It’s a great time to enter the world of franchising. There is a chance for financial independence with minimal risk. There’s a thrill in the realm of business ownership that doesn’t come with the loneliness of navigating the process alone. These and hundreds of additional advantages motivate many people to get in head first and open many franchise locations.
While there is a lot of money to be made as a multi-franchise owner, there are several things you should think about before going down this path: your day-to-day work life, the hazards of expansion, and your financial investment.
Why Should You Consider Owning Multiple Franchise Units?
Many people like to own many business franchises for obvious reasons: greater money. You are more likely to make more if you have more revenue-generating locations. That fundamental math is obvious, and it is the driving force for the desire to open more than one site.
However, there are additional motivations for wanting to create many franchise locations across town. For example, you may create a second site that is primed and ready for one of your children to run. Alternatively, you may like to open many sites in order to better serve your neighbourhood.
Knowing why you want to own several franchise units can help you navigate the road ahead. As you begin to experience the ups and downs of owning more than one location, keep this why in mind to help you get through the difficulties and propel you forward.
Multi-franchise ownership: The difference
Many franchise owners begin their company with the hope of having greater time freedom and personal flexibility. While this is true regardless of how many franchise units you own, there are certain additional chores to maintain when you have many sites in your region.
As a multi-franchise owner, you’ll enjoy the thrill and satisfaction of travelling from one site to the next, knowing you control each shop. You will, however, need to commute between locations in order to maintain things operating well, such as each location’s finances, growth worries, and staff issues. It’s best to space out your locations such that they don’t compete for sales but also don’t demand long daily drives.
Most sectors and franchises will require a significant amount of upfront effort and expenditure to get the business up and operating and ready for rapid check-ins. Keep this balance in mind as you choose whether to invest in additional franchise sites after your initial investment. As you begin your first location, use that timeline to forecast when you will be able to open your second site and how many resources you will require to bring it to completion.
Risk-taking and when to dive in
It’s a good idea to talk to other franchise owners about their experiences with opening more than one store before committing to being a multiple franchise owner. Even if that individual isn’t in your business or franchise, they may provide insight into what your experience might be like.