Many chains, including Burger King, McDonald’s and Applebee’s, are awarding more outlets to big owners who already own multiple units. Not only are the chains targeting big players in their regular franchise-marketing efforts, they’re also selling the large players scores of longtime company-owned locations.
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 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. Some also argue that small franchisees have a greater stake in a single location, giving a small-business feel to restaurants in a giant corporate chain.