There’s a lot to be said about owning a multi-unit franchise. If you’re an entrepreneur looking to franchise a business, here are five great benefits from investing in multi-unit franchising.
Having multiple store locations means having multiple sources of income. If business is slow in one area, it can be compensated with brisk business from your other locations.
For instance, entrepreneurs who manage multi-unit franchises of Hot Dog on a Stick or ice cream cones can turn to other locations to save those that aren’t as successful. You’ll always have locations to pick up the slack and remedy the situation. It will also give you time to develop a strategy for the slow unit.
It’s Cost Effective
When you purchase goods in bulk and store them in a single central hub, it’s easier to manage stocks and delivery schedules. Ordering in bulk also costs lower than small orders. Delivering these goods to a central location, meanwhile, often doesn’t cost you extra. So, you can develop economical methods to reduce costs further and maximize delivery schedules.
You Have Shared Resources
Human resources, in particular. If you’re short-staffed in one location, you can assign a team member from another location to fill the vacancy. It’s the most convenient and cost-effective continuity program out there. Apart from staff, stocks can also be shared across all units, avoiding shortage problems.
You Have a Wider Coverage
Some parent companies grant full territory franchises for those who can commit to putting up stores within a certain period. Many franchisees find this agreement very attractive as it guarantees an entire business territory directly under their management without any competitors.
It Keeps Getting Better
The first store always offers a wealth of knowledge and an enriching experience that you can use and put into work when you build the next one. And as you establish each venture, you gain a mastery of the process and develop your own methods to streamline and maximize your business.
These are just five of the advantages of owning a multi-unit franchise. If you’re looking for a business model that offers stability, a healthy stream of income, and growth, multi-unit franchising is the best route for you.