FBR-Multi-Unit-Franchises-2017

SPECIAL REPORT 

FranchiseBusinessREVIEW 

Ratings and Reviews of the Best Franchise Opportunities by Franchisees 2017 

www.FranchiseBusinessReview.com 

TOP 50 

MULTI-UNIT 

FRANCHISES 

Rated By Franchisees 

John Weber, Sport Clips’ largest multi-unit franchisee, currently has 

51 open stores with four more scheduled to open by the end of April. 

Six Tips for 

Being a Successful 

Multi-Unit Operator 

PAGE 3 

2017’s 

Top Multi-Unit 

Franchises 

PAGE 6 

Financing 

Your Multi-Unit 

Franchise 

PAGE 9

SPECIAL REPORT: Top Multi-Unit Franchises 

Features //2017 

3 8 

5 

2 Letter from the Editor 

So You Want to Be a Multi-Unit Franchisee? 

3 Becoming a Multi-Unit Franchisee 

A look at what it entails and how to achieve success 

6 THE LIST 

Best of the Best: Top Multi-Unit Franchises 

10 2017’s Top 200 Franchises Overall 

Franchises with high franchisee satisfaction 

in every industry sector 

12 Marketplace: Franchise Opportunities 

More on the franchisee approved 

franchise opportunities for 2017 

+ 

Franchise reviews by franchisees, frank 

franchisee and franchisor insight, and 

strategic advice about finding, assessing 

and investing in a franchise are available at: 


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FROM REAL FRANCHISEES 

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Visit FranchiseBusinessReview.com 

For more information on this report, visit: www.FranchiseBusinessReview.com | 1


So You Want to Be 

a Multi-Unit Franchisee? 

Multi-unit franchisees develop and own multiple franchise units of one or more brands in 

an exclusive territory. Many start as single-unit franchisees while others invest in multiple 

units right out of the gate. Multi-unit franchisees typically delegate daily operations of their 

units to experienced general managers and staff so they can focus on managing their business 

at a high level. 

Being a successful multi-unit franchisee requires a certain type of personality, financial 

wherewithal, and corporate support. It’s crucial to do extensive research to determine if a franchise 

brand can properly support you as a multi-unit operator. 

Whether you are new to franchising or in one system and ready to expand into another 

brand, this report is an ideal jumping off point for your multi-unit franchising research. It 

addresses what to look for in a franchise from a multi-unit investment perspective, how to 

finance multi-unit expansion, and advice from both multi-unit franchisees and franchisors 

regarding achieving multi-unit success. More information on these topics can be found at 

FranchiseBusinessReview.com. 

Being a successful 

multi-unit franchisee 

requires a certain type 

of personality, financial 

wherewithal, and 

corporate support. 

Informed franchising is happy franchising, 

Emma Pearson, Editorial Director 

Franchise Business Review is the leading national franchise market research 

firm that performs independent surveys of franchisee satisfaction and franchise 

buyer experiences. Before you invest in any franchise opportunity, read our reports 

to get the facts from those who know best—franchisees. We publish 13 annual 

research reports including Top Franchises Guide, Top Low-Cost Franchises, 

Top Multi-Unit Franchises, Top Food & Beverage Franchises, and Top Franchises 

for Veterans. All are available for free at FranchiseBusinessReview.com. 

To see our list of the top 200 franchises according to the franchisees who own 

them, visit FBR50.com. 

Eric Stites, CEO & Managing Director 

Michelle Rowan, President & COO 

Emma Pearson, Editorial Director 

C.J. Fleck, Senior Web Developer 

Michael Kupfer, Online Marketing Manager 

Ali Forman, B2B Marketing Manager 

Nicole Kenney, Client Services Manager 

Linda Lorrey, Client Consultant 

Sydney Dionne, Client Consultant 

Amy LaLime, Office Manager 

Margot Doering, Accounting 

The Secret Agency, Design and Production 

Call us at 866-397-6680 

ABOUT OUR RESEARCH 

Participation in Franchise Business Review’s franchisee satisfaction 

research is free for all North American franchise systems with 

a minimum of 10 franchisees. For this report we surveyed 9,125 

multi-unit franchisees representing 317 franchise brands. This research 

was conducted between August 2015 to February 2017. We asked each 

franchisee to answer 33 benchmark questions ranking their franchise 

in the areas of financial opportunity, training and support, leadership, 

operations and product development, core values (e.g., honesty and 

integrity of franchisor), general satisfaction, and the franchisee community. 

We also asked them to answer an additional 16 questions about their 

market area, demographics, business lifestyle, overall enjoyment running 

their franchise, and role in the franchisee community. From this data, 

we identified our list of top franchises for veterans with the highest 

franchisee satisfaction. Surveys to determine the Top Franchises for 

2018 are underway. If you are a franchisor and would like to participate, 

please call 866-397-6680 or contact info@FranchiseBusinessReview.com. 

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Becoming a Multi-Unit Franchisee 

A look at what it entails and how to achieve success 

There are two main types of franchise operators: 

single-unit and multi-unit. Multi-unit 

operators typically enjoy higher financial gains 

and have the ability to achieve greater operating 

efficiencies than single-unit operators. 

Since you are reading this report, you clearly 

know which camp you envision yourself in 

and are doing exactly what you need to do— 

research! Investing in multiple franchise units 

requires a bigger investment, and, as a result, 

means you are taking a bigger risk so extensive 

due diligence is crucial. 

To identify 2017’s Top 50 Multi-Unit 

Franchises on page 6, we surveyed 9,125 

multi-unit franchisees representing 317 franchise 

brands. They were asked to answer 33 

questions regarding a variety of areas that 

make for a strong franchise brand such as 

financial opportunity, leadership, operations, 

marketing, technology, and culture as well as 

16 questions that shed light on what running 

their business is like such as business lifestyle 

and their overall enjoyment. 

