8 Tips for Being a Successful Multi-Unit Franchisee

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Multi unit franchisee

Growing your business doesn’t have to be difficult if you’re part of a franchise; in fact, many franchisors help their investors set out an ongoing launch schedule from day one. If you’re wondering how to be a multi-unit franchisee in the UK, take a look at our eight top tips for success.  

Multi-unit franchisees have the right to operate more than one franchise unit, either as part of one franchise or various different brands. The system allows franchisors to conveniently grow their brand presence, and franchisees to develop their business and access higher levels of income by replicating a concept they’ve already mastered.

Read What is a Multi-Unit Franchise? to learn more about the business model, or use our guide on how to work out when you’re ready to become a multi-unit franchisee

How to be a multi-unit franchisee - 8 tips 

The popularity of multi-unit franchising is on the rise. As of 2018, 36 percent of franchisees run multiple units, up from 29 percent in 2015 and 14 percent in 2013 (British Franchise Association-NatWest Franchise Survey). What’s more, one in five single-unit franchisees plan to buy another franchise territory at some point in the future. 

Clearly, becoming a multi-unit franchisee is a popular choice among UK business owners, but it’s not right for everyone; you’ll need particular skills and attributes to expand your territory. 

Here are the top tips for being a successful multi-unit franchisee: 

1. Decide whether to join more than one brand 

Many multi-unit franchisees open several business units under one brand, but others decide to operate in more than one company. 

Of course, growing a business across multiple locations is complicated, and if you add multiple brands into the mix, you're just increasing the complexity. You’ll need to ask yourself: Can I effectively operate businesses under several brands without compromising the quality of service?

2. Double-check the figures 

Although franchising can be incredibly cost-effective, you’ll need significant investment funds to launch multiple business units. Most banks appreciate the security of the franchise system, and particularly franchisees who have already proven their capabilities as business owners. Many lenders are happy to provide up to 70 percent of your investment costs if you’re eligible for their loan packages. 

During the planning stages, you should think about how you’ll generate the funds you need, including working capital, and how you can reach your break-even point as soon as possible. While it’s exciting to become a multi-unit franchisee, you should try not to get carried away. Take things slowly and only make the leap when you’ve got plenty of money saved. 

3. Develop strong management and leadership skills 

As you expand your business portfolio, you’ll increase your network of employees. While you may have managed to head a small team in your first franchise unit, you’ll need solid leadership skills to inspire and motivate workers across your business empire. 

If you haven’t built up leadership experience in your previous jobs, take some time to develop your skills. Grasp opportunities to practise giving feedback and doing public speaking, and boost your communication and listening abilities.

4. Refine an effective recruitment scheme 

When you become a multi-unit franchisee, you’ll need to recruit more employees. And the more franchise units you have, the less time you'll be able to spend in each location, so hiring competent employees is essential. 

It’s worth spending time devising a carefully-considered recruitment programme to make sure you only hire the most suitable candidates. Put in the hours now, and you’ll be repaid over time, as your workforce brings extra value to your business. 

5. Learn how to delegate effectively 

One of the biggest changes you’ll need to navigate is adapting your approach from managing operations yourself to overseeing employees who do the work for you. Sometimes, it can be hard to let go and relinquish control, especially if you’re used to carrying out certain jobs on your own.

Successful multi-unit franchisees are adept at delegating tasks. So, let go of any temptation to micromanage, and learn to trust your team of regional leaders. 

6. Invest in employee development 

It’s no good sitting back and hoping your team of trusted employees will continue providing good value for money for years to come; you need to invest in their development. Your businesses will change over time, and employees need your help to adapt and improve with them. 

Professional development is all the more important for multi-unit franchisees to consider, as they delegate a lot of tasks. So, the most successful business owners are keen to make sure their employees have the chance to expand their skillsets. 

7. Find the bigger picture 

When you’re a multi-unit franchisee, it’s easy for your new business to become all-encompassing. Often, entrepreneurs strive for perfection and become bogged down in the relatively unimportant aspects of day-to-day operations. To effectively manage a larger franchise portfolio, you need to be able to look up from the smaller details and see the bigger picture.

If you need help establishing a healthy work routine, take a look at our article on 10 of the most toxic franchisee habits and how you can avoid them. 

8. Don’t let standards slip 

Although you may feel more confident in your ability to memorise and replicate a brand’s business model over time, it’s important to make sure you keep following the system rigidly. In fact, you should follow the rules even more closely when you acquire additional units, as consistency is key to success. 

If your franchisor doesn’t organise regular site reviews, consider introducing your own checking process to make sure you’re making the most of the franchise’s model. 

Become a multi-unit franchisee with the help of Point Franchise 

Multi-unit franchising is a popular and lucrative path for savvy investors, and one worth considering if you’re interested in building a business network with the support of a proven brand. 

Check out our other franchise guides to broaden your knowledge of the franchising world.

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