United Franchise

5 Major Advantages Of Multi-Unit Franchising

Increasingly, the candidates I work with as a franchise consultant are considering franchises that allow for multiple units.  One major reason for this is a result of the increasing number of downsized executives in America needing to quickly replace lost six-figure-plus salaries. 

Franchising allows someone with management background and business acumen to be in business for themselves, while receiving the training and support necessary to be a huge success.  Their options in the traditional workplace may be limited.  Or maybe they are seeking a career change, and they recognize the fact that by owning multiple franchise units, or even multiple brands, the road to meeting and exceeding their income goals can be realized much sooner.

Some popular categories of multi-unit franchising are hair care, fast food, maid and cleaning services, and home improvement, to name a few.

Of course, the franchisor isn’t going to grant the rights to a multi-unit territory to just anyone off the street.  In addition to showing that they are adequately capitalized, current or potential franchisees will need to present a strong business argument as to why they deserve this privilege.  One of the best ways to demonstrate that is by already being a tremendous success in a single unit franchise.

Below are five terrific benefits of multi-unit franchising:

Profitability and overall success becomes accelerated.  The expenses per unit decrease as you’re able to spread the costs over multiple locations.  This frees up your budget for additional marketing or training for a more productive staff.

Marketing and advertising is much more cost efficient.  Example:  you own three hair care franchises within the same small town.  Lets say the cost to place an ad in the local newspaper marketing your services is $200.  So you’re able to advertise all three locations in one ad for the same cost you would pay if you had only a single unit.  Do you agree that 3 for 1 marketing is extremely attractive?  Take the money you save over time on newspaper advertising and buy a 30-second radio spot.  That’s true leverage.

Less assistance and training needed from the franchisor.  No need to attend training multiple times.  The franchisee has plenty of hands-on experience by way of a single-unit franchisee, and he already is following the proven system.  Time is money.

Leveraged buying power. Substantial savings can be realized when you are purchasing supplies for three or more locations as opposed to only one.  For example, paper and janitorial supplies can be bought in bulk, and then broken down and divided among the stores. Also, slower selling products can be shifted to a higher volume location for quicker sales if necessary.  

More efficient and flexible staffing.  Because multi-units are typically geographically friendly, employee illness and leave of absences can be covered more effectively by shifting employees from one location to another based on necessity.  Vacation calendars are more flexible as well with the ability to cross cover. 

Multi-unit franchising certainly may not be for everyone.  However, for a seasoned business person with great management and people skills (and sufficient net worth and liquid assets), this can be the perfect investment vehicle that can provide a very rewarding career and rapid success-while building their own business empire.

Find Your Perfect Business

About the Author

Cory Barber is a professional franchise consultant affiliated with the world’s top franchise broker network. His free, confidential consulting services help guide you through the entire process of purchasing a franchise based on your background, skillset, lifestyle, and financial goals. For more information about his free Franchise Consulting Service contact Cory at his office: 877-271-4305.

Urgent vs Important