A single-unit franchise is a business, but multi-unit franchising is an empire!
With multiple revenue streams, your business earns money in more than one way. This is essential to consider when thinking about your future franchise business.
Do you know how many franchise owners own multiple franchise units in the U.S.?
According to data gathered by the franchise research firm FRANdata, multi-unit operators own 54% of all franchises in the United States.
Scalability of Your Business
When an owner purchases the rights to own more than one unit in a certain region or geographical area, this is referred to as a multi-unit franchise operation.
Two, three, or more locations could be part of the extended network. For the past decade, multi-unit franchise ownership has been on the rise, partly because it allows owners to expand territorial operations and dramatically increase revenue streams. You can build your own mini-empire.
Although each site may be slightly different, as a multi-unit franchise owner, each business you own is essentially the same and can share employee costs. For example, if one location's staffing is short, you can bring employees from another to assist temporarily.
In addition, some franchisors give incentives to existing franchise owners who want to grow their portfolios. This can result in lower per-unit costs.
Multiple Units Reduce Risk
Rather than relying on a single source of revenue, multi-unit owners can distribute the risk across multiple locations, resulting in an optimal environment for building wealth.
An Agreement That Benefits Both Parties
The advantages of multi-unit franchising benefit both the franchisor and the franchisee. Bundling numerous franchises into a multi-unit transaction provides the franchisee with substantial incremental growth and territorial gains while providing the franchisor with stability and great bottom-line results.
Increase Your Earning Potential
What's actually at stake is the chance for multi-unit franchise owners to double or even quadruple their income-earning potential due to multiple revenue streams. In addition, multi-unit franchise owners have the potential to generate a faster return on investment.
The more revenue streams available to franchisees, the more likely your franchise will grow and build financial security for you.
If you are interested in building your own mini-empire, please schedule a brief call with me.
