Franchise Advice


“A multi-franchise owner is somebody who is entrepreneurial, energetic and hungry for growth”


6. Staff incentives take on much more importance


Because multi-unit franchisees rely so much on experienced managers to oversee daily operations, you need to cultivate your own managers internally by giving them the opportunities to obtain shares or go for promotion.


7. Stay focused You can’t just invest in multi-unit franchises but not manage the performance, as you could have done for a single-unit franchise. Your business units’ key performance indicators need to be your daily focus!


8. Keep thinking like an entrepreneur A multi-franchise owner is somebody who is entrepreneurial, energetic and hungry for growth. If you want to be an entrepreneur, this business opportunity could be perfect for you.


9. Don’t grow before you’re ready There’s no point in operating four average units that make only as much as two outstanding ones – you’re just creating headaches for yourself. Multiple units must generate a sustainable momentum and culture; doing that means perfecting each unit before moving on to the next.


10. Assess yourself


Some healthy self-analysis is going to help. Multi-unit ownership takes an entirely diff erent set of skills than being a single owner-operator. You’ll need to make a very honest personal assessment before deciding whether it’s for you.


Summary Multi-unit franchising is growing rapidly in 48 | BusinessFranchise.com | July/August 2017


the UK because it works for the franchisor as they deal with fewer franchisees. It works for franchisees, too, if you understand what’s required and you’re prepared for:


The positives • You’ve been through it before and you are much more ready for most of the surprises with a new unit


• You have a much better feel for how to market and grow your business


• Economies of scale (ie marketing and stock purchasing) start to work in your favour


• Your training of new employees is more focused and eff ective


• You have a much greater revenue (and hopefully profi t) stream.


The negatives • Cashfl ow can initially become a very critical issue


• You no longer have the time to devote to any one unit – you must let control go to your managers


• Personnel issues and risks magnify • Risk/reward comes into play more strongly; you now have a lot more invested in the business and therefore have more of your money at risk.


I hope that with that risk, however, you also can also reap the rewards of a larger and growing business.


About the author Euan Fraser QFP is a franchise


specialist with AMO Consulting


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