Multi-unit franchising is gaining momentum as an appealing and profitable choice for entrepreneurs and investors. Owning multiple franchises offers a variety of benefits that can lead to financial success and personal fulfillment.
There are at least 43,230 multi-unit franchisees in the U.S. operating 227,244 locations. The top three industries with multi-unit owners are quick-service restaurants, beauty-related franchises, and casual-dining locations.
Savvy investors are turning to multi-unit franchising to facilitate growth and achieve their financial goals. Over the last 12 years, there has been a dramatic jump in the number of first-time multi-unit franchisees. Multi-Unit Franchisee magazine reports entry-level multi-unit ownership increased by 25.4% from 2010 to 2022. A rise in brand diversification is also helping fuel multi-unit franchise demand. Approximately 11% of multi-unit franchisees have units across several brands.
Advantages and Disadvantages of Multi-Unit Franchising
To understand if owning multiple locations is the right choice for you, let’s look at some of the advantages of this franchise business model.
- Diversified income streams: One of the key benefits of having multiple franchises is the ability to generate diversified income streams. With multiple units, you’re not reliant on the success of a single location. If one of your stores faces challenges, your other units can continue to generate revenue, providing stability and security.
- Economies of scale: Multi-unit franchisees can take advantage of economies of scale. When you operate multiple units, you can often negotiate better deals with suppliers, reduce marketing costs per location, and optimize operational efficiencies, potentially resulting in higher profit margins.
- Wealth potential: Owning multiple franchises allows you to build wealth at a quicker pace. As each unit generates revenue and profit, you can reinvest in additional locations, compounding your earnings and expanding your portfolio. Accelerated growth can significantly increase your net worth over time.
- Streamlined management: With several units, you can streamline operations by centralizing certain administrative tasks, reducing the time and effort needed to oversee each location.
- Risk mitigation: Diversification through owning multiple locations can help mitigate risk. If one unit faces challenges or market fluctuations, your other units can provide a financial buffer.
- Expansion opportunities: Many successful multi-unit franchisees find themselves well-positioned for further expansion. Once you’ve proven your ability to manage multiple units effectively, you may be eligible for additional development deals and territorial rights, allowing you to grow your business even further.
While owning multiple locations can be advantageous, there are a few downsides. It can be risky because it requires a significant upfront investment and ongoing financial commitment. You’ll need to secure financing for each unit, cover operating costs, and allocate resources for expansion. Managing multiple franchise units is more complex and demanding than overseeing a single location and it can be time-consuming. Plus, you’ll need strong leadership and management skills to coordinate operations, staffing, and quality control across multiple sites.
Despite these challenges, many entrepreneurs find that the advantages of owning multiple locations outweigh the disadvantages. Success in owning more than one location often comes down to careful planning, effective management, and a strong partnership with the franchisor. You want to ensure the franchise system you choose already has multi-unit owners and is offering the support they need. As you explore multi-unit franchise opportunities, make sure to assess your financial readiness and business acumen before you commit.
Beans & Brews: The Top Multi-Unit Franchise Choice
When considering multi-unit franchising, choosing the right brand and concept for your investment can make all the difference as many franchisors are designed to facilitate people who want to scale their business. Beans & Brews Coffeehouse, known for its high-altitude roasted coffee and welcoming vibe, is an ideal choice for multi-unit franchise owners.
The demand for specialty coffee and high-quality beverages continues to grow. As a multi-unit franchise owner, you can tap into this expanding market and capitalize on the popularity of coffee culture. Approximately 51% of people order coffee from a coffee shop at least once per week, according to a study of 1,500 Americans conducted by Drive Research. Our diverse menu, which includes breakfast items, snacks, and energy drinks, provides multi-unit franchisees with multiple revenue streams to enhance potential profitability.
Coffee shops cater to a broad customer base, from daily commuters to students and professionals, ensuring a steady flow of customers. They also attract loyal, repeat customers who visit daily or multiple times per week, leading to stable and predictable revenue. As a result, we offer various store formats, including free-standing locations, kiosks, and in-store cafe concepts to cater to a variety of locations. Our flexibility allows franchise owners to choose the format that best suits their target market, available resources, and long-term goals.
The initial investment for a single Beans & Brews standard coffeehouse model is between $518,500 and $761,500 with a franchise fee of $30,000. We do offer a discounted franchise fee for those who sign a multi-unit development agreement.
We demonstrate our commitment to expansion and providing franchisees with growth opportunities as seen in our recent multi-unit development agreements in Texas, which includes locations in San Antonio, Austin, and Houston. The San Antonio and Austin expansion is part of a 40-unit development agreement with Brame Holdings which also partners with Fatburger, Round Table Pizza, and Johnny Rockets. Additional agreements have also been executed in Dallas and Houston, as well as New Mexico, Arizona, Nevada, Utah, Colorado, Idaho, and Wyoming.
If you’re looking to accelerate your path to financial success by owning more than one location, Beans & Brews offers a competitive advantage in the coffeehouse segment. Our proven franchise system, support structure, and dedication to quality make us a top choice for entrepreneurs seeking to build a thriving portfolio of coffeehouses. With Beans & Brews, you can work your way towards multi-unit franchise ownership and unlock the benefits that come with it.
Join the Beans & Brews Family!
We offer a compelling combination of a strong brand, support infrastructure, growth opportunities, and a commitment to quality, making Beans & Brews an excellent choice for entrepreneurs looking to become multi-unit franchise owners in the coffee industry.
Get started to learn more about partnering with us to open a coffee business and talk to someone from our franchise team.
