Franchising FAQ: Should I buy one unit or multiple?

Hey everybody,

A ton of the first-time franchise buyers I work with come in with extreme assumptions on either end of the spectrum.

It’s either “I should only buy one territory because I’m just starting out” or “I should buy 10 territories because I want to scale”.

Here’s the truth: most of the people I work with buy 2–3 units. Sometimes up to 5. And it actually enhances your upside in some key ways.

Let’s unpack that.

Why 2–5 units is the sweet spot

The thought of buying multiple units can be intimidating at first. 

But here are three key arguments in favor:

• It gives you a path to scale without spreading yourself too thin
  

• It locks down territory in high-demand brands (because if you don’t buy it, someone else will)
  

• It increases your odds of building something that’s worth selling later

I’m not suggesting you go wild and buy 10 units across 6 states. That’s not the move. 

But if you’re playing the long game (and you should be), more than one is usually the right answer.

I’ll say it again: Your decisions should be driven by your long-term plans. 

(More on that here.)

Brick & mortar vs Non-brick & mortar

Here’s where things get tactical.

For non-brick & mortar franchises (think home services or mobile B2B, with no physical store where customers walk in), you’re buying territories, not storefronts.

And if you buy 3–5 territories, you’re probably launching them all at once — with one central location or office serving your whole area.

The more territories you buy, the more market share you command, and the more leverage you have on your marketing spend. 

—

In brick & mortar franchises (like a gym or a food business), you’re buying units. Each one is its own beast.

And you’ll build and open them sequentially, based on a development schedule you agree to with the franchisor, e.g. 

• Lease #1 signed within 12 months

• Lease #2 within 24 months

• etc

Cost-wise, you don’t get economies of scale on the buildings or real estate. But you do get to launch the first business and generate cash flow, which offsets your costs going forward.

In the long run, buying multiple units can reduce your risk. Because when you only buy one unit:

• You’re capping your upside

• You risk getting boxed in by another buyer

• You may not hit the numbers needed to justify stepping out of the day-to-day

So as long as the business model supports it, and you have the capital and appetite to grow… 

I recommend jumping in the deep end.

The final word

I don’t want this to come off like a sales pitch. 

(What’s the point of a franchise consultant, anyway?)

My goal is to set people up for success. So if we work together, it’s all about finding the right fit for your long-term goals. 

And hopefully, you become a franchise tycoon and we work together on all your future acquisitions.

Questions? Comments? 

Hit reply and let me know.

Thanks for reading,

Connor

P.S. If you’re keen to buy a franchise, I’d love to chat. You can book a free strategy call with me here. No strings attached.

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