In the race to scale a franchise brand, few strategies are more tempting than the multi-unit deal. From a sales perspective, landing one operator who commits to five or more locations feels like striking gold: faster growth, fewer contracts, and more predictable revenue.
But hereâs the hard truthânot all multi-unit deals deliver. And when they go sideways, the cost to your brandâs development timeline can be significant.
This post is your franchise sales field guide to understanding:
What makes multi-unit deals so attractive
The risks hiding behind development schedules
How to sell smarter and safeguard growth
One deal = multiple locations. For franchise sales reps, thatâs greater impact per signed agreement, meaning you hit growth goals faster with fewer individual leads to manage.
Multi-unit agreements typically come with larger initial fees (area development fees or deposits per unit) and lay the groundwork for long-term royalties from several locationsâall built into one sale.
Multi-unit prospects are often experienced businesspeopleâformer franchisees, developers, or operators with capital and infrastructure. That usually means smoother onboarding and better execution.
Hereâs the catchâjust because itâs sold doesnât mean it will be developed.
Franchisors frequently award multi-unit territories, only to find one or two locations openâand then nothing. The rest of the units stall out, delaying brand expansion in prime markets.
That affects more than growth charts:
Your team may miss sales targets if key markets are tied up.
Your pipeline loses flexibility when prospects are locked into large commitments.
Your brand reputation suffers if developers donât follow throughâand territories sit vacant.
An inexperienced or single unit operator whoâs excited and well-funded may not be ready for five stores. Overcommitting a prospect can backfire and lead to slow rollouts or defaults and bog down initial locations.
If the timeline isnât realisticâor isnât enforcedâyou risk locking up valuable territory with no guarantees.
Too many franchise agreements donât address what happens if only one unit is developed. Can you reclaim territory? Are fees refundable? Is the agreement terminated? These questions often go unanswered until itâs too late.
When a multi-unit franchisee falls behind, franchisors often face a tough callâespecially if the agreement includes a cross-default provision. Do you terminate a profitable location (or several) just because the developer failed to meet their full buildout schedule? It's a no-win situation that frequently leads to timeline extensions, stalled market growth, or unenforced development agreementsânone of which help the brand move forward.
Donât just look at liquid capital. Ask:
Have they opened multiple locations before?
Do they have a team or is it a solo effort?
Do they have local market knowledge?
Avoid vague timelines. Push for realistic, site-by-site plans with projected open datesâand confirm they understand the consequences of falling behind.
Prospects are more likely to commitâand follow throughâwhen they clearly see where theyâre expanding and how far it reaches. The Zors franchise intelligence platform offers interactive territory mapping tools that help you illustrate protected areas, ideal spacing, and future growth potential.
This may seem like a deal killerâbut being transparent builds trust. Let them know:
What happens if they donât open all units
What theyâll forfeit (fees, territory, or exclusivity)
Whether extensions are possible or not
Franchise sales is about long-term relationships, not just signatures.
Multi-unit deals can accelerate your brandâs growth and move you ahead in the royalty race, but donât be penny wise and pound foolishâawarding too much territory to an underqualified operator may save time upfront but cost you years in undeveloped markets.
Imagine this: You sell a five-unit deal in a key DMA. Only two units open. Now:
Your expansion in that region is frozen.
Other leads canât buy in because the territory is locked.
Youâve wasted at least 18â24 months of potential growth.
Thatâs why selling the right deal is more important than selling the biggest deal.
Multi-unit franchise opportunities are incredibly powerfulâbut only when sold with discipline.
To succeed, you need:
A reliable system for qualifying leads
Clear development schedules with enforceable terms
Smart territory management tools that showânot just tellâyour brandâs plan
Remember, the most successful brands donât just sell franchisesâthey manage growth. And that starts with closing the right multi-unit deals, not just the biggest ones.
đ Pro Tip:
Use the Zors franchise intelligence platform to visually map, track, and manage multi-unit development. Our platform helps sales teams close smarter and grow fasterâwith less guesswork. Check out our full list of franchise mapping tools and features.
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