Going out and starting a business from scratch can be tough. That’s why so many investors decide to go the franchise route. This type of business model has such a huge support system that people won’t have to wake up in cold sweats trying to figure out where payroll is coming from or worrying about being on a Gordon Ramsay rescue show.
Think about it, you already have a successful infrastructure, you’ve got corporate experts to seek advice from and you have a number of methods to seek financial help. Yup, with this type of business model in hand you may be thinking you got this whole franchise ownership thing figured out. With that level of confidence growing, you may think that you are ready to take on one, if not a few additional units. Becoming a multi-unit franchisee can be a great way to not only promote the company brand, but your brand as an entrepreneur as well. But there are a few things you should keep in mind before you start to burn the midnight oil.
Everything comes down to money these days. From the type of products you want, to supply in your store, to the amount you have in your budget for payroll, everything costs something. As you are researching franchises, you want to take a look at the initial costs of setting up one of these businesses. There are many low-cost franchises, such as cleaning service JAN-PRO and extermination company Mosquito Joe, that would be perfect starters for newbies. But no matter what business you choose, make sure your checkbook is balanced. Vik Patel of Purple Square Management Company is a seasoned franchise veteran and actually started off as a multi-unit franchisee with four Dunkin Donut and Baskin Robbins co-branded stores. He said he wanted to grow as an entrepreneur because the support system he had along the way helped him.
“As our team developed, I felt like we had more people to help me run and operate the business,” Patel said. “I also wanted to see the company that we had worked so hard to build continue to grow and see how far we could take it.”
But he added that you still need to keep a watchful eye on the books and make sure you are dealing with finances correctly. Check with landlords and developers to make sure you are getting the best deal possible.
Running a number of stores may be overwhelming at first and you may think you have to do everything. It’s enough for a young entrepreneur to start losing their hair at an early age. But Patel went on to say that one of the reasons he became a multi-unit franchisee is that it allowed him the opportunity to have people helping him out with everyday tasks.
“One of the biggest advantages to being a multi-unit franchisee is that you don’t have to do everything yourself anymore. Initially you are operations, repairs and maintenance, HR, marketing, etc.,” he said. “Once you can afford an infrastructure, you get to focus on your business and have a team to help you run it.”
But that lessening of stress comes with some caveats. Patel said he no longer has the time to be in his stores and that can be detrimental to someone with a Type-A personality. Spacing out an appropriate amount of time to see each store will make sure you stay sane and that you can make sure your stores are performing to your expectations.