When it comes to owning a franchise, there are endless options for entrepreneurs to consider. However, one of the most life-changing decisions is whether to become a multi-unit owner. According to FRANdata, 54% of franchises are multi-unit operators.
There are many benefits to owning more than one franchise location – such as multiple revenue streams, enhanced work-life balance and a more diverse portfolio.
So, how do you know when to expand? What do you need to know before taking on additional locations? Here are a few questions to ask yourself when deciding.
How Are Operations Going At Your Current Retail Franchise Location?
The first step in weighing your expansion options is to take a closer look at your current business. Do you have the infrastructure to expand? Are operations running smoothly or is there still more work to do?
It’s vital to ensure that all processes are as efficient as possible and that you’ve built a strong foundation before migrating these aspects to another location. It’s just as important to ensure you have the bandwidth to take on the extra responsibilities that go along with becoming a multi-unit franchise owner.
Wellness and balance should always be top priorities. You want to ensure you’re growing without wearing yourself thin at the same time. The best way to do this is to make sure you have the support you need from your team and managers.
Have You Built A Strong and Reliable Team and Customer Base?
Speaking of managers, do you have a team you can freely depend on? Do your employees accurately reflect your brand’s values, and do you have a strong customer base?
When it comes down to it, your managers and employees determine the success of your business. When you open more than one location, it’s essential to make sure that operations will continue to flow smoothly when you can’t be at every location all the time.
Knowing how to effectively build and manage a team is key to growing and maintaining a strong presence in your area. Once you’ve gained adequate experience in the recruiting and hiring process, you’ll know what to look for when hiring for additional locations.
Is There Room to Grow Within Your Territory, Or Within Another?
Location scouting is a critical aspect of growing your portfolio. Are there any other units close by? How about competitors? These are all things to consider when looking to expand.
You should also make sure to take a look at things from a marketing perspective. Dig deeper into the strengths, weaknesses, opportunities and threats of opening a new location in your territory.
The best way to project success is to analyze all these factors carefully. If there is room to grow within a region, “locking” these locations down means that you’ll have significant potential and the opportunity to represent multiple brands throughout the territory.
Looking to grow your portfolio? Contact us today to learn more about our resale franchise opportunities.