If you're looking for a business opportunity that offers stability and scalability, owning multiple restaurant units may be right for you. Multi-Unit Restaurants for sale refers to any opportunity for more than one single restaurant unit. This can refer to franchise restaurants for sale or independent restaurants for sale as long as they are offered as a package of more than one store of a single concept.
Multi-unit restaurants for sale offer the benefits of shared resources and economies of scale, which can help reduce your overhead expenses and increase your profitability. In this article, we'll discuss the advantages of owning multiple restaurant units and how to find the best opportunities in today's market.
One of the main advantages of owning multiple restaurant units is the ability to share resources between locations. For example, you can share management and labor costs between stores, or negotiate better pricing with suppliers by buying in bulk. Additionally, owning multiple restaurants gives you the opportunity to expand your customer base and tap into new markets.
As a multi-unit owner, you are afforded greater respect within the franchise itself, often leading to seats at the table for the Franchise Advisory Council or the group that controls pooled advertising spend. These are advisory boards created within franchise brands that interact with leadership and carry forth the ideas of the group. They are typically elected among the franchisees or sometimes appointed by the franchisors.
If you're interested in exploring multi-unit restaurants for sale, the best place to start is this page of multi-unit opportunities for sale by the Certified Restaurant Brokers at We Sell Restaurants. Here you'll find a comprehensive listing of opportunities to acquire more than one store. In many cases, these will be franchise multi-unit opportunities so you will also see as information on each franchisor's requirements and investment costs.
For most multi-unit restaurants for sale, the financial qualification is larger. Expect to see requests for bank statements showing liquidity or cash on hand in keeping with the franchise brand's requirements meaning it could be $250,000 on a three or four-store deal. Watch this video to learn more about how to qualify as a restaurant buyer.
When evaluating multi-unit opportunities, be sure to consider the size and location of the units, as well as their distance from one another.
Multi-unit restaurant opportunities are a great way to grow your business and create long-term wealth. With the right concept and location, you can build a successful empire of restaurants that will serve your community for years to come.
Valuation and Financing Multi Unit Restaurants for Sale
In the case of franchise multi-unit restaurants for sale, there may be a higher multiple applied to the sales price due to the valuation achieved and the earnings created by more units. On the purchasing side, the requirements for acquiring a group of stores, or multiple locations may be more difficult than purchasing a single store. A franchisor or even an independent operator wants to believe that you have the ability to operate a more complex situation than a single unit. The lenders will want, (usually), to see that you have experience handling more complex operations or that you have a background in restaurant ownership or management before acquiring multi-unit restaurants for sale like the ones featured by We Sell Restaurants.
The opportunities for financing are still strong with multi-unit restaurants for sale qualifying for lending based on a ten-year amortization of a loan at normal business rates provided the buyers can demonstrate:
- Business or operations experience
- Strong credit score (minimum of 650)
- 15 - 20 percent down on the purchase price
They may not, in most instances, have faced bankruptcy in the past five years. They will also not be able to qualify if the spouse doesn't also meet the criteria.
Benefits of Multi-Unit Restaurants for Sale
The benefit of owning several stores also takes some pressure off every single store to achieve optimal results. If a change in the area demographics or shopping patterns creates a slide in performance for one store, the other stores may shore up or buoy the performance of the overall store group. When purchasing multi-unit restaurants for sale, there is a desire to pick the best restaurants for sale from the group overall, rather than take the entire group. Usually, when priced together, all multi-unit restaurants for sale like the listings below by We Sell Restaurants are packaged together at one price.
The economies of scale that are achieved by owning several stores in one group also help to offset any under-performing locations within the portfolio. The shared resources, (management, labor, purchasing), can be used to improve the overall performance of all units in the group. Purchasing multi-unit restaurants for sale is a great starting point to build out your own mini chain of stores.
Getting Brand Approval to Acquire Multi-Unit Restaurants for Sale
You will also need to understand the operational requirements of the brand. It is more difficult to be approved for more than one store. You will often have to demonstrate to the brand a higher level of experience or multi-unit experience in order to be approved. Someone entering the restaurant with no operational background may face push back or greater scrutiny from the lender or the brand. Here are three strategies a multi-unit restaurant buyer can use to overcome these requirements:
- Hire an Operating Partner that has restaurant experience. This individual will generally be required by the brand to have some form of ownership stake in the business demonstrated by the organization documents of the company. For many, this can be a nominal amount (10% or so) while others what to see a significant equity share of 25% or more.
- Retain the Seller in a consultative capacity for a period of time to demonstrate to the brand that you will have expertise in place as you take over more stores in their system.
- Put an operational business plan together that demonstrates what your organizational chart will look like and what roles each person will play.
- Retain the existing General Managers or District Managers for the store group under a contract for an extended period of time.
All of these scenarios demonstrate to the brand that putting several units in the hands of a novice does not put the business at risk. The same questions asked by the brand about operational strategies will also be a concern for the lender so savvy buyers prepare in advance with well documented information on how they will effectively operate the business post closing.
When you're ready to explore the world of multi-unit restaurants for sale
, the best place to start is with the listings below from We Sell Restaurants. With more than 25 years in the industry and over 3000 restaurants sold, we are your go-to source for restaurant broker services.
Contact us today to learn more about how we can help you grow your restaurant empire!
