The future for entrepreneurs?
Pip Wilkins, CEO of the British Franchise Association (bfa), reports that multi-unit ownership is on the rise, with franchising attracting a new generation of entrepreneurs and facilitating expansion
sector than ever, as new franchisees start investing at a younger age and more and more women are taking on opportunities. But what really shows that franchising is a great career move is the fact that multi-unit ownership is on the rise (multi- unit franchisees have increased from 25 to 36 per cent since 2013). Once people embark on a career as a franchisee, they are staying in the industry and then growing their portfolio.
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An ever-growing industry The increasing popularity of multi-unit ownership shows a sector in a healthy state, with franchisees and franchisors believing in the success and growth of their business, even in unstable times. Brothers Simon and Mark Ledwick opened their fi rst Subway store in 2006, and have since expanded their store portfolio. More than 10 years on, they have grown their network to 17 stores across Cumbria and Lancashire and now employ over 150 people. Even with the challenge of the global fi nancial crisis in 2008, Mark and Simon pushed through, setting themselves the challenge to open three stores in fi ve months during that year.
Grow organically It’s becoming more common for franchisees to set out ambitious goals
s shown by the 2018 bfa NatWest Franchise Survey, there is more diversity in the franchising
for their business, looking to grow their enterprise over a certain time period, which requires dedication and commitment to the brand and business. Franchisees looking to achieve multi- unit ownership should get to know the business inside out and at all levels before taking that commitment. Here are Simon’s tips for those thinking
of owning more units: “Make sure you’re prepared to work in the business for a signifi cant amount of time. You need to gain practical, hands-on experience so that you really understand the day-to- day operation of the stores. It’s certainly a lifestyle choice rather than an investment in the early days.”
"What does the future hold? While the fra nchising sector continues to grow, multi-unit ownership will continue to rise, with every one reaping the rewards"
Franchisors looking for ambition? While many franchisors are happy to have franchisees who are only interested in taking ownership of one unit, there is a growing trend for franchisors to look for
ambitious franchisees, especially in the hotel and catering sectors. Simon agrees, saying: “The Subway
system is very supportive of multi-unit owners and that’s probably why over 70 per cent of new stores are opened by existing franchise owners.” There are advantages of economies of
scale by running more than one outlet, as it offers the chance for expansion using a formula that works well.
Why grow? It’s important for the franchisee to understand why they are looking to upscale their operations in the fi rst place. Is it purely for profi t? To gain a bigger role? Sometimes it is the passion for the business that inspires a franchisee to grow. Simon says: “As a multi-unit franchise
owner we have progressed from the early days working in the stores, gaining hugely valuable skills and experience, to taking on a more strategic, managerial role. Becoming a franchise owner with Subway has enabled us to start up our own business and take more control over our own work-life balance and future. We have been able to grow our business at the rate we wanted to.” What does the future hold? It’s quite simple, really – while the franchising sector continues to grow, multi-unit ownership will continue to rise, with everyone reaping the rewards. l
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