Every franchise owner dreams of having their own mini-empire. There’s just something about owning a multi-unit franchise that makes you feel successful and like you’re making an incredible impact on your community. It also doesn’t hurt that it has the potential to make you wealthy.
To this point, multi-unit franchise ownership has increased throughout the past decade, and it doesn’t show any sign of stopping. According to FranData, multi-unit franchises account for 53 percent of the 450,000 franchises in the U.S. and 76.5 percent of franchised restaurants.
Has the idea of owning a multi-unit franchise piqued your interest? Check out the benefits and challenges you may face when owning a multi-unit franchise and then schedule a call with me.
Been There Done That
One of the advantages of owning a multi-use franchise is that none of the processes will be a surprise to you. Most franchise owners start as a single-unit owner. And because you’ve previously owned a single unit, you already know the hands-on process and what it takes to be successful when opening a new location.
Higher Chance of Success
The saying “strength in numbers” rings true when owning a multi-unit franchise. This franchise model increases your potential success rate because your chances of success aren’t reliant on one location. Although not guaranteed, with multi-unit franchising, you can have revenue coming in from multiple locations, further strengthening your chances of success.
You Save Money
As a franchise owner, you have to make sure your business stays stocked with all of the daily essentials. When you own a multi-unit franchise, it sometimes doubles or triples your needs. This often results in you buying bulk to reduce the number of trips you have to make. And because of your increased sales volume, you can negotiate better prices with vendors on supplies and equipment. You can even gain favor with landlords or even your franchisor.
A Way to Invest in Your Employees
Owning a multi-unit franchise is an excellent model that allows development for you, but also your employees. You can have outstanding people working for you, but if they don’t see further growth opportunities in a company, they’re likely to leave. Multi-unit franchising opens the door for countless career opportunities within your growing organization. Plus, with the more you own, you can offer employees the choice to work closer to home and provide better benefits packages for your team.
Maintaining a Work/Life Balance
When most people buy a franchise, one of the perks that excite them is the freedom to create your own schedule and enjoy financial and personal freedom. However, when you own a multi-unit franchise, you must understand that maintaining a balance may become a struggle. You’re responsible for staying up to date on the changing franchise environment, keeping tabs on location managers, and the different processes necessary if you own other franchise brands. All of these added responsibilities can mean time away from your family or the activities you love.
It Requires Large Financial Investment
Owning more franchises mean more money is required to be able to purchase a multi-unit franchise. You also may need to take on more debt to fund your business, including supplies, equipment, and construction costs. Of course, no reward is without risk, and as you succeed, your chances of losing everything should your franchises fail increases, too.
Success Isn’t Guaranteed
Just because you have one successful franchise doesn’t guarantee that you’ll find success in multi-unit franchising. Owning a multi-unit franchise isn’t a copy/paste job, sometimes what works for one location may not work in another, especially when your franchises are different brands. To be successful, you have to do research to understand the differences in customer base, competition, the market, and even consider your business’ location before building.
Blackmore Franchise Consulting
Multi-unit franchising is a model that’s grown in popularity within recent years. If you think the benefits are well worth the challenges, then my team at Blackmore Franchise Consulting can assist. Using my 25-plus years of industry experience, I can help you find the perfect franchise and success in the franchise industry.
To schedule a consultation or learn more about my services, contact me today!