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In today’s franchise economy, the most successful entrepreneurs aren’t just running stores, they’re building high-performing portfolios. A new class of franchisee is emerging: the multi-brand, multi-unit operator. These individuals aren’t merely expanding within a single concept, they’re diversifying across industries, optimizing operations at scale, and attracting serious interest from private equity firms. Once reserved for high-tech startups and major franchisors, private equity capital is now flowing directly to sophisticated franchisees who understand how to grow strategically and execute with precision. For those thinking long-term, this isn’t just an expansion tactic it’s a wealth-building blueprint.
BUILDING EMPIRES, NOT JUST UNITS: THE SMART PLAY BEHIND MULTI-BRAND, MULTI-UNIT FRANCHISE OWNERSHIP
By Gary Occhiogrosso | All Rights Reserved Worldwide. Founder & Managing Partner, Franchise Growth Solutions™️
The Franchise Model Has Evolved
Gone are the days when owning a single-unit franchise was the height of entrepreneurial ambition. In today’s franchise economy, the real winners are the ones scaling across multiple units and investing across multiple brands. It’s not just about growing, it’s about growing smart. Franchisees who understand portfolio diversification are outpacing the competition. They’re leveraging cross-industry knowledge, maximizing operational efficiency, and attracting the kind of attention from private equity firms that used to be reserved for tech startups.
Why Multi-Brand, Multi-Unit Franchise Ownership Works
- Revenue Diversification = Risk Reduction
A frozen dessert brand and a fitness concept? One thrives in the summer, the other in January. Portfolio variety means more consistent cash flow and greater resiliency during market dips. - Shared Operations Drive Down Costs
Smart operators centralize HR, training, marketing, and accounting across multiple units and brands. It’s leaner, faster, and more effective. - Vendor Negotiation Power
With scale comes influence. More units = better deals on supplies, services, and technology. - Synergistic Marketing
Cross-promote brands. Bundle offerings. Launch loyalty programs across locations. It creates momentum across your entire portfolio. - Franchisors Prefer Experienced Operators
Development agreements and territory expansions often go to multi-unit, multi-brand players. Franchisors love handing growth plans to seasoned operators.
What the Franchise Data Tells Us
- Over 50% of franchised units in the U.S. are now owned by multi-unit operators.
- Operators with 50+ units have grown by 112% since 2019.
- The shift toward consolidation and smart scaling is undeniable.
Private Equity’s Growing Interest in Multi-Unit Franchisees
In recent years, private equity (PE) firms have increasingly turned their attention to multi-unit franchise operators, recognizing the scalability and consistent revenue streams these businesses offer. This shift reflects a strategic move to invest in entities that combine the entrepreneurial spirit of individual ownership with the operational efficiencies of larger corporations.FEP+1Greenwich Capital Group+1
Notable Private Equity Investments in Franchise Operators
Several significant transactions underscore this trend:
- Bain Capital’s Pursuit of Sizzling Platter: In December 2024, Bain Capital entered discussions to acquire Sizzling Platter, a prominent operator of over 750 franchised restaurants, including brands like Little Caesars and Jersey Mike’s. The deal, valued at over $1 billion, highlights the appeal of diversified franchise portfolios to PE investors. Reuters
- Sixth Street’s Acquisition of Wingstop UK: In early 2025, American PE firm Sixth Street acquired Wingstop UK for over £400 million. This move aims to capitalize on the brand’s rapid growth and the increasing demand for quick-service restaurants in the UK market. The Daily Upside+10Latest news & breaking headlines+10Franchising.com+10
Factors Driving Private Equity Interest
Several elements make multi-unit franchisees attractive to PE firms:
- Scalability: Franchise operators with multiple units can expand rapidly, leveraging established brand recognition and operational systems.
- Predictable Revenue Streams: The franchise model often provides consistent and recurring income, appealing to investors seeking stable cash flows.
- Operational Efficiencies: Multi-unit operators can achieve cost savings through centralized management and shared resources across locations.
Implications for Franchise Operators
For franchisees, PE investment can provide the capital necessary for accelerated growth, technological advancements, and market expansion. However, it’s essential for operators to align with investors who share their vision and understand the nuances of the franchising industry.
As private equity continues to recognize the value in multi-unit franchise operations, franchisees have a unique opportunity to leverage this interest for strategic growth and enhanced market presence.
What This Means for Franchisees
This isn’t just a tactic; it’s a blueprint for building a long-term asset. A business you can grow, exit, or pass on. And franchisors are eager to work with entrepreneurs who understand how to scale responsibly. Whether you’re looking to expand within your current brand or diversify your holdings across new verticals, now is the time to move.
Final Thought: Think Beyond the Storefront
If you’re still thinking in terms of one store, one brand, one unit, you’re not thinking big enough. The real opportunity lies in strategic expansion that reduces your exposure, increases operational efficiency, and positions you as a top-tier operator in the eyes of both franchisors and investors. Now is the time to start building your franchise empire.
Copyright Gary Occhiogrosso. All rights reserved worldwide
This article was researched, outlined and edited with the support of A.I.