Company-owned unit ratio
The company-owned unit ratio measures the proportion of locations operated directly by the franchisor within the total network. A high ratio signals a hybrid or integrated model; a low ratio indicates near-total delegation to franchisees.
In practice
A franchisor that retains 15% of company-owned units preserves the ability to test concept innovations before network rollout and keeps field anchoring for its support managers. A ratio of zero undermines the credibility of the transmitted expertise: the franchisor no longer practices its own trade. Conversely, a ratio above 50% raises the question of whether the model is genuinely designed for franchising or is a disguised integrated chain.