within the institution of multi-unit franchises, they’re not probably the most dominant gamers. A have a look at the average share of units managed by franchisees reveals that just about half (42.3%) solely personal between two and 5 models. These homeowners make up greater than twice the quantity of the subsequent closest group at 19.6% (homeowners of greater than 50 models). And from 2010 by means of 2018, there was a 23% increase in entry-level multi-unit operators.
3. Industries with probably the most MUOs
Some franchise classes lend themselves to multi-unit franchising a lot better than others. The 2021 Annual Version of the Multi-Unit Purchaser’s Information reveals the highest 10 industries with probably the most participation. Not surprisingly, QSR topped the listing. beauty-related ideas adopted intently behind, with automotive, retail, meals and clothes & equipment rounding out the highest 5 spots. For a have a look at the remainder of the MUO-friendly franchise classes, right here’s an online version of the information.
Associated: The Distinctive Challenges and Advantages of Multi-Unit Franchising
4. There’s loads of MUO knowledge on the market
The franchising trade is well-known for the sheer quantity of knowledge and sources accessible to potential franchisees, and data on the multi-unit sector is prolific. Whether or not you’re focused on one of the best multi-unit classes or a rating of probably the most worthwhile franchise ideas, the data is available. Franchise Enterprise Overview publishes an annual listing of one of the best multi-unit franchise alternatives. Give it a glance here.
5. A multi-unit operation works for semi-absentee homeowners
The rise in recognition of multi-unit franchising among the many investor class highlights the attraction of semi-absentee possession. The investigation of multi-unit franchises as a method to diversify enterprise possession portfolios is on the rise. And a majority of those candidates have little interest in working the day-to-day operations — they’re on the hunt to seek out one of the best expertise, to allow them to sit again and “handle the supervisor”. Past in search of multi-unit operations in a single class, the curiosity in investing in multi-branding franchise operations can be on the rise. Constructing wealth over time requires range and, for some, which means treating multi-unit franchise possession like another funding automobile.
Associated: Is Multi-Idea Franchising for You?
Supply: Entrepreneur