MULTI-UNIT
NEED TO
KNOW
Buyer’s Guide
open units sooner, and also can mean discounts on franchise fees, sometimes even
royalties for a limited time.
Franchisors seeking new multi-unit
partners are looking for a proven track record
managing multiple units, relevant industry
experience, positive cash flow, strong unit
economics, and a solid management team
and infrastructure. And, of course, signing
multi-unit or area development deals also
means dealing with fewer franchisees to
sell more units. Franchisees
seeking a new franchisor
partner look for pretty much
the same: a solid management team, strong unit economics, a well-known and
respected brand name, and
an opportunity to develop a
territory over the long term.
Taken alone or together, there are many reasons that inspire
successful multi-unit franchisees to seek
out additional brands:
GEOGRAPHY. A [