ACHIEVING MULTI-UNIT OWNERSHIP 

IS NOT A COOKIE CUTTER EXPERIENCE 

Entrepreneurs become multi-unit franchise 

owners via a variety of paths. Some began 

with a single-unit while others immediately 

invested in several. 

“I was in an unrelated business when 

I was introduced to Planet Fitness,” says Trey 

Owen, who opened his first Planet Fitness 

club in 2010 and now serves as CEO of PF 

United Partners, owner of 60 Planet Fitness 

clubs around the country. “We went through 

several iterations of growth. At first, we grew 

one club per year with the backing of private 

investors. After four locations, circa 2013, 

we started to grow exponentially with the 

acquisition of new development territory and 

attraction of more private capital. In 2015 we 

made our first acquisition of existing Planet 

Fitness locations and built another eight locations. 

Our evolution culminated at the end 

Todd Owen (front, left) and Gina Tuten (front, right) own four Painting with a Twist studios. 

of 2016 with the consolidation, merger and 

creation of a new Planet Fitness franchisee 

group with five different franchisees. That 

transaction turned out to be large enough to 

be backed by institutional partners. We, now 

as United PF Partners, have 60 clubs and more 

development territory across 10 states.” 

”After we opened our first location, we 

began to win immediately,” says Todd Owen, 

who owns four Painting with a Twist studios. 

“After six months we decided to open the 

second studio and almost immediately had the 

opportunity to buy an existing location, which 

made sense geographically. Three months 

after the purchase of the existing studio, we 

decided to open the fourth studio.” 

“I started as a Sport Clips franchisee and 

then bought the developing rights for the 

Tennessee market,” says John Weber, who owns 

51 Sport Clips locations (with four additional 

stores scheduled to open by the end of April 

2017) and is the brand’s Area Developer for 

Tennessee, Indiana, Kentucky, Alabama and 

the Florida Panhandle. “My first store opened 

in 2008, and over the years I picked up existing 

stores, built more stores, and bought more in 

Alabama and Florida. It’s kind of a blur when 

I look back on it now.” 

SIX TIPS FOR BEING A SUCCESSFUL 

MULTI-UNIT OPERATOR 

We thought you’d find it beneficial to hear 

what helped a successful franchisee achieve 

his objectives most, so asked Todd Owen from 

Painting with a Twist to share his thoughts. 

Here’s what he told us: 

1. Achieve Alignment: “Everything we do is 

about strategy. We have strategies behind growth, 

sales, customer experience, people (talent development), 

marketing, expense structure, studio 

standards, standard operating procedures and 

structure of our business model. One of the 

most important strategies is alignment, ensuring 



What a Typical Multi-Unit 

Franchisee Looks Like 

65% 

have bachelors 

67% degree or higher 

22% have an advanced degree* 

20% have no college degree 

1% did not graduate high school* 

*(overlap with above) 

19% own 5 or more units 

30% 

24% 

male/female 

11% partnerships 

have been an owner 

for 10 years or more 

17% have been an owner 

for less than two years 

83% 

Would recommend 

their franchise 

brand to others 

90% 

enjoy operating 

their business 

80% 

83% 

respect their 

franchisor 

would “do it again” 

in terms of investing in 

their franchise knowing 

what they know today 

each unit is procedurally operating identically. 

It enables cross-pollination of our talent. Any 

studio manager, or even myself, can go into any 

of our studios and everything is located in the 

same place, with the same filing system, with 

the same expectations, and procedurally is run 

identical. We are very process driven from an 

alignment standpoint.” 

2. Have a Clear Vision When It Comes to 

Growth: “Within less than two years, we have 

four studios and a growth strategy within a 

targeted geographic area. Once we get up to 

eight to ten studios and beyond, we will have 

‘scale’ we can leverage to become the dominant 

paint-and-sip player in the area. Whether 

through the purchase of existing studios or 

through new units, we want to achieve our goal 

to ultimately have 20 to 30 or more locations.” 

3. Control Expenses: “Unnecessary expenses 

can creep into your business. You have to be 

careful or it will stunt your growth and your 

bottom line. Just take one unnecessary expense 

of $100 per month, multiplied 12 times, multiplied 

by four units, multiplied by five years 

equates $24,000. Diligently scrub your expenses 

monthly. If removing an expense doesn’t 

hurt your customers or employees and isn’t 

required by law, then get rid of it.” 

4. Hire and Grow the Right Talent: “It’s very 

hard to grow if you don’t have the fundamental 

concept of identifying and teaching talent. 

We believe in teaching our employees everything 

there is about running a small business 

and we are very open with all components of 

the business including the financials. We 

believe ‘the more you share the more they’ll 

care,’ which exponentially gives you a greater 

chance of reaching your goals.” 

5. Build a Strong Corporate Culture: “The 

culture of a multi-unit business can determine 

the level of success or failure one has, so we put 

a very high ticket on this point. We work hard 

at creating a culture of family, trust, expectations, 

accountability, and collaboration.” 

6. Listen to Your Employees: “As in any organization, 

the best ideas come from the folks who 

are doing the day-to day-operations. We’ve benefited 

immensely from listening and reacting to 

their suggestions and ideas where it made sense.” 

BENEFITS AND DRAWBACKS OF BEING 

A MULTI-UNIT FRANCHISEE 

Steve Jackson, CEO of Hungry Howie’s Pizza 

& Subs, compares multi-unit franchise ownership 

to having children. “The first one or two 

units you can handle, but more than that, 

you’re outnumbered, and it requires a different 

skill set and a different type of franchisee. It 

also requires a different type of franchisor.” 

