Chain Leader

Opportunity Abounds For Master Franchisees

October 2005

Boston Pizza Expanding in U.S. Richmond, BC-based Boston Pizza is seeking franchisees to continue its expansion. There are now 32 units in the U.S. and 30 units planned for 2006.

Franchising transformed the industry from a collection of standalone operations into a global network of multiunit brands. Last year, the 100 largest U.S. independent restaurants had aggregate sales of $1.28 billion. McDonald’s, with systemwide sales of more than $50 billion and 30,000 units, totally eclipses them, as does each of the top 33 chains.

In addition to tapping current franchisees to help build their companies, chains look to franchisees of noncompeting operations to grow their business. Selling a master franchise to a larger, more sophisticated group saves the chain time and may promote faster restaurant development. Franchisees also benefit from the master developer’s experience with real estate, new construction and training employees.

Welcome to Franchise Developer, a new section of Chain Leader specifically devoted to meeting the unique needs of multiunit and multibrand restaurant franchisees. Each month we’ll help you manage growth with articles on evaluating new business opportunities, financing, legal issues, technology, real estate, people practices, employee training and more.