3 Important Tips from Existing Owners about Going Multi-Unit

Once the papers are signed and the financials are in order, franchisees are typically ready to hit the ground running. How am I going to make this unit successful? When will I be opening a second? These thoughts often run through their minds before the doors are officially open. But, opening a second, third, and so on location is not as easy as just signing the papers. There is a lot of organization and strategy that goes into becoming a multi-unit owner, and it definitely does not always go the route franchisees hope.

To get a better understanding on how to grow a concept, and how to do it successfully, 1851 Franchise connected with Pita Pit franchisee Dave Thomason and Checkers* and Rally’s franchisee Curtis Rowe to hear more about what they experienced during multi-unit growth.

1. Find a concept in a booming segment

It’s no surprise that consumers go through trends with their eating habits. There’s gluten-free, Paleo, low carb – whatever is hot at the moment with the customer, will translate into success for a concept that fills that void. But, it’s important not to get too specific because trends come and go and a franchisee wants their concept to be relevant for the long run.

“Pita Pit offered the ability to get into a healthier option,” said Thomason. “The food is outstanding and there is a big desire from the consumer to eat healthy.”

While trends will go in and out of popularity, the build-your-own option that Pita Pit offers to its customer will always allow the customer to follow the “what’s hot right now” option. It is what has helped the brand grow to over 600 global locations, and specifically helped franchisees offer something desired to the community.

2. Have your current operations running smoothly

One of the biggest misconstrued notions about franchising is that once the first one is opened to go, go, go from there. Yes, more units typically translate to more money, but this isn’t the case if the units aren’t operating well.

“You have to know that your operations are running smoothly when you add to your group,” said Rowe. “All of our management team has come from internal growth and we’ve been fortunate to develop crew members into managers and promote them. When everyone has had the chance to get familiar with the concept and take on bigger roles, operations seemingly run on cruise control.”

Thomason learned the same tip in his years of franchising with not only Pita Pit, but also Carl’s Jr.

“Before you open that second, third or fourth location, it’s important to do it with as much of your operating capital and profits as possible,” said Thomason. “It’s a mistake when franchisees go out and keep financing just to get the marketplace. The more debt you incur when you expand, the harder it is to succeed.”

Whether it’s getting the team up to speed or making sure to have a cushion of finances before moving forward with the next location, one thing is for sure – don’t grow until you are absolutely ready.

3.Wait until you find the perfect site

So, a franchisee has recognized that perfect concept and finances are in order – they are ready to go. Right? Not necessarily. Something that franchisees commonly overlook when becoming multi-unit owners is finding the perfect site. A space may seem like the perfect fit between the hours of 9 a.m. to 5 p.m. But, what happens late at night?

“Make sure you look at all of the details before getting into a new site,” said Rowe. “Before I come to a decision, I typically visit a site 40 to 50 times to see what it’s like at certain hours of the day. You can go to the site at a certain time, and sometimes that is misleading. It’s important to do diligent research before jumping the gun on a site that will not be successful.”

Becoming a multi-unit owner is the ultimate goal when a franchisee gets into franchising. When done right, it can be the golden ticket to success. When done wrong, it can mean a lot of debt and disappointment. Taking the time to make sure there is a need in the marketplace for the concept, that all operations are running smoothly and that the perfect site is available and ready are just three ways a franchisee can turn one successful unit into ten.