There is no doubt that if you are considering 

becoming a multi-unit franchisee, there 

are many things you need to be aware of. Here 

are just a few of the benefits and drawbacks of 

multi-unit ownership: 

Benefits 

• Support from the Franchisor and Franchisees: 

Being part of a franchise system, 

whether you own one or multiple units, 

offers significant benefits over starting a 

business on your own. You’re part of an 

established system and franchisee community 

that guides you along the way, and 

you benefit from the system’s resources and 

tools for many business “basics” like marketing 

and website support. Multi-unit owners 

need different support than single-unit 

owners, so it’s important to ensure the brand 

you are considering can provide it. 

“We have systems in place that enable 

our franchisees to do an orderly increase of 

locations and to effectively oversee all their 

locations,” says Jose Merille, President of 

Estrella Insurance. “We offer extensive 

training for all of our franchisees. In the case 

of the multi-unit operator starting for the 

franchisee with the capacity to grow a specific 

territory consisting of multiple locations 

ranging from 10 to 50, we do a lot more 

extensive training with them and/or the 

management personnel they bring on board.” 

Although only 33% of Estrella Insurance’s 

franchisees are multi-unit operators, they 

run 74% of all of its locations. 

“We give our franchisees multiple platforms 

that enable them to connect, support, 

and learn from each other,” says Stacy Eley, 

Vice President of Operations at MY SALON 

Suite. “They include an online private 

Facebook group and weekly conference 

calls. In addition, we have implemented a 

mentoring program where new franchisees 

are partnered with a mature franchisee who 

offers them support and encouragement.” 



“Careful consideration must be taken to 

allow the necessary amount of time to break 

even and become profitable for each unit,” 

says Merille of Estrella Insurance. 

• Increased Risk: A bigger initial investment 

means more risk early on, although it’s 

spread out among multiple locations. 

Chris Lemcke (left) is co-owner of 67 Weed Man territories between Canada and Houston. 

• Reduced Costs: Multi-unit ownership 

affords franchisees the opportunity to lower 

their costs per unit because their fixed costs 

are shared over more locations. Achieving 

economies of scale makes the business more 

profitable and more efficient over time. This 

is especially true in low-margin industries 

like food, since vendor relationships improve 

and expenses go down the more you buy. 

“With four units, we are already seeing 

cost savings in areas of the business, specifically 

with resources that can be shared 

between the studios,” says Painting with 

a Twist franchisee, Owen. “The ability to 

interchange talent between the studios has 

been very beneficial.” 

• Easier Access to Financing: It’s often easier 

for multi-unit franchisees to get financing. 

Banks tend to be more receptive to multi-unit 

loans, particularly if the prospective franchisee 

has previous experience in the specific 

industry they’re looking to do business in 

(see page 9). 

• Brand Awareness: Part of the appeal of 

investing in a franchise is that it has a recognizable 

brand. Owning multiple units of the 

same brand enables you to more strategically 

utilize your marketing dollars to promote 

your locations. 

• Can Attract & Retain Talent: You will have 

the ability to provide more opportunities for 

employees and recruit better people since 

they can move between your locations and 

have more roles available to them. 

“As a multi-unit operator you have flexibility 

of personnel,” says Merille. “You can 

transfer, promote, or compensate them in 

ways that encourage them to remain and 

move up the ladder.” 

• More Influence within the Brand: In most 

brands, the more units you have offers greater 

influence within the franchise system. The 

corporate office will likely take more notice 

of your feedback and needs. 

• Higher Resale Value: Multi-unit ownership 

can also make a business more attractive if 

a franchisee wants to sell it down the road. 

“If you have a long-term horizon to be 

attractive to a buyer, then you can do exceptionally 

well with multiple units,” says Ben 

Midgley, President of Crunch Franchise. 

Drawbacks 

• A Big Commitment: If you commit to opening 

multiple units right out of the gate, be 

sure you know what you’re getting into from 

a financial and time commitment so you can 

honor it and be successful. 

“Not fulfilling a multi-unit agreement can 

create an adversarial relationship between 

the franchisor and franchisees because 

it holds up a territory/area that could be 

developed by someone else,” says Jackson of 

Hungry Howie’s Pizza & Subs. 

• Profitability May Take Longer: While 

multi-unit ownership ultimately can be more 

profitable, it can take longer to achieve profitability 

because the investment is higher. 

MULTI-UNIT OWNERSHIP DEFINED 

The definition of “multi-unit” varies depending 

on the franchise concept. In the food and retail 

industry, it typically means you own multiple 

physical locations. For service-related sectors, 

it can mean you serve multiple territories, 

but maintain one central office. Some brands 

provide large territories while others break 

their territories up into smaller segments, 

usually based on population. This can mean 

that someone who meets the definition of 

“multi-unit operator” actually has a smaller 

business than a single-unit franchisee who 

owns a big territory. An example of this is 

Home Instead, which defines most territories, 

regardless of how large, as a single outlet. 

Therefore, they have very few “multi-unit owners” 

by definition so could not be considered 

for our list of top multi-unit franchises. On 

the other hand, Right at Home defines small 

territories so the majority of their franchisees 

are multi-unit owners, even though their businesses 

may be smaller than a Home Instead 

when compared on a population or revenue 

basis. Then, there are some very large multiunit 

franchisees who own so many units, often 

consisting of a mixture of franchise brands, 

that they have their own holding companies. 

Area development can be another form 

of multi-unit ownership and also has several 

definitions. Typically, an area developer agrees 

to develop a number of franchise units within 

a territory, trains and supports the franchisees 

who purchased the units, and gets paid a 

percentage of the royalty from the units they 

sold. Many area developers own franchise 

units themselves, but in some systems, they 

simply perform a support role for franchisees 

in their area. Others simply sell franchises, 

and support is handled through the corporate 

office. Since the role of an area developer 

varies depending on the franchise brand, you 

will need to understand the specifics of the 

opportunity prior to pursuing it. 

