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Are You Right For Multi-Unit Franchise Ownership?

For a certain class of entrepreneur considering franchise investment, there is one question that is difficult to answer: single or multi-unit ownership?

Today in Las Vegas there are a lot of people dealing with the latter half of that question. The IFA’s Multi-Unit Franchising Best Practice convention is taking place at the Las Vegas Hilton. The two-day conference examines many of the burning issues that matter most to multi-unit owners and anyone seriously considering investing in a number of franchise units will have come away with an education in the industry after today. Anyone in the Las Vegas area will still be able to attend.

For those still unsure, Franchising Times has published an excellent article examining the benefits and perils of multi-unit franchising from a franchisors and a franchisees perspective. Writer Rocco Fiorentino looks at the case of Gary Robins, a Pennsylvanian who had been a multi-unit owner with Blockbuster before investing in SuperCuts Hair Salons.

“Robins considers himself a manager of people, not of a salon. With 34 units and growing, he has yet to pick up a pair of shears and actually cut hair. Robins will admit that financial performance in a brand is a must. For a franchisee, the initial investment versus the potential for return is critical in choosing a brand that is worth growing and investing in."

The concept of “brand” is probably the most important thing to consider when investing in multi-unit franchises.

The story also lists franchises like BrightStar Home Care who are so keen to appeal to multi-unit owners, they’ve been holding multi-unit bootcamps.

"The CEO and founder, Shelly Sun, CFE, has dedicated specific resources to develop a multi-unit boot camp and a multi-unit mentoring program specifically designed to meet the needs for personal development for this new-age franchisee," Fiorentino writes.

Not everyone is multi-unit material, but there are clearly top opportunities out there for the right entrepreneur. Find the right brand and you'll be on your way.

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