Franchise Speak

Is multi-unit franchising right for everyone?

It can’t be said that every franchisee is cut out for multi-unit franchising.  You must love what you do and be committed to it, and don’t forget you need lots of capital to weather the storms and get started.  Being good with a single unit doesn’t automatically mean that you will be great with multiple units.   As with any business, if you grow to fast you’re going to experience growing pains.  Take it easy and make sure you can handle a second, or third unit, both financially and mentally before diving in.   Growing pains can equal bankruptcy, and a learning experience like that can just cost too much.

You’ve also got to look at why your single unit might be performing well, and will that performance move over to multiple units.  Don’t forget location, location, location is the saying that holds true for every business.  Be sure your first location isn’t a unique experience.

The model of a successful business owner can be, but isn’t required to be, someone who has a high level of business success, a high level of management experience, and a high net worth.  (Half a million +)  You also can’t forget that “Cash is King”, and having a high amount of cash on hand will be required. 

Loving your business was glanced over at the beginning of the article, but it really is the most important aspect of the requirements for having success in multi-unit franchising.