Franchise opportunities where you can open multiple locations

Franchise opportunities where you can open multiple locations 

At Anytime Fitness over half of the franchisees are multi-unit owners. In this article we talk to Justin McDonnell, Master Franchisor for Anytime Fitness Australia, on how to be a successful multi-unit owner and how to select the franchise opportunities that will be the easiest to leverage and become a multi-unit owner. Justin launched Anytime Fitness in Australia in 2008, and since that time it has been one of the fastest growing brands with over 200 clubs opened in a short four years.

How to be successful as a multi-unit owner 

Franchisees reviewing franchise opportunities need to ensure that their initial location is very solid, with a strong and stable management, before moving on to the next location.

When you go from one to two locations, the manner in which those locations are operated must change. Many franchisees who are successful in one location tend to be very hands-on in their management styles, and prefer to remain hands-on as they move into multiple franchise ownership. The reality is that a franchisee simply cannot be at each location all of the time! To successfully transition into multi-unit ownership, you must learn to manage the overall business process and the people in that process, rather than the day-to-day running of each location.

"Many franchisees who are successful in one location tend to be very hands-on in their management styles, and prefer to remain hands-on as they move into multiple franchise ownership. The reality is that a franchisee simply cannot be at each location all of the time!" 
Justin McDonell

Finding franchise opportunities that are well suited to multi-unit ownership

"Many franchisees who are successful in one location tend to be very hands-on in their management styles, and prefer to remain hands-on as they move into multiple franchise ownership. The reality is that a franchisee simply cannot be at each location all of the time!" 
Justin McDonell

Franchisees who own perhaps 10 locations or more will need to develop a support staff infrastructure to help manage those locations, just as franchisors have structures in place to help support different franchisees in a region.

So how does one know that the franchise opportunities you are looking at can be easily leveraged so that you can successfully run multiple locations? Consider enquiring about the following:

• What Human Resources processes are available from the franchisor to ease the transition to multi-unit ownership? What is the typical length of time key staff members stay at each franchise location?

As with any business, strong human resources support is crucial and will be tested as you move into multi-unit ownership. It is most advantageous to have strong franchisor support and stable staffing in place as you make the transition.

• How have successful franchisees done it in your system?

What has worked for other franchisees will likely prove successful for you as well. Get in touch with other multi-unit owners and obtain their input regarding the tactics and strategies that they followed as they increased their ownership presence.

• How long will it take for me to prove that I have a solid first franchise?

Your franchisor should be able to provide you with guidelines regarding how it will review the success of your initial unit and determine whether you are a candidate for multi-unit franchise opportunities.

• What skills development training is on offer to help me be a successful manager of multiple locations?

Keep in mind that managing a single location differs from managing multiple units, and the presence of effective training programs will offer you the opportunity to grow into the role of multi-unit owner.

• Is the business model simple or complicated? How much can go wrong that will need my input in each location?

As a multi-unit franchisee, it is to your advantage to operate with a tried and tested business plan rather than attempting to fight fires on multiple fronts. It is crucial, for instance, that the franchise system has a proven method for handling the absence of key personnel. You will not have the resources to be in all places at all times or to deal with the smaller items associated with the daily management of each unit.

• Once I am a success do you have accreditation with banks that will make it easier for me to finance the opening of new locations?

A number of banks and financial institutions have departments that specialise in providing loans to finance franchise opportunities, and may offer accreditation to franchise systems that meet certain criteria. A franchisee in an accredited franchise system can often borrow money on quite favourable terms, which is especially useful in financing multiple units.

Multi-unit franchise opportunities carry the potential to enhance your profitability significantly. However, the possible downsides are also considerable. It is up to you to research the various factors that will influence your chances for success. Good luck in your endeavours!