Continued on page 8. 



THE LIST 

Best of the Best: 

Broken up into the 

Top 25 Brick & Mortar 

and Top 25 Service 

Multi-Unit Franchises 

Survey 

Date 

TOP 25 BRICK & MORTAR OPPORTUNITIES 

9Round 

Kickboxing fitness 

Captain D’s 

Fast casual 

* Checkers & Rally’s 

Quick-service 

* Crunch Fitness 

Fitness club 

Donatos Pizza 

Quick-service 

March 

2016 

May 

2016 

June 

2016 

Oct. 

2015 

July 

2016 

Startup 

Investment 

$66,600 – 

$102,700 

$771,000 – 

$1,003,000 

$165,796 – 

$1,306,345 

$1,200,000 – 

$1,500,000 

$449,000 – 

$667,000 

Cash 

Requirement 

Total 

Units 

$24,000 445 

$350,000 844 

$250,000 846 

$300,000 – 

$400,000 

$449,000 – 

$667,000 

190 

152 

Service opportunities typically require going 

to a client’s home or workplace. Many can be 

run out of a home or small office. 

Brick & mortar opportunities feature a 

storefront or showroom, which can be mobile. 

Expedia CruiseShipCenters 

Travel agency 

Fazoli’s Restaurants 

Fast casual 

Goldfish Swim School 

Swim lessons 

March 

2017 

June 

2016 

Sep. 

2016 

$150,000 – 

$250,000 

$89,300 – 

$1,409,000 

$1,335,283 – 

$2,932,358 

$100,000 226 

$250,000 213 

$450,000 – 

$600,000 

40 

* Hungry Howie’s Pizza & Subs — 

Quick-service 

more on inside 

front cover 

Nov. 

2016 

$251,375 – 

$495,850 

$100,000 548 

Top Three Most Lucrative 

Multi-Unit Sectors 

Food 

Real Estate 

ILOVEKICKBOXING.COM 

Kickboxing fitness 

* Kona Ice 

Ice cream/Yogurt/Frozen treats 

LaRosa’s Pizzeria 

Fast casual 

Lenny’s Sub Shop 

Quick-service 

April 

2016 

July 

2016 

April 

2016 

July 

2016 

$206,500 – 

$301,500 

$120,225 – 

$143,025 

$800,000 – 

$1,000,000 

$188,715 – 

$386,775 

$50,000 150 

$20,000 857 

$500,000 66 

$80,000 109 

Senior Services 

* Mathnasium 

Math learning center 

April 

2016 

$102,750 – 

$143,610 

$100,000 750 

* MY SALON Suite 

Private, spacious salon suites 

Nov. 

2016 

$395,000 – 

$955,000 

$150,000 68 

Orangetheory Fitness 

Fitness club 

Oct. 

2016 

$327,600 – 

$634,100 

$327,600 – 

$634,100 

560 

* Painting with a Twist 

Paint & sip 

Feb. 

2016 

$89,300 – 

$143,300 

$50,000 336 

“Integrity is what MY 

SALON Suite is all about. 

They do what they say 

and mean what they do.” 

– MY SALON Suite Franchisee 

Palm Beach Tan 

Beauty services 

Penn Station 

Quick-service 

Planet Fitness 

Fitness club 

Scooter’s Coffee 

Fast casual 

* Snap-on Tools 

Automotive services 

Dec. 

2016 

March 

2016 

March 


Sep. 

2016 

Sep. 

2016 

$503,070 – 

$811,140 

$269,232 – 

$535,081 

$853,390 – 

$2,882,070 

$270,000 – 

$463,500 

$169,503 – 

$350,231 

$250,000 446 

$300,000 302 

$600,000 1313 

$100,000 178 

$35,603 – 

$52,203 

5025 

Sport Clips 

Hair cutting 

June 

2016 

$189,300 – 

$354,500 

$200,000 1613 

*This brand’s Full Franchisee 

Satisfaction Report is available for free at 


The MAX Challenge 

Fitness programs 

The Wendy’s Company 

Quick-service 

Oct. 

2016 

July 

2016 

$89,925 – 

$190,000 

$300,000 – 

$3,000,000 

$25,000 56 

$2,000,000 7340 

6 | For more information on the companies in this report, visit www.FBR50.com


Survey 

Date 

Startup 

Investment 

Cash 

Requirement 

Total 

Units 

TOP 25 SERVICE OPPORTUNITIES 

American Poolplayers Association 

Pool league 

Better Homes and Gardens Real Estate 

Real estate 

Sep. 

2016 

Jan. 


$20,070 – 

$28,090 

$65,170 – 

$540,000 

$20,070 322 

$65,170 – 

$540,000 

293 

How Multi-Unit Franchisees’ 

Average Pre-Tax Income 

Relates to # of Units Owned 

Number 

of Units 

Average 

Pre-tax Income 

* CertaPro Painters 

Painting 

College Hunks Hauling Junk 

Junk removal services 

Jan. 


March 


$134,750 – 

$169,500 

$83,300 – 

$208,000 

$75,000 461 

$40,000 102 

3 $123,400 

4 $138,300 

5 or more $177,000 

College+Nannies+Tutors 

Childcare & tutoring services 

ERA 

Real estate 

Oct. 

2016 

Jan. 


$176,700 – 

$228,700 

$4,800 – 

$221,900 

$60,000 100 

$4,800 – 

$221,900 

2370 

How Multi-Unit Franchisees’ 

Average Pre-Tax Income 

Relates to Years In Business 

Estrella Insurance 

Financial services 

Oct. 

