It seems simple enough. If a franchisee already owns one unit, how hard can it be to start up another one? It’s just running the same thing in another place right? Not necessarily. The following steps pulled from Franchise Update help franchisors create a multi-unit strategy that leads to success:
- Does the multi-unit strategy truly work for your concept? Consider your model, systems, experience, FDD, and resources.
- Set appropriate expectations. Experts say creating a successful multi-unit strategy takes a good six months. Within this time, it is reasonable to expect to attract five to eight qualified franchisees.
- Does your Franchise Disclosure Document communicate a solid multi-unit strategy? Prospective multi-unit franchisors tend to be experienced and will flip through your FDD quickly. Be sure your FDD speaks clearly and concisely and also directly addresses the multi-unit franchisor.
- Evaluate your marketing materials. Your target audience has changed from a single-unit franchisee to a multi-unit franchisee. Allocating time and/or money to update your marketing materials, including your website, is essential to attracting your new target market.
- Assess your franchisee candidates wisely. Be sure you have identified the profile of a candidate with the experience, skills, talents, and motivation to implement the multi-unit strategy.
- Build a great team. Find resources, including marketing and operations experts, who have experience with the multi-unit concept to help you with your goals.
While building a multi-unit strategy may be more complicated than expected, putting the time and effort in up front sets up the franchisor and franchisees for ultimate success.← Back to all posts