Owning a franchise is no small feat. Once you’ve conquered one location, you may be content, but expansion does have its benefits. Consider these six reasons to go from a single-unit dreamer to a multi-unit achiever.
Increase Your Profitability
You started this venture to make money. With a franchisor that understands and supports multi-unit franchisees, you can expand at your own pace and reap the rewards of greater ownership. By spreading your costs across multiple locations, you can increase your market share and purchasing power.
Lower Your Risk
You may be thinking, “More locations means more risk.” Not necessarily. If you own several stores, your risk is shared among each unit. In cases where you own many stores in a given territory, you have a bigger advantage over your competition. There is always uncertainty as a business owner, but with the right leadership, the benefits of multi-unit franchising can outweigh the risks.
Build Your Team
As a single unit franchisee, you’re used to being hands on in the day-to-day operations of your business. With multi-unit franchising, you can’t be in two places at once; therefore you’ll have to rely more on your managers and the employees you hire to perform important duties. This will help them grow into their roles and build their confidence in your organization. With a dedicated team of employees, you can take a day off, and be confident that your business will function without you.
Keep Your Employees
Some franchisees struggle with high employee turnover. If your employees see you grow your business and open more stores, they will have more confidence in your leadership as well as their own ability to advance. The better motivated your team is and the more you listen to your employees, the better your business will be.
Improve Your Skills
Before expanding, assess your management style. How comfortable are you with sharing responsibilities and delegating tasks? Your ability to hire the right people will determine your success. Effective training, incentivizing, and supervising are essential skills of a multi-unit owner.
Enjoy More Freedom
You may worry that owning multiple locations will cause you to spend more time at work. But think about this – with your team running more of the day-to-day operations, you have more freedom outside the office. Your business can run somewhat independently, allowing more time to spend with family and friends, and improving your quality of life.