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Franchise Business

SPRING 2014

Ratings & Reviews of Today’s Top FranchisesREVIEW

TOP 50 MULTI-UNIT FRANCHISES

Sotheby’s International Earns Top Spot PAGE 8

A Look Inside the Top Multi-Unit Franchises PAGE 8

Rated By Franchisees

Greg “Gumby” Morrison opened his first Toppers in December 2005 and now owns three locations in the Milwaukee area.

15 CONSECUTIVE QUARTERS OF SAME STORE SALES INCREASES* PRIME SINGLE AND MULTI UNIT TERRITORIES AVAILABLE 550 LOCATIONS AND GROWING ESTABLISHED BRAND FOR OVER 40 YEARS HOT CONCEPT TO OWN - ENTREPRENEUR MAGAZINE MILITARY FRIENDLY FRANCHISOR

*Results measure company-wide same store sales figures for each fiscal quarter over the previous year’s fiscal quarter. The measuring period is March 22, 2010 through December 29, 2013. Excludes store sales from the State of Florida. Not all individual stores experienced the same results. New franchisees may have results that differ. This advertisement is not an offer of a franchise. Franchises are offered and sold only through a Franchise Disclosure Document.STATE OF CALIFORNIA: THESE FRAN-CHISES HAVE BEEN REGISTERED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF CALIFORNIA. SUCH REGISTRATION DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION, OR ENDORSEMENT BY THE COMMISSIONER OF CORPORATIONS NOR A FINDING BY THE COMMISSIONER THAT THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE, AND NOT MISLEADING. STATE OF NEW YORK: THIS ADVERTISEMENT IS NOT AN OFFERING. AN OFFERING CAN ONLY BE MADE BY A FRANCHISE DISCLOSURE DOCUMENT FILED WITH THE DEPARTMENT OF LAW OF THE STATE OF NEW YORK. SUCH FILING DOES NOT CONSTITUTE APPROVAL BY THE DEPARTMENT OF LAW OF THE STATE OF NEW YORK. MINNESOTA STATE REGISTRATION NUMBER F–2873.Hungry Howie’s Pizza & Subs Inc., 30300 Stephenson Highway, Suite 200, Madison Heights, MI 48071, 248-414-3300.

TOP 50 MULTI-UNIT FRANCHISE FRANCHISE BUSINESS REVIEW

Exclusive territories are available. Call (248) 414-3300 or log onto franchising.hungryhowies.com. Take a self-guided tour of our digital

brochure and complete a simple form to request more info.

For more information on this report, visit: www.FranchiseBusinessReview.com | 1

SPECIAL REPORT: Top Multi-Unit Franchises

Successful multi-unit franchise owners are a special breed of franchisees. Not only do they possess the ability to follow a system, build a business, and promote a brand, but they have the strategic vision, leadership skills, grit, and capital to build an empire.

This is the second year we’ve taken an in-depth look at this group of franchisees to learn the secrets to their success and, of course, to name our top brands for multi-unit ownership. As with last year, many of the franchise companies featured in this report are the same brands that win our annual franchisee satisfaction awards. This isn’t particularly surprising, as it stands to reason that a franchisor recognized for overall franchisee satisfaction would also have happy multi-unit operators.

Regardless of the type of investment you’re considering, one of the best ways to know if a franchise opportunity is really as good as it appears is to look at franchisee satisfaction. Not all brands willingly open their doors to an independent research firm like Franchise Business Review to have their franchisees surveyed, but those who do can offer investors a wealth of information on the system’s leadership, culture, training and support, financial outlook, and franchisee community—all from the perspective of franchisees. With brands that decline to have their franchisees surveyed by an independent third party, this can be a sign of deeper problems.

No business comes with a guarantee of success, but starting your due diligence with our top choices for multi-unit ownership will undoubtedly get your research off on the right foot.

Bigger and Better

Happy franchising!

Molly Rowe, Editorial Director

Multi-unit franchise owners have the strategic vision, leadership skills, grit, and capital to build an empire.

