When somebody starts out their journey in the world of franchising it is often because they want to become part of a successful brand but also to fulfil their dreams of becoming a business owner. Something that probably is not on their radar is the benefit of owning multiple franchises. However, this mindset quickly changes when the franchise becomes well established and the owner recognises the benefits of investing in additional locations.
Being the owner of multiple franchise outlets brings enormous potentials, with the most important ones being an increase in revenue/profits, the ability to have a large customer base split across a number of locations and excellent diversification potential. In essence you increase brand awareness, increase market share and promote your business to a larger audience.
Another key element with having multiples is the fact you can leverage much better deals and ensure very efficient operations. Energy costs can be negotiated when you have more than 1 property, resources can be equally shared and of course you can share learning and best practice with all staff.
Having the right staff in place will be critical to the ongoing success. It will also help with your own personal income levels as you can have people running each location on a day-to-day basis. Eventually this will mean you have little to no input on a day-to-day operation so can further focus on building the business or even enjoy more leisure time whilst still earning money.
There really is excellent business growth potential when you own multiple franchisees. When a franchise owner first embarks on this programme it is important that they have good financials, and the business is stable. They will also need excellent management skills; it is not a matter of just saying you are going to open a new outlet. Strategic decisions need to be made following good market research to ensure any new locations will yield the right returns to ensure it is a business success.
Our top tips for safely developing a multiple franchise business are:
- Ensure you have suitable cashflow to support each business, consider utilising franchise finance to maintain a good safety net.
- Keep on top of management issues, you will have to oversee several locations so put the right management team in place.
- Maintain accurate operational procedures that are easily transferrable to both different locations and different employees.
- Develop an accurate business plan from the outset and ensure it continues to develop as the franchise grows. It should be a working document that evolves as the franchise grows.
- Allocate sufficient time and effort to each location.
To conclude, becoming the owner of a multiple franchise business is incredibly profitable and rewarding which after hard work and effort will bring an entrepreneur and excellent business portfolio
If you have any questions or would like to discuss anything regarding franchising, please feel free to call us on 01993 706403 or e-mail hello@ngifranchisefunding.co.uk.