Advantages of Multi-Unit Franchise Ownership

For many entrepreneurs, being able to expand their franchise portfolio from one to two, three and more is an important growth strategy. Presently, 54% of Kiddie Academy® franchisees own more than one Academy. This is in line with the trend nationally, as reported in 2019 by research firm FRANdata, that shows multi-unit franchise operators control 54% of more than 400,000 of the franchise units in the United States.

There is no greater tribute to a brand than multi-unit ownership. At Kiddie Academy, we see more and more prospective franchisees who have expansion on their mind from the start, and don’t waste any time developing business plans specifically around multi-unit growth.

Whether you’re looking to begin your franchising journey with multiple units or add to your existing portfolio, I wanted to share some of the notable advantages that come with owning more than one franchise:

  • Economics of Scale – Owning multiple franchise units can provide cost advantages. Buying supplies and advertising in bulk allows you to save money by reducing costs-per-unit through spreading fixed costs over more locations. Similarly, owning multi-unit franchises allow you to save on services like cleaning and security, as well as marketing costs and employee benefits expenses, since systems are streamlined across the board.

  • Recruiting and Retention – The recruiting and retention of your staff can be made easier and more efficient in the realm of multi-unit franchises. Having more than one location can provide more opportunities for employees to grow and offer the flexibility and incentive to transfer to other locations. Acquiring a larger staff will also provide more hands to pass responsibilities off to, ultimately resulting in more time for you.
  • – Franchise owners know the dynamics of their market best. Having multiple units allows owners to refrain from being reliant on just one location, and instead tap into their knowledge on their individual territories. With the freedom to put into effect their understanding of local elements such as real estate, shifting consumer tastes and more, new concepts can flourish within one location and in turn, spread them to many other locations.
  • Reduced Fees –Most franchises offer franchisees much lower initial fees as an incentive with multiple units. These reduced rates can help to lower start-up costs across the board and allow you to reach your goal of profitability much faster.
  • Access to Capital – With success comes credibility. Often times when a franchisee is prosperous with multiple units, lenders are more eager to partner with them. In addition, they will work hard to earn your business with competitive rates and terms.

Ultimately, you should take advantage of the opportunity to invest in another franchise unit (or more!) when you see the promise for growth in a potential market. The ideal multi-unit franchise owner is not only invested in the future of the business, but is also equipped with the ability to manage others well and entrust them to help support the business as a whole. More units means more responsibility, but when operated properly, multi-unit franchise ownership can also bring greater potential for long-term profitability.

Jeff Brazier joined Kiddie Academy in 2016, most recently serving as Vice President of Franchise Development. As Chief Development Officer, he draws on more than 15 years of related business and marketing experience to lead all development activities for the company, including franchise development, finance, real estate and construction. Kiddie Academy Domestic Franchising is based in Maryland and currently has 250+ open Academies located in 29 states and the District of Columbia. With 35 new Academies expected to open in 2020, Kiddie Academy’s network will grow to more than 280 open and operating locations this year.

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