When you are thinking about joining a franchise, you likely have many questions. One of which may be around single-unit franchises and multi-unit franchises, and understanding what the differences are between the two and which you should opt for when looking to join a franchise.
Some people are better suited to single-unit, while others are more accustomed to operating as a multi-unit, depending on their particular skills and know-how. single-unit and multi-unit Franchises are both fantastic models and should definitely be considered.
We’ve answered the most commonly asked questions we hear regarding the different types of franchises to help you make an informed decision.
What is a single-unit franchise?
A single-unit franchise is where the franchisor grants the right to open and operate just a single franchise unit, with the franchisee being hands-on, managing the franchise location personally. Within this model, this franchise will often be advertised as a manager-run franchise.
When compared to a multi-unit Franchise, the single-unit Franchise is regarded as one of the oldest forms of franchises in existence. The franchisor will allow the franchisee to operate in one location only, and the franchisee has the right to use the operating system, structure and trademarks. It’s a tried and tested route to success.
What is a multi-unit franchise?
A multi-unit Franchise is where the franchisor awards a franchisee with the right to operate more than one outlet within a defined territory. This involves potentially investing in several units and taking on additional staff. But there must also be proof that it won’t harm the original unit as well.
The initial and ongoing costs may be higher, but the potential profits can also be more with this style of franchise. Franchisees can oversee their teams and make sure that it moves in the right direction. This option is often more work than a Single-Unit franchise, but when done well, it can spur fast growth.
Single-unit franchise benefits
Affordability
A single-unit franchise is a more affordable option compared with a multi-unit franchise. It would require one initial start up fee and working capital rather than the larger investment that comes with multi-unit franchising. There is also the added benefit that it would be easier to operate at the outset if you are new to the franchising world. For example, you can focus on hiring staff for one location rather than multiple units.
Greater focus
As you are likely to be a more hands on manager working in a single-unit franchise, this will allow you to become very focused on your business and understand key deliverables. You will be able to assess the quality of customer service provided and the quality of the products or services you are offering. This means you can spot challenges and potential pitfalls before they become bigger problems.
Growth plans
Operating a single-unit franchise doesn’t necessarily mean there is a limit to growth within your franchise. Explore from the outset the options for growth and whether the franchisor allows existing franchisees to take on more units gradually as they grow and prove their worth as a franchisee. This may be the ideal opportunity for you to get used to the franchise model before expanding meaning you can grow at your own pace.
This article was brought to you courtesy of Jackson Fire and Security Franchise. Running one of our franchises is made so much simpler thanks to our comprehensive business systems, manuals, and ongoing business, as well as technical support! We’re passionate about helping our franchisees succeed and are proud to have become a nationally-known brand offering fire and security systems support. So, if you need more information on how our franchise options work, then get in touch to find out more!
