Owning multiple franchises might require a lot of elbow grease, but its benefits can be exponential for both the franchisee and the franchisor.
Becoming a multi-unit franchise owner is probably one of the most lucrative ways to achieve accelerated growth, especially if the franchisee’s primary franchises have already gained a loyal customer base.
However, there are some things that need to be considered before a franchisee decides to become a multiple franchise owner.
The advantages of becoming a multi-unit franchise owner can include the following:
- Faster business growth
- Shared business and marketing resources
- Reduced corporate training expenses
- Increased business stability
Faster business growth
This is particularly true if the franchisee’s primary franchise is already enjoying a considerable amount of popularity and profitability in the market. If this is already the case, then there is a high possibility that owning multiple franchise outlets will help the franchisee’s business graph accelerate faster, making way for optimum business growth.
This is why franchisees are often advised from the very beginning of their franchise journey to select franchise chains that offer multi-franchising options, in order for these franchisees to better augment their business and add scale once their primary franchise has gained a loyal following and already has a significant place in their particular market.
Shared business and marketing resources
One of the most marked benefits of multi-franchise ownership is that franchise owners will be able to take advantage of the convenience that comes with shared business resources, particularly when it comes to marketing strategies.
Franchise owners can easily market all of the franchises that they own with just one advertisement, while also having the option to create unique strategies for every franchise unit to see which strategy is most effective or to tailor to different communities and local demographics.
Franchisees will also be able to save a significant amount of time and money as each franchise can share resources with other franchise units. Since all of the franchise units may be sharing the same supplier, it will be easier for the franchise owner to address gaps in the supply chain among different franchise chains. This paves the way for resource allocation that is a lot more cost-effective.
Reduced corporate training expenses
While a multi-unit franchise may be self-supporting, one attractive advantage of multiple franchises is that each unit will be able to take advantage of shared resources, including shared training resources. This means that franchise owners can benefit from significant savings on corporate training expenses.
This is because each franchisee can take it upon themselves to personally train and guide new employees regardless of their position, which lessens the need for corporate training sessions which can be very costly especially when the franchise comes from a well-known franchisor.
Increased business stability
Over time, multi-unit franchises tend to be much more stable compared to individual franchises, since a downturn in a specific franchise can be offset by higher business activity in other franchise units.
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