Is it a good idea to buy a second franchise unit?
When you first start as a franchisee, you’ll likely want to focus on a single franchise opportunity. This can maximise your time and effort learning to manage your business and get familiar with the industry.
However, when you have established your franchise, you might be interested in owning a second franchise unit or multiple franchises. Here are the benefits and risks of becoming a multiple franchise owner:
Benefits of multi-unit franchising
1. Business Growth
If your primary franchise is already established and has gained loyal customers, owning a second unit or multiple franchises can be advantageous. There’s a high possibility that your business growth will accelerate faster due to income coming from several outlets.
Owning multiple franchises can sometimes be a safer investment because you don’t depend on a single unit to make a revenue. A downturn in a specific franchise unit can be offset by higher revenue coming from your other franchise units.
2. Shared Resources
Multi-unit franchise owners can save time and money by sharing resources with other franchise units. They may negotiate bulk-buy discounts to approved suppliers and share storage, training, and promotions expenses.
3. Work-Life Balance
Since you own multiple franchises, you would have to consider additional support that runs
individual franchise units. This will free up your time on the daily management responsibilities, giving you more time focusing more on more strategic aspects of the business and additional time for personal activities.
However, you should remember that you’re responsible for your business success and will still be required to take part in the operations
Risks in multi-unit franchising:
1. Financial Risk
If your franchise network suffers from external factors such as changes in law and regulations or competitors, then it’s likely that all your franchise units may face the same challenges.
2. Saturation Risk
If you own multiple franchises on the same network, the risk of over-saturation may become an issue. You may take away business from your current site.
When planning to own multiple units of a franchise business in Australia, it is important to evaluate its benefits and risks. It may be a challenging task but can be rewarding at the same time.
So, if you’re looking for a franchise business for sale with a strong brand and network success, reach out to Laser Clinics Australia. We have established a dominant position in the cosmetic clinic market and now has over 200 clinics globally. Make an enquiry now.