Multi-Unit Franchisee Magazine Issue III, 2011 | Page 48

The 2011

Multi-Unit 50

Ranking the most multi-friendly brands
By Paul Wilbur

I

t’s been said that the more things
change, the more they stay the
same. You’ll notice that most of
the same brands have returned to this
year’s Multi-Unit 50 lists. What has
changed, however, is their rankings, as
well as their percentages of multi-unit
owners.
The differences from last year’s
MU50 rankings may reflect the challenges in the economy and the lending environment franchisees have
been facing for the past few years.
Certainly many units, regardless of
ownership, have struggled; closures
and resales have been on the rise.
Despite scarce credit, multi-unit
franchisees have been more likely
than start-ups to receive financing to
open new units. That’s why franchisors have been targeting multi-unit
franchisees for new unit sales by offering attractive incentives. Franchise
systems with a high percentage of
multi-unit franchisees have been
more stable and have weathered the
storm better than others.
This trend is likely to continue. As
we gradually come out of this economic hole, business will pick up, but with
many of the weakest units culled from
the system. Multi-unit franchisees with
the best-performing units will be in a
position to continue to grow most rapidly in the months and years ahead.
And lenders (not a group known for
their rapid readjustments) will remain
conservative, preferring to make loans
to multi-unit franchisees who can show
years of success, as opposed to startups with no track record.
Paul Wilbur is chief operating officer at
FRAN