Multiple Unit Franchising

PR Log (Press Release) – Feb 21, 2007 – Multiple unit franchising is becoming increasingly popular amongst both franchisers and franchisees, a fact that demonstrates the growth and success of franchising as a business model.

After opening and running their own single unit franchise successfully for some time, many franchisees naturally progress to owning two, three or more additional units, allowing them to make more money and enhance their career prospects.

Most of those who have gone into multiple unit franchising say they did not necessarily plan to do so, rather they were on the lookout for a new challenge and soon came to realise the economic benefits of owning more than one business once an opportunity arose.

The first thing multiple franchising allows an entrepreneur to do is to spread their risk. Owning one single franchise means that if the business goes under so to do the franchisee's dreams of building a successful small business empire. Having two or more businesses means that if one does badly as a result of, for example, changing local demographic, then the other or others can support it through the difficult times.

Another reason for opening multiple franchises is to create economies of scale and spread overheads over more units, thereby reducing them. Franchisees can save money by ordering supplies on a regional basis for all their businesses rather than doing so on a store-by-store basis. They could also assign staff members to cover more than one location, meaning one bookkeeper or cleaner can be hired to work across the different units.

Franchisees with more than one franchise unit also have more say when it comes to the management of the overall franchise brand. The more units an entrepreneur owns and manages the more likely it is that their voice will be heard and their ideas and opinions taken seriously by the franchiser.

However, owning multiple franchises is no easy task and franchisees must have the experience and the skills necessary to pull it off successfully before they jump in with both feet. It is important to establish a business infrastructure before opening new units to make sure that accounting, wages and supplies can be handled centrally, saving time and hassle and minimising the risk of error.

Franchisees must also be able to manage their finances correctly. Running two or more units means there will be more income and also more outgoings and so sticking to budgets and making sure that everything is up to date is essential to avoid failure.

There is no guarantee of success for franchisees going into multiple-unit franchising, although sound management and sensible planning will improve their chances of victory.

Copyright Adfero Ltd 2007

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