Starting a business from the ground up – with only base materials and a bootstrap budget – can be time consuming and it often doesn’t pay off. Many businesses close down within the first year. This is why multi-unit franchising can be such an excellent option. If you want to quench your entrepreneurial thirst and if you want to get a head start, you may want to partner with a business that has already been established. What is a multi-unit franchise? Basically, you open multiple locations of a particular business in a state or geographic region. In some cases, the franchisor may offer lower rates for opening more locations, which is just one of the many benefits of multi-unit franchising. Here are five multi-unit franchising benefits.
- Greater human resource capacity. One of the greatest benefits of multi-unit franchising is that you will have more human resources to work with, which can give your business more leverage. For instance, if you have multiple locations within a single region, you almost never have to worry about staffing issues – you can always send employees to various locations based on staffing needs.
- Create stronger model for success. Having multiple locations can also offer a unique trial-and-error model that allows your business to find that sweet spot for success. If one way of doing things doesn’t work at one location, it may not work at another location. If you do have something that clicks, you can make it available to all locations. Ultimately, this will create a stronger core business strategy. Whenever you trim the fat, you are presented with more opportunities for success. If you didn’t have multiple locations, you may not reach this pinnacle and your franchise may falter for it.
- Group marketing. With multiple locations, or units, your marketing efforts can be targeted across the board, which can boost the success rate of your campaigns. Moreover, you can test different marketing strategies to boost the overall success of a major push. If one test doesn’t work, you can curtail a major push or amend it accordingly. Basically, a multi-unit franchise will give your business the chance to create a secret marketing formula that works for each and every location.
- Potential for more profit and growth. With more locations comes more revenue, which also means that your business will make more of a profit. However, a multi-unit franchise can also make more money because when you open more locations, your loyalty costs to the parent franchisor are often more affordable. When it comes down to it, it is a win/win situation for you and the franchisor.
- Test the market waters. Another big benefit of multi-unit franchising is that you get to test the market with less risk for failure. This means you can try new things, take chances and broaden your business’ horizons. Ultimately, this will create a better experience for your consumers and patrons. If you are browsing around Franchise Expo, you may want to keep this in mind. In the end, multi-unit franchising is a great chance for you to really flex your entrepreneurial muscle.