FBDS is the pioneer franchise consulting company in Nigeria, the country representative of World Franchise Associates (WFA) and a supplier member of International Franchise Association (IFA).
Getting started in the world of franchising is exciting. There’s a possibility for financial freedom with less risk. There’s excitement around the world of business ownership without the loneliness of navigating the process alone. For many, these benefits and dozens of others inspire them to want to dive in head first and start multiple franchise units.
While there’s tremendous earning potential around being a multi-franchise owner, there are also some considerations that you should make before committing to this route — your day-to-day work life, the risks of expansion, and your financial investment.
Many people lean toward owning multiple franchises for the obvious reason — more money. With more locations bringing in revenue, you are more likely to earn more. That basic math is clear, and it’s truly the primary catalyst for wanting to open up more than one location.
However, other reasons exist for wanting to open up multiple franchise units around town. For example, you might want to start a second location that you can have primed and ready for one of your children to run. Or, you might want to start multiple locations to serve your community better.
Knowing your personal why behind owning multiple franchise units will help you navigate the path ahead. As you start to feel the ups and downs of owning more than one location, you can keep this why in mind to get you through the challenges and push you towards success.
Many franchise owners start their businesses with dreams of more time freedom and personal flexibility. While this can certainly be the case no matter how many franchise units you own, there are some added tasks when you have multiple locations to manage in your area.
As a multi-franchise owner, you’ll feel the excitement and reward of driving from one location to another, knowing you own each storefront. However, you’ll also need to commute between locations to keep everything running smoothly, such as each location’s finances, growth concerns, and personnel problems. Spacing out your locations so they don’t cannibalize your sales but also don’t require lengthy daily commutes is ideal.
For most industries and franchises, each new location you open will require a healthy amount of upfront work and investment to get the business running to the point of quick check-ins. Keep this balance in mind as you decide whether to invest in multiple franchise locations beyond your first investment. As you start your first location, look at that timeframe to make future predictions about when you will be able to open your second location and how many resources you’ll need to bring it to fruition.
Before committing to being a multiple franchise owner, it’s a good idea to talk to other franchise owners about their experience with opening more than one location. Even if that person isn’t in your industry or specific franchise, they can shed light on what your experience could look like.
Udoh Bamidele Lawrence