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Go For It! Become A Multi-Unit Franchise Owner

go for it! become a multi-unit franchisee

If you’re going to do it, if you’re going to become the owner of a franchise, you might as well GO BIG, right?

(This post may contain affiliate links. Please read my disclosure policy).

In other words, if you’re going to walk into your local bank to apply for a small business loan anyway, why not ask for the moon?

ask for the moon when applying for a franchise loan

You only live once, right?

 

About Multi-Unit Franchise Ownership

Just so you know, there is more than one way to grow a franchise business.

You can:

  • Add more space
  • Add additional territory
  • Add more units
  • Add more employees

Let’s focus on adding more units.

In most cases, when you’re investigating franchise opportunities, you’ll know pretty quickly if multi-unit opportunities are being offered.

This franchise concept offers multi-unit franchise ownership

If they do offer the chance to on multiple units, and you show enough interest, the franchise development person will share the particulars.

The information you receive will spell out your total investment, along with a specific timeline on when each of your franchise units are expected to be up and running.

 

Multi-Unit Agreement Example

As a rule, your multi-unit franchise agreement will state the following:

  • Your first store (unit) needs to be open no more than 9 months after you sign the franchise agreement.
  • Your second store needs open no more than 14 months after store #1 opens
  • Store #3 needs to be open 14 months after store #2 opens

Now, your agreement could be for 3 stores-or maybe even 5. It depends on the geographical makeup of your area and your budget.

 

Go For It! Become A Multi-Unit Franchise Owner

If you decide to “go for it,” and sign a multi-unit franchise contract, the money you make as the owner can be good. Great, even.



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For example, if you own a food franchise, and each of your stores (3) does $400,000 in annual revenue, you could pocket $120,000.

(Based on a net profit of 10%.)

And if you can tighten things up-if you can decrease your operating expenses, you’ll have even more money in your pocket. But wait.

What if you have a significant net worth, say $1 million +, and you choose a full-service food franchise?

In that case, although your investment will be higher, your revenue will be higher, too.

For instance, if each of your 3 full-service restaurant franchises does $2.5 million in sales, annually, you could have a profit of $250,000 (or more!) From each one. Not too shabby.

Go for it! 

But, make sure you do good research.

 

Should You Go For It?

I would never suggest “going for it” unless you had good financials, buy-in from your spouse/partner, and the enthusiasm and high-energy needed to pull off successful multi-unit franchise business ownership.

But, it sure sounds exciting, doesn’t it?

 

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joel libava

I'm The Franchise King®, Joel Libava. I help prospective franchise owners avoid bank account emptying mistakes.
For 23 years, I’ve been showing people how to make smart, informed decisions on franchises to buy, and I can help you, too!
P.S. I'm not a franchise consultant/broker.

Straightforward Advice
Joel, thank you for taking the time to speak with me yesterday. It was refreshing to finally speak with someone in franchising who dishes out straightforward, candid advice. You provided me with some insightful ideas that I'm giving a good deal of thought and consideration to. I look forward to speaking with you on our next consultation call."
- John Timmins, Columbia, South Carolina
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