A lot has been written about the benefits of franchisors granting (and franchisees acquiring) multiple franchise units, but how many outlets is too many for one franchisee to operate?
The exact figure is hard to define, but will require a close assessment of the franchise system itself, the spread of the outlets to be operated, and the attributes of the franchisee.
For starters, there are some systems that lend themselves to multiple franchise operators more than others. Mostly these are retail or fixed-location service franchises, rather than mobile service franchises.
This is not to confuse a multiple unit service franchise with a multiple-territory service franchise. The stereotypical “man and a van†mobile service franchise will generally require a van (and a man) per territory. However, if multiple territories are being operated by just one “man and a vanâ€, this may hardly be a “true†multiple-unit franchisee. Full article here.