So You Want to be a Multi-Unit Franchisee?

The majority of franchise owners are now seeking franchisees who agree to sign on for multi-unit deals. After all, expansion is key for franchises to continue making money. It’s no longer just about becoming a business owner—it’s about building an empire with a brand.

Many franchises have actually taken the single-unit option off the table and now solely offer opportunities to entrepreneurs that contractually agree to a multi-unit deal. Multi-unit franchising can be intimidating, but these are five ways to get started.

Get your experience as a single-unit business owner or manager. This is not only to gain an understanding of how to direct and lead a team, but it’s also about learning how to delegate tasks. Delegating is half the battle with multi-unit ownership and everything is built from the ground up. As a manager or single-unit owner, you start to learn the characteristics it takes to run a business and learn about the type of business owner you aspire to be.

Learn about the industry inside and out. Study best practices, do the research, focus on the demographics of the territory and understand what types of multi-units have failed and have succeeded. From there, it’s possible to assess whether or not a multi-unit operation is both the right fit for and s plausible in the market. If the answer to both of these questions is “yes,” then it’s time to move toward the next step.

Have the financial backing to support your empire. Multi-unit ownership is expensive and takes a great deal of time to return on its investment. It takes a great amount of courage and, in most cases, a strong relationship with local banks in order to open multiple businesses. Having a vision of growth as a multi-unit franchisor is valuable, but having patience is vital.

If one unit in the multi-unit fails, will there be enough capital to sustain the other locations? Focus on the attainable first unit, have the patience to understand potential earnings and then recharge to look at further expansion opportunities.

Build a strong team. Once a franchisee agrees to purchase multiple units, they are also agreeing to hand over a portion of the management and fiscal responsibilities they worked so hard to attain. The leadership and quality of the team members hired are the bread and butter behind running successful multi-unit franchises, as they are the ones who handle the day-to-day activities. Focus on hiring people that understand the end goal and will run the business the way you would want it run without having to be micromanaged.

Have a passion for your business. There will be 90-hour workweeks followed by periods of stress and sleepless nights, but everything is easier when determination is involved. Love the industry you’re in and positivity will inevitably spread throughout the rest of the team. Allow perseverance to drive through the stress and, ultimately, your business will flourish.