Multi-Unit Franchising Feature

multi-unit franchises: how to franchise your business to multi-unit franchise owners

L ate S t ne WS

multi-unit franchising

three keys to multi-unit franchising success

expanding horizons:

multi-unit franchising and brand diversification

multi-unit franchising:

common mistakes to avoid when franchising

MU lti- U nit F ranchising

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What’s New

30 Franchising News Announcements from the Industry Franchise opportunities

Have Your Say

36 Craig Dunaway | Penn Station: Expanding horizons: Multi-Unit Franchising and Brand diversification

42 Jason Leverant | Atwork: president and coo opens Familyowned location in hometown of Maryville

Expert Advice

32 Chris Conner: Multi-Unit Franchises: how to Franchise your Business to Multi-unit Franchise owners

34 Evan Hackel: how to grow your Franchise through Multi-Unit ownership

38 Cindy Sheller: three Keys to Multi-Unit Franchising success

40 Danessa Itaya: Multi-Unit ownership can amplify the advantages of Franchise opportunities

44 Bill McPherson: Multi-Unit Franchising: common Mistakes to avoid When Expanding

46 Charles Bonfiglio: how to Make Multi-Unit Franchising Work for you

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Multi-unit franchising convention Highlights Dynamic leaders Driving Growth in franchising

The 2024 Multi-Unit Franchising Convention (MUFC) was recently was held in March in Las Vegas, Nevada. The three-day event bought together the biggest names in franchising, catering specifically to multi-unit franchise owners and operators, to offer a platform for networking, learning, and collaboration with keynote speakers, panels, and educational break-out sessions.

With leaders across a variety of industries ready to share their expertise, Batteries plus, the world’s leading consumer and business specialty battery franchise, was represented by its phoenix franchisee, tony lutfi, as a panelist in the Enterprise

g rowth: i dentify the n ext Big Brand or c ategory general session. having worked in the franchising space for over four decades, tony lutfi is the epitome of an industry veteran. lutfi worked at every level to move himself up the corporate ladder where he was eventually in the position to be able to start his own franchise company in the early 1990’s. a s the founder of the Marlu investment g roup, he grew his enterprise to 243 franchised businesses in 11 states. in an effort to diversify lutfi’s extensive restaurant business portfolio, he recently acquired 11 operating Batteries plus stores in phoenix, a Z and its surrounding areas. along with the 11 stores, he signed a

multi-unit deal to bring an additional 7 locations to the area. a side from Batteries plus, lutfi has worked with other wellknown brands such as arby’s, church’s chicken, Jack in the Box, tgi Friday’s, little c aesars, c aptain d ’s, and s ears h ometown and appliance stores among others over the years.

For more information on Batteries Plus and its franchise opportunities, visit batteriesplusfranchise.com

c aR ibou co FFee Drives profitable Growth with Multi-unit e xpansion Nationwide

Caribou Coffee®, a national premium coffeehouse, announced the signing of several multi-unit development agreements to franchise over 300 new locations domestically in April 2023. This development success comes less than two years after expanding its franchise program.

Manna d evelopment g roup is expanding c aribou’s presence in Michigan by developing over 50 units, with its first opening in Battle creek last summer. hamra Enterprises announced its plans to open 24 locations throughout Missouri. Most recently in n ovember, c aribou opened its first Florida location in partnership with Wake Up 727.

d evelopment agreements with covelli Enterprises and covelli Family limited partnership are the largest domestic franchise agreements to date. covelli Enterprises is opening 100 units across northern o hio, western pennsylvania, and eastern Florida. covelli Family limited partnership is opening 60 locations in western Florida.

For more information on franchising opportunities, visit: CaribouCoffee.com/ Franchising.

Re- bat H Multi-unit franchisees awarded 2024 franchisee of the Year by international franchise association

Re-Bath, the nation’s largest complete bathroom remodeling company, announces that multi-unit franchisees, Jon Witmer and Mark Clapper of Re-Bath in Lancaster and West Chester, PA, have been awarded the International Franchise Association’s (IFA) prestigious Franchisee of the Year Award for being outstanding franchise establishment owner-operators.

t he Franchisee of the year award recognizes leading franchise owners from iFa member brands whose outstanding

performance and contributions help protect, enhance, and promote the franchise business model.

“Being recognized with the Franchisee of the year award is a huge accomplishment for us and is a testament to the dedication, hard work, and passion that we pour into our business every single day,” said clapper. “ t his award serves as motivation for us to continue striving toward excellence and pushing the boundaries of what’s possible in our industry.”

“Franchisees of the year exemplify what franchising is all about – providing opportunity, serving others, and fulfilling the american d ream,” said Matthew haller, president and cEo of the international Franchise a ssociation. “We are proud to recognize Jon Witmer and Mark clapper with the highest honor iFa awards to franchisees, and i have no doubt their work is changing lives and making a lasting community impact.”

“Jon and Mark have gone above and beyond to provide exceptional services for the communities they serve,” said Brad hillier, cEo of r e-Bath. “ t heir pursuit of excellence, coupled with a profound commitment to community service and employee development, truly sets them apart as leaders in their field and show that they are more than deserving of the recognition of iFa Franchisees of the year.”

coming soon to the los angeles area: u nited d e Fense tactical announces two New locations

United Defense Tactical, the first-of-its-kind firearms and selfdefense training center, has officially singed two new deals, which will bring centers to Long Beach and Thousand Oaks, California. Founded by Wes Fox in 2019, United Defense Tactical trains people to survive, be safe and be confident in their abilities.

