Considering buying more than one franchise? Learn what you should know before investing in multi-unit franchises for sale.
If you’re looking for multi-unit franchises for sale, you’re probably interested in growing your business portfolio and diversifying your income streams. However, before you invest, there are a few things you should know to ensure you’re making the right decision. Let’s explore some of the options available, what to look for when owning multiple units, and whether you can do this within the same parent company or spread your investment across different brands.
Do Your Homework
Investing in a multi-unit franchise is a significant commitment, both financially and personally. Before you take the plunge, it’s essential to be fully informed.
- Research the franchise brand thoroughly. Look into the franchise’s history, reputation, and financials. Find out how many units they currently have, how many have closed, and what the turnover rate is. Also, research the parent company and its management team, including the kind of experience they bring to the table.
- Understand the costs involved. In addition to the franchise fee, you’ll need to consider the cost of real estate, equipment, inventory, and ongoing royalties and advertising fees. Make sure you have a clear understanding of the total investment required to own a franchise, how to account for multiple units, and factor in any unexpected costs.
- Evaluate your own skills and experience. Running multiple franchises requires strong business acumen, management skills, and an ability to multitask. Be honest with yourself about whether you have the experience and resources needed to succeed, including what a particular brand has to offer you in terms of support.
- Consider the market. Look into the market demand for the franchise’s products or services in the areas you’re considering. Also, research the competition and whether there’s room for another franchise in the market.
Different Multi-Unit Franchise Options
At its base, a franchise agreement is a legally binding contract entered into by the franchisor and franchisee that outlines the terms of the business relationship. If you are buying more than one franchise location, a multi-unit franchise agreement factors in the number of locations, the timeline for opening said locations, and what is expected of the franchisor and franchisee throughout the process. There are a few different types of multi-unit franchises to consider:
- Area development. This is where you secure the rights to develop a specific geographic area with a predetermined number of franchises over an agreed upon timetable.
- Master franchise. This type of agreement allows you to purchase the rights to develop and sub-franchise within a specific region or country. Similar to an area development contract, it differs in that it allows you to essentially operate as a junior franchisor; you will be responsible for recruiting, training, and supporting other franchisees within your territory.
- Multi-brand franchising. This is where you own multiple franchises of different brands, either with the same parent company or across different companies. Home Franchise Concepts, for instance, is the parent company of many leading home services brands including Aussie Pet Mobile, Budget Blinds, PremierGarage, and more, the first two being mobile and home-based franchise opportunities.
Multi-unit franchising within one family of brands can make it easier to manage multiple franchises as you’ll already have an established relationship with the franchisor. Be sure to research each brand separately to ensure they’re a good fit for your investment goals and resources.
Make the Most of Your Investment
Owning multiple units and types of franchises can be complex undertaking, but there are some strategies that can make it easier and help set you up for success:
- Build a strong team. Hire experienced managers who can act as your right hand and oversee each franchise, delegate responsibilities among staff, and manage all day-to-day business.
- Standardize operations. Implement standardized operating procedures across all franchises to maintain consistency and quality. This practice may fluctuate across different brands, but a general code of business can still apply.
- Leverage economies of scale. Take advantage of bulk purchasing power and negotiate favorable contracts for all franchises.
- Manage cash flow. Monitor cash flow carefully and invest profits wisely.
If your goal is to own multiple franchise units, whether that be within a single brand, various franchises within the same brand family, or invest across different industries, Aussie Pet Mobile presents a winning opportunity to help you build a thriving and diverse portfolio.
To learn more about what Aussie Pet Mobile has to offer prospective franchisees like yourself, inquire now.