Single – Or Multi-Unit Development: Which Works For You?


Despite the surging growth in franchisors using multi-unit development strategies over the past 20 years — especially the past decade — this approach is not always a sure bet for successful franchise growth, and certainly not for every franchisor. For example, the multi-unit model may make a great development tool for an established retail-oriented brand seeking heavy market penetration in a given territory, but it may not be right for a newer service-based brand testing a smaller market.

There remains a time and place for strategic single-unit expansion development models. As we learned from speaking with franchise executives from a variety of franchise brands, as well as with a veteran franchise consultant: one size doesn’t fit all.

The good, the bad, and the ugly
Karen Spencer is founder and CEO of Fran-Systems, an Atlanta-based franchise educational and consulting firm that assists new and existing franchisors with everything from sales and marketing to administrative and operational issues. Spencer, who has worked with many major franchise brands over the past 25 years, says that for franchisors seeking the most appropriate growth and expansion strategies, it’s essential to fully evaluate their expansion markets and opportunities. Read full article.

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