Many business owners recognize the advantages of owning a franchise. Franchises come with tried-and-true systems and processes, a host of resources and training, and the support you need to get started. Instead of having to spend your time on trial and error, you can launch a successful business immediately, knowing the costs, high seasons and potential challenges up front.
If you own one franchise, why not own more than one? Once you have dipped your feet in the water once, it’s easier to expand into additional franchises, increasing your profits and growing your business through additional locations. Here are some other benefits of owning multiple franchises.
More Customers and Clients
Regardless of whether you invest in multiple locations of the same franchise or choose to own different franchises, you’ll be able to serve more customers by having more than one franchise location. If you’ve gone through the work of creating a great reputation for customer service, it will be even easier to get customers at your new location. You can capitalize on the positive reviews and satisfied customers you’ve acquired at the first location to help launch additional locations.
Less of a Learning Curve
After you’ve gone through the process of opening one franchise, everything is easier when you open the second one — or the third or the fourth. If you were successful enough to expand past your first franchise location, you have likely learned a lot about what made that business successful. You can then draw on that new knowledge to ensure your new locations are just as successful. For example, you have likely learned what to look for in potential new employees, established relationships with reliable vendors, and ironed out the accounting kinks already.
Expanded Reliable Employee Base
Once you’ve found employees who are worthwhile and reliable, you can use them in your additional locations. Even if you now own different types of franchises, it could be worthwhile to train your current employees in the new skills you need. Regardless of the industry, a reliable employee with a good work ethic and great customer service skills is an asset that is worth his or her weight in gold.
If your franchises have a high season and a low season, you may be able to shift your best employees from one franchise to another so you don’t have to lay them off. Often it’s hard to find reliable short-term employees, but having the option to hire someone year-round — even if they work part of the year in one franchise and the rest of the year in another — can vastly increase your pool of quality candidates.
Many vendors have minimum orders, and a lot of professional services require a minimum monthly retainer fee. Owning multiple franchises means you may be able to qualify for larger wholesale discounts or smaller fees per location for services like accounting and human resource management. Instead of having to pay the same amount to run all your businesses, you can streamline your systems, saving yourself money, time, and headaches.
Owning multiple franchises comes with many advantages, especially for business owners who are interested in growing their net worth while also keeping their costs low. The advantages of having a reliable workforce that can be used in multiple locations, qualifying for bulk discounts because your supply needs justify the higher volume, and being able to target a larger service area are all reasons to consider owning multiple franchises, especially for business owners who are already aware of the advantages of franchise ownership over trying to start a private business on their own.