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Welcome to the Newsletter for February 24, 2005

Take the Quiz!

Multiple Numbers About Multi-Units

For the first time since we began watching the growth of multi-unit franchisees, a slight majority of units in our database are controlled by multi-unit operators. Here are some statistics:

• 52% of all franchised units are controlled by multi-unit operators



• Multi-unit operators make up 19% of the total number of franchisees



• 54% of multi-unit franchisees own 3 or less units; 80% own 5 or less units

In industry terms:

• 12% of all multi-unit operators own units in more than one brands



• 38% of all multi-unit operators own units in the fast food sector



• The video, clothing, fast food, bakery and business sectors had multi-unit concentrations from 27% to 68%

Most franchisors gear their marketing, training and support programs for new franchisees. With the growth of multi-unit operators, how should programs be adjusted? What do multi-unit operators need to be successful beyond what a single unit operator needs? We don’t have the answers but can point to some interesting sub-trends that we have been following:

• Area development agreements are becoming increasingly commonplace



• Multi-unit franchisees are 6% more likely to be associated with a franchise system that discloses earnings claims

If multi-unit franchisees are the target of your marketing and development efforts, we can help you reach your goals. Give us a call.

Quiz Question

Which high end prime steak franchise received almost 9 million in franchising income?

ANSWER QUICKLY! Be the first to respond with the correct answer and receive one free month of the New Registration List (NRL).

Congrats to Linda Hennis, Director of Franchise Development! Linda Hennis joined Computer Renaissance in April 2003 as the Director of Franchise Sales and Development. Computer Renaissance added 24 new owners in 2004 - exciting growth for a company that has a strong healthy growth initiative and has seen change of ownership and a re-birthing in the past 4 years.