Smart businessmen know that owning multi-unit franchises is less risky than single-unit outlets. They have a successful track record of leading the path to riches.
The American saying “go big or home” is apt for franchising. When someone opens a single-unit franchisee, what they are doing is getting a job for themselves. However, when someone becomes an operator of multi-unit franchisees, they build an empire for themselves.
Operation of multi-unit franchisee means owing more several franchise locations of the same brand. The reason why people take franchisees is purely commercial, and that is to make money. A case in point is GregFlynn, who owns more than 2400 franchise restaurants. starting as a single unit franchise operator of Applebee’s in 1999, Flynn went on to become the first American franchisee that touched the $1 billion.
Franchisee business redefined
For Flynn, lunchtime means having more than 1245 restaurants to choose from; the best part is they are all his. 458 Applebee’s, 135 Panera Bread, 283 Taco Bell units, and 369 Arby’s to choose his salads, but Flynn Restaurant Group CEO will order none from these outlets.
Flynn has all- mega franchisees and multi-unit franchisees. The native of Marine County has more than 50,000 employees across 33 states and has redefined the concept of Franchise ownership.
How to become successful with a multi-unit franchisee?
Using the magic of compounded returns is applicable in franchising also. Flynn’s success in franchising has been essentially the internal cash accruals used to fund the next franchisee. Once a single outlet made profits for one living, the profits from several other franchisees were reinvested to start more franchises. The equation between the main franchise outlet and the others would ne a regional management relationship where one can control from a self-sustaining system.
The more successful units one has, the more opportunities available. A good strategy is for franchisee operators having multi-units to scout for under-performing units in neighboring locations and purchase these outlets in a bargain deal. The efficient systems built by the multi-operators helps quickly turn around the new under perfuming outlets.
Scouting for opportunities
Successful Franchisors always look out for multi-unit operators running their franchise network nicely. This translates to operators being courted to start other franchisees which are non-competitive in the exact location. The different and new brands add to the bottom line, and this was exactly the case with Flynn when he added more franchises such as Arby’s, Panera Bread, and Taco Bell to his original franchise business of Applebee.
Franchise business is a journey -not the destination
When people enter the franchise business model, they do not consider the end game. If one is a multi-unit operator, there are high chances that the Franchisor will buy back successful units in certain locations at a premium. Even if it doesn’t happen, the multi-unit operator has enough space to play around and sell them when retirement.