2021 looks like a ripe year for franchise expansion due to historically high access to labor, real estate, and capital options that are extremely favorable to franchise growth. So that means many will be opting to open a franchise location over a sole proprietorship. But, this also presents an opportunity for existing franchise owners to become multi-unit franchise owners. Whether it’s a franchisee who owns and manages two locations in their hometown or investment groups that own multiple locations nationwide, there are many reasons why opening multiple business units optimize the opportunity for growth and wealth.

Here, we’ll discuss that learning how to own multiple franchises and juggle the challenges that come with it is worth it.

Why Become a Multi-Unit Franchise Owner

As with any business decision, multi-unit franchise ownership boils down to opportunity and control. With no internal promotion, the growth path of franchise ownership lies in territory expansion and multi-unit development. The more locations or vehicles an owner has, the more valuable their business becomes. As a bonus, franchisees who learn how to own multiple franchises and diversify through various locations better position themselves to withstand an economic downturn.

Geographic diversification is worth the additional responsibilities multi-unit franchise operators face. Some will even diversify their industries by branching into a second or third franchise brand. Many multi-unit franchisees value the ability to diversify their portfolio while feeling confident with the added level of control of business ownership.

Day-to-Day Operational Differences

Understandably the day-to-day management of owning one franchise versus multiple locations significantly differs. 

Single Unit vs. Multi-Unit Franchise Ownership

The traditional franchise ownership model and the easiest place for budding entrepreneurs to start is single-unit franchising. The franchisee is in command of one unit and, more than likely, all of the business’s daily operations.

Meanwhile, multi-unit franchising is when franchisees open and run many franchise units, usually in the same or comparable geographic area. The franchisee frequently assumes the position of owner/operator for their primary unit and an arms-length ownership role for extended units because they can’t be managers of every single unit simultaneously. Owners still oversee the business on a full-time basis but can’t focus on the minutiae of day-to-day operations and instead focus on growing their network and concentrates on the big-picture view of their business.

Benefits of Multi-Unit Franchise Ownership

There are several significant economic and efficiency benefits for owning multiple franchise units within the same market. First, once you learn how to own multiple franchises, a franchise can share expenses across operations. For example, a marketing campaign can benefit all owned franchises in a shared location. Another bonus is the ability to share hiring and staffing duties from one site to another if a project requires additional help. Finally, products and equipment are sharable between units to maintain operations when supplies stall.

Hands-Off Ownership

A multi-unit franchise owner seldom works at a physical site every day. Instead, having more locations allows for recruiting layers of staff, a  full-time manager, accountant, or trainer, for example. These employees are essential to running the business and will enable the owner to take a hands-off approach.

Franchisor Benefits of Multi-Unit Owners

For franchisors, partnering with entrepreneurs who wish to open a group of locations is very attractive. Opening the first franchise is a significant undertaking for both the franchisee and the franchisor. This includes training programs, assistance with fleet vehicles, marketing programs, and all the pieces to get the first unit up and running. The second business benefits from the experience gained the first time and will be much easier on the franchisee and franchisor. Every unit after that gets easier. 

What’s more, franchisors want to partner with established multi-unit franchise owners. This is primarily due to the fact that these franchises are well-known and have a track record of success; there is a high possibility that their business is growing, and they will have the knowledge, desire, and cash to expand. Multi-unit franchisees have track records of success that are the quality of great partners, plus they carry a lot of social capital and commercial connections in their area, benefiting all additional developments and operational cycles.

Multi-Unit Screenmobile Franchise Ownership

Screenmobile offers prospective multi-unit franchise owners a scalable business model suitable for any financial, personal, or lifestyle goals and visions. Whether they want to diversify their business holdings and join the booming home improvement industry or want to manage a fleet of screen repair and service vehicles, Screenmobile is the perfect low overhead option for entrepreneurs to explore multi-unit ownership.

Questions? Contact us now and get answers.