Your Guide to Multi-Unit Franchising
Over half of the franchises currently operating are multi-unit operations. Multi-unit franchise agreements have become increasingly common in recent years.
At Hungry Howie’s, we encourage our franchisees to consider multi-unit franchising. In some cases, franchisees join as multi-unit owners; in others, franchisees will add additional units after opening their first successful location.
If you’re ready to grow your portfolio and build wealth as a multi-unit franchisee, here’s what you’ll need to know.
Multi-Unit Franchising Basics
There’s a reason why multi-unit franchising has become so popular. It’s a business model that works for franchisors and franchisees alike, especially for businesses like Hungry Howie’s that give multi-unit franchisees the exclusive rights to a particular territory.
- Multiple locations give you access to multiple revenue streams.
- As you open each location and get a better understanding of staffing, training, and marketing, your operational efficiency improves.
- You and your managers benefit from resource sharing between locations, including product, supplies, and team members.
- Protected territories make your footprint bigger within your community, establishing brand loyalty and trust.
- Multi-unit operators have stronger relationships with their franchisor and often have the opportunity to assist with decision making for the entire system.
What to Know Before You Expand
There’s a lot to think about when you’re opening multiple franchises. Here are our top five tips for transitioning to multi-unit ownership.
1. Be Proactive About Growth
Your multi-unit franchise agreement will lock you into a certain number of franchise locations, which you will be expected to open in a specific amount of time. For many multi-unit operators, the process of identifying and developing new locations in order to meet their timetable can be stressful. Not to worry: we’ll work closely with you to find ideal territories so you can build them out in a timely manner.
2. Strategy Is Everything
More locations mean more strategies. A simple way to streamline is to keep each unit operating identically, which is to say, every store is following the same sales, marketing, growth, and customer experience plans. When each unit is operating the same way, you’re better able to improve operational efficiency and share resources across locations.
3. Be Mindful About Financing
This is especially important for franchisees who already own one Hungry Howie’s location. Your proven track record of success will help you secure any financing you might need to expand. Combined with your strategic growth plan, lenders will be confident in your ability to expand. Pick a lender or finance partner whose opinions you trust – they’ll be able to advise you on which financial structures to use and how to use them.
4. Hire and Develop the Right People
Having a great team is key to healthy growth. Since you won’t be able to oversee day-to-day operations at each unit, you’ll need to have trusted personnel in place at every location. In fact, having the ability to delegate is a skill every successful multi-unit franchise owner must hone. Take all the time you need to find the best people for each location, and commit yourself to teaching them everything you can.
5. Create a Winning Culture
Your culture directly impacts your success. A great culture attracts not only the kind of employees you want to have, but customers as well. People can tell when you’re passionate about what you do! Establishing a culture of trust, accountability, family, and collaboration will keep your employees happy. Happy employees provide better service. It’s a no-brainer.
Seek Multi-Unit Franchise Success with Hungry Howie’s
Ready to grow your portfolio with Hungry Howie’s? Reach out to our franchise development team for more information.
