Improve the Quality of Your Franchise Business with Multi-Unit and Multi-Concept Franchises
Improve the Quality of Your Franchise Business with Multi-Unit and Multi-Concept Franchises
Are you self-motivated? Do you dream of building a business with your two hands? Do you struggle as an employee, constantly feeling like you could improve the company if someone would hand over the reins? If one or more of these questions provokes an affirmative answer, you are an entrepreneur who is ready to find a track into the business world, possibly with a business franchise.
Most importantly, you do not need a college degree or years of experience to take advantage of this increasingly emergent business prospect. And, with the right information, you can successfully operate more than one franchise business.
What is Multi-Unit and Multi-Concept franchising?
Multi-unit franchising occurs when a franchisee operates multiple stores from one franchisor within a specific area. This type of franchising is popular, for instance, in the food industry. Entrepreneurs seeking a restaurant franchise will find a bounty of options. Similarly, multi-concept franchising involves more than one brand and works best if the concepts are related. For example, children’s hair care and family portrait studios are two concepts related enough to create synergy for each another.
Challenges of Multi-Unit and Multi-Concept franchises
As with any rewarding investment, there are a few challenges to take into account when considering a multi-unit or multi-concept franchise. First and foremost, choosing a good location is vital. Consider the surrounding area of a potential outlet. Going back to the restaurant franchise example, you might ask, are there plenty of retail businesses nearby? Obviously, an eatery would do well if located near a shopping center or strip mall where guests may be inclined to take a food break.
Another challenge common to first-time franchisers is micromanaging. Certainly, you have a vested interest in how each store functions but much of the responsibility should be placed on an infrastructure of managers you hire.
These individuals are responsible for the everyday operations of their stores and should be trusted to run these businesses as you would if you were working there each day. Hire managers to serve as an extension of you. They should believe in the franchise, working toward its success and most importantly, its growth. This is where you meet the first advantage of a multi-unit franchise business. If managers see the potential for growth, they consider themselves as being on a career path. The benefit for you here is that you are much more likely to have a dedicated management team for the long term.
Also, allowing each manager to assume responsibility of store operations allows him/her to put personal touches on that particular location. This gives the store the “feel” of a small business franchise, something most customers appreciate.
Of course, staffing is always problematic, but you can improve it by treating your managers and their staff members well. Again, growth potential encourages employees to stay with your franchise because they see a career path. They are also far less likely to seek employment elsewhere if they feel that their services are valued and their opinions respected. Many multi-unit and multi-concept franchisees meet with their managers regularly. Some even set up voluntary focus groups for subordinate employees to give them a chance to express any concerns.
Advantages of Multi-Unit and Multi-Concept franchise businesses
With the challenges come advantages that make multi-unit and multi-concept franchising worthwhile. One key advantage is that the risk is absorbed by several units or brands. With multiple stores, you do not have all your eggs in one basket, so to speak.
For example, if a local government suddenly plans road construction near one of your stores, sales will inevitably dip. Fortunately, your remaining outlets will not suffer. In fact, some of the business may simply be diverted to one of your other locations. Moreover, with a multi-concept franchise, you can spread the risk over several brands. If you operate a realty franchise, for instance, and the housing market experiences a low, it is unlikely that all stores and all brands will experience down time in the same period.
Furthermore, you will have access to more cash flow. Many multi-unit franchisees, for example, use the cash flow from other units to expand with additional units. And, the financial benefits do not stop there. You also have the option of reducing overhead costs by spreading them over several outlets, also gaining economies of scale.
In short, with multi-unit and multi-concept franchising, more capital becomes available. Meanwhile, franchisees running a single-unit are immersed in the details of managing a small business franchise.
Additionally, multi-unit franchises provide efficiency because of their potential for shared labor. Many employees are willing to take shifts at other locations, if needed; thus, the costs of hiring and training new personnel decrease. You also save money in other areas such as internal warehousing, distribution and advertising costs. If you operate a multi-concept franchise, you are far more likely to acquire special location and lease considerations from landlords. Most landlords prefer to work with multi-concept franchisees because they can subdivide larger areas. Your benefit is that they provide accommodation for all of your brands.
