Are You Ready to Invest in a Second Franchise?
For some franchise owners, having one location is plenty. But for others owning multiple units of the same franchise is their goal, and that is when they feel the most successful. If you are considering joining the growing ranks of multi-unit franchisees, a lot of planning needs to be done. Here at Firehouse Subs, we have quite a few people that take this strategic approach, but we understand that it’s not for everyone.
You must ask yourself a few questions before you consider expanding into a second location, questions that can help you identify whether you’re in a good place financially, mentally, and logistically to open another store:
Is my current location successful?
The most important place to start is to take a hard look at your current franchise and examine your revenue and workflow. Do you feel like you’ve learned enough about how to run a franchise, how to handle dips in business, how to market, and how to maximize your revenue? Typically, franchisees take a few years to master their first location and get it to a strong place before considering a second.
Do I have the financial means to run two stores?
Just like with your first store, a potential second store will require a financial investment upfront. Make sure you have that covered, and then some. Remember that you’ll now be responsible for the well-being of two stores, and you will need to have some wiggle room for unforeseen events. Many people use surplus revenue from their first store to launch their second.
Where might I establish a second location?
It helps to have some spots in mind for an ideal second franchise, remembering you’ll have to visit both locations regularly. You can consult with your franchise support team on potential options, but you may wish to have a few locations to pitch that would help you reach a new area of the community, but which isn’t too out of the way for you to handle.
Am I confident that I can staff and stock a second store?
As the economy goes through its ups and downs, there may be times when it’s a challenge to find good employees and maintain inventory. While your franchise team is here to give you guidance on these things, you want to feel confident in doing so for more than one location. A bonus of having multiple franchises is that you can offer employees to work at multiple locations and may be able to call on your shift leaders or other star staff to help establish the new store.
How does this fit into my overall business plan?
When you applied to franchise your first store, you were likely advised to create a long-term business plan. Ask yourself if owning multiple stores will help you meet your overall goals. How does this fit into your work/life balance? How will this help you and your family build wealth or security? Do you have partners in mind to share franchise ownership? How involved do you want to be in running your stores? Make sure multi-unit franchising is a good fit for your life plan.
Curious to learn more about our franchise opportunities at Firehouse Subs, or chat with someone about opening a second location? Reach out to our team today!;