đź•’ 3 min read
Starting a franchise can be addictive. You become a business owner overnight, and the support you receive from the franchisor helps you grow faster than most small businesses. Before long, you feel empowered and excited about your spot in the franchise ownership world.
Sometimes, this excitement can make you yearn for more. But should you buy multiple franchises? For some franchise owners, the answer is a resounding yes! For others, the risk of opening a second location isn’t worth it.
In general, there is no right or wrong answer. Instead, it is imperative you think carefully about whether it’s the right decision for you. Here are a few questions to ask before buying additional franchises.
Are you detail-oriented?
You already have one successful franchise under your belt, but the job of owning two requires you to operate two different locations. This means, you’ll be bouncing back and forth between the two stores, making it harder to immerse yourself in the details of either store’s daily operations.
To have multiple franchises, you have to be comfortable seeing only the big picture at each of your stores. If you are detail-oriented and like to have your finger on the pulse of everything happening in your business, it’ll be harder for you to run more than one location.
Are you in the right franchise for this?
Some franchisors make it easier to own multiple units. Others aren’t quite as well-suited for it.
Talk to your franchisor before you decide whether to buy that second or third unit. Some franchisors prefer to have the owner/operator in the store everyday. That’s not always possible with multiple locations, so the franchisor might discourage you from buying a second unit.
If your franchisor does support multi-unit owners, ask them specifically about startup costs. Some franchisors will give you a discount for having multiple units, so you’re not making the same upfront investment with each new store you open.
Are you willing to make a greater investment?
Your franchisor may give you a discount for opening multiple units, which can sweeten the deal of multi-unit ownership, but most franchisors also require that the franchisee open a certain number of stores on a predetermined schedule. You'll need to be prepared with financing for each new store you open to make your expansion possible.
Are you comfortable delegating?
You’re human. You can only be in one place at a time and you only have so many hours in the day where you can travel between stores. Still, each franchise location takes the work of a full-time employee to manage and keep profitable. To do this successfully with multiple franchises, you have to be comfortable with delegating responsibilites to your employees.
Do you have a good manager you can trust?
Perhaps you’re comfortable with delegating, but do you have the right people on your side to delegate to? Building a strong team is critical to your multi-unit success. To do this, you must hire the right manager to keep watch over your store while you’re not around.
This person will become your eyes and ears while you’re not in the store, so you need to trust him completely. He will be tasked with giving you the full and most accurate report of what’s happening in the store, so he needs to think like you and know what you want. Don’t be afraid to set high expectations for this role, especially if you want to buy a second location.
Are multiple franchises right for you?
How did you feel answering these questions? Confident? Unsure?
Owning a second, third, or even a fourth location is tricky. It requires an honest self-assessment to determine your comfort levels.
Then, if you feel well-suited to open another location, talk to your franchisor. You just might have extra support waiting for you from them.
Susan Guillory is the President of Egg Marketing & Communications, a marketing firm specializing in content writing and social media management. She’s written three business books, including How to Get More Customers With Press Releases, and frequently blogs about small business and marketing on sites including Forbes, AllBusiness, The Marketing Eggspert Blog, and Tweak Your Biz. Follow her on Twitter @eggmarketing.