Multi-unit ownership is certainly the established norm in the franchising market. Franchisors are more interested in multi-unit franchisee owners rather than single unit. A host of factors are responsible for this shift. Franchisors find it much easier to work with franchisees that own multiple units simply because they are more experienced. Also, franchise owners who own more than one unit can readily scale up their operations. Most importantly, franchisors realized that multi-unit franchising holds the key to fast expansion in a region. This is particularly beneficial for new brands. They can make a mark easily through the presence of multi-units.
What determines success in the Multi-Unit Franchising Industry?
There are some winning the game and some losing it. If you are considering venturing into the multi-unit franchising space, be sure to learn the tricks of the trade.
First, as industry veterans claim, you should be highly knowledgeable about your business. Before you consider plunging into buying multiple units, make sure you know your business in and out.
Second, be ready to “unlearn”. The skill set that is needed to own and operate multiple units might be significantly different than what is required to operate a single unit. So, you need to learn the art of managing multiple units. The most crucial step in this is the ability to delegate responsibilities to managers.
Third, you need to carefully evaluate your franchisor. Understanding the kind of support you can receive from your franchisor in setting up multiple units is crucial. This might include discounts on royalties and franchise fees.
Fourth, network with the community of fellow multi-unit franchise owners. This will help you understand your management strengths and also help unravel areas that need improvement. Connecting with an experienced multi-unit owner can help you better understand tricks of the trade. Hence determine success.
Fifth, you need to build a strong team of managers and executives. Remember, as a multi-unit owner you will not be able to oversee each and every unit. Therefore, it is essential to establish levels of management, who are capable of handling day to day operations.
Last but not the least, be sure to leverage technology.
This will considerably reduce your operating costs while increasing operational efficiency. For instance investing in a good franchise enterprise resource planning (ERP) software can be beneficial in several ways. It will enable you to carefully track sales and collection across units. It will let you do away with separate accounting systems for each unit. Moreover, it will streamline scheduling, invoicing, inventory management and payroll functions within your franchising business.
Why engage with Advanced Solutions and Consulting?
ASC has been at the forefront of implementing cloud ERP solutions since the past two decades. Recently, the company has been honored with an award from Acumatica for superior customer satisfaction and value addition (Video 1).
Video 1: Video on Value Proposition; Acumatica & Advanced Solutions and Consulting
A leading certified Acumatica reseller, ASC commands extensive knowledge on your industry. We take time to understand your business needs and suggest appropriate ERP solutions. Our experienced and expert cloud ERP team has successfully deployed 100’s of ERP software including the franchise market. We help you attain your ERP goals while controlling costs.
Acumatica xRP platform makes app integration very easy that renders ‘mobility’, ‘security’ and ‘agility’ to your franchise business. We are full service providing need analysis, business and technology audits; on-time project management; flowcharting for process engineering and training and support.
Our sole motto is your competitive advantage. We promise to be your trusted partner through the before-during-after lifecycle of your ERP solution implementation.
Please contact Jim Carroll: @ email@example.com; 310 508 9700; President Advanced Solutions & Consulting; Solana Beach, CA