Owning a multi-unit franchise is one of the best wealth-building strategies in franchising. Here’s why owning multiple franchises is a good business move.
PATH TO DIVERSIFICATION
Multiple-unit franchising has become a popular investment tactic in recent years. Through the combination of lower buy-in costs and opportunities for compounded financial gain, entrepreneurs are choosing to strengthen their portfolios within proven franchise systems that offer long-term growth. Owning multiple franchises can be a strong wealth-building strategy since diversification of your investment means you won’t have to rely heavily on one location for primary income.
According to a recent study, 54% of all franchises are now multi-unit operations, with the numbers continuing to rise. Currently, 43,212 multi-unit franchise owners’ control over 223,213 franchised units in the United States. The benefits of multi-unit franchising apply to both the franchisor and franchisee. As a multi-unit franchisee, you own a significant share of the business. In fact, you make more money for the franchisor, which means you have a greater impact on their bottom line.
A SCALABLE INVESTMENT
In addition to more significant financial gain and security, multi-unit franchise owners often receive discounted franchise fees for every unit acquired after the first one. This benefits both the franchisor and franchisee by facilitating control over a particular territory, ensuring proliferation of the brand.
Economies of scale can be found in inventory buying, marketing, advertising, staffing, and training and are more likely to work in your favor if you’re considering multiple-unit franchising. Given all the cost savings, and reduced expenses, multi-unit franchise ownership often means high ROIs and greater financial success with the backing of a proven brand.
GROWING THE STRONG & SMART WAY
While some franchisees invest in multiple units from the start, many choose to expand their business after they have gained a strong foundation through experience and community recognition. Upon enjoying the success of their first outpost, growing their franchise footprint often makes perfect sense.
Strong leadership skills are imperative for multiple-unit franchising. With more than one franchise, you must be an expert delegator, able to rely on your brand for support while leading your team(s) through efficient time management, planning, and decision-making.
While multi-unit ownership may prove more profitable and efficient in the long run, the greater investment can mean that it will take you longer to break even or turn a profit on your investment. Before embarking on this path, make sure you understand how much you will need in liquid assets to start and run multiple locations. Multi-unit franchising may not be ideal for individuals hoping to make money fast, but patience and business savvy can eventually pay off.
Before you invest in a single franchise location — let alone four or 14 — take the time to understand the brand you’re considering, the value proposition, and the business model. Multi-unit ownership is a bigger commitment, both financially and logistically. With so many moving parts, it’s essential to acknowledge the responsibility of such an undertaking and make sure you are partnering with a brand that has your back.
SET YOURSELF UP FOR THE FUTURE
As a multi-unit owner, it’s highly likely that you have been through it all, from setting up the franchise to managing daily operations, effective marketing campaigns, and the best strategies for optimizing profitability. Oftentimes that means you’ll be aware of and ready to face head-on any challenges associated with establishing each new location. The business acumen of a multi-unit franchisee increases as they experience new events — both positive and negative — that impact business.
Entrepreneurs who value the work-life balance that may have drawn them to franchising in the first place will find that multi-unit ownership further supports that goal by making it necessary for owners to hire strong teams to run their businesses at various locations, freeing them from the day-to-day operational responsibilities faced by most independent business owners.
MAKE A GREATER IMPACT WITH AFC
There are many good reasons to consider multiple-unit franchising. Whether your goal is to build an additional income stream, prepare for retirement, or grow your impact as a business leader in your community, the opportunity for generating wealth as a multi-unit owner is tremendous when you partner with the right brand. Through multi-unit urgent care franchising with AFC, you get the added bonus of knowing you are providing affordable, accessible health care to a wider client base.
As a leader in the urgent care industry, AFC provides all our franchisees with comprehensive training and support to run their business efficiently and successfully while providing world-class care. To learn more about multi-unit franchise opportunities with AFC, apply now.