Landing the Big Fish: Selling Multi-Unit Deals

Landing the Big Fish: Selling Multi-Unit Deals

Emerging franchisors often view multi-unit deals as a golden egg. However, before jumping into such a commitment, a franchisor should take some time to self-reflect and consider, “Is this right for me?”


Multi-unit sales will only succeed if every aspect of a franchise is compatible with integrating and implementing multi-unit deals. The ability to handle multi-unit deals needs to starts at the grassroots level of the organization. It needs to be in your DNA. If it’s not there, the disconnect somewhere along the process could turn a once-promising business relationship into a prolonged nightmare.


Once the business has the proper infrastructure to support multi-unit deals, a franchisor would be wise to first look to their single unit owners as potential candidates. The benefits of engaging in a larger deal with a franchisee whom you already know are numerous. But an often overlooked benefit is the ability for that franchisee to vouch for you and your business when an outside prospective multi-unit buyer is interested in making a deal. Potential candidates are inspired and reassured when it is clear that that current franchisees buy into your system, literally and figuratively. If you only have single unit owners, outside candidates may be skeptical as to why none of the current franchisees have chosen to expand, and this may raise a red flag. Looking at single unit owners as potential candidates helps avoid that potential issue, and if you successfully sell multi-unit deals to your current franchisees, such success can actually be used as a marketing tool down the line.


So when a business is contemplating multi-unit deals, don’t forget to look within.