Eric Stites, CEOMichelle Rowan, PresidentMolly Rowe, Editorial DirectorC.J. Fleck, Senior Web DeveloperMichael Kupfer, Online Marketing ManagerNicole Kenney, Client Services ManagerJamie Lavigne, Client ConsultantLinda Lorrey, Client ConsultantJay Metzenroth, Marketing Coordinator Stacey Picott, Office ManagerThe Secret Agency, Design & Production

Franchise Business Review is the leading market research company in the franchise industry, assisting prospective franchise buyers through the examination process of today’s leading franchise systems. Before you invest in any franchise opportunity, get the facts from Franchise Business Review. Our independent franchisee satisfaction reports measure the health of any franchise system, based exclusively on the feedback of today’s franchise owners ... the real franchise experts!


2 | For more information on this report, visit: www.FranchiseBusinessReview.com



WHO WE ARE Franchise Business Review is a national market research firm focused on franchisee satisfac-tion and performance. Our products include franchise satisfaction reports, custom research and analysis, industry sector studies, executive networking groups, and other services aimed at driving franchise performance.

WHAT WE DOTo compile the data for this report, Franchise Business Review surveyed close to 6,600 multi-unit franchisees (we focused our research specifically on operators with at least three units). We invited all North America-based franchise companies to participate in this study, and over 300 leading multi-unit brands

were researched. Any franchise company can take part in our franchisee satisfaction studies at no cost to the company—our research is completely independent, and our surveys and interviews are conducted directly with fran-chisees and senior management.

All active franchisees within a system were given the opportunity to answer 33 bench-mark questions ranking their franchise in the areas of financial opportunity, training and support, leadership, operations and product

development, core values (e.g., honesty and integrity of franchisor), general satisfaction, and the franchisee community. An additional 16 questions asked franchisees about their market area, demographics, business lifestyle, overall enjoyment running their franchise, and role in the franchisee community.

From this data, we identify our list of Top Multi-Unit Franchises, which only includes companies with the highest franchisee satis-faction among all the brands we researched.

Photo courtesy of Checkers & Rally’s.

A Look at the Top Brands and the ‘Empire-Builders’ Behind Them

Multi-Unit Franchising

Franchise Business Review surveyed close to 6,600 multi-unit franchisees at more than 300 leading brands.



WHAT IS MULTI-UNIT OWNERSHIP?The definition of “multi-unit” can vary greatly depending on the franchise concept. In the food and retail industry, it usually means you own multiple physical locations. For service-related sectors, it can mean you serve multiple territories but maintain one central office. Some brands define bigger territories while others break their territories up to be very small (usually based on population). This can mean that someone who meets the defini-tion of “multi-unit franchisee” actually has a smaller business numbers-wise than a single unit franchisee who owns a big territory. Then, of course, there are other multi-unit franchi-sees who own so many units (sometimes from multiple brands) they are actually bigger than many franchisors.

Area development can be another form of multi-unit ownership and also has multiple definitions. Typically, an area developer is someone who’s agreed to develop a number of units within a territory by selling franchises within that territory to additional investors, training and supporting those franchisees, and getting paid a percentage of the royalty from those units. Many area developers own franchise units themselves, but in some sys-tems, they simply perform a support role for franchisees in their area. Others are simply charged with selling franchises, and support is handled through the corporate office. Clearly, the exact definition and role of an area devel-oper can vary from franchise to franchise, and you will need to research the specifics of the opportunity you are considering should you go down the path of area development.

For this report, we looked only at fran-chisees with three or more franchise units within the same brand. Franchisees told us owning two units was very similar to owning just one—it wasn’t until they reached three or more units that their operations and support needs really changed.

33%

of ALL franchisees are multi-unit operators



It’s important to note that not every multi-unit concept (or franchisee) starts that way. Many evolve into it with time and success. For example, Hungry Howie’s Pizza and Subs franchisee Bob Leger opened his first location in 1987. He opened a second in 1990, and, by 2000, he had 25 locations. Whether or not you plan to start out as a multi-unit owner, it’s important that you go into your research with that possibility in your head.

