- Higher profits (more locations = more revenue)
- Better access to capital
- Shared marketing
- Lower infrastructure and human resources costs
- Lower costs due to greater buying and negotiating power with vendors/suppliers
Increased Uniformity to Build Your BrandMulti–unit franchisees begin to develop turn-key business models for what works best. A business plan on paper is one thing; in practice, it can become something very different. The business acumen of a multi-unit franchisee increases as he/she experiences new events—both positive and negative—that impact business. When one of these events occurs, it’s not enough to chalk it up to experience and say, “I’ll know for next time!” You improve your business by documenting the experience. Take notes, capture your surroundings with a photo, and share the information with store managers in your network. Also document how you responded to the event and what you learned from the experience. Let’s consider a scenario of what might happen in day-to-day operations:
- You receive a notification that one of your locations ran out of a product or ingredient because a vendor failed to deliver.
- Rather than look up a telephone number or find a computer, the store manager has a mobile form ready to go on their smartphone. In addition, they attach a photo to show the out-of-stock.
- The vendor is notified in real time of the exception. Faced with visual evidence, they comply with contract execution and notify their driver to make a stop.
Over time, you’ll begin to see patterns of historical analytics of exceptions. Maybe the out-of-stock is occurring during a certain day of the week, and the delivery schedule with the vendor needs to be readjusted. Information will be documented and stored to help you make a more informed decision. You’ll be able to adjust your processes and better train staff, if necessary.While it’s wise to “expect the unexpected,” you’ll have a uniform process of handling many common challenges that arise. So, while multi-unit franchising may be like getting more than one tattoo, just know that day-to-day operations aren’t permanent. When franchisees are frustrated by something or notice inefficiencies, they should have the tools necessary to help them adjust in real time.
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