Multi-unit franchise ownership is an increasingly popular avenue that many investors are taking. It’s not hard to see the appeal of multi-unit franchise opportunities; owners get all the benefits of the franchise system, in addition to higher income and growth potential. Owning multiple franchise units comes with many benefits, including:
- Additional revenue streams
- Shared resources between units
- Potential for higher income
- Economy of scale advantages
But how does one go about opening multiple units? This venture is not for the faint of heart, but it has the potential to pay off in the long run. Take a look at these tips for owning and opening multiple franchise units, and think about how this strategy may work for you.
Use the Tools Available to You
The goal of a franchisor is to have strong franchisees who, in turn, help keep the business and the brand strong. In keeping with that goal, franchisors have a variety of tools available to franchisees and utilizing these tools will make franchising much easier. They are made available because they have been proven time and again to be effective with other franchisees.
An extra bonus that Apricot Lane multi-unit franchisees get is discounted franchise fees on all additional units. The franchise fee for your first unit is $34,500, which is standard for all of our franchisees. After that, each subsequent franchise fee is just $15,000. This substantial discount makes it even simpler to open multiple stores!
Find the Right Locations for Your Franchise Opportunities
Franchise opportunities that rely on customers coming to them cannot underestimate the value of the old saying “location, location, location.” This becomes even more critical when you add more stores to your portfolio, because each location needs to offer good visibility, adequate parking, and a handful of other factors that you look for in a perfect site.
As you are researching franchise opportunities, look for one that offers assistance with site selection and real estate. Franchises like Apricot Lane that have dedicated teams who help franchisees find the optimal locations are ideal for multi-unit owners.
Know Your Customers
With virtually all franchise opportunities, knowing your customers is the most important factor that influences your success. Customers are the lifeblood of any business, so being able to cater to them and connect with them will make all the difference. Just like your location, knowing your customers becomes more and more important as you open more units.
The good news? At Apricot Lane, we know our customers and we give our franchisees valuable insight into the people who shop at our stores. Our training and experience helps you know your customer before you get started. Then, as you open more stores and your knowledge grows, you can benefit from your own experience meeting your customers’ needs.
Keep Things in Perspective
Remember that investing in multiple units takes time. This is a larger scale investment than just opening one franchise, so keep your eye on the bigger picture throughout this process. Here are some encouraging things to remember about multi-unit franchising while you are doing all the work to get your businesses going:
- Franchisors like to work with one owner of multiple units more than several owners of one unit each
- There are nearly half a million franchises in the United States, and 53% of them are owned by multi-unit operators
- Multi-unit business owners are among the wealthiest people in the small business category
- As time goes on, the process of opening a store becomes easier as you gain more familiarity—training employees, marketing, and connecting with customers all come easier with every store
Keeping your long-term goals in mind will help you as you go over some of the smaller hurdles. As we said, multi-unit franchising isn’t for the faint of heart, but if you are willing to put in the work and the investment it can be an amazing strategy.
Ready to learn more about multi-unit franchise opportunities with Apricot Lane? Contact us!