United d efense tactical has also announced new target areas for franchise units in the los angeles area. t he brand is seeking franchisees in s outh Bay, Manhattan Beach, torrance, Woodland hills and c alabasas.

“From our technology to our training, we provide the most wellrounded firearms and self-defense training curriculum in the world,” said Fox. “o ur comprehensive firearms and self-defense training program was created to empower, transform, and protect communities. We’re really excited to continue our expansion throughout s outhern c alifornia.”

local owners paul davis, Elyas peshtaz and stephanie peshtaz make up United d efense tactical’s founding franchisees, breaking ground on their locations that are set to open between late spring and early summer of this year.

paul davis is opening his long Beach United d efense tactical center at 200 E Willow st, long Beach, ca davis has been a

member of United d efense tactical for two years, and as he has progressed through the curriculum, he has seen the demand for dynamic training and creating more responsible firearm owners.

Elyas and stephanie peshtaz decided to enroll in Udt ’s curriculum after a random physical attack on the way to stephanie’s birthday celebration. t heir experience with the training inspired them to open their t housand oaks center, which will be located at 672-684 n Moorpark r d, t housand oaks, ca

https://uniteddefensetactical.com/franchising

Be S t Friend e ntrepreneU ri A l dU o, Jon Wit M er A nd M A rk Cl A pper, r e Cognized At the 2024 i FA

MU lti-Unit Fran C hi S e S: h ow

to fr A nch Ise your Bus I ness

to Mult I -un I t fr A nch Ise owners

In the landscape of franchising, multi-unit franchising has emerged as a dominant model, offering numerous benefits for both franchisors and franchisees. This overview delves into the mechanisms, benefits, and the overall market dynamics of multiunit franchising, shedding light on its significance in the contemporary business world.

Most franchisors get into the business of franchising in order to attract and retain franchisees who have the ability and interest in opening and operating multiple locations of the brand. The benefits to the Franchisor are immense when dealing with better capitalized franchise owners who have the ability to scale the brand into new markets and expand the system faster than owner-operated franchise units.

When FMS builds a system to be franchised for Multi-Unit growth, some of the key elements to incorporate into a franchise strategy are based on the following thinking and modeling.

1understanding Multi- unit Franchising for a new Franchise system

Multi-unit franchising involves an agreement between a franchisor and a franchisee where the latter is granted the right to operate multiple units of a franchise within a specified territory. Unlike single-unit franchising, where a franchisee operates only one outlet, multi-unit franchising allows for the expansion of a brand across regions more rapidly. The dynamic of a multi-unit franchisee is very different relationship and the process of recruiting, managing and working with Multi-unit franchisees is unique from traditional owner-operated franchise systems. The caliber of a MultiUnit franchisee is generally much higher than a single unit franchisee, they have more money, more experience and more clout, which is both good and bad for the franchisor, but it does mean that you need to have your act together and have a strong franchise system in place.

Read more: https://www.fmsfranchise. com/multi-unit-franchising-a-differentkind-of-franchisee/

2benefits of Multiunit Franchises to the Franchisor and Franchisee

a. Economies of Scale: One of the primary advantages of multi-unit franchising is the ability to leverage economies of scale. With multiple units operating under the same brand, franchisees can benefit from centralized management, bulk purchasing discounts, and shared resources, leading to cost efficiencies. This is true for both the Franchisor in that they can scale the brand faster and deal with less partners in the franchise system. For the Multi-Unit Franchisee, the Franchisee now has buying power in that they can share staff, buy products and resources at less cost and ultimately see better margins at the unit level.

b. Streamlined Operations: Managing multiple units enables franchisees to streamline operations and optimize processes. Standardized operating procedures and centralized management systems contribute to consistency and efficiency across all units.

c. Enhanced Revenue Potential: By operating multiple units, franchisees

c hris conner has worked in the franchise development industry for almost 20 years and helped over 600 brands franchise their brand and develop franchise distribution channels. He founded Franchise Marketing Systems in 2009, which now includes a team of 27 franchise consultants based in and Canada and supports brands around the world to grow and scale through franchise expansion.

v isit www.fmsfranchise.com for more information

can tap into a larger customer base, thereby increasing revenue potential. Additionally, the diversification of locations reduces reliance on the performance of a single unit, making revenue streams more stable.

d. Faster Growth: Multi-unit franchising accelerates the expansion of a brand by allowing franchisees to open multiple outlets within a shorter timeframe. This rapid growth benefits both the franchisor, by increasing market presence, and the franchisee, by capitalizing on early market entry.

e. Risk Mitigation: Diversification of risk is inherent in multi-unit franchising. Since revenue is generated from multiple locations, franchisees are less vulnerable to the impact of economic downturns or localized challenges affecting individual units.

3Mechanisms of Multi- unit Franchising

a. Development Agreements: Franchisees typically enter into development agreements with the franchisor, outlining the number of units they commit to open within a specified timeframe. These agreements often include provisions regarding territory rights, development schedules, and performance criteria. In most cases, when FMS develops a Multiunit Franchise model, the development schedule is included as an exhibit to the Franchise Agreement.

b. Area Development Franchising: In area development franchising, a franchisee is granted the exclusive rights to develop multiple units within a designated geographic area. This model provides franchisees with territorial exclusivity, allowing them to capture a

larger market share.

c. Master Franchising: Under the master franchising model, a master franchisee is granted the rights to develop and sub-franchise a brand within a specific territory. The master franchisee assumes the role of both a franchisee and a minifranchisor, recruiting and supporting sub-franchisees within their territory.

