Wondering if you should take the plunge and be a multiple unit business owner? “How many units should I open” is a commonly asked question in the franchise industry. Most franchise owners want to grow, expand, and make money as quickly as possible and a good way to fast-track that is to open more than one location. Typically after a franchisee opens their second, third, etc. location, they say, “I wish I had done this sooner” or “I wish I would have bought more territory.” However, it takes a certain type of person to run a multi-unit business, so before you make up your mind to own more than one location, there are some questions you need to ask yourself.
- Are you a hands-on person or do you prefer to delegate?
- What are your goals? Income, scalability, lifestyle, ability to travel?
- Do you prefer managing employees or managers?
- How much income are you expecting to make?
- Is being able to eventually sell the business important to you?
If you are a hands-on owner that enjoys being very involved in the day-to-day operations, it probably makes sense to start with one location. This way you can learn the business inside and out and later decide if you are ready to open another location. This approach is slower for growth but good for those who don’t want to take on too much risk in the beginning.
If you are someone who is looking for rapid growth, will delegate, enjoys strategizing, and managing the managers then multiple units are probably the best strategy for you. This way you can protect the best markets in your area and grow into them over time. This approach is for someone who enjoys building through levels of management and people.
There is no right or wrong way to grow your business. The best way is the way that makes sense for you, your skills, your finances, and your goals. Remember, the biggest question is not, “how many units should I own?” but instead “is this the right franchise system for me?” Choosing the right franchise company will ensure that you can achieve your goals no matter which approach you take.
