In the dynamic franchise industry, owning a single location can be a great start for entrepreneurs, but the real potential for substantial earnings and long-term success often lies in multi-unit franchise ownership. Many aspiring business owners enter the franchise world with dreams of financial independence, only to find that managing a single-unit franchise may not provide the income they envisioned. However, by setting your sights on multi-unit ownership from the beginning, you can chart a course toward greater profitability and a more robust business model.
The Financial Reality of Single-Unit Ownership
Let’s consider a well-known franchise like Subway as an example. A single-unit Subway owner might find themselves earning around $50,000 per year. While this can be a decent income in some areas, it may fall short of many entrepreneurs‘ financial goals, especially considering the time and effort invested in the day-to-day operations of the business.
In contrast, multi-unit franchise owners with five or more Subway units can potentially earn $750,000 or more annually. This stark difference illustrates why multi-unit ownership is an attractive goal for ambitious franchisees. The same principle applies to other franchise systems, including giants like McDonald’s, where multi-unit operators often see significantly higher returns than single-unit owners.
A Subway franchise owner with multiple locations shared their experience on Startup Nation in June 2025:
“I own three Subway restaurants. The average store in the US does a little shy of $8,000/week. So for easy round numbers let’s say the average store does $400k/year. It is relatively easy to pull 20% profit if you keep an eye on the business. I averaged 22.63% for the first quarter this year and I was in my stores an average of 10 hours or less per week, so 20% is not that hard. But for the following estimate, let’s use 20% average profit. If you have a store that is merely average you should profit in the ballpark of $80k/yr. Now let’s say you were lucky enough to get a great location and your store does $15k/week, well, you should be making in excess of $150k per year.”
This real-world perspective illustrates the potential profitability of well-managed Subway franchises and underscores the financial benefits of multi-unit ownership. It also highlights the importance of location and efficient management in maximizing franchise profits.
When Should You Start Thinking About Multi-Unit Ownership
The short answer? From day one. Even as you’re researching your first franchise opportunity and conducting due diligence and validation, it’s crucial to consider your long-term growth strategy. Are you content with a single location, or do you aspire to build a franchise empire? By keeping multi-unit franchise ownership in mind from the start, you can make decisions that will support your expansion in the future.
Key indicators that you might be ready to consider expansion include:
- Consistent profitability in your current unit
- A strong, reliable management team that can handle daily operations without your constant presence
- Solid systems and processes in place
- A good relationship with your franchisor
- Financial stability and access to capital
The Roadmap to Multi-Unit Ownership
- Master Your First Unit: Before expanding, ensure your initial franchise location is running smoothly and profitably. This proves your ability to manage the business effectively and provides a solid foundation for growth.
- Build a Strong Team and Systems: As you expand, you can’t be hands-on everywhere at once. Develop reliable managers and implement robust systems that can be replicated across multiple units.
- Secure Financing Options: Multi-unit expansion requires significant capital. Build relationships with lenders, explore SBA loans, and consider bringing in private equity investors if necessary.
- Strategically Choose the Right Locations: Work with your franchisor to identify prime real estate for new franchise locations. Consider factors like market demand, competition, and proximity to your existing unit(s).
- Scale Operations While Maintaining Quality: As you grow, ensure that each new franchise business maintains the same level of quality and customer experience as your first. Consistency is key in building a successful multi-unit operation.
Preparing for Multi-Unit Success Now
Even if you’re just starting with your first unit, there are steps you can take now to prepare for multi-unit franchise ownership:
- Further Develop Leadership and Management Skills: You’ll need to manage team members and oversee multiple locations as you expand. Start honing these skills early.
- Network with Successful Multi-Unit Franchisees: Learn from those who have already achieved what you’re aiming for. Consider attending industry conferences or listening to franchising podcasts for insights.
- Build Strong Relationships with Your Franchisor: A good rapport with your franchisor can lead to better support and franchise opportunities for expansion.
- Focus on Financial Management: Learn to analyze financial reports, manage cash flow, and make data-driven decisions to improve operational efficiency.