Read more on Master Franchises:

https://www.fmsfranchise.com/how-doesa-master-franchise-work/

4Market dynamics of Multiunit Franchising

a. Growth Trends: Multi-unit franchising has witnessed significant growth in recent years, fueled by factors such as globalization, consumer demand for convenience, and the scalability of franchise concepts. This trend is evident across various industries, including food and beverage, retail, healthcare, and hospitality.

b. Market Segmentation: The market for multi-unit franchises is diverse, encompassing a wide range of industries and business concepts. While some franchise brands are well-suited for multi-unit expansion due to their scalability and operational efficiency, others may be more conducive to singleunit operations.

c. Franchisor Strategies: Franchisors are increasingly adopting multi-unit franchising as a strategic growth initiative. By incentivizing existing franchisees to expand their portfolios and attracting experienced multi-unit operators, franchisors aim to rapidly expand their footprint while maintaining brand consistency and quality standards.

d. Franchisee Profile: Successful multiunit franchisees exhibit strong leadership, business acumen, and operational expertise. They possess the ability to manage multiple units effectively, delegate responsibilities, and adapt to changing market dynamics.

e. Emerging Trends: Technological advancements, such as mobile ordering platforms, delivery services, and automation, are reshaping the landscape of multi-unit franchising. Franchisees are leveraging technology to enhance customer experiences, optimize operations, and drive growth. The Multi-unit franchise market segment is strong and getting stronger and should not be ignored by anyone considering franchising their business model. You must take this market segment into account when you launch your franchise system.

Read More on the growth in the MultiUnit franchise segment: https://www. frandata.com/multi-unit-growth-by-thenumbers/

In conclusion, multi-unit franchising offers a compelling value proposition for both franchisors and franchisees, facilitating rapid expansion, cost efficiencies, and risk diversification. As the market for multi-unit franchises continues to evolve, franchisors and franchisees alike must adapt to emerging trends, embrace innovation, and capitalize on opportunities for growth and success.

for more information on the process of developing a multi-unit franchise model and how to franchise your business, contact Chris Conner with fms : Chris. Conner@ fmsfranchise.com or visit the fms site: www.fmsfranchise.com

for more information on how to find a franchise that is capable and positioned for multi-unit franchises, visit franchise Conduit: www.franchiseConduit.com

h o W to g ro W yo U r Fran C hi S e

thro U gh MU lti-Unit oWner S hip

Let’s say that some of your franchisees who own single locations are eager to own two, three or more. Or maybe some of your franchisees who already own three or more units want to own even more – maybe a lot more.

That sounds like a wonderful opportunity to expand your franchise, and it probably is. Yet in the dynamic world of franchising, the journey from a franchise system rooted in single to multi-unit ownership is filled with both opportunities and challenges. During my career, I have helped many franchises expand in just that way. For example, I was part of the leadership team of a franchise brand that was adding

more than 100 units every year. Initially dominated by single-unit owners, we changed our approach towards favoring multi-unit franchisees, for some very strong reasons. One was that if we encouraged current owners to acquire more locations, we could expand our total number of locations efficiently – certainly more efficiently than if we sold one location at a time to new owners. Another reason was leverage - it was easier to train and support 10 owners who owned a total of 30 different locations than it was to train and support 30 individual owners who owned one unit each. We additionally knew that franchisees were less concerned about opening up near their own location than having another franchisee open up near them; we could thus get greater penetration of locations.

but there are challenges

We found out quickly that just because someone was successful at running one unit did not mean they’d be successful at running two. The opening of the second unit caused the franchisee to take their eye off the ball of their first unit. Causing the first unit business to suffer, ultimately the franchisee would focus on one or the other location and, and one would suffer. Unfortunately many franchisees lost not just their expansion location but their main location too because they were not well suited to be multi-unit franchisees.

Why Problems can occur

• Managing multiple locations requires different skills than managing just one.

For example, a franchisee who is a micromanager can run one unit really

well, but when they add locations, the scale of the business gets so large that they can’t micromanage the whole business. Things fall through the cracks.

• Hiring good managers for multiple locations is expensive. If the franchisee doesn’t invest in hiring the right person to be an effective manager, the locations will suffer and/or go out of business.

• Operational practices are different. If fundamental operating practices are not in place to properly manage the company and its finances, the company will not be in a position to grow. The franchisor should provide the operational best practices in their operations manual.

strategies for success in Multi- unit Franchising

• Understand who your franchisees are and where their skills lie. I am a believer in using personality assessments to identify franchisees’ strengths in either single or multi-unit operations. For example, success in multi-unit franchising depends significantly on excellent people management and

evan hackel, As author, speaker and entrepreneur, Evan has been instrumental in launching more than 20 businesses and has managed a portfolio of brands with systemwide sales of more than $5 billion. He is the creator of Ingaged Leadership, is author of the book Ingaging Leadership Meets the Younger Generation and is a thought leader in the fields of leadership and success.

Evan is the CEO of Ingage Consulting, Delta Payment Systems, and an advisor to Tortal Training. Reach Evan at ehackel@ingage.net, 781-820 7609 or visit www.evanhackelspeaks.com

delegation skills, while single-unit success hinges more on attention to detail and process adherence.