2016 

$49,950 – 

$84,000 

$25,000 – 

$50,000 

135 

Years 

in Business 

Average 

Pre-tax Income 

Go Mini’s 

Portable storage 

* HouseMaster 

Professional home inspections 

Aug. 

2016 

Oct. 

2016 

$208,441 – 

$396,645 

$61,100 – 

$106,500 

$100,000 80 

$42,500 309 


Continued from page 5. 

WHAT FRANCHISORS FEEL MAKES FOR 

A STAR MULTI-UNIT OPERATOR 

According to franchisors we spoke with, much 

of what makes a single-unit franchisee stand 

out in their system applies to multi-unit owners: 

marketing/sales experience, operational 

expertise, passion, and a willingness to follow 

an established system. As the number of units 

increases, however, so does the need for strong 

leadership and solid management skills. 

• Ability to Delegate: If you’re a hands-on, 

detail-oriented person who wants to be in 

your business every day and very involved 

in every detail, multi-unit ownership might 

not be the right fit for you. 

“It’s very difficult for multi-unit operators 

to be micro managers,” says Jackson of 

Hungry Howie’s Pizza & Subs. “There has to 

be a balance. I’ve seen people who transition 

to multi-unit ownership work themselves 

to death because they do everything themselves.” 

• Having Passion: Your chances of success 

with anything you do in life increase if 

you’re passionate about what you are doing. 

Passion is a source of energy. Ideally you’ll 

have it for your franchise concept. 

“The main risk for multi-unit owners is 

getting into a system that they don’t feel the 

passion for,” says Pete Lindsey, Vice President, 

Franchising of Sport Clips. “Passion 

drives success.” 87% of Sport Clips’ franchisees 

are multi-unit operators. 

• Access to Capital: Being properly capitalized 

is important for all franchisees. Those 

who start operating businesses without 

adequate working capital won’t be able to pay 

their bills or employees if the amount of cash 

coming into the business is not greater than 

the amount of cash going out, and getting to 

profitability takes time. 

“I would tell anyone considering multiunit 

ownership to be aware of what the 

investment looks like and know how you 

are going to finance the investment,” says 

Eley of MY SALON Suite. “You don’t want 

to overextend yourself going from one unit 

to two or even more.” 85% of MY SALON 

Suite’s franchisees are multi-unit operators. 

• Willingness to Follow an Established 

System: Franchisees who do not follow the 

Robb Pittman owns two YESCO, a sign and lighting 

service franchise, locations. 

proven systems and procedures provided to 

them by the franchise company inevitably 

are less successful that those who do. In addition, 

they risk censure and even termination 

by their franchisor. 

“The systems and procedures we have 

in place minimize growing pains for our 

franchisees,” says Lindsey. “We get them 

out of the “blocks” well. We offer Team 

Leader Training Camp that helps them 

develop skills that prepare them for opening 

and running their salons. Our technology 

provides them with the right information 

to make good decisions and run their businesses 

efficiently. We also have partnerships 

for payroll and accounting and soon will 

be rolling out online check-in.” Sport Clips 

operates 32 company stores in two markets, 

which enables it to “walk in franchisees’ 

shoes” and test systems and procedures prior 

to rolling them out. 

“Every franchisee is assigned to a 

support coordinator who assists them 

through the getting started process,” says 

Eley of MY SALON Suite. “In addition, we 

use an on-boarding project management 

software that ensures our team and franchisees 

are on the same page and that nothing 

falls through the cracks”. 

• Being Motivated and Driven: “We can teach 

people how to run this business, but a person 

has to have the motivation and drive it takes 

to work at owning a successful business,” 

says Eley. “They must realize that they have 

to put in the effort to get the results.“ 

• Experience: Some franchisors prefer 

franchisees with specific experience. For 

example, Hungry Howie’s Pizza & Subs looks 

for franchisees who own other food concepts 

because they already have restaurant 

experience and know what is needed to run 

a successful franchise. Other franchisors, 

however, do not require specific experience. 

Whether a franchisor wants franchisees to 

have specific expertise or not, you will be 

provided with extensive training. 

HOW SATISFIED ARE MULTI-UNIT 

OPERATORS? 

Before investing in a franchise brand that 

promotes itself as a wonderful multi-unit 

opportunity, it’s crucial to ensure it has the 

resources, processes, training, and technology 

in place to actually support multi-unit franchisees. 

Perhaps the best way to answer this is to 

find out what multi-unit operators within the 

system think. There are two ways to do so. The 

first is to speak directly with multi-unit operators. 

The second is to ask the franchisor if it has 

a third party survey its franchisees and, if it 

does, to request the results of their latest 

survey. Many of the brands featured in this 

report share their franchisee satisfaction survey 

results for free within the Franchise Reviews 

section of FranchiseBusinessReview.com. 

Generally, franchisee satisfaction among 

multi-unit owners is slightly higher than satisfaction 

among single-unit franchisees. This 

isn’t surprising since profitability tends to play 

a role in satisfaction, and multi-unit operators 

tend to be more profitable. 55% of the 

participants in our survey ranked the financial 

picture of their business as strong/very strong 

compared with 43% of single-unit owners. 

Both single and multi-unit franchisees 

typically rank their system highest in the areas 

of overall enjoyment they get from running 

the business and being a part of their franchisee 

community, respect for their franchisor, 

and willingness to recommend their system to 

other prospective franchisees. Ninety percent 

of the multi-unit franchisees we surveyed for 

this report said they enjoy operating their 

business and 83% said they would recommend 

their franchise brand to someone else. 

Continued on page 10. 


