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Restaurant chain franchisors such as McDonald's, Burger King and Applebee's are actively seeking multi-unit franchisees. Why? And are big franchise owners getting advantages that single-unit owners don't? If yes, what are they?
The Wall Street Journal says "many" restaurant chains are giving preference to franchisees who are already multi-unit owners. They're also selling longtime company locations to the big franchisees.
Big owners, who sometimes run dozens, if not hundreds, of restaurants, are appealing for a number of reasons, say franchise consultants. They often have readier access to capital and can prop up underperforming restaurants with stronger sales elsewhere in the chain. They're also seen as less risky by franchisers, because they have a track record with a brand.
But is this situation bad for single-location owners?
. . . some critics say the push for large owners is edging out traditional single-location owners and handing too much control of a chain to a few big players.