• Evaluate market expansion potential. Expansion does not always rely on adding new locations. Service-oriented franchises, for example, can often grow exponentially from a single location, whereas businesses with physical constraints, like restaurants, might need multiple units for growth.

• Consider your operational model. Ensure your franchise model is adaptable to multi-unit operations, with tailored training and operational manuals reflecting the nuanced differences between single and multi-unit management.

• Consider how you will best support your owners. Develop specialized support for multi-unit operators, differentiating the assistance provided to them from what you offer to single-unit franchisees.

best Practices for Multi- unit ownership sales

Now I would like to explore a slightly different aspect of expanding your franchise: encouraging new owners to buy multiple locations at a time. Have you thought about doing this? It can be an effective strategy for growing your franchise quickly, but here are some ideas to think about and steps to take . . .

• Tailor your franchise sales processes to attract and properly vet potential multiunit franchisees.

• Get help from a franchise consultant who has knowledge of multi-unit franchise sales, operations and risks.

• Be sure that your Franchise Disclosure Document (FDD) and franchise agreements accommodate multi-unit

operations. You will need to consult an attorney.

• Model your ideal multi-unit franchisee profile and adhere strictly to it during owner selection.

• Set reasonable timelines for new location openings to avoid overwhelming franchisees.

• Incorporate performance metrics as prerequisites for allowing current owners to add additional units.

• Understand and potentially implement territory clawbacks for unmet expansion goals.

• Facilitate interactions between prospective and current successful multi-unit franchisees. Pair new multiunit franchisees with the seasoned in a mentorship program.

• Differentiate single and multi-unit franchisee performances in your Item 19 disclosures.

• Align your sales team’s compensation with the successful opening, not just the sale, of new locations.

summary: Mastering Multiunit Franchise e xpansion

The transition to multi-unit franchising presents a strategic avenue for franchisors aiming to amplify their market presence. However, this transition is loaded with complexities that demand a nuanced understanding of franchisee capabilities, operational adjustments, and strategic sales approaches.

By fostering a culture that supports both single and multi-unit franchisees based on their distinct strengths, franchisors can ensure sustained growth and profitability in the competitive landscape of franchising. v

e xpanD ing h orizon S: M U lti-Unit Fran C hi S ing an D Bran D Diver S i Fi C ation

c raig Dunaway p enn Station

For a current franchisee, the idea of expanding your portfolio by adding another brand presents exciting opportunities as well as unique challenges.

Whether to diversify into different sectors or deepen investments within the same industry requires careful deliberation, even for the most seasoned franchisees.

Those who look to add a second brand to their portfolio believe it is easy to grow another concept in the same market because of their market knowledge. They often feel it is easier to learn the operational nuances of a second brand than it is to learn the complexities and nuances of a new city or market they have never experienced.

There are advantages and disadvantages to either option. The best decision for your portfolio will depend on several factors.

understanding the landscape

Becoming a multi-unit, multi-brand operator offers a path to increased revenue and market presence but comes with its own set of considerations. The synergy between different brands, operational demands, and market dynamics all play crucial roles in determining the success of such ventures. When researching the possibility of introducing another brand into your portfolio, consider the following:

• Brand compatibility: When exploring

operational models and customer bases, making them a natural fit within a single portfolio. This likeness can streamline operations and marketing efforts, leveraging shared resources and customer overlap.

• Market saturation: Determine if there is a need for the new business you’re looking to open. Understand the local market demands and saturation levels. Adding a brand that operates in an oversaturated market may lead to diminished returns, whereas entering a less crowded space can offer new growth avenues.

• Operational complexity: Managing multiple brands means juggling different operational requirements. Franchisees must assess their ability to maintain high standards across all units, ensuring each brand’s specific needs are met without compromising overall business integrity.

Weighing the Pros and cons

When it comes to diversification, you only have two options — embrace it, or don’t. However, there are benefits to both options. Using foodservice as an example, staying within the industry can offer multiple advantages:

• Shared knowledge and resources:

Entering a new industry requires time and resources to understand different market dynamics and operational requirements. There’s less of a learning curve when you stay within the same industry. Leveraging existing knowledge and operational practices can lead to cost savings and more efficient management.

• Cross-promotion opportunities:

Brands operating in the same industry can leverage joint marketing initiatives, attracting a wider audience while preserving their individual brand identities. This approach is particularly effective in the food sector. For instance, if an entrepreneur runs both a pizza place and a sandwich shop, they could provide customers with special offers or discounts, motivating them to visit the owner’s other dining establishments.

• Better brand focus: Managing brands across different sectors can dilute focus and stretch resources thin, potentially impacting overall business performance. When you invest within the same industry, you can use a number of the same best practices to keep all your businesses running smoothly.

While you may think investing within the same industry is the ideal move for you, take a look at some of the drawbacks of not branching out:

• Risk mitigation: Operating in different sectors can protect your portfolio against market fluctuations specific to one industry. As we all saw in the last few years, anything can change — and quickly. Having a built-in safety net can protect you from unexpected shifts in the economy.

• Customer base overlap: Operating multiple franchises within the same industry can lead to cannibalization, where businesses inadvertently compete for the same customer base, diluting potential profits across your portfolio instead of expanding your overall market share. Tapping into different customer segments can open up new revenue streams and growth opportunities.

• Less innovation: Sticking to one industry can limit exposure to new ideas and business models, potentially causing your business practices to become outdated compared to competitors who diversify and innovate across different sectors.