— Find the best funding option for you by visiting the Franchise Financing section of FranchiseBusinessReview.com. — 

Financing Your Multi-Unit Franchise 

By Jeremy Ames, President & Co-founder of Guidant Financial 

There are a few significant differences in financing a multi-unit 

franchise versus a single unit, though many of the same financing 

solutions will work for both. Aside from the usual cash, credit cards 

or even asking for financial support from family and friends, 

the most common methods used to finance multi-unit franchise 

purchases include loans from the Small Business Administration, 

401(k) business financing, unsecured loans and portfolio loans. 

Here’s what you need to know about each: 

SBA Business Loans 

Loans from the Small Business Administration (SBA) are one of the 

most popular financing methods for business owners of all kinds, from 

start-ups to franchises. SBA business loans are not directly from the 

SBA. Rather, the SBA encourages banks to lend to small business owners 

with preferable terms and low interest rates. In return, the SBA 

covers 75 to 85 percent of the loan for the bank if the loan defaults. 

This creates a win-win situation for both the lender and borrower. 

When it comes to multi-unit franchises, SBA lenders usually look 

at each individual unit and also at the collective performance of all the 

units. Most lenders want to see at least two years of profitable tax 

returns with the initial business prior to applying for funding for 

another location. The sooner the business becomes profitable and the 

stronger a borrower is, the more flexible lenders are. For example, 

if the borrower shows a strong credit score, has prior business experience 

in the industry and is able to put down a significant down 

payment (more than 20 to 30 percent), the bank may be willing to 

approve funding for more than one location simultaneously. 

SBA Loan Eligibility Requirements 

• 20 percent down payment for an existing business purchase 

or 30 percent for a start-up 

• 640+ credit score 

• Personal collateral required 

• Industry experience preferred 

• Secondary income preferred 

401(k) Business Financing 

With 401(k) business financing (formally known as Rollovers for 

Business Start-ups or ROBS), you can use up to 100 percent of funds 

from an existing retirement account to buy or start a small business 

or franchise without taking a taxable distribution or getting a loan. 

Funding through ROBS has been an option since the Employee 

Retirement Income Security Act passed in 1974, and it’s growing in 

popularity. Since 2009, the number of new ROBS transactions at 

Guidant Financial has increased approximately 112 percent, and the 

market as a whole has experienced an estimated 75 percent growth 

over the same period. 

Since ROBS doesn’t involve taking a loan, there are no monthly 

payments or interest rates, and there are no collateral or minimum 

credit score requirements. ROBS can also be used in combination with 

an SBA loan, allowing business owners to use retirement funds as the 

down payment for the loan. 

The process for funding a single-unit franchise versus multiple 

units is the same with 401(k) business financing. You can either roll 

100 percent of your retirement funds during the initial transaction 

to use for one or multiple units, or choose to use a lesser amount 

initially to open the first location, then complete another rollover 

when you’re closer to opening your second location. However, there 

are timing considerations to take into account, especially if you plan 

to open multiple units within the first two years. In this case, you may 

choose to open your first location using an SBA loan, then use ROBS 

as the down payment for a second loan so you can show lenders 

strong liquidity. 

ROBS Eligibility Requirements 

• At least $50,000 in a rollable retirement account 

• No minimum credit score requirements 

• No down payment needed 

Unsecured Loans 

If you don’t want to jeopardize personal property in order to obtain 

financing, unsecured loans provide up to $150,000 without any 

collateral. Unsecured loans work like small business credit cards, 

consisting of multiple lines of revolving credit that can be used and 

paid back as needed. But instead of relying on collateral, lenders look 

at your creditworthiness to secure the loan. As such, a high credit score 

and solid borrowing history is necessary. 

Unsecured loans have no use-of-proceeds requirements, so the 

funds can be used for your first franchise location or subsequent units. 

It’s important to note that this type of loan shows up as revolving 

credit on one’s credit report and can have a meaningful impact on a 

credit score, especially if payments are not made on time. For that 

reason, we recommend using unsecured loans as a last resort and only 

as a short-term financing solution. 

Unsecured Loan Eligibility Requirements 

• 690+ credit score 

• Credit utilization rate below 50% 

• Minimal recent credit inquiries 

• No recent derogatory comments on your credit report 

Portfolio Loans 

If you own stocks, bonds, mutual funds or other eligible securities, you 

can borrow up to 80 percent against the value of your portfolio without 

having to liquidate your holdings. Portfolio loans, also referred to as 

stock loans or securities-based lending, work like a revolving line of 

credit—allowing you to finance a business or franchise by borrowing 

(and repaying) at will. Because of this, they’re ideal for financing multiunit 

franchises as you can use as much as you need, pay it back, and 

then borrow again when you’re ready to move forward with additional 

locations—all without getting a new loan. 

For a detailed walkthrough on funding your franchise, visit www.FranchiseBusinessReview.com/Toolkit 




TOP 200 

FRANCHISES 

ADVERTISING & SALES 

* Our Town America 

Proforma 

Welcomemat Services 

Natural Awakenings 

Town Money Saver 

AUTOMOTIVE 

* Christian Brothers Automotive 

* Snap-on Tools 

Mighty Distributing System 

Auto Appraisal Network 

Tint World 

Honest-1 Auto Care 

Carstar 

Priceless Rent-A-Car 

* Rent-A-Wreck of America 

BUSINESS SERVICES 

Sanford Rose Associates 

* FASTSIGNS — more on p. 12 

* Sandler Training 

* Minuteman Press 

* Murphy Business & Financial 

* ActionCOACH 

YESCO 

* Supporting Strategies 

Sir Speedy 

Brightway Insurance 

The @WORK Group 

Speedpro Imaging 

CHILD SERVICES 

* Soccer Shots 

JumpBunch 

* Amazing Athletes 

Great Play 

Young Rembrandts 

Goldfish Swim School 

Drama Kids 

College + Nannies + Tutors 

CompuChild 

TGA Premier Golf & Tennis 

The Little Gym 

Today’s leading brands based 

on FBR’s owner satisfaction data. 

