Multi-unit franchising is when a franchisee purchases more than one franchise from a franchisor. Owning a Multi-Unit franchise requires higher qualifications than a single unit franchise, however the initial franchise fee per unit is usually sold at a reduced rate. The Multi-Unit Franchisee manages all the locations but will hire managers and staff at each location to perform daily operations. Below is a list of franchisors that offer Multi-Unit franchises. Not every franchisee is cut out for multi-unit franchising. It takes considerable financial resources, commitment, drive, and is certainly not suitable for an inexperienced business owner.
And achieving success as a single-unit franchisee does not always equate to achieving success with multiple units. A franchisee that takes on multiple units too soon can become overwhelmed and eventually bankrupted. There's also a chance that subsequent units may underperform and ultimately lower the average profit of each.
Below are five terrific benefits of multi-unit franchising:
Profitability and overall success becomes accelerated.
Marketing and advertising is much more cost efficient.
Less assistance and training needed from the franchisor
Leveraged buying power. Substantial savings can be realized when you are purchasing supplies for three or more locations as opposed to only one.
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.