Making the decision

Before expanding your portfolio with an additional brand, you need to take several critical steps:

• Conduct thorough market research: Understand the specifics of the local

market to gauge demand and identify key competitors. Analyze demographic data, consumer preferences, and market trends to determine whether a new brand can meet an unfulfilled need or stand out in a crowded marketplace.

• Evaluate financial implications: Review the current financial status of your existing operations to ensure they are stable and profitable. Be sure to assess cash flow, debt levels, and the overall financial health of your current business. Then, carefully consider the total investment required for your new venture, including upfront franchise fees, startup costs, and ongoing operational expenses. It’s crucial to develop a comprehensive financial plan that includes projections for revenue, expenses, and break-even analysis to ensure the new addition is financially viable.

• Consult with existing franchisors: Engage in open discussions with franchisors from your current brand(s) to explore how adding a new franchise might affect your existing agreements and operations. Understand any contractual obligations that may impact your ability to expand. Also get an idea about the level of support and resources your new franchisor will provide for you and your budding business.

the bottom line

For franchisees considering expansion, the decision to stay within the same industry or venture into new territories comes down to a balance of risk, reward, and personal business goals. By carefully evaluating the market, understanding the demands of different franchise models, and leveraging existing strengths, franchisees can make informed decisions that align with their long-term growth strategies.

In the ever-evolving franchising industry, the key to successful multi-unit, multibrand franchising lies in strategic planning, diligent research, and a deep understanding of both your current portfolio and potential new ventures. Whether expanding within familiar territories or exploring new horizons, the ultimate goal remains the same: building a diversified, resilient, and thriving business portfolio. v

three Key S to M U lti-Unit

Fran C hi S ing S UCC e SS

Hi R e t H e Rig H t t ea M

using a dynaMic inFR astRuctuRe

H aV ing t H e R ig H t caPital

For many people, the American Dream means owning your own business and making it a success.

And, in order to do that, more professionals have opted to forego the uncertainty of starting their own business and have decided that the franchising life is best for them. According to the International Franchise Association, the overall number of franchise establishments will likely increase by more than 15,000 units in 2024 and add nearly 221,000 jobs.

But if you’re planning to build generational wealth and scale your growth, owning multiple units can be preferable to simply growing one location. There are three things you should consider before you purchase more territories if you want to be a successful multi-unit franchise owner.

1Hire the Right team

When most new franchise owners start out, they often spend their time doing all

the jobs. In the senior home care industry, for example, it’s not unusual to see an owner handling everything from operations to marketing to caregiving.

But if you want to have any success, you have to learn how to hire the right team and trust that they will be able to delegate and handle responsibilities.

When I purchased my first Caring Senior Service location in Tucson, Arizona, I did everything. If I was in the office, I tended to start handling everything instead of delegating responsibilities.

Everyone says that you should “work on your business and not in your business,” but this is hard advice to follow without a plan. That plan should include hiring the right people so you can make the transition from a simple franchise location owner into more of a CEO-type role.

Having one office is easy, having two offices is easy. It gets trickier when you own three locations, and, by the time you own four or more, you have to ensure you

have a great leadership team. You can’t continue to be the owner and do all the jobs.

One of the best ways to ensure you hire the right team is to have a process. If you’re part of a good franchise organization, sometimes the process is already in place for you to follow.

At Caring Senior Service, our processes are well defined and are in place because they work. One of the positive attributes of buying into an established franchise is that they already have most of their processes in place. From operations to sales and marketing to hiring your team, franchises are successful because of their processes. While you may need to consider the local workforce and other factors unique to your location, taking your main cues from your franchise’s operations manual will help you put the right team in place.

2using a dynamic infrastructure

There are many reasons you may opt to

choose one franchise over another when making the choice to buy into a franchising system. But one thing you should never overlook is how dynamic the franchisor is when considering infrastructure and technology.

One of the reasons I chose to buy into the Caring Senior Service model was CEO and founder Jeff Salter’s commitment to ensuring his franchises had access to updated technology and the infrastructure to run a streamlined franchising operation.

This becomes even more important when you begin operating multiple locations. If your franchisor isn’t committed to developing proprietary technology or ensuring that franchisees embrace innovative platforms, it becomes more difficult for your locations to communicate with one another and with the franchisor.

Technology helps the multi-unit franchise owner automate compliance checks, enhance and support new employee and ongoing training, analyze data to capitalize on trends and streamline their

ability to operate their business using the franchisor’s standard operating procedures. Innovation is also important in attracting new customers to your businesses.

In the non-medical home care service industry, technology is used to help family members who aren’t near their aging loved ones stay in touch with both their family members and with their caregivers. It also streamlines our ability to schedule caregivers so that the right caregivers are assigned to clients at the times their families have requested care.

Having the innovative platforms that help us deliver our GreatCare® service makes running several locations more profitable, efficient and ensures a high-quality customer experience.

Infrastructure is also important in how a franchisor supports their franchisees. Sales and marketing support, ongoing training, bookkeeping and operational tools, and innovative technology are all important infrastructures you’ll need to successfully run a multi-unit franchise.

For a multi-unit franchise owner to be successful in the modern era, their franchisor must see the value in developing an innovative infrastructure that can support growth.

3Having the Right capital

We all want our businesses to grow. Whether you want a single location to grow exponentially or you want to be able to operate your franchise in multiple locations, you have to have the right amount of capital to ensure your business meets demand.

