Bad news for the single unit franchisee. According to Forbes many franchisors have switched their preference to larger multi-unit franchisees:
For laid-off executives with a severance package, buying a franchise was once an obvious next
step. Rather than trying to figure out a business idea, you could buy into a big chain with a proven system and established brand name, rake in profits, and never have to report to a boss again.Unfortunately, it’s not so easy anymore.
Over the years, competition in many franchise sectors – particularly fast food – has intensified. Franchisors also discovered that taking anyone who could put up the franchise fee didn’t always work so well. In downturns, many of these one-unit, newbie franchisees went belly-up, leaving franchisors the difficult choice to either close units or operate more company stores.
Gradually, franchisors switched their preference to multi-unit operators.
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