What You Need To Know When Planning for Multi-Unit Franchise Growth

Franchising is a lucrative entrepreneurial venture and with multiple franchises, the rewards have the potential to multiply. To find success in multi-unit franchising, it’s important to have a plan that is well-thought-out, not just aimlessly pursued as opportunities arise. For franchisees who plan their franchising journey carefully, multi-unit ownership can provide exponential returns on investment while allowing them more freedom and flexibility.

Here are some of the key strategies successful multi-unit franchisees use when building their empires.

Choose Your Brand Carefully

It’s always important to choose a franchise model that aligns with your needs, values, passions and lifestyle goals, but it’s even more crucial when you’re committing to develop multiple units. 

There are practical considerations to be made when entering a multi-unit agreement. 

• Are you comfortable with the development schedule you are committing to? 
• Are you confident in the franchisor’s ability to support you as you grow beyond a single unit? 
• Are there other successful multi-unit owners in the system with whom you can collaborate? 

These are all good boxes to check, and many successful owners take the evaluation a step further and consider their emotional connection to the concept.

When you feel a spark of excitement about a brand, you’ll have even more passion and energy to carry you through the potentially grueling start-up process. And once the locations are operational, a fondness for the brand will help you nurture your businesses and stay involved in the system, even when you aren’t on-site on a day-to-day basis.

Make Your Five-Year Plan Before Beginning

Trying to grow a multi-unit business without a plan is difficult. While there are some aspects of business strategy that can be repeated for future success, there are some unique challenges that come with scaling to multiple units.

This plan should include business goals and objectives, market analysis, financial projections, marketing and branding strategies, risk management, sustainability initiatives and even an exit strategy if that’s part of the long-term vision. 

It’s important to note that this five-year plan can be somewhat dynamic. Finding the balance between committing to the original plan and adapting as circumstances change is important. However, once you’ve made the decision to pursue multi-unit ownership, whether that’s at the start of your franchising journey or after a bit of experience, a clear-cut pathway will be crucial.

“It was a blend of foresight and firsthand experience that propelled my journey into franchising. While I had initial expansion plans in mind, I chose not to fully commit until I had established ownership of my first location,” explained Jen Clarke, a two-unit owner with Woodhouse Spa. “My time at The Woodhouse in Red Bank surpassed all expectations. The team embraced me warmly, corporate provided unwavering support, and I made a concerted effort to integrate into the local community. The remarkable support and success I encountered at The Woodhouse in Red Bank instilled in me the confidence to pursue further expansion into additional Woodhouse locations.”

Embrace an Ownership and Leadership Mindset

As a multi-unit owner, it is impossible to be in each unit on a daily basis, so it’s important to make a mindset shift from management to leadership and embrace your role as an owner. You can bring managers on board, but leadership requires an intimate knowledge of the long-term vision — something you know best. 

“Navigating the transition from a managerial role to one of ownership and leadership was an important part of this journey for me,” Clarke said. “I found that the shift occurred organically as I focused on fostering a culture where my team felt empowered to manage and make decisions in line with the vision and values I aimed to instill in each location.”

Building teams who share your vision for the future will enable you to funnel more time and energy into the strategy and business development efforts. While this leap can feel like a big one in the early stages, it is important to remember that these mentorship and coaching efforts are nurturing a team that will serve to drive the whole business forward.

“This transformation was rooted in cultivating a group of leaders within my team who shared my aspirations and could contribute meaningfully to our collective growth,” Clarke said. “My mindset evolved to prioritize coaching and developing these leaders, ensuring that they were equipped to embark on this journey alongside me with the same passion and commitment.”

Know When to Grow

An established five-year plan is very helpful here. You can reference your plan and the steps you know you’ll need to take alongside some benchmarks or key indicators that it really is time to move forward. 

Part of successful growth is taking the right steps at the right time, and with a plan already established, you have something to fall back on that will help you to both avoid impulsive growth decisions and encourage leveling up when it’s time, even if you’re nervous. 

It is important to find a balance between following your plan blindly and carefully analyzing your market and the economic environment. A lot can change in three years, for example, and part of being a good business owner is knowing when to step back and break the mold for the good of yourself and your business. Other franchisees and support staff at the franchisor level are a great resource for times like these.

Focus On Training, Education and Support for Your Teams

Once you’ve established a healthy network of franchise businesses, it’s crucial that you keep your existing units afloat. Regardless of whether you’re looking to add more units in the future or simply continue driving revenue and creating opportunity through your existing businesses, quality is key.

“I prioritize ongoing training and support for my teams to ensure they’re equipped to manage day-to-day operations seamlessly, even in my absence,” Clarke said. “Central to our approach is having well-defined processes for every aspect of our operations, and we hold ourselves accountable to adhering to them rigorously. Open and transparent communication serves as the cornerstone of our teamwork, ensuring everyone is aligned and empowered to excel in their roles.”

Building these support networks ahead of time sets all of your units up for success and creates a safety net of sorts so you’re not needed on-site every time the team encounters a challenge.

Multi-unit franchising offers a pathway to substantial growth and financial freedom for entrepreneurs. With thorough research, careful planning and ongoing leadership, you can build a strong, adaptable network of businesses that allow you to unlock the full potential of your investments.

For more info on successful multi-unit franchising, check out these related articles on 1851 Franchise:

• “How to Succeed as a Multi-Unit Franchisee” (Series)
• Why Multi-Unit Ownership Takes a Certain Kind of Franchisee
• Franchise Executives Share What Makes a Successful Multi-Unit Restaurant Operator