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
| Benefit | Drawback |
| Lower costs and investment | Heavy personal time and effort |
| Full control and insight | Growth is difficult without hiring |
| Fewer moving parts | Earnings tied to one location |
| Ideal for first time owners | Minimal 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:
- https://www.franchiseexpo.com/blog/owner-operator-franchises
- https://www.ifpg.org/buying-a-franchise/different-types-of-franchise-ownership
- https://elitefranchisemagazine.co.uk/insight/item/which-is-the-best-type-of-franchise-owner-operator-or-a-management-franchise
- https://www.fgllegal.com/blog/2024/04/choosing-between-single-unit-and-multi-unit-franchises
- https://www.mbbmanagement.com/blog/reasons-why-multi-unit-are-smarter-than-single-unit-franchises
- https://www.jackintheboxfranchising.com/blog/pros-cons-owning-franchise
- https://msaworldwide.com/basics-of-franchising/the-differences-between-single-unit-and-multi-unit-franchise-ownership
This article was researched, outlined and edited with the support of A.I.