*Full Satisfaction Report Available 

at FranchiseBusinessReview.com 

Has made FBR’s top franchises 

list for 10 or more years. 

Child Services continued 

* TSS Photography 

KidsPark 

CLEANING & MAINTENANCE 

* MaidPro — more on p. 12 

* Office Pride 

Aire-Master of America 

Rooterman 

Oxi Fresh Carpet Cleaning 

You’ve Got MAIDS 

Two Maids & A Mop 

Jan-Pro (Master Franchisors) 

Anago Cleaning Systems (Master Franchisors) 

* Image One 

EDUCATION 

* Mathnasium 

* The Goddard School 

The Tutoring Center 

Huntington Learning Center 

The Learning Experience 

Creative World School 

FINANCIAL SERVICES 

Estrella Insurance 

Padgett Business Services 

* Payroll Vault 

FITNESS 

Planet Fitness 

Orangetheory Fitness 

Fit4Mom 

9Round 

The Exercise Coach 

ILOVEKICKBOXING.COM 

Baby Boot Camp 

* Crunch Fitness 

The MAX Challenge 

Iron Tribe 

World Gym 

FOOD & BEVERAGE 

* Kona Ice 

Zaxby’s 

Culver’s 

See page 12 for additional top franchises. 

Visit FBR50.com for brand details. 

ARE YOU READY TO TAKE THE 

MULTI-UNIT PLUNGE? 

Knowing that by owning more franchise units, 

you are likely to enjoy greater financial reward 

is a very tempting proposition. 

“Multi-unit ownership is everything we 

thought it would be. All of our studios are very 

healthy and we have hit or exceeded all of our 

financial targets,” says Painting with a Twist 

franchisee, Owen. “Growth inherently takes a 

lot of time, effort, dedication, perseverance, and 

tenacity. If you love what you do, it’s not work. 

It’s more like a hobby that you make money 

doing. That’s a pretty good combination.” 

Many franchise systems want to sell 

multiple units and some, like MY SALON 

Suite and Sport Clips, even require multi-unit 

ownership from the get go. Sport Clips’ franchisees 

must commit to at least three salons. 

The brand’s founder, Gordon Logan, had the 

vision when he began franchising in 1993 to 

have his franchisees keep their “day job” working 

full-time in corporate America while they 

got their Sport Clips locations up and running. 

The goal was to have franchisees be profitable 

enough within five years that they could quit 

their job and have a more flexible lifestyle. 

As mentioned earlier, it’s essential to keep 

in mind that not all franchise brands have the 

resources, systems, and culture to support 

multi-unit operators. The 50 franchise brands 

featured on page 6 of this report have a proven 

track record for growing and supporting 

successful multi-unit owners and, as a result, 

have the highest satisfaction in the franchise 

sector among multi-unit franchisees. They 

offer the potential for an incredible investment 

opportunity. 

For more detailed information about 

achieving success in franchising and the top 

multi-unit brands featured in this report, visit 

FranchiseBusinessReview.com where you’ll 

also find the FBR Franchise Buyer’s Toolkit. 

It provides exclusive insights into and data 

about franchise ownership. 

We wish you great success as you embark 

on the path to multi-unit ownership. There 

is no doubt that it has enabled many entrepreneurs 

to achieve their personal and financial 

objectives. Our research shows that the average 

pre-tax income for franchisees relative to the 

number of units they own is as follows: 

three units, $123,400; four units, $138,300; 

and 5+ units, $177,300. 



America’s Choice in Senior Homecare ® 

Join a Caring Family That Cares for Families 

A fantastic business and rewarding opportunity could 

be in your future; caring for today’s senior population 

• Most recolonized brand in senior care 

• Comprehensive training, continuing guidance and support 

• Our operations team combines over 100 years of experience that 

is reflected in the success of 500+ individual agencies nationwide 

• National TV, Internet and radio advertising 

• 2015 average franchise generated $1.2mm gross revenue 

America’s Choice in Homecare 

www.VisitingAngelsFranchise.com 

Why my salon suite & salon plaza? 

• Semi-Absentee Business Model 

• Few-to-No Employees 

• $160,000/year average net profit* 

*Average is disclosed in the 2017 FDD comprising of 

25 associate/franchised MY SALON Suite units that 

were open and operating for more than 12 months as of 

December 31, 2016. 

(504) 517-6677 I franchise@mysalonsuite.com I www.suitemanagementfranchsing.com 



2017 TOP 200 

FRANCHISES 

BUSINESS SERVICES 

Food and Beverage continued 

Home Services continued 

Hwy 55 Burgers Shakes & Fries 

Captain D’s 

* Hungry Howie’s Pizza & Subs — more on inside 

front cover 

LaRosa’s Pizzeria 

* Checkers & Rally’s 

Fazoli’s Restaurants 

The Wendy’s Company 

Billy Sims Barbecue 

Ground Round 

Tropical Smoothie Cafe 

Penn Station 

* East Coast Wings & Grill 

Nothing Bundt Cakes 

Wingstop 

Planet Sub 

* Marco’s Pizza 

* Firehouse Subs 

Lenny’s Sub Shop 

Fuzzy’s Taco Shop 

Smoothie King — more on right 

Pizza Factory 

Donatos Pizza 

Taziki’s Mediterranean Cafe 

Dick’s Wings & Grill 

Pizza 9 

Jason’s Deli 

Jamba Juice 

Scooter’s Coffee 

* Happy & Healthy Products 

Biggby Coffee 

Toppers Pizza 

Bahama Buck’s 

Zoup! 

