Choosing the right franchise is crucial, especially for those who may have limited resources to build their own business. As I often reiterate in my past articles, it takes time to succeed with any kind of business. Therefore, one should have thorough research on which franchise business to choose. Whether you have selected a famous franchise brand, it is still the franchisee’s responsibility to look after the company. And ensure it goes well according to how it is known.
After a few months, your chosen business has become successful and has seen an ROI. It can be an excellent sign to venture into another company or take in another franchise business of the same brand. Richie Cuna, a former banker, and young entrepreneur, saw the opportunity to start a milk tea business called KURIMI just four months after launching her first franchise food business. She saw vast potential for increasing his income through this business, so she did not let the opportunity slip. Fortunate for this millennial entrepreneur, she has also ventured into other food business opportunities at the start of the pandemic. Which rose to a Korean-Japanese supermarket and recently opened a shop in Estancia Pasig for her Luxury Furniture.
What is multi-unit franchising?
Multi-unit franchising refers to owning multiple units of the franchise business. Franchisees are often drawn to the possibility of achieving significant financial gains with much lower operating costs brought about by owning multiple units.
Owning multiple franchises can be considered a safer investment since franchisees don’t just depend on a single site to earn. Hence, the multi-unit franchise is said to be a better way to do your small business into a realization of all your dreams.
If you are now an existing franchise owner and are contemplating whether to own another franchise of the same brand, then don’t hesitate to make that move. Being a multi-unit franchisee is a great business move. However, this would require you to rely on technology for you to be able to manage your businesses properly for accelerated growth.
Benefits of owning a multi-unit franchisee
It can be exciting to be opening another branch of your franchise business. Replicating your efforts will be more satisfying as you see the progress of the business. There are benefits to owning a multi-unit franchise, such as:
1.Faster business growth
First of all, one can only consider having another franchise business after enjoying a considerable amount of growth in the business. That being said, it is possible that owning multiple franchise units will work toward optimum business growth.
Hence, it is advisable to look into franchise businesses that offer multi-franchising options. Since it is an excellent opportunity to scale up on their primary franchise once it has gained a huge following and has created a good position in the market.
2. Training expenses reduced
One advantage of owning a multi-unit franchise is sharing resources such as training. This means that the franchise owners can significantly save money on corporate training. Instead of having to pay for training for the new staff, the franchisee can take it upon themselves to personally train the new employees. Which lessens the need for corporate training lessons, which can be very expensive, particularly when the franchise comes from a highly-recognized franchisor.
3. Shared marketing resources
The multi-unit franchisee does not have to worry about allotting more money for marketing since the franchisors can already provide these resources for all units owned by the franchisee. Moreover, franchise owners enjoy a convenient way of marketing the business. Using only one advertisement with the option of creating unique strategies for each unit to determine which strategies are effective depending on the community where the franchise units are located.
4. Higher business stability
Having a multi-unit franchise allows the franchisee the opportunity to increase business growth. Even with a downturn in a specific unit, it can be offset by the higher business activity from the other franchise units.
When to consider owning another franchise unit?
The thought of having the possibility of earning twice as much can be encouraging. But before signing a multi-unit franchise agreement, consider the following tips.
- Determine whether a discount on the franchise fee can be given for additional units.
- Take note of the fee schedules and resources the franchisor offers.
- Look into the business structure and check on other franchise units’ success in areas where multiple unit franchises exist.
- Only hire competent staff. Make sure that the people you choose to help you with your business can be relied on. Examine your own set of skills to determine how you can fill in the gap, as well.
- Find a support group of multi-unit franchise owners where you can learn from their experiences and apply their business management techniques to your own franchise.
- Check yourself if you are genuinely ready to take in another business. There may be a team that can help you manage it, but as the business owner, you cannot just sit down and wait for the money to come in. You must ask yourself if you can handle another business, which means it would need additional time to look into.
You may have noticed the number of franchise businesses in our country today. And with the big brands that have stayed for some time. You know that these franchises have made the right decision. Wouldn’t you want to be among those successful franchisees, too?
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You may contact Armando “Butz” Bartolome for questions and more information.
By email: aob@gmb.ph
FB Page: Armando Bartolome
Linkedin: https://www.linkedin.com/in/franguru/
Website: https://www.gmb.ph