“You need to be sure that your franchisor has the systems in place to help you to succeed,” Leger said.

At Weed Man, a lawn care franchise and the #2 company on our list, the corporate office does a lot to prepare its franchisees for growth. They offer a formal multi-unit train-ing program for interested franchisees. When

they are ready to expand, franchisees get help putting together a detailed business plan and identifying a general manager to run one of their locations.

“The training provides our franchisees with a comprehensive blue print, so that they can avoid the many common missteps in expansion,” said Roman Skrypuch, Weed Man’s director of franchise development.

If you decide to commit to opening multiple units right out of the gate, be sure you know what you’re getting into so you can honor that commitment. As Hungry Howie’s CEO Steve Jackson told us, not fulfilling a multi-unit agreement can create an adversarial relation-ship with both the franchisor and franchisees because it holds up a territory/area that could be developed by someone else.

Photo courtesy of Mathnasium.

Potential franchisees who want to own multiple units need to look closely at the franchise system and whether it’s set up to support multi-unit ownership.

Did you always plan to own multiple units? I originally invested in one territory in the Charlotte area. There was another Our Town America franchisee in the Charlotte market who owned another territory. We worked well together sharing ideas and successes, so when he decided to sell his territory in 2011, he came to me. It was an easy decision.

Why did you choose your franchise? My brother owns an Our Town franchise in Tampa. He bought his franchise two years before I did and thought Our Town would be a great fit for us since we both have many years of experience in business-to-business sales. In 2008, the last two of our five kids were entering college, and I was ready to enter the workforce again. The Our Town America franchise is community-oriented, which was important to me since I had done volunteer work in the Charlotte area. Our Town’s mission is to assist new families when they move into their new neighborhood by directing them to businesses they are searching for, which in turn helps businesses in the community grow by driving these new customers in their doors. The community spirit of what we do is what drives me every day to share with local businesses the importance of welcoming newcomers to grow their customer base.

What advice do you have for someone considering a multi-unit opportunity? Owning a multi-unit franchise is an investment in a business you must believe in. You have to invest in yourself and know that the business is a good fit for you and your family. With the right opportunity, it makes more sense to invest in multi-units of a single franchise, rather than to invest in several different franchises. This way, your focus is on one business model.

For more information on Our Town America opportunities, call (727) 345-0811 x232 or visit www.ourtownamerica.com.

F E AT U R E D

Franchisee

Our Town America Charlotte, NCFranchisee since 2007

Jane McElhaney



WHAT TO LOOK FOR IN A MULTI-UNIT OPPORTUNITYJackson of Hungry Howie’s compares multi-unit franchise ownership to having children: The first one or two you can handle, but more than that, you’re outnumbered, and it requires a different skillset and a different type of franchisee. It also requires a different type of franchisor.

Potential franchisees who want to own multiple units need to look closely at the fran-chise system and whether it’s set up to support multi-unit ownership. Does the franchise have the resources and systems in place for multi-unit operators? Are the brand’s business plan, marketing, systems, corporate management, and culture set up in a way to manage stores from afar (or at least not from the premises on a daily basis)? Is the brand scalable?

“The service—the hand-holding—that the franchisor provides is crucial for when you hit growing pains. And that almost defi-nitely will occur at some point,” said Alex Bingham, senior vice president of operations

at The Little Gym. “Even more paramount is the set of systems that the franchisor has in place to make the operation of the business turn-key. Systems such as point-of-sale, prod-uct implementation, training, etc., are the ones that make the operation most scalable. These are the things that will minimize those growing pains in the first place.”

Technology is hugely important for suc-cess with multi-unit ownership (and often an area that scores lower in terms of franchisee satisfaction). The franchisors’ websites, train-ing platforms, and financial tracking software must be able to work across multiple systems

with the ability to look at unit performance both individually and collectively.

“A good technology system can slice- and-dice down, as well as roll up to look at how well things work—scheduling, invoic-ing, payroll. The website should do the same thing—allow you to segment out one unit or territory or look at all your units as one,” said Leann Reynolds, president of Homewatch Caregivers.

