OWNING ONE: THE PROS & CONS OF BEING A SINGLE UNIT OWNER OPERATOR

Photo by Ivan Samkov

From managing the register to setting staff schedules, every day you carry the entire franchise on your shoulders. Owning a single-unit franchise means you control the experience on the ground and reap the benefits when things go well. But all the risk and responsibility rest on your shoulders.

OWNING ONE: THE PROS & CONS OF BEING A SINGLE UNIT OWNER OPERATOR

By Gary Occhiogrosso, Founder, Franchise Growths Solutions.

Today, the owner-operator approach remains a powerful path for focused franchisees. Let’s unpack what makes it compelling and what makes it challenging. Owning and operating one unit of a franchise gives you complete control and direct involvement in every aspect of the business. That closeness brings benefits and tradeoffs.

Pros

  • Lower startup and operating costs

Because you are hands-on, there is no need to hire a general manager. You can save on labor and overhead. Startup investment tends to be lower for a single unit than for a multi-unit deal.

  • Ideal for newcomers

First-time franchisees benefit by learning the business in detail. You become immersed in the system and process without the complexity of multiple units.

  • Complete operational control

You hire your team, handle expenses, maintain quality, and deliver a consistent customer experience day after day.

  • Sharper focus and fewer pitfalls

Managing one location means fewer moving parts and less risk of failure cascading across units. You can respond quickly when tasks or problems emerge.

Cons

  • Time demands and stress

As the owner operator, you shoulder full responsibility for service delivery, staffing, day-to-day admin, and finances. Your schedule may skew heavily toward operational hours until routines are well established.

  • Limited scalability

If growth is on your horizon, a single-unit model becomes impractical. You will need to transition into hiring managers or shift toward a multi-unit structure for expansion.

  • Dependent on one location

Your income, reputation, and exit strategy hinge on the success of that single unit. No diversification means more vulnerability if local demand shifts or competition increases.

  • Potential lack of pricing leverage

Single units cannot negotiate volume discounts and supplier deals the way multi-unit portfolios can. Your purchasing power is limited.

Looking Ahead

For entrepreneurs starting out, especially couples or those leaving corporate employment, the single-unit owner-operator franchise remains a logical launchpad. It offers direct exposure to operations, solid financial upside when managed well, and smoother navigation of franchisor support systems.

But it is inherently unsustainable as a growth model beyond the first business. A forward-thinking owner should plan exits, consider geographic or brand expansion, and understand when to shift into management or semi-absentee modes.

Summary Table

BenefitDrawback
Lower costs and investment Heavy personal time and effort
Full control and insightGrowth is difficult without hiring
Fewer moving parts Earnings tied to one location
Ideal for first time ownersMinimal supplier negotiating leverage

In the realm of franchising, owning a single unit remains the traditional entry path. The simplicity and affordability attract new entrepreneurs and owner-operators who want to run the business themselves. Yet keeping that model requires relentless hands-on engagement, and it slows down scale. If long-term growth matters to you more than hands-on control, the right move may be to begin with one unit and plan early for expansion.

 

Copyright Gary Occhiogrosso. All rights reserved worldwide.

Sources:

  1. https://www.franchiseexpo.com/blog/owner-operator-franchises
  2. https://www.ifpg.org/buying-a-franchise/different-types-of-franchise-ownership
  3. https://elitefranchisemagazine.co.uk/insight/item/which-is-the-best-type-of-franchise-owner-operator-or-a-management-franchise
  4. https://www.fgllegal.com/blog/2024/04/choosing-between-single-unit-and-multi-unit-franchises
  5. https://www.mbbmanagement.com/blog/reasons-why-multi-unit-are-smarter-than-single-unit-franchises
  6. https://www.jackintheboxfranchising.com/blog/pros-cons-owning-franchise
  7. https://msaworldwide.com/basics-of-franchising/the-differences-between-single-unit-and-multi-unit-franchise-ownership

 

 

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This article was researched, outlined and edited with the support of A.I.

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