For many years, the franchise model offered by many companies focused on owner-operators who were active participants in running their businesses. Franchisees were expected to get their hands dirty and serve customers. In recent years, an emerging trend is multi-unit owners who leverage the advantages of larger sizes and are less hands-on in day-to-day operations.

The economics of owning several units of a single franchise are attractive, especially when it comes to building long-term wealth. The entire franchise industry is based on the idea of replicating a successful business concept in multiple locations, and a multi-unit operator is doing the same thing at the local level. An operator of multiple units can also achieve some economies of scale, such as being able to order larger quantities of raw materials for multiple locations at a lower cost, and being able to centralize training and employee onboarding at one or two locations.

While successful multi-unit operators still spend much of their time in their locations to ensure that quality and service meet their standards, they leave the day-to-day operations to local managers, allowing them to focus on strategically running and growing their business.

A key to achieving the advantages of a multi-unit franchise business is access to sufficient development capital. That’s where a lender like us can help. We know the franchise world and are accustomed to lending money to franchisees who are focused on growth. If you’re thinking of moving to multi-unit operations, we’d be happy to talk with you about turning those plans into a successful reality.

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The materials in this paper are for informational purposes only.