Most of the franchise brands we talked to don’t necessarily provide more support for multi-unit operators, but they do provide dif-ferent support specific to multi-units. Brands

Photo courtesy of Sport Clips.

Technology is hugely important for success with multi-unit ownership (and often an area that scores lower in terms of franchisee satisfaction).



like Checkers & Rally’s and Two Men and a Truck host an annual conference just for multi-unit owners, and other brands tailor their training for multi-unit needs.

PROS AND CONS OF BEING A MULTI-UNIT OWNERBeing part of a franchise system as any type of owner offers significant benefits over start-ing a business on your own. You’re part of an established system and franchisee community that guides you along the way, and you benefit from the system’s resources and tools for many business “basics” like marketing and website support. But, being a multi-unit operator comes with its own unique advantages over single-unit ownership.

Multi-unit ownership affords franchisees the opportunity to lower their costs per unit because their fixed costs are shared over more locations. Achieving economies of scale makes the business more profitable over time—and more efficient. Especially in low-margin indus-tries like food, vendor relationships improve and expenses go down the more you buy.

“Your cash flow, your relationship with your banker, the ability to negotiate new sites … there’s a list of opportunities that grows as you expand,” Hungry Howie’s Jackson said. “Your success helps create more success, and a more successful unit can help carry a weaker unit.”

“If your equipment goes down, you have multiple units to cover operations,” added Jim Bonner, a Heaven’s Best Carpet Cleaning franchisee. “You’re not going to have to shut down operations and productivity.”

In industries like senior care, which can require a significant amount of licensing, multi-unit ownership makes sense because franchisees are already set up for growth once the first unit is up and running in a state.

“The economies of scale, from an opera-tions standpoint, allow for efficiencies and diversification across multiple communities—or markets, which leads to stability and greater growth opportunities,” said Shelly Sun, CEO of BrightStar Healthcare.

Multi-unit ownership can also mean you have more say in factors that directly affect your business. At Heaven’s Best, for example, a multi-unit operator typically owns an entire region, so, rather than debating things like prices and marketing spend with two or three other franchisees, they work directly with the

corporate office to make these decisions, said CEO Cody Howard.

From a lending perspective, franchisors told us it is much easier for multi-unit franchi-sees to get financing. Banks are more receptive to multi-unit loans, particularly if the prospective franchisee has previous experience in the specific industry they’re looking to do business in. Multi-unit ownership can also make a business more attractive if a franchisee wants to sell it down the road.

“If you have a long-term horizon to be attractive to a buyer, then you can do exceptionally well with multiple units,” said Crunch Franchise president Ben Midgley.

Other pros of owning multiple units are increased brand awareness (the more units you own in an area, the more you’re able to promote your brand) and increased power within the franchise system (the more units you have, the more sway you have with the corporate office). You also have the ability to provide more opportunities for employees and recruit better people.

“When you are smaller, you are not always able to hire a dynamic applicant because you have nowhere to put him or her, or you may not even have the chance to interview a quality applicant because they are looking for a company they can grow with,” said Hungry Howie’s franchisee Leger.

Many of the cons of multiple-unit owner-ship are most prevalent in the first few years of business. While ultimately more profitable, it can take longer to actually be profitable because the investment is higher. And, a bigger initial investment means more risk early on (although that risk is spread out among multiple locations).

Franchisees told us that multi-unit ownership doesn’t necessarily require more work than a single unit, but the work is dif-ferent, which might not appeal to everyone. Single-unit franchise owners are usually very hands-on in the day-to-day operations of their business. As they grow into multi-unit ownership, their ultimate success is highly dependent on making the transition to more of a managerial role, with a reliable team in place to handle the day-to-day operations of the business.

What a Typical Multi-Unit Franchisee Looks Like

would “do it again” in terms of investing in their franchise

73%

20%

work 50+ hours per week

12% work less than 30 hours per week

43%

$104,704 $79,684

Average income of multi-unit franchisee:

compared with

for all franchisees

Median age is 45 – 54

are college graduates

own 5 or more units/territories

80%

are male71%

are Caucasian

84%

are 45 or older

67%

Continued on page 10.

