A multi-unit franchise is essentially a franchise you can own but having multiple locations in a certain area. Depending on the structure of the business and how easy this process is, it can be a great business opportunity. It’s common for fast food chains to offer this type of franchise option, as you may find with many Dominoes Pizza branches or 7-Elevens around Sydney. We will go in depth about how these franchises work, the benefits, drawbacks and how you could implement it.
How does it work?
A multi-unit franchise works very similar to a regular franchise, the only difference being that you are able to own more than one branch. It usually also applies to an exclusive area. This allows you to manage multiple branches not just one. Increasing your workload but also potentially your income.
It’s a great way to grow your business without having to outlay too much. While the financial costs may be low, it may impact on your personal time though. Having to manage multiple sites can take a lot of work. The same goes for any business whether you are the owner or franchisee. Be prepared for a lot of blood, sweat and tears in your journey.
A great example is a 7-Eleven chain of stores. Let’s say you own one branch in Burwood. The main office will provide all the training and tools for you to train staff just like a franchise. They will also help you with any problems that may arise just like a franchise. Now times that by five more stores in five other suburbs.
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Advantages
- Training, tools and resources all provided.
- With the right systems in place, your workload can be easily streamlined.
- Having more stores can open up more higher up roles for your staff. You will be in a better position to look after them and set them up for a good career, and in turn receive more motivated employees.
- You get to spend less time in store worrying about management, and more time in a higher level position.
Disadvantages
- Finding the right staff can be difficult. If you are not there you need people you can trust to run the day-to-day operations as a manager would.
- You need to be able to relinquish control and focus on the bigger picture.
- Since each branch needs its own manager, there are times they need to make decisions, you don’t have to time to try and solve them all. These could be the wrong choice and could cost more than if you were to handle it.
Overall, as with any business prospect there is usually quite an even amount of advantages and disadvantages. In this case, the circumstances are rather unique. The key thing to remember here is that as a multi-unit franchisee you won’t have all the time to worry about every single little problem that arises. That certainly doesn’t mean you should loose sight of what is important though; your employees and customers.
Things to consider
- Before going straight into a multi-unit franchise, consider just doing one franchise branch to try it out and see how well that goes. You can always expand later when you are comfortable with the products and procedures.
- Really consider the staff you are about to hire as well. The key to your success when owning multiple locations is being able to trust and rely on your team.
- Consider the balance between you work and personal life. Opening up one branch is full on already, so carefully work a streamlined plan to make your systems as efficient as possible. Once you have a winning system, you can essentially adapt that into all your branches.
- Establish what kind of manager you are. Are you are more hands on person or happy to allow people manage on your behalf? If you prefer to be in the nitty gritty, perhaps only 1 or 2 branches is enough. That allows you still maintain control and handle most of your paperwork at the same time. If you are able to relinquish control to trusted managers, you can probably try more than 5 branches.
- A franchise lawyer may always come in handy when you need papers reviewed and someone to check you are up to date with all the law compliances. These days there are so many different laws that you need to be aware of. Whether you accidentally broke one or not, that matters very little in the court of law. Staying on top of all the regulations will keep you and your business out of trouble.
Conclusion
In the end, there are a few major points you need to make sure you can satisfy when owning a multi-unit franchise. These include, the staff you can trust, your financial means, your time and management skills. Testing how you go with one franchise location is always a great idea to see if this is the right type of business for you.
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