Multi-unit franchising is when a franchisee owns more than one franchise location. Typically, a franchisee can either purchase multiple units at once, or purchase additional units after initially starting with one franchise location. The locations owned by the multi-unit franchisee can be grouped within a central location (often near where the franchisee lives), or spread across the country and internationally.
Owning more than one franchise has its benefits. Here are 3.
One: Better Odds
There are a lot of things that need to be done well in order for a franchisee to operate the business effectively. It can take time for new franchise owners to get the hang of things, and even if everything runs smoothly right out of the gate, it can still take time for a business to catch hold and start generating enough customers to profit. By owning multiple franchise units, you’re increasing your odds of success. If one franchise takes longer to catch on, the other locations can help prop it up until it starts generating enough revenue. The more locations, the better the odds.
Two: No Day to Day Ops
A big benefit to many multi-unit owners is the owner typically doesn’t have to deal with the day-to-day operations. Not nearly as much as being a single unit owner. Multi-unit franchise owners focus on hiring and training managers who can properly implement the company systems and train the employees in each location to carry out the necessary tasks. The multi-unit owner works to find managers who can act as an extension of the owner, and oversee daily operations with the same level of scrutiny and quality control.
Franchises pay attention to their franchisees, and listen to their input. A franchisee that is very successful and owns multiple locations is going to hold a little more weight with their input. It’s only natural to pay attention to the guys who are having great success. As a multi-unit franchisee, you have a little more influence within the franchise, which can be very beneficial for your long-term success.
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