Many successful franchisees—and even some of the not-so-successful ones—dream of someday owning multiple franchise locations. The road to this multi-unit dream isn’t exactly easy. At Direct Capital, we know all about the hard work that goes into owning and operating a franchise. That’s why our dedicated franchise team has pulled together some tips to make the sometimes daunting process a bit easier.
Get your finances in check. If you’re still financing expenses from your current location, consider how far into the term you currently are and how much you still need to pay down. You’ll want to determine if you’re in a place to take on more.
Determine if you’ll buy or build. Though there are certainly pros and cons that come along with each, the most common route that franchisees tend to choose is to take over an existing franchise. The main reason is because it removes a bit of the mystery from the equation. When building a new franchise from the ground up, there will always be some unknowns about how well the location will do and the amount of customer traffic you will attract.
Have a plan. Details like whether or not you will keep existing staff, what improvements you intend to make, how you will manage more than one location and why you’ve chosen a particular location all play a big role in whether or not you will be successful. These are also details that your lender will want to know you’ve thought about when you go in to obtain franchise financing.
Think about the future. Once the franchise is in your hands, you can start thinking about how you can make improvements to ensure your new location is a success. Before you move forward, be sure to have a clear understanding of what changes can be made in both the short and long term to drive immediate impact to your bottom line. Areas like personnel changes, equipment and technology upgrades and physical renovations are good places to start.