Article featured in Franchising.com
Serial entrepreneurs thrive in environments that foster growth and drive the pursuit of financial freedom. In many cases, that drive includes owning multiple businesses at once. Multi-unit franchising answers this need for expansion by giving entrepreneurs a chance to run more than one location while expanding their coverage area into unclaimed territory.
Home service franchise platforms offer multi-unit owners a proven playbook to establish, run, and grow their business portfolio. This added level of safety makes it possible to get up and running quickly and follow established protocols to make expansion successful.
Multi-unit franchising can offer more long-term stability as franchise owners expand their empires. Practical advantages of owning more than one franchise location include:
Lower startup costs - Joining a home service franchise simplifies the startup process, but expanding within the company creates possibilities for lower startup costs. Many franchisors incentivize multi-unit ownership through discounted multi-franchise rates and lower franchise fees as well.
More financial stability - Multi-unit franchising offers a unique opportunity because owners can spread financial resources across multiple locations and mitigate some of the financial risks involved with business ownership.
Regional exclusivity - Home service franchise owners who expand to a new location gain the benefit of regional exclusivity for that brand. In other words, they don’t need to worry about sharing territory with other franchises from the same company. This exclusivity gives multi-unit franchise owners a chance to grow quickly with minimal competition in their region.
Expanding into multi-unit franchising also comes with the added benefit of instant brand recognition. When franchise owners grow into a new territory, they bring a well-established brand name with them.
Investing in more than one home service franchise location can reap significant rewards for entrepreneurs who are willing to put in the physical and financial effort. While starting another business requires a bit of heavy lifting, multi-unit owners experience more profitability over time.
According to the Franchise Business Review, multi-unit owners are statistically twice as likely to make $150,000 or more than single-unit owners. Multi-unit franchise owners also see close to $40,000 more in annual income compared to those who only own one unit.
The potential for revenue growth also gives entrepreneurs increased capital to reinvest in future expansion, maximizing the potential to earn even more money through their franchise network.
Owning multiple home service franchise locations requires significantly more work during the startup phase, but multi-unit franchise owners can experience a better work-life balance after establishing another location because they take more of an executive role.
As owners grow larger teams, they can expand their management structure to cover more of the daily tasks. Common areas where multi-unit owners can delegate work and free time in their schedule include:
Day-to-day operations - The majority of single-unit owners act as owner-operators and oversee all aspects of daily operations. By expanding their coverage area and owning multiple locations, home service multi-unit franchise owners can hire people into general manager roles to oversee daily tasks, opening more space in their schedule.
Product ordering and inventory management - In addition to overseeing day-to-day operations, a high-quality management team can monitor inventory and handle new product orders. This makes it possible for teams to run more autonomously and keeps owners from needing to closely track the franchise’s on-hand product.
Stepping into an executive role also gives multi-unit franchise owners more chances to focus on overall growth. By focusing on growing their business rather than making it run, owners can determine a focused vision for the future and build strategic relationships that increase their impact.
Working with proven franchises streamlines expansion and gives franchise owners a clear growth trajectory. Established franchisors understand the growing pains that come with opening multiple businesses and can provide guidance that sets multi-unit franchisees up for success.
If you have thought about expanding your franchise’s reach by becoming a multi-unit owner, there are clear benefits. From increased earning potential to improved freedom of schedule, multi-unit ownership allows you to reap the rewards that come with owning more than one business.
Colt Florence is senior vice president of franchise development for Five Star Franchising, a platform of home service brands, including Five Star Bath Solutions, Gotcha Covered, Bio-One, 1-800-Packouts, Card My Yard, and Mosquito Shield.