The concept of multi-unit franchising is witnessing a sudden thrust among successful franchisees. Realising its potential, more and more franchisees are joining the bandwagon to speed up profit. Explore more about the multi-faceted benefits of the concept
Franchising gives young aspiring entrepreneurs the formula to run or own a business successfully. However, many franchisees still consider that a franchisee at a time can only own or run a single outlet. However with advancements in technology, communication and internet, managing more than single outlet is no more a Herculean’s task for successful franchisees. For franchisees, who want to own more than single outlet can achieve newer heights through multi-unit franchising.
A look at Multi-unit franchising
In simple words, the concept of multi-unit franchising business is the opening of more than one outlet of a particular brand by a franchisee. The next logical step for franchisees, who have been running a single store successfully, is to expand their business to earn more profits. Expansion of their business with the same brand is considered preferable as both the franchisor and franchisee may have developed good relations. Moreover, franchisors are keen in offering franchise rights to an old and experienced franchisee who have been successful with the same brand. According to Sameer Kachru, CEO, Go! Chaatzz, “Multi-unit franchising is a wonderful opportunity for franchisees to expand their business. Mostly all our franchisees are running multi-units successfully.” Also highlighting the positive aspects of multi-unit franchising Dipti Taluja, Multi-Unit franchisee, Madame states, “It is a wonderful feeling to be a multi-unit owner. Running a successful business with support of the franchisor and colleagues, gives you a sense of being independent. It adds to a sense of security and a trust on one’s own entrepreneurial skills.”
Let us now have a look at the pros and cons of multi-unit franchising:
Benefits of the multi-unit franchising
The concept of multi-unit franchising business is gradually picking up with its multifaceted benefits. Vikram Sood, Multi-unit franchisee, Go! Chaatzz shares, “I am on my way of becoming the master franchisee of a new concept of Home Delivery model in Go! Chaatzz . Presently running five outlets of this concept in Gurgaon, I am planning to expand in Delhi and Mumbai soon.” This states the advantage of multi-unit franchising. Few factors accelerating the popularity of the concept are:
Few challenges on the way
As every coin has two sides, multi-unit franchising with multi-benefits also has few challenges:
Time and efforts is the biggest investment: The franchisee has to put in 100 per cent of his efforts in all his outlets to reap benefits. He has to give equal time and attention to his outlets. Thus, time and effort is the biggest investment in maintaining a multi-unit outlets.
Hiring efficient managers: It is not possible for a franchisee to be available in all his outlets simultaneously, therefore every outlet requires efficient and trust worthy managers. To get dedicated manager is a tough call for franchisees.
Maintaining high success rate: A franchisee running multi-units has to maintain high standards for all his outlets. This can add lot of stress and tension to his personal life also. He can face more pressure from the franchisor to buck up sales and maintain standard.
On the other hand, Sood who has been into the business says, “I have not found any challenge in the concept of multi-units so far. I have been making benefits and more success through the route.”
However, to conclude it can be said that multi-unit franchising offers lucrative opportunity for aspiring entrepreneurs. However, in a multi-unit franchising opportunity, it is better to check out the feasibility of the particular business concept before investing in it.