Benefits and risks in multi unit franchising

When experienced franchisees open several locations there are a lot advantages and some allied risks also. But ultimately the multi unit franchising is the in thing in franchising for business which are vibrant and fast growing. Evaluate some of the pros and cons of multi unit franchising here.

Benefits of Multi-unit franchising:

    1. The business can rapidly expand and grow to different territories and geographical locations
    2. The experience in running one franchise can be duplicated in other units and locations
    3. It also helps in establishing a common policy and procedure that can be followed throughout the multiple units
    4. Since marketing and promotional activities can be done on a collective basis, the cost and effort involved is distributed among different locations
    5. Employees of different locations can be rotated and this will ensure uniformity in learning and management

Risks in multi unit franchising:

    1. Not all business can adopt multi-unit franchising
    2. It requires additional finance
    3. It will be a test of the leadership and management abilities of the franchisee as managing multiple units will not be easy, at least initially
    4. As the business grows you should be able to manage the multiple units effectively
    5. Thorough market research is required, because if one franchise unit fails it will affect the popularity of the whole business

Clearly analyse if multi unit franchising suits your business and strategise your future accordingly.