Hi folks,

Dunkin' Donuts just opened their 10,000th location.

It was a big milestone. Lots of press. 

But here's a detail you should notice, as a savvy franchise buyer:

Location #10,000 opened in Darien, Illinois.

Population 22,000, average household income: $50K.

Twenty minutes west is Naperville, Illinois. Seven times the population. Average income: $71K.

So why didn't they open in Naperville?

Because someone already owns Naperville. And the next town over. And the next one after that.

When you're franchise #10,000, you don't get first pick anymore.

And it’s not the only tradeoff that comes with size.

Let’s dig in.

First, let’s unpack that territory issue. 

In a 10,000-unit system, all the A-level territories are gone. All the B-level territories are gone. All the C-level territories are gone.

You're shopping from what's left. The D and F markets that other franchisees passed on or that just came on the market because someone failed.

Does that mean you can't succeed? Of course not. Dunkin' wouldn't be opening location #10,000 if the model didn't work.

But it does mean your upside is capped from day one.

Compare that to an emerging brand with, say, 50 locations nationwide.

If you’re opening location #51, you get to look for the best demographics, the highest household incomes, the highest-traffic real estate. 

So that's the first trade-off. You typically either get legacy brand recognition or territory selection… but not both.

Here's the other thing that changes at scale.

There’s a business concept called the "rule of three and ten." The idea is that companies fundamentally change at intervals of 3, 10, 30, 100, 300, and so on. It’s talking about number of employees, but the same applies to number of franchise locations.

At 10 locations, a brand needs entrepreneurial operators who can solve problems, think on their feet, and help shape the system.

At 10,000 locations? You're plugging into a machine.

As franchisee #10,000, you have essentially zero voice in how the brand operates. No input on menu changes, marketing strategy, or operational decisions. Corporate makes the call. You execute.

In an emerging brand, you might actually influence the direction of the company. You could be a thought leader in the organization. Your feedback matters because they need operators like you to help them figure it out.

That's the second trade-off: do you want a more established playbook or influence and autonomy?

Let's say your goal is to own 20+ units over the next decade.

In a massive system, you're competing with franchisees who have 20-year head starts on you. 

They already have the scale. They can afford to pay more to acquire new units. They have relationships with the franchisor. They know which territories are coming available before you do.

But there are upsides: 

You're buying existing, cash-flowing units rather than building from scratch (if you can find a deal that the bigger fish don’t scoop up).

In an emerging brand that's growing quickly, every new location is a seed that gets planted. As those businesses mature, you, as an established operator in the system, have first crack at acquiring them.

So in a small system, you're not competing for scraps. You're building the portfolio from the ground up.

That's the third trade-off: deal volume & infrastructure vs. first-mover advantage.

Neither. It depends on what you want.

If you value certainty and brand recognition over everything else, a legacy system might be your move. You know the model works. You know customers recognize the brand. You're buying predictability.

If you value territory quality, autonomy, and long-term growth potential, an emerging brand might be the better play. You're taking on more risk, but you're also getting access to better markets and more upside.

The mistake is assuming that more locations automatically means a better opportunity.

Sometimes the best move is to be franchisee #47 instead of franchisee #10,000.

Want to figure out which path makes sense for your goals?

Book a free strategy call. We'll dig into your market, your capital, and your long-term plan—and find the brands that actually fit.

Thanks for reading,
Connor

P.S. If you're serious about buying a franchise, I'd love to help. You can also grab my full library of franchise breakdowns here.