8 | For more information on the companies in this report, visit www.FBR50.com


THE LISTBest of the Best: Top 50 Multi-Unit Franchises

“ The executive team is one of the best in the business … They all are very accessible and easy to communicate with.”

– Checkers & Rally’s Franchisee

“ The Snap-on family is just that — a family that supports everyone in it.”

– Snap-on Franchisee

Startup Investment

Cash Requirement

Total Units

Sotheby’s International RealtyReal estate

$194,750 – $620,500

$50,000 – $100,000

433

* Weed Man Lawn care

$40,000 – $60,000

$50,000 457

Kona IceMobile shaved ice

$99,800 – $120,000

$20,000 – $25,000

472

Palm Beach TanBeauty services

$554,725 – $821,375

$250,000 215

Murphy Business & FinancialBusiness brokers

$45,750 – $113,600

$30,000 165

* Visiting Angels Senior homecare

$62,935 – $84,685

$34,950 – $42,950

470

* Heaven’s Best Carpet Cleaning Carpet cleaning

$28,900 – $64,000

$15,000 1,248

* Window Genie Window cleaning

$89,000 – $139,000

$60,000 – $80,000

168

Better Homes & Gardens Real EstateReal estate

$194,170 – $540,000

$100,000 250

Pop-A-LockLocksmith services

$100,000 – $120,000

$62,000 328

Miracle Method Surface RefinishingBathroom & kitchen remodeling

$85,000 – $125,000

$67,500 – $107,500

137

* HWY 55 Burgers 50’s style family restaurant

$191,280 – $342,130

$125,000 109

Budget BlindsCustom blinds & window coverings

$89,000 – $187,000

$74,950 806

* CertaPro Painters Painting

$129,000 – $158,500

$75,000 411

* Checkers & Rally’s Quick-service restaurant

$111,000 – $825,000

$250,000 447

Interim HealthCareSenior homecare

$115,500 – $188,500

$115,500 – $188,500

325

WOW 1 DAY PAINTINGPainting

$90,000 – $140,000

$90,000 25

* Two Men and a Truck Moving services

$173,000 – $578,500

$150,000 224

* Snap-on Tools — more on inside back cover Automotive services

$143,683 – $307,700

$30,095 – $79,265

3,641

* Home Instead Senior Care Senior homecare

$100,000 – $115,000

$45,000 643

* BrightStar Senior homecare

$90,378 – $165,676

$100,000 267

* The Little Gym Early childhood education

$157,500 – $294,000

$75,000 – $100,000

202

* Homewatch CareGivers Senior homecare

$77,750 – $125,000

$50,000 211

Anago Cleaning SystemsCommercial cleaning services

$114,000 – $155,000

$100,000 – $150,000

35

* Crunch Fitness Fitness club

$1,200,000 – $1,500,000

$300,000 – $1,000,000

56

* View this company’s full satisfaction report at: www.FranchiseBusinessReview.com

(master franchisors)

