Expanding your franchise portfolio can be a smart strategy to increase profits. Learn more about multi-unit franchises and multi-brand investments to determine if it’s a good strategy for you.

What is Multi-Unit Franchising?

Multi-unit franchising can be a powerful way to build wealth and scale a business within a proven framework, making it an attractive option for ambitious entrepreneurs. As part of this business model, a single franchisee owns and operates multiple outlets of the same brand. Instead of managing just one location, the franchisee expands its operations by opening and overseeing additional units within a specific territory or market.

Multi-unit franchising is gaining ground.

  • More than 53% of franchises are owned by multi-unit franchisees.
  • Most multi-unit franchisees have two to five locations. Only 419 have more than 50 locations.
  • The number of franchisees with more than 50 locations has grown 112% since 2019.
  • The fast-food industry has the largest share of multi-unit operators.

Multi-unit franchising can be a powerful way to build wealth and scale a business within a proven framework. If you’re weighing the pros and cons of owning multiple locations or brands, it’s important to understand if you have the qualities you need to achieve your goals. Successful multi-unit operators often have experience managing large teams. They have strong organizational and leadership skills to oversee multiple locations effectively. It’s also important to have the financial resources necessary to support multi-location growth.

To determine if multi-unit franchising is right for you, let’s take a closer look at the pros and cons of this business model.

Pros:

Multi-unit franchisees can take advantage of economies of scale, reducing overhead costs to increase profitability. They capitalize on bulk purchasing of supplies and centralized management for staffing, marketing, and training. Managing several locations allows franchisees to standardize processes, maintain consistent quality, and ensure the brand’s values are upheld across all units.

Cons:

Multi-unit franchising requires a high initial investment and expanding too quickly can strain your finances. It requires strong management skills and if you get overextended it may lead to underperformance at some locations.

Advantages of Multi-Brand Franchising

Similar to multi-unit franchising, owning multiple franchise brands can increase operational complexity and be harder to manage. But multi-brand franchising can be a strategic move for entrepreneurs who want to diversify their investments. Here’s why:

  • Multiple revenue streams: You aren’t reliant on a single revenue stream, helping achieve long-term stability. For example, owning a seasonal franchise like a Christmas light design business alongside a window washing franchise enables you to have a steady income flow year-round.
  • Decrease risk: Multi-brand franchising spreads risk across different sectors. It can make it easier to weather downturns in one industry and protect against market volatility.
  • Cost savings: You can reduce operational costs by sharing resources, such as marketing teams, administrative support, or supply chain networks.

Kitchen Tune-Up: A Top Multi-Unit Partner

The profit potential of multi-unit and multi-brand franchising makes it an ideal option for growth, particularly if you choose the right partner or find a complementary brand. Kitchen Tune-Up provides kitchen remodeling services at various price points to appeal to a wide demographic of homeowners, making it one of the best franchises to invest in. Our franchise owners handle everything from a quick cabinet refresh to a full-service kitchen remodel.

With a low initial investment and the opportunity to work from a home office, Kitchen Tune-Up has high profit potential. Kitchens are the No. 1 renovated room among homeowners, according to a survey conducted by Houzz. You don’t need experience in kitchen remodeling to achieve your financial and growth goals. We provide the training, tools, and support you need to be successful.

Kitchen Tune-Up is part of Home Franchise Concepts, a leader in the home services industry with 2,600 territories. Home Franchise Concepts has 10 brands, enabling you to diversify your revenue streams and become a home services force in your community. You can grow your business by adding additional territories or one of our complementary brands. Our Bath Tune-Up brand debuted because customers who had their kitchens remodeled wanted us to tackle their bathrooms. Some of our other brands include Budget Blinds, Concrete Craft, PremierGarage, and The Tailored Closet.

Inquire now to learn more about partnering with Kitchen Tune-Up to diversify your franchise portfolio or make your debut as an entrepreneur.

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