Posted by: Roni Deutch Staff | February 16, 2009

7 Reasons to be a Multiple Unit Franchise Owner

Becoming a franchise owner is a big and exciting venture when you open a single store; so just imagine what opening multiple stores feels like! Although it sounds much more difficult, opening up multiple locations of a franchised business is actually quite easy if you know what you are doing. Since there are so many misconceptions out there, the WatchMeFranchise team decided to organize the following list explaining the benefits of being a multiple-unit franchise owner.

1. More Profitable

The biggest reason to open multiple units of a franchise is because you have the opportunity to make much more money. There is only so much money to be made from owning a single location, but if you begin to expand then the income possibilities are essentially limitless.

2. Franchise Incentives

Depending on the franchise you own, there may be incentives offered by the franchisors for owning multiple units. Incentives could be a reduced price, free services for your store, or even prime store locations. Franchisors will usually offer these incentives for multiple-unit owners, as it saves them time and money as well for you to have multiple locations.

3. Advertising Savings

If you own multiple franchises, you can save on advertising by running one set of ads, but providing two (or three, or four, etc.) contact sections. You have probably seen this in ads all over the place, but had never considered it as an advantage to the franchise owners.

4. Multiple-Unit Management

Managing one store can be hard enough at times; so many people get quite concerned about the idea of managing multiple stores. However, most multiple-unit franchise owners will decide to hire a store manager for each location. That way, as the owner, you become more of an over-seer and will not need to handle as many day-to-day operations.

5. Higher Success Rate

It has been proven that multiple-unit franchise owners have a much higher success rate than that of single-unit owners. While all franchises have a statistically higher success rate than other small businesses, multiple-unit franchisees have an even higher success rate.

6. You are NOT Alone

Many people assume that because single-unit owners outnumber multiple-unit franchise owners by 4 to 1, that it is a bad business venture. However, although there are fewer multiple-unit owners, they own more total franchise units then single-owners do. According to recent surveys, multiple-unit owners own about 55% of the total number of franchised stores in this country.

7. Potential to Branch Out

While many multiple-unit franchise owners like to monopolize their area, others opt to do the complete opposite. Owning multiple franchises also allows you to have businesses in different locations, even different states. Some people find it exciting two have business in two states, either because they have family there, or because they feel more stable being spread out. You can also choose to open multiple franchises in different areas which you feel are “up and coming” for your services, to try to get the most bang for your buck.

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