As a prospective franchise owner, you may not know the many different paths you can take. One of them being multiunit ownership. Operating multiple franchise locations at once can be a very lucrative route to follow, especially for experienced entrepreneurs. According to the Wall Street Journal, multiunit franchisees operate 54% of all franchised units, with 52% of those franchisees owning two or more locations.
Could multiunit franchise ownership be the right move for you? Let’s talk about some of the advantages and help you make the best decision.
Experienced entrepreneurs can take their current understanding and knowledge of business ownership and translate it into multiunit franchising. As a result, the trial and error phase of operations—that comes with first-time business ownership—can be almost completely avoided. Regardless if you’re an independent company or part of a franchise, there’s going to be a learning curve that follows.
There’s a shorter learning window with veteran franchisees because you already have an understanding and a knowledge base. Along with this innate experience, you’ll get significant franchise network support. Some of the challenges experienced franchise owners still have to overcome include discovering how teams function together and establishing in-house efficiencies to help the business run smoother.
High Level of Stability
Many entrepreneurs enter the franchise industry to create stability and security for themselves and their families, as they didn’t find it in the corporate world. Those established business owners who operate multiunit franchises tend to see greater success and career stability in the long run. Why? Mainly because they’ve distanced themselves from the owner-operator model that can sometimes stifle experienced franchisees and keep them from achieving more. Indeed, there is still an initial higher investment and risk related to opening multiple locations at once. However, the payoff is typically more significant as well. If you’re currently succeeding with a franchise unit with The Cleaning Authority, you’ll likely see greater success with more locations, expand your well-known reputation, and increase your market share.
Establish Stronger Relationships
When you invest in more than one franchise location, you set yourself up to build stronger relationships with the community and local vendors. The opportunity is increased to network within the industry and show potential consumers and partners what sets your franchise apart from the rest.
A few ways to help build stronger relationships for multiunit franchisees include:
- Discover shared values and goals with potential vendors and service partners
- Show loyalty from the beginning of the relationship
- Plan a community outreach event to show the surrounding area you’re investing in what matters to them
- Be yourself in all of your interactions
Potential Lower Operating Costs
The initial startup costs for operating multiple locations will be higher on the front end. Still, you will be able to lower your overhead costs significantly per location once your businesses are more established. This is because some of your fixed costs, such as vendors, will be shared across all locations, resulting in the ability to negotiate better deals for your locations. Additionally, you may also qualify for lower-cost vendors, decreased administrative fees, and wholesale discounts when you’re operating multiple units under the same franchise brand.
Multiple Paths to Success with The Cleaning Authority
Becoming a multiunit franchise owner doesn’t mean automatic success. It may only mean that the path to success is shortened because you have proven methods that have previously served you well.
Whether you’re a single location operator or a multiunit franchise owner, The Cleaning Authority has the resources and tools to support you from day one. Our proprietary systems and training programs are just more established aspects of our business model, ensuring franchisees’ success. You will never be alone when you decide to begin your business ownership journey with us. We’re there to support you before you sign your franchise agreement and after you’ve had several achievements with your growing business.For more information about the options available to multiunit operators, call us at (888) 706-3615 or fill out our form online.