Why You Don’t Have to Wait to Become a Multi-Unit Franchisee

Sometimes, it doesn’t make sense to start small. Sometimes, bigger IS better.

Multi-unit franchising is often looked at by franchising candidates as a “down the road” opportunity. Start with one unit, see how it goes, then maybe buy a second, then a third, and so on.

Certainly, this strategy will make sense for some people, but not everyone. Plenty of people are equipped to start their adventure in franchising with multiple units and plenty of franchisors make it beneficial to go that route. Like most things with franchising, it depends on you.

Let’s consider a few reasons why it makes sense to look at multi-unit franchising immediately.

Franchises are built for scalability. An independent business may have an owner capable of running multiple units but a business model that doesn’t scale. In franchising, there’s less reason to be concerned about that. Your odds there improve dramatically when working with a franchise consultant because they vet the businesses prior to matching them with candidates. Without having to worry about the business, you can put all of your focus on your own abilities to immediately succeed with a franchising empire.

Franchisors offer incentives to invest in multiple units. Like any well-run business, franchise companies like to forecast business growth with as much certainty as possible, and they’re willing to discount some franchising costs in order to do it. Often, franchisors will discount franchising fees per unit when a candidate invests in more than one location. Others may provide enhanced marketing services or discounts on store buildouts.

Market security matters. If you’re confident that you can run multiple franchise units and believe in the proven franchise model you selected, do you want another owner plopping down the same franchise right down the road? Of course not! Even if you don’t open all units immediately, securing rights to an entire area allows you to stagger your growth on a timeline agreed to by you and the franchisor. Meaning you could open your first store now, a second store in 12 months, a third in two to three years, etc. However, you’ve protected your market from another franchisee coming in and winning in an area you planned to expand in anyway

Once again, we present the semi-absentee franchise model! Yet another reason for the popularity of a business you can operate with a 10 to 15-hour workweek. Semi-absentee models aren’t just capable of scaling — they’re built for it. For a candidate interested in fully dedicating their work hours to a semi-absentee franchise, owning multiple units just makes sense. For a more extensive explanation of the semi-absentee franchise, check out my previous story on the subject.

Ready to start winning in the longevity economy? I've helped thousands of franchise candidates make that decision, free of charge. Give me a call at 919.233.3534 or send me a note at jjudy@franchoice.com.

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