Challenges and Considerations in Multi-Brand Franchising
Multi-unit ownership isn’t without its challenges. You’ll face increased responsibilities, more complex operations, and potentially higher stress levels. It’s crucial to have strong time management skills and the ability to delegate effectively. You’ll also need to be prepared for the financial risks associated with expansion.
Some multi-unit owners even explore multi-brand franchising, diversifying their portfolio across different franchise systems. While this can offer additional revenue streams, it also comes with its own set of challenges in managing multiple franchise agreements and adapting to different business models.
The Benefits of Multi-Unit Franchise Ownership
Despite the challenges, multi-unit franchise ownership offers numerous advantages:
- Economies of Scale: With multiple units, you can leverage bulk purchasing power and shared resources, reducing costs across your franchise empire.
- Diversified Risk: Multiple locations can help buffer against localized economic downturns or temporary setbacks at individual units.
- Increased Bargaining Power: Multi-unit franchise owners often have more influence with their franchisor and can negotiate better terms or secure prime territories.
- Career Opportunities for Staff: A multi-unit operation provides growth opportunities for your team members, helping you attract and retain top talent.
- Greater Financial Rewards: As illustrated earlier, the potential for higher earnings is significantly greater with multi-unit ownership.
- Streamlined Operations: Once you’ve established effective systems, you can replicate them across all your units, leading to improved operational efficiency.
Strategies for Successful Multi-Unit Growth
- Develop a Growth Playbook: Create a standardized approach to opening and operating new franchise locations. This playbook should cover everything from site selection to staff training and daily operations.
- Invest in Technology: Utilize management software and tools that allow you to monitor multiple locations efficiently. This can help you stay on top of performance metrics and identify areas for improvement across your franchise business.
- Build a Strong Corporate Culture: As you expand, maintaining a consistent culture across all units becomes crucial. Develop core values and ensure they’re communicated and upheld throughout your organization.
- Continual Learning and Adaptation: The franchise world is always evolving. Stay informed about industry trends, new technologies, and best practices in multi-unit management.
- Focus on Customer Experience: Consistently delivering excellent customer service across all your units is key to building a successful multi-unit franchise operation.
- Plan for Succession: Think long-term about how you’ll manage your growing business. Will you eventually step back from day-to-day management? How will you structure your company for continued success?
The Role of Franchisors in Multi-Unit Expansion
Many franchisors actively encourage multi-unit ownership, recognizing the benefits of working with experienced operators who understand their system. Some franchisors offer multi-unit development agreements, allowing franchisees to secure rights to multiple units upfront. This can be an excellent opportunity for ambitious entrepreneurs looking to fast-track their growth.
When considering multi-unit franchise opportunities, look for franchisors who:
- Have a proven track record of supporting multi-unit owners
- Offer comprehensive training programs for both owners and managers
- Provide robust systems for multi-unit management
- Have a strong brand presence and marketing support
- Demonstrate consistent profitability across their franchise system
Conclusion: Building Your Franchise Empire
The journey from single-unit operator to multi-unit franchise owner is a challenging but potentially rewarding path. It requires strategic planning, strong leadership skills, and a commitment to continuous improvement. By starting with the end goal in mind and taking deliberate steps towards multi-unit ownership, you can position yourself for greater success in the franchise industry.
Remember, multi-unit franchise ownership isn’t just about increasing your income—it’s about building a sustainable business that can provide long-term value and opportunities for growth. Whether you’re just starting your franchising journey or looking to expand your existing operation, keeping multi-unit ownership as your north star can help guide your decisions and actions towards building a thriving franchise empire.
At America’s Best Franchises, we’re dedicated to helping entrepreneurs like you navigate the exciting world of multi-unit franchising. From connecting you with the right franchise opportunities to providing resources on multi-unit management strategies, we’re here to support your journey every step of the way. Start planning your multi-unit franchise future today, and let’s work together to turn your entrepreneurial dreams into reality.
