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Is a Multi-Unit Franchise Right for You?

Multi-unit franchising is fundamentally different than opening a single-unit business. Here are some things to consider so you can determine if these opportunities are right for you:

A Unique Challenge

When starting a franchise business with just one unit, the owner typically does a lot of the work to get the business up and running. It’s very much a hands-on experience. By definition, that approach isn’t going to work with multi-unit franchising. With multiple locations to handle, tasks must be delegated to a team that will do the work necessary to get each business started.

Investing Money Over Time

Opting for a multi-unit approach requires a larger investment to get started. There are larger financial rewards possible when you own more than one location, but significant risk comes along with investing so much money upfront. Be sure to perform your due diligence to weight potential returns versus your initial investment and how long it may take to turn a profit.

Safety in Diversification

There is no doubt that multi-unit franchising represents a significant investment, and there is notable risk that comes along with such an investment. At the same time, by opening multiple locations, you can spread that risk out around a geographic area. That way, if one location struggles for a while, the others may be able to pick up the slack. Rather than going all-in on one location, a portfolio of multiple franchise units can help to mitigate your risk.

Management Skills Are Essential

Above all else, management skills are going to be required to succeed in this endeavor. There are sure to be plenty of people to manage when operating multiple franchise locations in a given area, so working properly with those people and building strong relationships is essential. Those who can build and manage a strong team will have an advantage in the marketplace.

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