Owning a single-unit franchise is a great choice for entrepreneurs who are establishing themselves as business owners and want to minimize risk and investment. But if you already run a franchise and want to achieve more success, multi-unit franchising is among the most lucrative ways to achieve accelerated growth, increase customers, and expand your reach.
In this post, we’ll define what a multi-unit franchise is and share the top benefits of multi-unit franchising.
What is a Multi-Unit Franchise?
Essentially, a multi-unit franchise is one in which the owner owns multiple units/territories of a franchise brand. In a multi-franchising model, the owner generally hires a director of operations, several managers, and staff for daily operations. Instead of being on the ground, multi-unit franchise owners manage operations at a more strategic level and focus on the business as a whole.
Benefits of Multi-Unit Franchising
Perhaps the biggest advantage of multi-unit franchising is diversification. By acquiring more units, you avoid keeping your eggs in one basket since you’re not reliant on just one location to be successful. However, you should avoid expansion until your current franchise is well developed and consistent in operations.
If you’re still not sure about owning a multi-unit franchise, here are the main benefits:
1. Accelerated Business Growth
If your primary franchise is successful in terms of revenue generation and popularity, you can potentially accelerate growth by acquiring another unit of the franchise. However, you need to choose a chain that offers multi-franchising options from the beginning so you can effectively scale your business and expand regionally.
2. A Mothership of Business and Marketing Resources
Another great benefit of the multi-unit franchise ownership is the convenience it offers in the form of centralized resource allocation and marketing management. For example, you can promote all your franchises with just one ad or try out different strategies in different branches to effectively attract audiences based on local demographics. Franchises can easily share resources with other units, thereby, saving time and money since they have the same supply chain.
3. Reduced Training Expenses
Apart from cost-effect resource allocation with a single supply chain, another attractive benefit of multi-unit franchising is shared training. This way, every franchise can individually train and guide employees without higher management intervention.
4. More Stability
As the years pass by, multi-unit franchises generally become more stable since they’re not reliant on just one unit for revenue generation. So even if a particular branch experiences a downturn due to macroeconomic factors beyond your control, the success of other units can easily balance the scales.
Need More Information?
Multi-unit franchising is far more involved than owning a single franchise. This is why you need the expertise of an educated franchise consultant to share the benefits and challenges of this venture. Seth Schonberg can help you strategically prepare for multi-unit franchise ownership.
For more information, get in touch right away!
