Best Multi-Unit Franchise Opportunities in California

The Golden State is a marvelous place I’ve visited on a number of occasions. California has everything you could possibly imagine, and on top of that, there’s near-perfect weather year-round. What’s not to love? 

I get asked about multi-unit franchising in California on a regular basis, and California has certain obstacles you won’t see to the same extent when you go to places like Texas or Wisconsin. In many ways, it’s a great place, but when it comes to licensing, it’s a nightmare. 

There is so much potential in the state, but there’s also so much red tape you’ll need to navigate in order to have a successful franchise there. On top of that, it’s a market that’s built out to a much larger extent than other markets, which means there are a lot of franchises that aren’t available there anymore. 

You’ll have to make sure you find the right location to set up shop if you hope to be successful. Underneath, I’ve compiled a list of some of the best multi-unit franchise opportunities in California. However, it’s just a list I like, and it may not be right for you. If you reach out, we can find the right one for you together. 

Nothing Bundt Cakes

Californians love artisanal treats, and Nothing Bundt Cakes is a great choice for that. It’s not just another bakery but rather a brand that has gone nation-wide. In fact, I got a cake from there not too long ago!

Here’s a business opportunity that can both give you a solid return on investment, and it can satisfy your cravings if you have a sweet tooth. Nothing Bundt Cakes made it to the top of my list of the best multi-unit franchise opportunities in California for a number of reasons. I’ll get into those before you get excited and start digging into their FDD, territory rights, and royalty structures. 

Nothing Bundt Cakes is one of those places that benefits from but doesn’t rely on foot traffic. If you can get the word out about it, people will be willing to drive when they’re having a party. 

Serving cakes is also a high-margin business with reasonably easy operations. You’re not as fiercely reliant on food spoiling, nor is it as hard to operate as a sit-down restaurant. With the high margins and predictable shelf life, you’re talking about a business that’s pretty easy in comparison to others. There’s also no excruciating licensing regulations you need to be aware of. 

I would personally look for areas like Orange County to the East Bay if it was me setting up shop in the state. Premium baked goods are in high demand, while still being offered at a reasonable price tag. 

California has another thing going for it for this type of business which is a never-ending stream of weddings, birthday parties, and various types of events. 

Rent and labor are the major challenges in California because both run at the absolute top of what is paid in various states. 

Checkers

Here’s a step in a different direction as we enter the savory world. If you thought California didn’t have enough burger concepts, I would encourage you to reconsider. Checkers, with its double drive-thru concept still has a number of places in Californian where it’s not present. 

Californians are not scared of spending hours in the car, whether it’s for football practice, vegan retreats, or other events. And when you’re on the road, you tend to get hungry, which is great if you own a Checkers. The double drive-thru offers a convenient way to get a quality burger, and you could just be able to match the cult following that some other places have. 

However, Checkers is a more complicated real estate play than some other types of franchises. It’ll be challenging to both get the project approved for construction, as will finding the location you’re going to use for the purpose. It might just be easier to build a Chick-fil-A on Mars. However, if you’ve got a solution for the real estate, Checkers is an interesting burger concept. 

Yogurtland

Yogurtland was founded in Southern California, which is probably not a surprise. One of the advantages that franchises offer is the name recognition that comes with your product being tried and proven. 

Yogurtland is already a staple in California, which will bring in an inflow of customers. California has the perfect weather for the product offered by Yogurtland. The build-your-own is a great concept for kids that love exploring different flavors, but it also allows the free spirit of “you do you”. 

California’s diverse urban markets is where I would consider putting a Yogurtland location. However, since it originated out of California, you’re probably not surprised to know that there are already a lot of locations that aren’t available. 

Another challenge you may run into is the competition. Frozen yogurt is not a new thing anymore (even if it’s very delicious), and there are likely competitors where you’re considering setting up shop. Here’s a business that relies on foot traffic, so site selection is crucial for your success. 

I know these locations are premium in California, but I would look for places near malls, beaches, or campuses. 

Hydrate IV Bar

You’ll be selling liquid gold to people that are serious about their health. California is known for many things including its good looking people. Health and wellness are very high on the priority list there, and Hydrate IV Bar taps into that fitness craving. 

Meditation apps, juice cleanses, and IV therapy. 

Californians have tried all of the above. IV therapy is yet another offering to the affluent community that wants to feel good, and good you’ll feel after an injection of vitamin C. 

Popping into a luxurious experience such as Hydrate IV Bar is something that Californians crave. I would try to set up shop near San Diego, San Francisco, or LA where money flows. 

That way you can be the solution after someone’s finished their 7-mile beach run. Or maybe after a heavy night hitting the bars. Either way, the products Hydrate IV Bar offers serves both audiences. 

Hydrate IV Bar, with its luxurious setup, feels more like a lifestyle brand. 

With Hydrate IV Bar, you’ll need to be aware of the regulatory environment in California. It’s not very forgiving! There’s also the inevitable consideration of whether or not you’re facing too much competition in the market you are trying to open up in! 

Factors to consider

There are factors to consider regardless of what franchise you’re trying to open, and then there are factors more specific to California. Multi-unit franchising is even more complex and why aspiring (or expanding) franchisees reach out to a franchise consultant like me for help in finding the right opportunity. 

Things that are particularly fierce in the Golden State is actually getting started. Zoning, permitting, CEQA, and more are much harder to deal with there than in another state. Everything’s more expensive, more built out as is, and more regulated, which you’ll need to prepare for. 

California’s got some of the highest wages in the country, particularly if you’re in San Francisco, LA, or San Diego. Your offering will not just need to resonate with the local population, but you’ll also need to make sure you’re making enough money from a concept to cover all the costs. Not every model is quite as easy to make successful there as in states with a less developed franchise scene.