Find Out If Multi-Location Franchise Ownership Is for You

Editor’s Note: This article was kindly shared with us by Danessa Itaya, president of Bio-One. The most trusted crime and trauma scene cleaning franchise in the United States, Bio-One is part of the Five Star Franchising platform of brands. Itaya has more than 30 years of experience in the franchise industry, including 10 years of national and international leadership experience. She serves on the Women in Franchising Committee of the International Franchise Association and was named one of Entrepreneur’s Top Influential Women in Franchising in 2022. 

Franchising can be one of the most rewarding financial opportunities available for anyone who wants to take charge of their career and achieve financial independence. 

Franchise businesses mitigate the risk involved with opening an independent small business. With proven, scalable business models, shared resources, system-wide support networks, and existing brand awareness, franchise opportunities allow a wide cross-section of people from a variety of backgrounds to maximize the return on their personal capital and hard work. 

The same principles apply to multi-location or multi-unit franchise ownership. Economies of scale drive the potential for higher returns without duplication of efforts. Owning and operating multiple franchise locations amplifies the advantages of the franchise model, increasing opportunities and potential rewards. 

Franchise Growth and Scaling

Once you have built one successful franchise brand location, you can replicate the process by applying tools and processes you have already mastered. You can see bigger returns with less heavy lifting. 

There are many options for those who want to expand and diversify their franchise holdings. They might open a second (or third, or fourth) location after successfully owning and operating one franchise. Some people enter the industry through a multi-location agreement, with the goal of quickly opening and operating multiple locations in a defined geographical region. It is also possible to focus on diversifying your holdings by owning franchises in more than one industry.

Question to Ask Yourself

Before making the decision to expand or invest in a multi-location agreement, however, consider the following important questions: 

• Do you have sufficient cash or credit for opening new locations? 

• Do you have the executive mindset necessary to own and operate multiple franchise locations? 

• If you already own an existing location, does it produce sufficient cash flow to continue operating successfully while you are focused on a new location? 

• Do you have the right team in place to keep your existing franchise location on track? 

6 Benefits of Multi-Location Franchise Ownership

If multi-unit franchise ownership is the right fit, you can expect to see results quickly. Here is a breakdown of the benefits of multi-location franchise ownership: 

#1: Leverage and Relationships

If you already own and operate one franchise location, you will have existing relationships with vendors, distributors, and financial institutions that can be leveraged immediately. If you open multiple locations at once, you will only have to establish those critical relationships once to serve all locations. 

#2: Growth Opportunities for Team Members

With additional franchise locations, you can continue to develop and promote your team members, whether it is taking on more responsibility or leading one of the locations. With strategic management, team members can be deployed across multiple locations to create staffing efficiencies. 

#3: Shared Supplies and Inventory and Bulk Discounts

Similarly, sharing supplies and inventory across multiple locations means each unit does not have to maintain a full range of physical products at all times. Additionally, bulk discounts may apply to many purchases.

#4: More Management Opportunities

With additional revenue multiplying profits, you can invest in a management team to oversee day-to-day operations while you focus on the big picture. 

#5: Value

The savings and efficiencies of multi-location ownership add up. A multi-location franchise agreement will likely be greater than the combined value if each location were individually owned. That means greater returns on your investment. 

#6: Diversification

Spreading risk and costs across multiple locations can protect franchise owners during economic disruption. Owning more than one franchise location can make it easier to weather harsh economic times. 

Take the First Step Toward Financial Freedom

In the end, multi-location franchise ownership can be a big step in the journey toward financial freedom. There are nearly endless options for anyone interested in multi-location franchising, from adding one or two locations to an established one or building a large regional portfolio that includes multiple brands and industries. Whatever your goals or preferences, there is a multi-location franchising opportunity for anyone. 

So how do you find the perfect brand for YOU? FranCoach is a national search firm dedicated to working with individuals who are interested in owning a franchise. We have partnered with over 600 of the top franchisors in the country, spanning nearly 70 industries.

When we work with clients, our number one goal is to help them find the absolute best franchise for them to own. If you are looking to start a business, build a lasting legacy, make an impact in your community, and be your own boss, franchise ownership might just be the ideal path for you. 

Reach out to us to learn more about becoming a franchise owner. There is never any fee for our service, so why not take the first step today toward your better tomorrow?

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