Multi-Unit vs. Single Territory: Pros & Cons
Earlier this month, we answered some of your questions about single-unit franchising in our Franchising FAQs series (Part 1 and Part 2). This week, we will fill you in on multi-unit franchises.
What is a multi-unit franchise?
A multi-unit franchise is similar to a single-unit franchise, but rather than owning only one location, the franchisee owns and operates more than one unit. At Weed Man Lawn Care, our franchise network consists of both single-unit and multi-unit franchisees.
What are the benefits of multi-unit franchise opportunities?
One of the major benefits of multi-unit franchising is the ability for franchisees to increase net sales substantially. In the past year, Weed Man’s largest multi-unit franchise group, which consists of locations in Madison, WI; Milwaukee, WI; Green Bay, WI; Elgin, IL; Austin, TX; Denver, CO and Boise, ID, hit $10 million in net annual sales! While the chance to increase net sales is one major benefit of multi-unit franchising, there are many other pros (as well as some cons) that you should consider as well.
Another benefit of multi-unit franchising is reduced operating costs. Multi-unit franchising allows franchisees to save on costs per unit because their fixed costs are spread out among locations.
Multi-unit franchising also allows provides a diversified income. You can rest easier knowing that you have revenue coming in from more than one place. Furthermore, you can use that extra income to improve other aspects of your franchise endeavours, if need be.
Owning multiple franchise locations also allows franchisees to be looked at favorably in the eyes of the bank. When you already have experience operating a franchise in the industry, banks tend to be more receptive to providing you with a loan.
Finally, franchisees will enjoy an increase in confidence that comes with running a multi-unit franchise. Once you’ve run one location, you already know what to do for all the rest! You will be familiar with business processes, finances, training, and more; this will give you a head start as you acquire more locations.
What are the cons of multi-unit franchising?
While investing in a multi-unit franchise can be highly lucrative, there are some cons that you should consider in your franchise search.
Multi-unit franchising requires a higher investment than single-unit franchising. Owning more than one unit means that you will inevitably require more employees, more equipment, and so forth. As a result, your initial start-up cost for purchasing a multi-unit franchise will be higher than that of a single-unit franchise.
Becoming a multi-unit franchisee also demands a greater commitment. You will need to divide your time between multiple locations rather than just one. This means that you will need to be hard-working, have excellent communication and organization skills, and accept great responsibility.
Whether you’re an existing business owner or just beginning your research on entrepreneurial ventures, Weed Man Lawn Care can help you achieve your career aspirations. If you have any questions about becoming a Weed Man franchisee, please request a consultation today or give us a call at 1-888-321-9333. We look forward to hearing from you!