Franchising is a proven model for streamlining the path to success through small business ownership. The repeatable, straightforward to implement systems and support offered by a successful franchise brand help franchisees seamlessly open and operate their own business while mitigating the risk that can be associated with independent small businesses.
The shared systems and resources of the franchise model serve to make franchise businesses more resistant to economic fluctuations or disruptions than independent businesses. One way franchisees can leverage the franchise model and supercharge their resilience is through multi-unit ownership.
Whether you’re looking to open additional units after successfully establishing a franchise location or are entering the industry with an eye toward a diverse portfolio of units, multi-location franchising can unlock incredible opportunities and boost your bottom line.
Once a franchisee has built one successful location, the process can be replicated by applying tools and processes you’ve become familiar with. Multi-unit franchising flattens the learning curve and reduces the sweat equity required, which can lead to significantly higher potential returns.
Some of the specific advantages of multi-unit franchise ownership include:
- Owning the market: Based on the agreement with the franchisor, you have a certain amount of time to develop an additional store or stores, without the risk that another franchisee will move into that area.
- Diversification: Diversification is a proven sound financial approach that protects franchisees in the case of economic disruption or downturn. Owning more than one franchise location makes it easier to weather unexpected economic challenges.
- Team opportunities and efficiencies: With multiple locations, team members have additional opportunities. Strategic management also allows franchisees to share employees across multiple stores, so you have full staffing without having to build a complete team for each location.
- Strategic perspective: Additional revenue from added locations will allow you to budget for an investment in a territory-wide operations manager, affording the owner the opportunity to step back from daily operations and take on a more strategic role.
- Shared inventory: In addition to taking advantage of possible bulk purchasing opportunities, multi-unit owners can share inventory among all the locations in their area, instead of all inventory being physically available at each store.
- Value: A multi-unit territory is exponentially more valuable than a single location, given the guaranteed exclusivity of the territory, established market equity, level of market saturation, and other factors.
For many franchisees, multi-unit ownership can be a step toward fulfilling the ultimate dream that led them to franchising in the first place — the financial independence and freedom that comes with owning your own business. Whether your multi-unit strategy is one or two additional locations in your hometown or a large regional franchise portfolio, there’s a multi-unit franchising strategy for you. To find out more, download our franchise kit today!
