Now that you are a successful Hungry Howie’s franchisee, what’s next? Have you considered becoming a multi-unit franchisee? Multi-unit ownership used to be the exception, not the rule, but that is changing. In fact, multi-unit franchisees represent 76.5% of franchised restaurants.
Multi-unit franchisees often survive better because they have better access to infrastructure, capital, and human resources. And they have the ability to grow faster than single operators. Hungry Howie’s offers multi-unit franchises in selected territories.
There’s a lot to consider when deciding to expand into a multi-unit operation, but it can be one of the best ways to grow your business. The tips below can help you make the transition successfully.
1. Have a Clear Vision When It Comes to Growth
You can’t go anywhere if you can’t see where you are going. A clear vision for growth will help you stay on course. In a typical multi-unit franchise agreement, you open one unit and get it up and running. Then, while you are growing that unit and increasing revenue, you are also scouting out your next location. Most agreements have a timetable set up so you know what to expect and can plan accordingly.
2. Strategic Alignment for Multi-Unit Success
When planning to grow into a multi-unit franchise, strategy is everything. Sales, customer experience, growth, marketing, people, and standard operating procedures each require a strategy. You almost can’t plan too much. One of your most important strategies is one for alignment to ensure that each of your units is operating identically. You should be able to go into any unit and find what you need in the exact same place. When each unit is run identically, you can switch personnel as needed.
3. Financing Tips for Multi-Unit Expansion
There are many advantages to owning multiple stores, not the least of which is the ability to spread your fixed costs across more units. Developing a strategic growth plan and having a proven record of operational success can help you secure the financing you need to expand. Lenders will want to know if the market will tolerate multi-unit expansion.
Pick your finance partner carefully, because the right partner will become an extension of your business. They can advise you on which financial structures to use and when to deploy them. You’ll need to demonstrate your past success and the impact of future growth on your current locations, so have your income statements and balance sheets ready.
4. Hire and Develop the Right People
You can’t grow if you don’t have the right people to support you. Identifying and developing people’s skills is definitely a talent on its own. Your employees represent you and your business, so it’s worth taking the time to choose them wisely. Be committed to teaching them everything you can. With a multi-unit franchise, you will need trusted personnel to fill management positions. In fact, having the ability to delegate is considered a key skill for multi-unit franchise success.
5. Create a Strong Culture
The culture of a multi-unit franchise can influence the success of your units. This goes hand-in-hand with hiring the right people. Your operation’s culture will help attract the right employees and customers. When you are passionate about what you do, that passion will be contagious and can influence your operation’s culture. No one wants to frequent a unit where the employees are visibly unhappy. A culture of trust, accountability, family, and collaboration will ensure that your employees are happy, and they will ensure that your customers are happy.
Resources:
https://www.entrepreneur.com/article/245881
https://www.cit.com/blog/multi-unit-franchise-tips/
https://www.thefranchiseking.com/so-you-want-multi-units-franchises
https://franchisebusinessreview.com/multi-unit-2017/franchisors-feel-mak...
