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Does It Make Sense to Become a Multi-Unit Franchisee?

Congratulations, you’ve opened your first franchise restaurant and, after a year of grinding, things are going great. So what now? Do you stand pat and build up your one location, or do you try to replicate and double your success with another one? Obviously, your available resources will dictate how to answer that question, to a large degree. But there are some other things to consider as well. Here are some things to consider if you are thinking about adding another franchise location.

  1. How comfortable are you with the franchisor’s process and practices? If you’re still perfecting basic tasks like recipes or proper machine maintenance, you’ll probably want to wait until all of that is second nature before jumping into another location, even if you have the resources. Replicating an unpolished product will just invite pitfalls.
  2. How will it affect my relationship with the franchisor? Will your point of contact at the corporate level change if you make the leap to a multi-unit franchisee? Will you need to sign additional documents or adjust your franchise commitment length? Make sure you gather all of this information from the franchisor before committing to another location.
  3. How profitable is your current location, and what opportunities are there for a second? It’s not all about profit—location can make a huge difference—but if your first location is still not raking it in, maybe you should take stock and make some adjustments to make sure your practices are airtight and you won’t be replicating ineffective ones at another location, even if it’s in a great spot. Keep in mind that a second location might not be profitable right away, so you might need some extra revenue from the first location to cover expenses for a while.

Want to talk more about franchising? At Rosati’s Pizza, we are franchise experts, with over 200 locations nationwide. Give us a call today!

 

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