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A Guide to Single-unit and Multi-unit Franchising

And after dedicated research you finally opted the franchise route. Hold on for a minute, there is one more round of research that is needed. Do you have any idea on the ownership options available in franchising. Read on to know more…

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Buying a franchise makes you the boss of your business

To execute your entrepreneurial dream there are few franchise options available depending upon the factors including the money you have and to what extent you are looking to expand your business. Nowadays, there is a growing trend among franchisees to open more than one franchise outlet.

Let us discuss the various options with franchisees to grow their business through franchising.

Single-unit franchise: A single unit franchise is described as a single store in a specific geographic location. Single unit franchise is the most opted option by the businesspersons. This unit is owned and managed by the franchisee himself. This is most basic business model as the franchisee is managing only a single outlet. Also it’s a most preferable option for expansion but the potentiality for it is less than for multiple locations.

Ideal for

  • Those who wish to own and operate their own business
  • Who are new to business ownership
  • Individuals with limited investment capital

The success of the single franchise outlet is almost 100%as the franchisee owner is concentrating on a single store and putting every possible effort to make it successful.

Multi-unit Franchise: Multi-unit franchising business is when franchisee opens more than one store of a particular brand. Diversion of their business using the same brand is advised as preferable as both the franchisee and franchisor are probable to have developed healthy relations. Furthermore, franchisors are more likely to offer rights to an experienced and successful franchisee with the same brand.

Sameer Kachru, CEO, Go! Chaatzz states,“Multi-unit franchising is a grand opportunity for franchisees to spread out their business. Almost all our franchisees are running their multi-units successfully.”*

Also accentuating the positive characteristics of multi-unit franchise Dipti Taluja, Multi-Unit franchisee, Madame says, “It is a fantastic feeling to be a owner of a multi-unit franchise. Running a successful franchise business with support of the franchisor, makes you feel independent. It adds to a sense of security and a trust on one’s own entrepreneurial skills.”*

  • Accelerates profits
  • Stronger relations with franchisor
  • Cost- effective in advertising and marketing
  • Rotation of experienced staff
  • Time Management
  • Developing relation with vendors

Although there are few challenges comes in the way, like:

  • Hiring efficient managers
  • Maintaining high success rate
  • Time and efforts is the biggest investment

I believe you all are well informed now about taking up a particular franchise. Its time to take a step forward and choose the best option to accomplish your entrepreneurial dream.

*Survey conducted by FranchiseIndia

Posted in: Business Tips, Franchise

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