There are more than 450,000 franchise units in the United States. More than half of them, 53 percent, are owned by multi-unit franchise operators. That percentage is expected to increase, thanks to entrepreneurs’ growing desire to expand their empires, which has led to a shift toward multi-unit franchising.
A multi-unit franchise is when a franchisee purchases the rights to develop and operate multiple units in a particular territory. Someone who owns multiple units will be less likely to be involved in the day-to-day operations of a single unit. Instead, they will be focused on the overall management of all the units while trusted general managers and staff take on the responsibility of the daily operation of the businesses.
For the franchisee, there are a lot of benefits in owning multiple franchises.
Initially, startup costs for a multi-unit franchise operator will be higher, but once the units are established, overhead expenses per unit will drop because it will transition into fixed costs that will be shared across all locations. For example, if multi-unit owner’s locations share the same vendors, then the owner will be able to negotiate better pricing for goods and services. The same can be said for marketing costs. Marketing costs become more cost-effective when shared between franchise locations.
In addition to lowering costs for goods and services, the multiple franchise locations can share resources, especially if they work off the same supply chain. If one unit experiences a shortage, the gap can quickly be filled by leveraging the inventory from another unit.
Owning multiple franchises can provide stability across the entire business. Multi-unit franchises can help buoy each other up. Sluggish business in one unit can be compensated by brisk business in other units.
Incentives and Discounts
Franchisors often offer discounts and incentives to franchisees who are interested in owning multiple franchises. If an entrepreneur knows they will eventually expand anyway, it makes sense to buy the units at a lower cost from the beginning.
Multi-Unit Franchise Opportunities With American Family Care
American Family Care (AFC) offers multi-unit franchise opportunities to individuals looking to develop a larger market while owning, operating, staffing, and overseeing training for multiple AFC franchise locations. More than 40 percent of our owners own multiple AFC locations.
Operating multiple AFC clinics gives owners the opportunity to offer affordable, accessible urgent care services to an even wider client base. This is an excellent goal for anyone who is looking to help others while also maximizing the potential for profit in the healthcare franchise industry.
If you are a strong leader with recruitment and sales skills, taking on a multi-franchise deal may be right for you. As the owner of multiple AFC franchise locations, you will oversee staffing, operating, and training for each location. Multi-unit franchise owners will have the ability to develop their urgent care clinics within a larger market.
Each one of your franchise locations will benefit from your ability to consolidate and share resources, as well as your ability to streamline operations and marketing efforts between your locations.
We can help you to take advantage of this exciting opportunity. Contact us today to learn more!