Back in the “good old days,” there existed an unofficial yet highly common model of the typical franchisee: in other words, the vast majority had similar goals and aspirations. Most were looking to run their own store, dedicate long hard hours to that one location, and maybe–just maybe–look to expand once they had solidified success. These expansions were typically hyper-cautious; thus spreading out and minimizing risk (as well as spreading out and minimizing profits.)
Over the course of the past decade, however, we have seen an enormous uptick in the number of franchisors who are looking for multi-unit franchisees–as well as a large uptick in franchisees looking to take on this level of responsibility.
This is because history has shown time and time again that multi-unit franchising offers a unique benefit: namely, that it is more efficient. By reducing the costs associated with training numerous franchisees and processing low volume orders, multi-unit franchises are able to pass savings onto franchisors and franchisees alike.
Of course, if one unit makes sense, than why wouldn’t five? Guaranteeing your future expansion in the markets you want to own are key to entering from day one as a multi-unit owner. Though the skill sets required for single-unit and multi-unit franchising can vary greatly, when purchasing a business in a box that has turn-key operations, many franchisor’s are seeking individuals who want to build their mini-empire or own their market from day one. Significant savings per license and other perks are usually offered at the franchisor level for the right individuals that seek this larger opportunity.
If, like many prospective franchise buyers today, you decide to begin with a development schedule to open more than one location keep the following tips in mind in order to prepare:
- Hire the right team: you’re going to need leaders, not followers.
- Do you homework: learn about the market, learn about possible locations for your next units, and learn about the potential risks/benefits of each possible expansion.
- Look in the mirror: analyze your own business, access your strengths and weaknesses, and respond accordingly.
To learn more about franchising or to discuss franchising opportunities in your field of interest contact Careyann Golliver. Visit www.franchise-logic.com or call 720.542.3548 today.