Multi-unit franchising is viewed by many as the true path to riches for franchisees. Why open a single franchise when you can open more than one?
For some entrepreneurs, owning a single franchise just isn't enough.
They love their franchise, but they also realize they are capable of doing more.
That's where multi-unit franchising comes into the picture, and for the right person it can be a hassle-free way to build a small business empire.
Obviously the single most attractive benefit of multi-unit franchising is profitability. Each additional location increases your ability to make a profit and puts more money in your pocket. But profit isn't the only benefit worth considering. There are several other advantages of opening multiple franchise locations that make it an appealing option for franchise investors.
The nice thing about opening additional units of the same franchise is that you are already familiar with its operational processes and procedures. By adding another location, you are simply doing what you do now, somewhere else. This factor alone gives multi-unit franchising a leg up on traditional multi-site businesses because the franchisor has done the heavy lifting by creating a system that ensures a common operating standard among locations. All that's left for you to do is to implement the system and reap the reward.
For years, multi-unit franchisees have understood that by opening several locations of the same franchise within a close geographic proximity they can leverage the power of regional marketing strategies. Instead of doing a marketing campaign for one store, you can do it for three - at little or no additional cost. Combined with exclusive territorial rights, you can use multiple sites to create a mini-monopoly within the franchise and control the promotions that are available in your region.
Another significant benefit of multi-site franchising is efficiency of scale, especially when the sites are located close to each other. Just think about the kinds of discounts you could realize by ordering supplies not on a store-by-store basis, but on a regional basis. You could also save money by assigning staff to cover more than one location. For example, if your bookkeeper currently does one location at 20 hours a week, there is a good chance they could do the books for two locations at 30 hours a week. The net savings to the bottom line would be 10 hours a week - a nice boost to the bottom line.
Multi-site franchises offer a unique opportunity to shift staff back and forth between stores. This can be particularly useful during training periods and other occasions when it is helpful to intersperse new employees with seasoned veterans. Multi-site franchises also provide advancement opportunities for employees who are interested in pursuing a career track with your company. Rather than lose a skilled manager to a better position somewhere else, multi-sites give you the ability to put them in charge of a store within your business.
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