For more information on the companies in this report, visit www.FBR50.com | 9


Startup Investment

Cash Requirement

Total Units

* Soccer Shots Youth sports

$17,500 – $21,000

$16,500 147

* Snip-Its Hair cutting

$118,300 – $151,100

$100,000 67

* Our Town America Advertising services

$74,800 – $105,450

$89,000 41

Hungry Howie’s Pizza & Subs Quick-service pizza

$227,200 – $401,500

$100,000 544

* Firehouse Subs — more on back cover Fast casual restaurant

$169,414 – $989,553

$80,000 – $100,000

747

American Poolplayers AssociationPool league

$16,720 – $19,890

$16,720 – $19,890

293

* The Goddard School Early childhood education

$701,400 – $721,400

$150,000 405

Auntie Anne’s Quick-service bakery

$194,875 – $367,600

$40,000 – $80,000

1,082

Coldwell BankerReal estate

$52,670 – $496,050

$75,000+ 2,270

Realty Executives InternationalReal estate

$20,400 – $119,000

$1,000 – $50,000

480

* The Maids Cleaning & maid services

$97,145 – $123,895

$60,000 1,109

* ActionCOACH Business coaching

$61,250 – $108,441

$35,000 234

Sport ClipsHair cutting

$158,300 – $316,500

$100,000 1,180

MathnasiumMath learning center

$99,750 – $139,000

$40,000 – $55,000

406

Toppers PizzaQuick-service pizza

$286,628 – $529,968

$150,000+ 59

Charley’s Philly SteaksQuick-service restaurant

$101,572 – $465,282

$75,000 – $100,000

421

Kampgrounds of America/KOACamping services

$225,950 – $4,462,925

$7,500 – $30,000

485

Liberty Tax ServiceTax preparation services

$56,800 – $69,900

$56,800 – $69,900

4,262

* ShelfGenie Shelving solutions

$70,100 – $125,500

$45,000 126

AdvantaCleanCleaning services

$92,000 – $366,905

$75,000 – $300,000

168

* Synergy HomeCare Senior homecare

$59,025 – $156,700

$50,000 260

Linc Service NetworkCommercial HVAC services

$118,580 – $210,960

$65,000 – $75,000

132

ERAReal estate

$42,700 – $205,900

$43,700 – $205,900

648

YogurtlandQuick-service frozen yogurt

$323,159 – $725,451

$400,000 235

Sky ZoneIndoor trampoline park

$811,288 – $2,408,640

$600,000 141

“ Snip-Its trainers are always open to coming to my store to provide additional training and help my stylists learn new skills.”

– Snip-Its Franchisee

“ The training and support is really top notch. It is amazing how much we have learned in just one year of being a member.”

– Linc Service Network Franchisee

“ I always feel like headquarters cares about our success, and I am pleased that I get personal responses and help whenever needed.”

– Mathnasium Franchisee

— more on inside front cover



“You must learn to delegate tasks, follow up with those tasks, and trust your leadership team,” said Hungry Howie’s franchisee Leger.

“It’s so important to develop the right habits, processes, and relationships with that first loca-tion before expanding,” adds Sun of BrightStar.

MARKET ANALYSISMulti-unit franchising has become hugely popular with both franchisors and franchisees in recent years. This year, 20 new franchise companies were eligible to participate in our multi-unit research (because they had at least five franchisees who own 3 or more units). We expect this number will only continue to grow.

“If you look at all the conferences that are popping up—the expos, the periodicals that are devoted strictly to multi-unit owners—you are starting to see a key focus in popularity that you haven’t seen in years past,” said Randy Shacka, president of Two Men & a Truck.

Prospective and existing franchisees recognize the significant revenue potential in owning three or more units versus just one, and franchisors told us they want to increase their multi-unit operators because it is easier to manage fewer franchisees (and because multi-unit owners tend to be more satisfied).

“You can really get to know every person, every person’s significant other, their kids… There’s great networking between the franchisee

base, and it’s easier for people to adhere to your systems. It allows you to create a tighter culture,” Crunch’s Midgley said.

First/single stores require more from a start-up perspective, added Jackson from Hungry Howie’s. “We send more support staff to a first opening, and fewer to others because Store 2 opening procedures are more streamlined.”

WHAT IT TAKES TO BE SUCCESSFUL MULTI-UNIT OPERATORMany of the traits that make a single-unit franchisee successful are the same for multi-unit owners: marketing/sales experience, operational expertise, passion, willingness to follow an established system. But as the num-ber of units increases, so too does the focus on leadership and solid management skills.

If you’re a hands-on, detail-oriented person who wants to be in your business every day and very involved in every detail, multi-unit ownership might not be the right fit for you.

“It’s very difficult for multi-unit operators to be micro managers,” said Hungry Howie’s CEO Jackson. “There has to be a balance. You give people goals and reward them accordingly. I’ve seen people who transition to multi-unit ownership work themselves to death because they do everything themselves.”

“The most important trait we find is some-one with a vision and a strategic mindset,” said

Bingham of The Little Gym. “This is critical when developing a multi-unit operation. Without vision, you’re simply doubling the amount of work you have because you have two separately operating businesses. With a vision and strategic mindset in place, your two (or more) businesses operate in tandem, rec-ognizing opportunities for economies of scale.”

