Achieving Success in a Multi-Unit FranchiseDate : Aug 7, 2018
In the franchising world, there are basically two types of franchises: Single Unit and Multi Unit. Being a potential franchisee, you have the opportunity to choose between single-franchise or multi-franchise that will of course depend on your capability and most importantly, your capital and experience.
Before, a Single Unit franchise was the main model for franchising. However, a Multi-Unit franchise has become an established option for companies and individuals to grow their wealth as it increase in influence and power over the years.
A Multi-Unit franchise has two different kinds: Area Development where the franchisor provides the number of units that the Multi Unit franchisee will open given the time period in a specific territory; and Sequential Multi Unit, the most common form where the franchisor gives the franchisee the right to open additional units under separate contracts.
Regardless of your choice as to which kind of Multi Unit franchise you will choose, your territory is almost always protected. You will have a franchise agreement between you and your franchisor for each individual unit that you have opened. You will then have a schedule as to when these individual units will open under your agreement.
Although this kind of franchise requires a higher investment capital, expect stability and higher rate of success. A Multi-Unit franchise does not rely on a single location to be successful unlike a Single Unit franchise.
This setup can be a little overwhelming, I know, but your skills of being detailed-oriented, being able to hire excellent employees, being able to delegate daily tasks and being able to decide on important matters will make you a successful Multi Unit franchisee! Not only that, if you are always available when problems need proper attention and when big decisions need to be made, you are one step away to succeed in this type of franchise.
Experience can be a great factor to succeed in this type of franchising. If you have been able to understand how franchising works and you were able to manage your own franchise, this can give you both the advantage and the edge to stand out in your business.
Yes, it is a large business opportunity but hey, the fruit of your labor will be large. Multiplying your efforts outside of one franchise investment can be risky but you are also multiplying your profits.