* PJ’s Coffee 

Uno Chicago Grill 

Repicci’s Italian Ice 

Buffalo Wings & Rings 

HEALTH & BEAUTY 

Palm Beach Tan 

Sport Clips — more on back cover 

MY SALON Suite — more on p. 11 

LaVida Massage 

HOME SERVICES 

* CertaPro Painters 

Budget Blinds 

See page 13 for additional top franchises. 


* HouseMaster 

Miracle Method Bath & Kitchen Restoration 

Surface Specialists Systems 

WOW 1 DAY PAINTING 

* DreamMaker Bath & Kitchen 

ASP – Americas Swimming Pool Co. 

Tailored Living 

California Closets 

ShelfGenie 

Five Star Painting 

AdvantaClean 

The Grout Doctor 

* Kitchen Solvers 

MarbleLife 

Go Mini’s 

PET SERVICES 

The Dog Wizard 

In Home Pet Services 

Pet Supplies ‘PLUS’ 

Sit Means Sit Dog Training 

Dogtopia 

REAL ESTATE 

Keller Williams 

Sotheby’s International Realty 

Better Homes & Gardens Real Estate 

Weichert Real Estate 

* HomeVestors of America 

Coldwell Banker 

ERA 

Help-U-Sell Real Estate 

PropertyGuys.com 

United Country Real Estate 

Coldwell Banker Commercial 

Showhomes Home Staging 

RETAIL 

* Wild Birds Unlimited 

* Pinch A Penny 

Rhea Lana’s 

Just Between Friends 

Family Fare 

* Big Frog Custom T-Shirts 

* Vapor Shark 

Color Me Mine 

MODE 

FASTSIGNS 

Startup Investment: $151,140 – $293,525 

Cash Requirement: $80,000 

Total Units: 650 

Signage has never been more important. 

Businesses are looking for new and better ways 

to compete. Industries must meet compliance 

standards. And advertisers are expanding into 

new media. Join the franchise that’s leading 

business communication. Our high standards 

for quality and customer service have made 

FASTSIGNS the most recognized brand in the 

industry, driving significantly more traffic to the 

Web than any other sign company. Recently, 

FASTSIGNS was named a 2016 Department of 

Defense Employer Support Freedom Award 

winner. The Award is the highest recognition 

of employers for their exemplary support of 

National Guard and Reserve members. 

For more information on FASTSIGNS 

opportunities, call (800) 827-7446 

or visit www.fastsigns.com. 

CLEANING & MAINTENANCE 

Maidpro 




MaidPro prides itself on its proven 

groundbreaking technology, creative marketing, 

established brand identity, and stellar support 

to its franchisees. MaidPro offers you the 

advantages of rapid growth, low start-up costs, 

manageable hours, and recurring revenue. 

MaidPro has received Franchise Business 

Review’s Four-Star Rating and Franchise 50 

awards for franchisee satisfaction every year 

from 2006-2017. MaidPro is also offering a 

veteran discount valued at $15,000 for U.S. and 

Canadian veterans. Join a franchise family that 

gives you control and ownership of your business 

with unmatched 24.7 support. 

For more information on MaidPro 


or visit www.maidprofranchise.com. 

12 | For more information on the companies in this report, visit www.FBR50.com

FOOD & BEVERAGE 

Smoothie King 




Smoothie King Franchises, Inc. is a privately held, 

New Orleans-area-based franchise company with 

more than 860 stores worldwide. By creating 

each smoothie with a purpose, Smoothie King 

makes it simple and pleasurable for guests to 

achieve their individual health and fitness goals 

as part of a low-calorie diet and regular exercise 

routine. The franchise also offers a number of 

better-for-you retail products, including sports 

beverages, energy bars, vitamin supplements 

and more. In 2016, Smoothie King was ranked 

No. 1 by Entrepreneur magazine in the juice bar 

category for the 24th year and No. 123 overall 

on the 2016 Franchise 500 list. 

For more information on Smoothie King 


or visit www.smoothiekingfranchise.com. 

BE YOUR 

OWN BOSS. 

Choose your franchise 

business today from 

ones rated highest 

by the franchisees 

who own them. 

Visit FBR50.com 

Retail continued 

Learning Express 

Good Feet Worldwide 

SENIOR CARE 

* Visiting Angels — more on p. 11 

* Home Instead Senior Care 

Home Care Assistance 

* FirstLight HomeCare 

Right at Home 

Assisting Hands 

Interim HealthCare 

* CarePatrol 

* Senior Care Authority 

Assisted Living Locators 

SERVICES 

* Weed Man 

* Two Men and A Truck 

* Window Genie 

Truly Nolen of America 

Men In Kilts 

FRSTeam 

Fibrenew 

Leather Medic 

* Fish Window Cleaning Services 

College Hunks Hauling Junk 

Complete Weddings and Events 

Precision Door Service 

A All Animal Control 

* Mosquito Joe 

PortraitEFX 

Real Property Management 

Creative Colors International 

101 Mobility 

Fastest Labs 

Paul Davis 

Glass Doctor 

SPORTS & REC 

* Pinot’s Palette 

American Poolplayers Association 

* Painting with a Twist 

Kampgrounds of America/ KOA 

APEX Fun Run 

Sky Zone 

Wine and Design 

TECHNOLOGY 

TeamLogic IT 

TRAVEL & HOSPITALITY 

* Cruise Planners 

* CruiseOne 

Expedia CruiseShipCenters 


For more information on the companies in this report, visit www.FBR50.com | 13

FBR-Multi-Unit-Franchises-2017

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