Being properly capitalized is even more important for multi-unit franchisees because the ramp-up can take longer. Even with a lower-cost investment like Heaven’s Best, it’s important not to expand too quickly, says CEO Howard.

Some franchisors, like Hungry Howie’s Pizza & Subs, look for franchisees who own other food concepts because they already have restaurant experience and know what is needed to run a successful franchise. Of course, prior experience does not mean a franchisee gets to ignore their new brand’s system.

“Sometimes franchisees with prior experi-ence at a competing concept want to bring all their old ideas with them. This can be benefi-cial, but it can also sometimes be confusing,” Jackson said.

Ultimately, says The Little Gym’s Bingham, multi-unit operators need the perfect balance of influence and restraint to run their business successfully.

“They should have enough dominance in

Photos courtesy of Soccer Shots and Liberty Tax Service.

Continued from page 7.



their personality to hold someone accountable, but be able to temper that enough to give up some control of operation to managers, because they can’t be in both stores at the same time.”

FRANCHISEE SATISFACTIONAny franchise system can promote itself as a multi-unit opportunity, but there’s no guarantee they have the resources, processes, training, and technology in place to actually support multi-unit franchisees successfully. This is why it is imperative that investors look-ing at investing in multiple franchise units ask for a franchisee satisfaction report (preferably from a third party) and talk to other multi-unit operators within the system.

Generally, franchisee satisfaction among multi-unit owners runs slightly higher than satisfaction among single-unit franchisees. This isn’t surprising since profitability tends to play a role in satisfaction, and multi-unit operators tend to be more profitable. In 2014, 50% of the participants in our survey ranked the financial picture of their business as strong/very strong (compared with 41% of single-unit owners).

Franchisees of both types rank their system highest in the areas of overall enjoyment they get from running the business and being a part of their franchisee community, respect for their franchisor, and willingness to rec-

ommend their system to other prospective franchisees. Eighty percent of the multi-unit franchisees we surveyed for this report said they would recommend their franchise brand to someone else.

One of the lowest rated survey categories for both single- and multi-unit franchisees is Training and Support. This category encom-passes several areas—ongoing support provided to the franchisee, ads and promotions, system-wide communication, and effective use of technology. As we mentioned earlier, multi-unit operators rank their systems lower in technology than single-unit owners. This is likely because, as franchise locations grow, franchisees rely more and more on effective technology to tie them all together. Twenty-four percent of multi-unit franchisees rank their systems’ technology use as average/poor, compared with 19% for single-unit owners.

SUMMARYThe allure of multi-unit ownership has never been greater. Franchisors look to attract multi-unit owners because they are easier to manage, and franchisees seek out these opportunities because, with more units, usually come greater rewards (and reduced risk). But finding the right system—one with the support, technol-ogy, and leadership team in place to support multi-franchise ownership is no easy task.

The franchise companies featured in this report have a proven track record for growing and supporting successful multi-unit own-ers—and they have the highest satisfaction in the franchise sector among multi-unit fran-chisees. For the right franchisee with adequate capital, these 50 brands offer the potential for an incredible investment opportunity—one with high profits and long-term security.

It’s important to remember that no busi-ness or franchisee opportunity is a surefire success. Operating multiple units requires a certain type of personality and a certain type of corporate support. People considering a multi-unit investment must do even more due diligence than single-unit candidates to deter-mine if a brand can properly support them.

If you’re researching a franchise opportunity, no matter what type of franchisee you think you’ll be, it’s worth considering the multi-unit options and support provided. What you desire as a franchisee today may change in 10 years, and it’s better to be part of brand that can support you as you grow, regardless of what form that growth takes. Ultimately, finding the right fit and the right culture for you is the most critical step in your franchise search.

For more detailed information about researching a franchise brand or on the brands featured in this report, please visit us online at www.FranchiseBusinessReview.com.

Photos courtesy of Two Men and a Truck and Kona Ice.

SNAPONFR ANCHISE.com