Franchisee Tips – The Benefits of Multi-Unit Franchise Ownership

So, you’ve had success with your first franchise. Congratulations! Since you’ve become a pro at running your first franchise location, you might be exploring the benefits of investing in more. Multi-unit franchises can be a great business move for successful and ambitious entrepreneurs. Franchises alone are wonderful investments for first-time business owners who are looking for proven systems and processes that come with built-in support. When business owners open independent operations, they often miss out on the host of resources like training, marketing support, and more, that comes with franchising. It only makes sense that once a business owner has tasted success with one franchise location, they’d want to dive into owning more of the same to increase their revenue!

Multi-unit franchise ownership is quickly becoming the norm. While owning several franchises used to be rare, today it’s quite popular. As an example, more than 76 percent of franchised restaurants are operated by multi-unit owners [1]. This notable shift started during the recession when smaller operations were struggling. Larger, multi-unit franchises were able to use their capital to weather the economic storm and as a result, savvy entrepreneurs took notice. Instead of opening several different franchises, opening several of the same was a better bet.

So, why should you even look into multi-unit franchises?

Increased Profit

Clearly, the first reason for deciding to research multi-unit franchises is the money! If you’re already seeing success with one franchise location, it’s likely that you’ll see the same success with others. As your business expands, you can increase your share of the market in your specific location. As you open more successful franchise locations, you’ll be able to double or triple the revenue that one location is currently bringing in. Those who deal in multi-unit franchises and move away from the owner-operator model tend to see greater success when it comes to running several profitable locations. While the initial investment to open more locations is higher than starting one, the payoff is greater as well. Multi-unit franchises are more stable as they don’t rely on one location to make all the revenue. In fact, you have the ability to make more money from secondary locations as you’ve already perfected your back-of-house efficiencies and know what works and what doesn’t. You aren’t wasting your investment on trial and error when you’ve already been successful – which bring us to the next benefit of multi-unit franchises.


One of the greatest benefits of multi-unit franchising is the experience that you already have running the first location. When you open your first business, whether it’s independent or part of a franchise, there’s a lot of trial and error. There’s less trial and error in franchising because you already have a built-in knowledge base and lots of support, but determining how your team works best together and the nuances of in-house efficiencies can still take some time with a new location. When it comes to multi-unit franchises, you have your systems and operation down to a science. Since you’ve already gone through opening your first location, you know exactly what to expect, what went right, and what to avoid. You know the franchise inside and out, so you know exactly what you need to do to be successful with your second, third, or fourth location. You’ll also already know what to look for when it comes to hiring staff for your next location. You may even be able to allow managerial staff at your first location to source new employees for the next. Experience is invaluable when it comes to nearly anything, especially business ownership.

Streamlined Operations

As noted above, owning multi-unit franchises means that you’ve already been through the growing pains of figuring out what makes this specific business successful. Even with all the help and support you get from your franchise, figuring out what works for your location and your employees takes time. However, since you’ve already done it once, you’ll have a book of streamlined operations that you can implement at subsequent locations. Another great benefit to owning several franchises is that you may be eligible for a wider variety of vendors. Many vendors have minimum order requirements that you may have not met with only one location. However, now that you’re operating several of the same franchise, you may qualify for wholesale discounts or smaller administrative fees. Instead of being stuck paying the same amount across all businesses for specific services, you may be able to bundle and enjoy cost savings as well as management headaches.

Because you’ve already built up a reliable employee base with the first location, you can easily implement your seasoned processes at a new location with their help. Bringing in staff to train others on how exactly you want things to run can save you lots of time and effort.

Why Choose Supercuts?

Often one of the hesitations that business owners have to diving into owning multi-unit franchises is the increased workload. However, many franchises offer a perfect blend of hands-on and hands-off operation. For example, Supercuts is a semi-absentee franchise model which means that you can be as involved as you like or take a backseat to daily operations. When running an owner-operator franchise, hours can be long which deters many from opting to open other locations. A semi-absentee model allows you the freedom to own successful businesses but still appreciate a balanced life. Supercuts is an ideal pick for those seeking multi-unit franchises.

Owning multiple franchises prevents you from “putting all your eggs in one basket” when it comes to business. Growing your portfolio, even with the same franchise in separate locations, provides a bit more insulation. If you owned just one business and it took a hit, you could lose everything. Having more than one offers a bit more security in a questionable market and investing in something like hair care is a smart move. People will always need haircuts, no matter what the economy is doing.

If you’d like to lean more about Supercuts franchising, or multi-unit franchises, contact us today!


[1] Why Multi-Unit Franchise Ownership Is Now the Norm by