Franchise Update Media Group (FUMG), a leading industry resource for franchise development, has reported that, for the first time, multi-unit franchises are the new industry majority, providing growth opportunities in these times of economic uncertainty.
â€œMulti-unit franchises are one of the most important drivers of economic growth in the country, and are now attracting interest from private equity firms that want to invest in them,â€ said Therese Thilgen, president of FUMG. â€œMulti-unit, multi-brand franchises have proven to be the most successful model in the industry, and we expect this trend to continue.â€
According to the independent research firm FRANdata, 52% of all franchises are now multi-unit operations. The largest 50 multi-unit franchisees increased the number of units they operated by 10% between 2005 and 2007. Fast food continues to be the most popular industry, claiming 35% of all multi-unit franchises, with the restaurant, beauty and baked categories each capturing 28% of all multi-unit operations. More.
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