Multi-unit franchising can be one of the fastest paths to achieving generational wealth, but, like any new business venture it is not without risk and hard work. Here are a few points to consider as you conduct your due diligence on how others have positioned themselves to achieve financial success by owning multiple franchises.
What It Takes to Run Multiple Units: Five Keys to Success
Whatever type of multi-unit investment you make, be it a multi-unit restaurant franchise like Penn Station East Coast Subs, or another type of franchise for sale, it takes a certain kind of person to be a multi-unit investor. Whether they own multiple locations of one brand or have large investment portfolios including multi-units of more than one brand in a variety of markets, these ambitious entrepreneurs tend to have certain qualities in common in their approach to growing with a franchise brand.
These five characteristics and resources are the keys needed to unlock multi-unit franchise success:
- Commonly, many multi-unit investors come to the game as well funded, seasoned operators or business executives with experience in business ownership and management. Many franchisors are seeking such individuals to help them expand their brands and may provide certain franchise development incentives programs such as discounts on certain franchise related fees.
- To be a multiple unit franchise owner, you must meet the franchisor’s minimum financial requirements and have access to the necessary real estate and capital to fund your business venture. You’ll need relationships with lending institutions, access to cash, or even multiple business partners or investors with the needed funds to finance multi units.
- To successfully operate your numerous locations, you’ll need to assemble a team of trusted and skilled supporters and staff. Since you can’t be at all your locations at once, having a strong team in place will help you to ensure daily operations run smoothly. Establish trust with your staff to run things on your behalf since delegation is a must when owning multiple units.
- Managing your trusted team requires certain skills. As the head of an expansive team, managing numerous locations you’ll need clear communication skills, the ability to delegate, and problem solve. You’ll want to set up a well-defined system with your team for both building your locations and running your units that compliments the system established by the franchisor.
- Passion and love for the brand you are franchising is very important for owning multiple units. Believing in the brand’s mission and messaging, good communication, being able to adapt to a standardized franchise system, and having an openness to learn and implement new information will help position you for the hard work it takes to own multiple franchises.
What to Ask a Franchisor Before Investing in a Multiple Unit Franchise
There are certain things you’ll want to find out about available locations before investing in franchises. Does the franchisor have available territories in the areas you’d like to own? Find out if your territory will be exclusive, and what it includes. Determine what the upfront costs will be and if there are any franchise incentives.
You’ll want to make sure the distance between your locations isn’t so vast you can’t easily travel between them. If your franchise units are developed more contiguously, it may help you with marketing efficiencies and help to develop brand recognition more quickly. It may also make sharing staff, supplies, and other resources easier for you operationally.
Learn about the demographics and competition in the area you’ll operate. Many real estate brokers can share demographic information with you and there are online resources as well. Drive the potential franchise areas you are interested in and visit with the local chamber of commerce to learn more information about upcoming new business investments, large employers drawing workers to the area, and potential new real estate development on the horizon.
Doing your homework before you buy a franchise will help you prepare to enter into any franchise agreement fully informed about how a franchisor determines available territories and the possibilities for growth.
Multi-Unit Franchise for Sale with Penn Station East Coast Subs
Find multi-unit ownership opportunities in the sandwich industry by franchising with Penn Station East Coast Subs. We take pride in the quality of our product and our position in the sandwich category with our lunch and dinner dayparts equally divided.
We have attractive development territories available for multi-unit investors who are passionate about our brand. There’s never been a better time for multi-unit growth as a Penn Station franchisee. Request info today to learn more about your path to multi-unit ownership with Penn Station East Coast Subs.