Expert tips on mult-unit franchising

Trevor Haynes, area development manager for the SUBWAY brand UK and Ireland, offers some expert advice on the pros and cons of multi-unit franchising

A SUBWAY franchise is perfect for anyone keen to run their own business, while at the same time benefiting from working with a leading global brand. With first class training and support from planning through to opening and beyond, the SUBWAY brand ensures franchisees receive guidance on all aspects of their new business.

Once a franchise is up and running, many SUBWAY franchisees look to expand and often consider multi-unit franchise opportunities. There are many benefits to multi-unit franchising, but there are also many aspects to consider before making the move.

Logical step
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The first question that must be asked when considering expanding your franchise business is whether or not managing more than one franchise is right for you. Once you have one successful franchise running smoothly, it may seem like the logical step to take on another one. This will, of course, increase your workload and franchisees must consider whether this is the right progression for them.

One of the benefits of multi-unit franchising with the SUBWAY brand includes the solid support structure offered by the company, which has meant that today 70 per cent of all new SUBWAY franchises sold worldwide are sold to existing owners.

Within a franchise there are opportunities to improve and adapt certain aspects to suit your own way of running a business. Once you have established an efficient, cost effective way of working within the brand’s guidelines, you can replicate this in other franchises. The ability to share best practice across numerous units will ultimately increase efficiencies and reduce waste.

Through multi-unit franchising, profits can increase and franchisees are given the opportunity to expand their business, often at a quick pace. Multi-units can provide the opportunity for franchisees to reduce overheads, including buying produce in bulk and developing strong relationships with suppliers. Franchisees can also conduct marketing and promotional activity across all of their franchises, meaning that the cost and effort involved is absorbed across all units rather than by one single store.

Experience is key
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Franchisees who have one well established franchise in a local area will have worked hard to build relations with the local community and surrounding local businesses. This knowledge of the area will be beneficial when it comes to selecting the next franchise opportunity, as experience is key when it comes to multi-unit franchising.

Building these local contacts can be done in a number of ways, including via face to face networking at local events, chambers of commerce, charity sponsorships or online via social media. Other networking opportunities to consider are conferences and meetings organised by your franchisor. These events present you with a fantastic opportunity to learn more about the future of the brand, what practices have worked well for other franchisees and to find out more about issues affecting the company.

The SUBWAY brand organises meetings throughout the year where the worldwide SUBWAY community can come together to take part in seminars and brainstorming sessions laid on for their benefit.

Another key benefit of multi-unit franchising lies with a franchisees’ pool of staff. Once multiple units are up and running, the franchisee can build a reliable team of staff that can work across the units on a rotation basis as needed. Franchisees can also employ more senior staff to help with the day to day running of the business.

The SUBWAY brand puts much emphasis on the training of its employees - from the managers to sandwich artists. With this extra support franchisees can be assured their staff are well trained and training is updated on a regular basis.

Potential obstacles
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Along with the benefits of multi-unit franchising, there are of course potential obstacles that need to be considered before embarking on a new project. It is vital throughout the process to be mindful of the budget for your venture. At the SUBWAY brand we advise and guide our franchisees through the process, encouraging them to think ahead and consider any possible drains on their resources.

Good business people will be thinking three to six months ahead and have the ability to anticipate the ebbs and flows of cash flow, putting a strategy in place to address these potential pitfalls. Evaluate any risks, taking an informed and disciplined view.

Running and maintaining more than one franchise is time consuming, especially if the stores are in different locations, so you must ensure you have a good support system of managers that can take on the workload and allow you to oversee the entire operation, rather than just one unit or store.

There are many pros to multi-unit franchising. It offers a franchisee the opportunity to grow, take on new challenges and ultimately increase revenue. But it is a decision not to be taken lightly and, providing that due planning and preparation has occurred, there is no reason why owning more than one franchise cannot be a successful and rewarding experience.