Building an Infrastructure for your franchise
First, consider any skills you may have. As mentioned, the most important attribute of a successful franchisee is an entrepreneurial spirit. However, if you have a degree in accounting, you may want to consider what you have to offer as you plan the infrastructure.
When planning your infrastructure, which should be designed to umbrella all units and brands, it is important to bear in mind how many staff members you will need to launch verses the number you will need to grow.
Starting with a large infrastructure will help the launch go much more smoothly. Otherwise, you may end up with a few people scrambling to meet the demands of a new business franchise.
However, there are significant downfalls to this method. For instance, having too many people in your infrastructure can lead to a breakdown of communication. Also, once all units and brands are up and running, you may find the costs of maintaining a large infrastructure to be too high and cutting back on personnel can reduce morale among remaining employees. Of course, the best way to solve this dilemma is to carefully plan and build the infrastructure slowly.
Choosing the best franchise opportunities
It is important to remember that there are many franchises for sale in today’s marketplace. Still, not all franchisors are equipped to support multiple units. This does not necessarily mean the franchisor is unsuccessful. Instead, it may simply mean that there is limited demand for a particular brand in your area. Or, the structure of the store might simply be geared toward a single-unit franchisee. This explains why it is always best to thoroughly research a franchisor before any agreements are made.
If you are considering a multi-concept franchise business, remember to carefully review the franchise agreements. Make sure your definition of a competing business matches that of each of your franchisors.
Most importantly, keep in mind that there are plenty of opportunities at your disposal. It is imperative that you research each prospect before investing your valuable time and money.
Improve the Quality of Your Franchise Business with MultiUnit and MultiConcept Franchises - To learn more about this author, visit Candice Clem's Website.
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Multi-unit and multi-concept franchising both provide opportunities for fast, efficient growth. Franchising is an obvious consideration for individuals who naturally have that entrepreneurial spirit. You might be wondering what is means to have an entrepreneurial spirit.
Are you self-motivated? Do you dream of building a business with your two hands? Do you struggle as an employee, constantly feeling like you could improve the company if someone would hand over the reins? If one or more of these questions provokes an affirmative answer, you are an entrepreneur who is ready to find a track into the business world, possibly with a business franchise.
Most importantly, you do not need a college degree or years of experience to take advantage of this increasingly emergent business prospect. And, with the right information, you can successfully operate more than one franchise business.
What is Multi-Unit and Multi-Concept franchising?
Multi-unit franchising occurs when a franchisee operates multiple stores from one franchisor within a specific area. This type of franchising is popular, for instance, in the food industry. Entrepreneurs seeking a restaurant franchise will find a bounty of options. Similarly, multi-concept franchising involves more than one brand and works best if the concepts are related. For example, children’s hair care and family portrait studios are two concepts related enough to create synergy for each another.
Challenges of Multi-Unit and Multi-Concept franchises
As with any rewarding investment, there are a few challenges to take into account when considering a multi-unit or multi-concept franchise. First and foremost, choosing a good location is vital. Consider the surrounding area of a potential outlet. Going back to the restaurant franchise example, you might ask, are there plenty of retail businesses nearby? Obviously, an eatery would do well if located near a shopping center or strip mall where guests may be inclined to take a food break.
Another challenge common to first-time franchisers is micromanaging. Certainly, you have a vested interest in how each store functions but much of the responsibility should be placed on an infrastructure of managers you hire.
These individuals are responsible for the everyday operations of their stores and should be trusted to run these businesses as you would if you were working there each day. Hire managers to serve as an extension of you. They should believe in the franchise, working toward its success and most importantly, its growth. This is where you meet the first advantage of a multi-unit franchise business. If managers see the potential for growth, they consider themselves as being on a career path. The benefit for you here is that you are much more likely to have a dedicated management team for the long term.