In the home care industry, if you want to start running 24-hour non-medial service, you have to hire enough people to staff that goal. And, since payroll is one of the biggest costs a franchise owner faces, you have to be committed to hiring enough personnel to meet growth.

This isn’t always easy.

While you must always calculate the costs and benefits of growing your organization, making decisions that affect your brand reputation is always a risk. Having the right amount of capital is king when it comes to sustaining growth.

Having multiple units is demanding of your time, but it can help you secure the capital you need to take those risks. Owning multiple units offers the owner the diversification necessary to overcome the impact of economic downturns or regional fluctuations in various local markets.

It also helps entrepreneurs enhance their operational efficiency with bulk purchasing power, centralized management and shared resources.

So, while there are certainly some headaches associated with having multiple territories within your franchisor’s system, the benefits are great if you do your homework. Making sure you pick a franchisor that supports their franchise owners with an innovative infrastructure, understanding the extent of your capital outlay to scale your business and, above all, hiring the right team to carry out your vision should give you the tools you need to become a multi-unit franchising success. v

sheller has been a Caring Senior Service franchise owner since 2015, when she opened the Caring Senior Service of Tucson, Arizona, location. She now owns Caring Senior Service of Dallas Northeast, Caring Senior Service of Dallas Mid-Cities, and Caring Senior Service of Las Vegas. Sheller has more than 28 years in the healthcare industry and was working in the industry when she opened her first Caring location. She strives to give seniors the control needed to live safely at home and to give their families peace of mind.

MUlti-Unit oWner S hip

Can aM pliF y the aDvantage S o F Fran C hi S e o pport U nitie S

Franchising is a business model with proven rewards. Franchise owners are empowered to get the most out of their investment by the features that differentiate franchise opportunities, such as repeatable processes, scalable systems and shared resources.

Successfully implementing the essential elements of the franchise model is one of the most reliable pathways for entrepreneurs to achieve financial freedom while mitigating the risk associated with opening an independent small business.

Similarly, multi-unit franchise ownership amplifies the advantages inherent in the franchise model. Multi-unit franchise owners can benefit from economies of scale that create high potential returns based on a consolidation of resources. Once you’ve built one successful franchise brand location, you can replicate the process by applying tools and processes you’ve already mastered. You can see bigger returns with less heavy lifting. Expanding and diversifying into multi-unit franchise ownership can take many forms.

Some franchise owners enter the industry with the goal of quickly opening multiple locations in a territory, so they will start with a multi-unit agreement. A franchise owner might open an additional location (or locations) in a nearby territory after successfully operating a single franchise unit for a while. Other franchise owners, focused on diversifying their holdings, might build a portfolio of multiple franchise brands in a variety of industries. here are some of the specific benefits that come with multi-unit franchising:

• Shared resources: Successful franchise owners have already implemented the systems that power operations and are familiar with the processes and technology that guide the company. Setting those systems up in a new location takes less time, and the learning curve for owners and their teams is dramatically reduced. Similarly, sharing supplies and inventory across multiple locations means each unit does not have to maintain a full range of physical products at all times. Additionally, bulk discounts may apply to many purchases.

• Established connections: Owners of existing franchise businesses have

existing relationships with vendors, distributors and financial institutions that can be leveraged immediately. If you open multiple locations at once, you’ll only have to establish those critical relationships once to serve all locations.

• Enhanced value: The savings and efficiencies of multi-location ownership add up. A multi-location franchise agreement will likely be greater than the combined value if each location was individually owned. That means greater returns on your investment.

• More opportunities for team members: With additional franchise locations, you can continue to develop and promote your team

Danessa Itaya is president of Bio-One®, the most trusted crime and trauma scene cleaning franchise in the United States and part of the Five Star Franchising platform of brands. Itaya has more than 30 years of experience in the franchise industry, including 10 years of national and international leadership experience. She serves on the Women in Franchising Committee of the International Franchise Association and was named one of Entrepreneur’s Top Influential Women in Franchising in 2022.

members, whether it’s taking on more responsibility, or leading one of the locations. And with strategic management, team members can be deployed across multiple locations to create staffing efficiencies. Those opportunities can add up for owners, too. With additional revenue multiplying profits, you can invest in a management team to oversee day-to-day operations while you focus on the big picture.

• Economic resilience: Spreading risk and costs across multiple locations can protect franchise owners during economic disruption. Owning more than one franchise location can make it easier to weather harsh economic times.

“ Once you’ve built one successful franchise brand location, you can replicate the process by applying tools and processes you’ve already mastered. You can see bigger returns with less heavy lifting.”

Like any franchise opportunity, it’s important to consider some fundamentals before committing to a multi-unit ownership agreement. The smooth transition from single-location ownership to successful multi-unit operations requires that the initial unit is firing on all cylinders.

Make sure you have sufficient cash and credit for ongoing operations and opening expenses. Assess your team and their performance, and honestly evaluate your

own ability to maintain a high-level executive vision and delegate day-to-day operations whenever possible.

If you have ongoing challenges that haven’t been addressed, you may carry those with you to any new units. In that case, you’re multiplying challenges, not advantages. But when it’s done right, multi-location franchise ownership can help drive franchise owners toward their goal of financial freedom. v

atWor K pre S iD ent an D Coo o pen S Fa M ily- oWne D lo C ation in h o M eto Wn o F Maryville

For the last three decades, AtWork has grown to become an award-winning national staffing franchise with more than 100 locations across 30 states.

