Multi-unit Ownership: Is it Right For You?

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There are many reasons to consider multi-unit ownership and especially in today’s business environment when many prime locations are becoming available by the day. Single and multi-unit franchisees seeking to capitalize on these opportunities may or may not be right to expand their business by adding locations unless they’re effectively prepared to do so to ensure success.

Typically, expansion is the result of an opportunity or challenge that presents itself – an empty building, a fellow franchisee going out of business and even a competitor expanding into the local market. Unfortunately, many fail transitioning from single unit operations to multi-unit as well as expansion from one market to another or even from one side of town to the opposite side of town.

The key to multi-unit success is being prepared, developing a plan and most importantly, answering very important questions with honest responses. Listed below are some of those questions:

Why does multi-unit ownership excite you? What does a day-in-the-life of a multi-unit operator entail? What do you hope to achieve thru multi-unit ownership? What is your long-term vision with multi-unit ownership? What skills are required for successful multi-unit ownership? Would you consider your current operation a success?

How important are systems to a multi-unit operation? Will you operate two businesses or one enterprise? How will your responsibilities change in a multi-unit operation? Do you enjoy managing people? Do you delegate well? How important is record-keeping to a multi-unit operation? How important is accountability to short and long-term success?

Is bigger really better (and easier)? Is it truly perception or reality? Does one plus one equal two, three, one, or zero? Beyond financial benefits, how does economy of scale present additional advantages?

How important is location to your long-term vision? Why is location of the second or next store or restaurant critically important to a multi-unit operation? Is there really economy of scale in marketing and public relations for a multi-unit operation? What will be necessary to capitalize on economy of scale possibilities?

Can your decision stand the test of time? How do you know when you’re ready to further explore multi-unit ownership? What steps must be taken to get from thought to reality? How must you prepare for multi-unit ownership?

What happens if the second or next location fails? What happens if the first or other location(s) is/are adversely affected by the new location(s)? What happens when you want to retire or move on? Does this complicate your exit strategy goals?

How will multi-unit ownership affect your personal life? Understanding risks involved, are you willing to proceed? Are you comfortable with being an entrepreneur as opposed to just a business owner? Are you considering multi-unit for the right reasons? Are you (truly) committed to move forward? Do you NEED to do this now? Do you REALLY NEED to do this now? AND… do you truly love what you’ve been doing up to this point?

Upon honestly answering these questions you’ll have a snapshot of things you may need to put into place and/or improve upon along with a better idea of whether or not multi-unit ownership is right for you.

Note: Franchisors should require franchisees requesting multi-unit ownership to answer these questions and utilize the responses as part of their approval process.

NOW OPEN: Acceler8Success Cafe

Known as FranchisEssentials since 2009, we’ve re-branded this site to be relevant beyond franchising. Although franchising is still an integral part of this site and our core business, we’ve expanded our efforts to encompass small business, restaurants and the exciting world of entrepreneurship. Across the top of our site you’ll be able to access information that will provide you a glimpse into our evolving world, now under the Acceler8Success Group umbrella.

As for Acceler8Success Café, it is our digital resource that includes newsletters, online meetings, podcasts, webinars, social networking and other virtual activities & events. All shared content is relevant to entrepreneurship, small business, restaurants and of course, franchising.

Future plans for Acceler8Success Cafe include meeting at local restaurants and coffee shops to offer no-cost opportunities for local business owners and aspiring entrepreneurs to get together in a relaxed setting to discuss ways to accelerate business and personal success.

Please take a moment to join Acceler8Success Cafe Facebook Group and also please follow hashtags #Acceler8Success #Acceler8SuccessCafe across social media. In addition, we have launched our new Acceler8Success website and have recently updated the Franchise Foundry website.

Thank you!

Paul Segreto, Founder, Acceler8Success

Build Upon Change for Short and Long-term Success

Change is the New Normal. How are you currently handling it? How will you handle it moving forward? In the past, leaders predicted threats and planned responses with a risk-management strategy. Today, however, the nature of risk itself is different… It’s right upon us! 

The changes you’re implementing today to survive will continue to be necessary through recovery. Most likely, they will be key to your future success as customers and clients will become accustomed to the changes and look for them to continue even if it means the changes are to run alongside standard operations. For example, think about current focus on take-out & delivery in the restaurant industry. Customers will expect this to continue long after standard operations resume. Actually, it will help businesses to recover faster provided processes are perfected and improvements are made along the way, as opposed to current efforts being considered a temporary solution for the times. 

Despite being in survival mode, business must be thinking about the next steps, the next phase to recovery lest they fall short and lose the war despite winning battles along the way. In a world of constant change, non-adaptive behavior is a killer problem.