Anyone who is in the franchise sector or has looked into an opportunity knows that franchising is particularly resistant to economic changes, and boasts a high success ratio.
These are reasons why banks and lenders are so keen to help fund budding franchisees, knowing that with the right brand, franchise businesses are resilient and can go on to generate significant revenue.
For many ambitious entrepreneurs, these factors can create an amazing opportunity to build an expansive business through multi-unit franchising.
But what is multi-unit franchising? It is where franchisees operate multiple franchise businesses at once; this can be multiple offices of the same franchise brand, or a number of different franchise brands.
Many who progress into multi-unit franchising have already achieved success in their primary franchise venture, and realise the potential in operating further franchise businesses.
Within the same brand, multi-unit franchisees are able to operate the same business model at multiple sites- carrying across their knowledge and experience to bring their services or products to a new franchise territory.
Also, multi-unit franchisees are able to benefit from economies of scale, helping make costs lower as your business grows larger.
With ownership of different franchise brands, multi-unit franchisees benefit from bringing their understanding of the franchise sector, as well as their business acumen and success to a new business, sometimes within a familiar territory or a new one altogether.
Many who choose to invest in multiple franchises often pick complementary brands. Skills gathered from running a franchise in estate agency may lend well to a property investment or management franchise. The same can be said for someone running a nursery or childcare franchise, their skills may lend well to a teaching or personal development franchise.
Often, multi-unit franchisees focus on management franchises, opportunities where they aren’t required in the day-to-day running of the company and can instead take a wider view – utilising their business management skills rather than sector specific skills, and be able to run their business, not be in the business.
But franchisees should be careful when looking into opportunities, as some brands may not allow you to purchase another franchise brand, or to purchase a similar franchise within the same sector. For example, investing in rival franchises.
Home Instead, the UK’s leading home care franchise has been operating in the UK since 2005. Due to the age and stage of their early franchisees, they have a number of resales across their network due to retirement. Likewise, they are also happy to have a number of multi-unit franchisees in their network.
With a wealth of support from their 80-strong national office, franchisees are helped from the start of their journey with every aspect of their business- being able to grow a large, successful home care business.
Suhail Rehman has built up his Home Instead multi-unit franchise enterprise, currently owning five offices across Scotland. He runs his offices through a centralised management team, being able to focus on the larger picture whilst his team focus on the day-to-day running of the businesses.
Now employing over 300 staff and delivering home care services to hundreds of older people across Scotland, Suhail is operating a multi-million pound business – having built a profitable, multi-unit enterprise which is continuing to grow and develop.
Imogen Clarke, Head of Franchise Development at Home Instead comments: “Suhail is a great example of how multi-unit franchising can allow you to grow a profitable, successful large business.
“We are proud to have franchisees who have gone on to buy a number of units, expanding their businesses which in turn enables them to care for more people. We want people to join our network who are enthusiastic to grow within it, buying neighbouring or other territories to offer our high-quality home care services to a wider area.”
This article comes courtesy from Home Instead, the UK’s leading home care franchise.