Driven by its sole mission of connecting people with jobs and jobs with people, the company puts nearly 40,000 individuals to work each year and has carved out a specialty in connecting qualified candidates with administrative, lightindustrial, accounting and finance, hospitality, IT and management-level positions at some of the nation’s largest and most recognizable companies.

One of AtWork’s most recent franchised locations opened its doors in Maryville, Tennessee, just outside of the company's headquarters in Knoxville. It is the familyowned location of AtWork’s President and Chief Operating Officer Jason Leverant, his wife Kyla and son Ethan, who help oversee the day-to-day operations

Before joining AtWork as Vice President of Sales in 2007, Jason did product marketing in the golf industry and worked in sales for another staffing firm. Under the mentorship of AtWork founder and CEO John Hall, Jason stepped into his current role in 2012 and is responsible for stewarding the company to becoming one of the leading staffing providers and top franchising opportunities in the United States. Jason’s dedication to the company and staffing industry as a whole has also resulted in his recent appointment to the American Staffing Association’s Board of Directors in 2022.

“It’s an honor to have ownership in a company I wholeheartedly believe in and to venture into franchise ownership with my family in my hometown,” said Jason. “It’s not lost on me that this is a rare opportunity to lead by example and to fully immerse myself in our franchise model to understand firsthand how we can make it even better.”

The Leverant family has established the Maryville location as a key community resource to help employees thrive,

businesses prosper and communities flourish.

“We credit our dedication to offering superior service and putting our customers first for the rapid growth we’ve seen over the last three months,” said Kyla. “If we can help local businesses grow and connect neighbors with jobs, we know that ultimately benefits the community we call home.”

AtWork continues to prove that its business model is a viable, scalable franchise opportunity with its impressive yearover-year unit and overall sales growth percentage. The company added seven franchised units and generated $350M in annual sales in 2023. Since 2020, AtWork has grown 42% revenue.

Relatively low compared to other franchise concepts, AtWork’s initial investment is between $153,500 and $210,500. In 2023,

“ It’s an honor to have ownership in a company I wholeheartedly believe in and to venture into franchise ownership with my family in my hometown.”

the average gross revenue for all franchised AtWork locations reached $4 million.

“AtWork’s positive growth is a reflection of our intentional efforts over the years to grow steadily and strategically without losing sight of our servant mission of helping others,” said Leverant.

AtWork is recognized by Franchise Business Review as a Top 200 Franchise; Entrepreneur® as a Top 500 and Top Franchise for Diversity, Equity and Inclusion; Franchise Times 2024 Top Brand to Buy and Top 400 Franchise; Staffing Industry Analyst as the Best Staffing Firms to Work for; and as Clearly Rated’s Best of Staffing® for Client Satisfaction and Talent Satisfaction. For entrepreneurs wanting to capitalize on their investment and impact their community, AtWork enables owners to maximize their profit potential without sacrificing industry-leading service, support and tools.

for more information about franchising visit www.atwork.com/franchise.

m ulti- u

f ranchising:

Co MM on M IS take S to aVo I d When e xpand I ng

Bill McPherson is the vice president of franchise development for PostNet, a global leader in high-quality printing and shipping solutions, and AlphaGraphics, a leading franchisor of printing and marketing solutions. With over 29 years of franchise leadership, he has led franchise development and real estate for B2B, B2C, retail, and in-home senior care concepts.

for more information, visit https://postnetfranchise.com/.

Multi-unit franchising is one of the premier ways for franchisees to scale and expand their business. In fact, according to a 2023 report in Forbes, multiunit franchise owners were in charge of 54% of all franchise units in 2019, and 43,212 multi-unit operators controlled more than 223,213 franchised units in the U.S.

While there is an increased risk when venturing into multi-unit franchising, it can be more profitable for entrepreneurs looking to successfully scale and expand their business beyond their general market.

There are several things to consider before taking the dive into multiunit franchising. There is typically a higher upfront investment if the plan is to start off by purchasing multiple units. If you already have a franchise and are looking to expand, you will need to ensure you have proper funding to help finance the venture without sacrificing profitability of your existing location(s).

In addition to funding, it is also vital to have a strategy in place for the expansion. That plan should include strategic location, inventory, equipment and the timeline for when the locations will open. It’s important to consider each of these before taking the plunge.

Here are a few additional mistakes to avoid when scaling and expanding through franchising.

spreading yourself too thin

While it’s important to have funding and a strategy in place, it’s also paramount to consider your own time. Are you already spread too thin with just one location? Do you have other commitments that may be affected by opening multiple locations? If the answer is yes, you may simply not have the capacity to run multiple locations at once. While the earning potential can be higher with multiple units, you would be making a mistake if you don’t have enough hours in the day to maximize each location’s potential.

Hire the Wrong Members for your leadership team

To be a successful business, you must have the right team in place. The same applies to those looking to expand. Without the right team, one or all of your locations could become less efficient and be prone to poor customer experiences. As the owner, you won’t be able to be in multiple locations at once, so it will be up to your staff to

run the day-to-day operations. In addition, you will need to ensure you have the right financial metrics and key performance indicators in place. Hiring or promoting the wrong individuals in leadership positions can jeopardize your expansion plans.

lack of understanding of Franchisor e xpectations

At the macro level of multi-unit expansion, it’s important to have a complete understanding of the franchisor’s expectations for multi-unit operators. While franchising as a whole is similar, each franchisor has its own rules and guidelines for multi-unit growth. Do they require you to remain a present and visible owner for each location? How much revenue do they want you to make for each location? These are both valid questions a franchisor could ask when you indicate that you want to expand. If your goals as an owner don’t match those of the franchisor, you could be making a mistake.