Also, allowing each manager to assume responsibility of store operations allows him/her to put personal touches on that particular location. This gives the store the “feel” of a small business franchise, something most customers appreciate.
Of course, staffing is always problematic, but you can improve it by treating your managers and their staff members well. Again, growth potential encourages employees to stay with your franchise because they see a career path. They are also far less likely to seek employment elsewhere if they feel that their services are valued and their opinions respected. Many multi-unit and multi-concept franchisees meet with their managers regularly. Some even set up voluntary focus groups for subordinate employees to give them a chance to express any concerns.
Advantages of Multi-Unit and Multi-Concept franchise businesses
With the challenges come advantages that make multi-unit and multi-concept franchising worthwhile. One key advantage is that the risk is absorbed by several units or brands. With multiple stores, you do not have all your eggs in one basket, so to speak.
For example, if a local government suddenly plans road construction near one of your stores, sales will inevitably dip. Fortunately, your remaining outlets will not suffer. In fact, some of the business may simply be diverted to one of your other locations. Moreover, with a multi-concept franchise, you can spread the risk over several brands. If you operate a realty franchise, for instance, and the housing market experiences a low, it is unlikely that all stores and all brands will experience down time in the same period.
Furthermore, you will have access to more cash flow. Many multi-unit franchisees, for example, use the cash flow from other units to expand with additional units. And, the financial benefits do not stop there. You also have the option of reducing overhead costs by spreading them over several outlets, also gaining economies of scale.
In short, with multi-unit and multi-concept franchising, more capital becomes available. Meanwhile, franchisees running a single-unit are immersed in the details of managing a small business franchise.
Additionally, multi-unit franchises provide efficiency because of their potential for shared labor. Many employees are willing to take shifts at other locations, if needed; thus, the costs of hiring and training new personnel decrease. You also save money in other areas such as internal warehousing, distribution and advertising costs. If you operate a multi-concept franchise, you are far more likely to acquire special location and lease considerations from landlords. Most landlords prefer to work with multi-concept franchisees because they can subdivide larger areas. Your benefit is that they provide accommodation for all of your brands.
Building an Infrastructure for your franchise
First, consider any skills you may have. As mentioned, the most important attribute of a successful franchisee is an entrepreneurial spirit. However, if you have a degree in accounting, you may want to consider what you have to offer as you plan the infrastructure.
When planning your infrastructure, which should be designed to umbrella all units and brands, it is important to bear in mind how many staff members you will need to launch verses the number you will need to grow.
Starting with a large infrastructure will help the launch go much more smoothly. Otherwise, you may end up with a few people scrambling to meet the demands of a new business franchise.
However, there are significant downfalls to this method. For instance, having too many people in your infrastructure can lead to a breakdown of communication. Also, once all units and brands are up and running, you may find the costs of maintaining a large infrastructure to be too high and cutting back on personnel can reduce morale among remaining employees. Of course, the best way to solve this dilemma is to carefully plan and build the infrastructure slowly.
Choosing the best franchise opportunities
It is important to remember that there are many franchises for sale in today’s marketplace. Still, not all franchisors are equipped to support multiple units. This does not necessarily mean the franchisor is unsuccessful. Instead, it may simply mean that there is limited demand for a particular brand in your area. Or, the structure of the store might simply be geared toward a single-unit franchisee. This explains why it is always best to thoroughly research a franchisor before any agreements are made.
If you are considering a multi-concept franchise business, remember to carefully review the franchise agreements. Make sure your definition of a competing business matches that of each of your franchisors.
Most importantly, keep in mind that there are plenty of opportunities at your disposal. It is imperative that you research each prospect before investing your valuable time and money.
Improve the Quality of Your Franchise Business with MultiUnit and MultiConcept Franchises - To learn more about this author, visit Candice Clem's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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Casey GollanCasey Gollan, Business Coaching & Mentoring Programs. Add $1 Million to $10 Million in the next 1 to 3 years. Since 1996 Casey has to added hundreds of millions of dollars to businesses. Watch a free video see client results Business Coaching website. - Visit Casey Gollan's Website |
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