What To Consider Before Buying Your Second Franchise Unit

second franchise

Going from one to two or more franchise units can be daunting. Especially for first time business owners and those just starting their first steps in the franchise industry. There is so much to learn and manage with just one location, and the path to scaling your business may seem long and hard.

1851 Franchise spoke with several multi-unit and multi-brand franchise owners to hear their advice on expanding and scaling a franchise. Here are their tips for franchisees looking to become multi-unit owners.

1 – Master Your Craft

Before you make a step forward, make sure to have a firm foot on the ground. Franchise owners should dedicate themselves to learning the ins and outs of every facet of their current business and making that as successful as possible.

2 – Build a Team You Can Rely On

Single unit franchise owners are often on location regularly, if not full time. They are highly involved because they are building a business and want to oversee day-to-day operations. But you can’t be everywhere at once. The more you grow your locations, the less able you are to manage each specific unit, which means you’ll need to invest in hiring the right people who will be able to lead and carry out your vision when you’re not there.

3 – Do the Math

As with any business decision, do your homework before expanding to a second franchise unit to make sure it’s a sound and profitable decision. Consider the added expenses of additional resources, utilities, rent and supplies. Where can you scale and economize to save money?

4 – Learn To Delegate

As much as you might like to be heavily involved in the day-to-day with multiple locations, you likely won’t be able to. It’s just not possible. If you insist on trying anyway, the end result is usually a very unhappy and micromanaged team.

To set multiple units up for success, you have to find the right team, train them thoroughly and then trust them to get the job done. This means you’ll have to let go of the reins to an extent so the team can take ownership.

Source: 1851franchsie.com

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