Understanding the franchisor’s support system for multi-unit owners is also important. A franchise needs more sophisticated and accessible systems to adequately assist owners with multiple locations, from high-quality software to

owner training and tools. If the franchisor doesn’t supply advanced systems, expanding may not be a profitable venture due to you relying on your own resources to grow the company. Luckily, most of these questions should be answered during the discovery phase, well before making a commitment.

scaling and e xpanding

For entrepreneurs in franchising, there will continue to be an interest in purchasing multiple units when expanding their business. The venture could result in increased profit and stability while also securing your place in the market. But diving into multi-unit franchising prematurely or without the proper information could be detrimental to you and your business. Outside of proper funding and a firm strategy, not having enough time or your franchisor’s lack of proper support could lead you into some challenging times. Expanding because you want to make more money is important but should not be the entire reason.

Consider your long-term goals – retirement planning/exit strategy, passing the business on to a child, etc. – when determining your plans for expansion. v

h o W to M aK e MU lti- U nit

Fran C hi S e o Wner S hip Wor K For yo U

A proven franchise brand empowers its franchisees to enjoy the benefits of owning their own business while helping mitigate the challenges associated with independent small businesses.

Successful franchisors can offer repeatable, easy to implement systems and solutions that support franchisees throughout the lifecycle of the business. Those shared systems serve as a foundation for franchise success, unlocking meaningful opportunities for flexibility and financial independence.

The benefits and advantages inherent to the franchise model are amplified when a single franchisee owns and operates additional locations. Franchisees who want to see their opportunities grow exponentially can take the experience to another level with multi-unit franchise ownership.

Whether you’re interested in opening a second or third location after successfully establishing the first one, or you’re looking

to enter franchising by opening multiple stores at once, multi-location franchising can open a wide new world of opportunity.

Multiple advantages of multiunit franchising

Once a franchisee has built one successful location, the process can be replicated by applying tools and processes you’ve already mastered. Multi-unit franchising flattens the learning curve and reduces the sweat equity required, which can lead to significantly higher potential returns.

Some of the specific ways multi-unit franchise ownership can enhance your investment include:

• A multi-unit area agreement allows you to own your market for that brand. Based on the agreement with the franchisor, you have a certain amount of time to develop additional stores, without the risk that another franchisee will move into that area.

• Bulk licensing discounts offer significant possible savings. Purchasing the licenses for multiple locations is usually accompanied by “multi-pack” discounts

for each license beyond the first. In some cases, the more licenses you purchase, the less you will pay for each one. The principle is the same as purchasing items in bulk in a retail setting.

• With multiple locations, team members have additional opportunities. Strategic management allows franchisees to share employees across multiple stores so you have full staffing without having to build a complete team for each location.

• Additional revenue from added locations will allow you to budget for an investment in a territory-wide operations manager, affording the owner the opportunity to step back from daily operations and take on a more strategic role.

• Multi-unit owners can share inventory among all the locations in their area, instead of all inventory being physically available at each store. Multi-unit franchisees can also monitor inventory across all locations as well as taking advantage of bulk discounts when replenishing inventory.

• If a franchisee decides to exit, a multi-

unit territory offers more value on resale, based on the guaranteed exclusivity of the territory, established market equity, level of market saturation, and other factors.

Additionally, diversification is a proven sound financial approach that protects franchisees in the case of economic disruption or downturn. Owning more than one franchise location makes it easier to weather harsh economic times. And most franchisors offer discounted franchise fees to multi-unit owners. Signing an agreement upfront to open multiple locations can mean significant savings.

Finally, many franchisees find multiunit ownership to be a major step toward fulfilling the ultimate dream that led them to franchising in the first place — the financial independence and freedom that come with owning your own business. While owning a single franchise location can require ongoing hands-on involvement in daily operations, owning multiple locations can reward a strategic, higherlevel executive vision.

c harles Bonfiglio is President and CEO of Tint World, a provider of automotive, residential, commercial, and marine window tinting and security film services. With Automotive Styling Centers in the U.S. and abroad, each franchise location houses approximately 20 profit centers, ranging from in-store accessory installations to offsite sales and installation.

Multi-unit opportunities

While owning multiple franchise locations unlocks new and bigger opportunities, franchisees or potential franchisees should still consider several factors before jumping into the decision to expand or invest in a multi-location agreement that will protect you and the franchisor.

• Do you have the cash or credit required for opening new locations? Does your existing franchise have sufficient cash flow to continue operating successfully while you’re focused on one or more new locations?

• Do you have a trusted team to run your existing franchise?

• Are you confident that you have the executive-level leadership mentality for multi-unit franchising? Can you empower your managers and team members through delegation?

• Have you properly implemented and

“ Many franchisees find multiunit ownership to be a major step toward fulfilling the ultimate dream that led them to franchising in the first place — the financial independence and freedom that come with owning your own business.”

mastered the franchise resources that will support success in multiple locations?

Multi-unit franchising offers nearly endless options and opportunities. Expanding from single franchise ownership to multilocation ownership can take a wide variety of forms. Whatever your goals — whether your multi-unit strategy is one or two additional locations in your hometown or you’re investing in a large regional franchise portfolio — there’s a multi-unit franchising strategy for you. v