Multi Unit Restaurants for Sale
Multi-unit ownership is one of the smartest decisions restaurateurs can make. It's not without its challenges, but the pros can outweigh the cons.
Listing Id:9482 Lease Term:One Store Expir.. Monthly Rent$Negotiable,1029.. Sq.ft.1400,1000,
Listing Id:9459 Lease Term:Expires 2028 wi.. Monthly Rent$5400, 7200, Sq.ft.4500, 4700,
Listing Id:9425 Lease Term:Expires in 2030.. Monthly Rent$9147,7450,7332, Sq.ft.240,300,875,
How does this phrase apply to buying a restaurant? Restaurant buyers should anticipate that in order to get something (like information on the listing), you must often give something.
Listing Id:9423 Lease Term:Expires in 2030.. Monthly Rent$9147,7450, Sq.ft.240,300,
Listing Id:9401 Lease Term:2, 5 Monthly Rent$4500,6500, Sq.ft.1700 ,1800,
Listing Id:9331 Lease Term:Expires Decembe.. Monthly Rent$4815, Sq.ft.1250,
Hands-on learning and a strong work ethic are important steps in how to become a restaurant buyer and create your success. Read Mike Ruoho's story.
Listing Id:9320 Lease Term:expires July 20.. Monthly Rent$7647 | 4500, Sq.ft.4600 ,3000,
Listing Id:9319 Lease Term:Expiration Vari.. Monthly Rent$7000,5700,6500,.. Sq.ft.2400,1400,1800,..
Listing Id:9318 Lease Term:Expires 2025 wi.. Monthly Rent$6700,6500,6700, Sq.ft.2400,2100,1725,
The franchise industry is a growing space producing $700 billion annually. Here are three reasons all buyers should be considering today to buy franchise restaurants today.
Listing Id:9317 Lease Term:Expires 2026 | .. Monthly Rent$7000,5700,6500, Sq.ft.2400,1400,1800,
Listing Id:9253 Lease Term:10 Monthly Rent$5989.76,6838.26.. Sq.ft.3000,2800,2910,..
Listing Id:9227 Lease Term:Loc 1 5yr Loc 2.. Monthly Rent$2633,5145, Sq.ft.1200,1750,
With the turmoil in the industry for the past year, those in the market to buy a restaurant may be asking themselves the following question, “Is a restaurant a good investment today?"
Listing Id:9171 Lease Term:1, 10 Monthly Rent$8353 | 9394 | 7.. Sq.ft.699 | 1066 | 30..
Listing Id:9137 Lease Term:, 7.5 years Monthly Rent$5200,6560,3930, Sq.ft.1200sqft, 1600s..
Listing Id:9106 Lease Term:Valid through N.. Monthly Rent$4300 ,4800, Sq.ft.1204,1279,
Listing Id:9088 Lease Term:Expires 2032 wi.. Monthly Rent$10907,8866,9436.. Sq.ft.3293 ,4835,3638..
Listing Id:9063 Lease Term:Up for renewal .. Monthly Rent$1600,2098.72,13.. Sq.ft.2000,1200,2000,
Listing Id:9040 Lease Term:, July 2026 / F.. Monthly Rent$6500,8300, Sq.ft.2400,3000,
Listing Id:9015 Lease Term:Real Estate Inc.. Monthly Rent$Real Estate inc.. Sq.ft.12800-10053-
Listing Id:8851 Lease Term:Valid through 0.. Monthly Rent$4595.70 ,7387.2.. Sq.ft.1200,1612,
Listing Id:8781 Lease Term:7 Monthly Rent$5000,4000, Sq.ft.3285,4200,
Listing Id:8769 Lease Term:3 year lease re.. Monthly Rent$5625,5426, Sq.ft.2000,1856,
Listing Id:8741 Lease Term:Valid through 2.. Monthly Rent$1910 , 2100, Sq.ft.1350, 1500,
Listing Id:8718 Lease Term:February 2025 Monthly Rent$3495,2550, Sq.ft.1575,1000,
Listing Id:8692 Lease Term:1 Monthly Rent$19678.95,23460... Sq.ft.7076,6650,
Listing Id:8686 Lease Term:Real Estate Inc.. Monthly Rent$Real Estate inc.. Sq.ft.Multiple ,
Listing Id:8661 Lease Term:5yr and 10yr Monthly Rent$4509,7826, Sq.ft.1005,1300,
Listing Id:8642 Lease Term:All leases Vali.. Monthly Rent$7198.88 ,3047,2.. Sq.ft.2714,1842,1600,..
Listing Id:8613 Lease Term:10 Monthly Rent$8431,3944.99,50.. Sq.ft.1300,1315,1600,..
Listing Id:8600 Lease Term:Expires 2022 & .. Monthly Rent$7121,7139.67, Sq.ft.2200,2300,
Listing Id:8481 Lease Term:Varies per loca.. Monthly Rent$on request, Sq.ft.1800,2200,2000,..
Listing Id:8316 Lease Term:Expires in 2026.. Monthly Rent$3800,1550, Sq.ft.1880,2500,
Listing Id:8258 Lease Term:2, 5 Monthly Rent$2268,2495, Sq.ft.1240,1450,
Listing Id:6334 Lease Term:4 years left pl.. Monthly Rent$13458 Sq.ft.6600