Multi site opportunities within Franchises

Maria Walton| HR Manager / National Franchise Manager | MISTER MINIT Australia 

In this article Maria discusses the importance of effective human resources management and support to be a successful multi-unit owner. Multi-site franchising can offer strong profit potential and is encouraged by some franchisors, while other franchise systems encourage their franchisees to avoid the practice. We caught up with Maria Walton, Human Resources and National Franchise Manager at Mister Minit, which has successfully transitioned a number of their franchisees into being successful multi-unit owners over the last few years. In this article Maria discusses the importance of effective human resources management and support to be a successful multi-unit owner.

Multi-site franchise opportunities

While multi-site franchise opportunities offer a number of potential advantages, such as the chance to leverage multiple profit centres and decrease the cost per unit associated with items such as administration and marketing, they are not for everyone. Being a great single unit operator does not necessarily mean you will be a great multi unit franchise operator.

Managing multiple franchise units presents a different set of challenges from managing a single unit. The key to being profitable as a multi-unit owner lies in successfully dealing with all aspects of human resources management. If you are considering franchise opportunities with an eye towards becoming a multi unit owner, look for franchisors that will provide guidance regarding your human resources policies and will continually provide training opportunities to help you improve your people management skills

Key questions to ask in pursuing multi-site franchise opportunities

• Does the franchise business permit me to let go and delegate to employees?

As an owner of a single unit location, a franchisee can be quite hands on and involved in the day-to-day workings of the business. However, multi-unit franchisees must be more strategic in their approach to management and cannot afford to become lost in the daily details of operations. Investigate whether prospective franchisors offer assistance with team member hiring and training systems designed to produce well-trained teams which can function relatively independently of your immediate oversight. You must be able to delegate basic operations to your team with confidence, so that you can focus on the strategic considerations that help you generate the most profit.

"Managing multiple franchise units presents a different set of challenges from managing a single unit. The key to being profitable as a multi-unit owner lies in successfully dealing with all aspects of human resources management."

• What systems do you have in place that will allow me to delegate but still have control over how multiple businesses are being run?

Some franchise systems are more suitable for delegation than others. For example, basic operations are more easily delegated to the team when the business systems for each unit are standardised. Standardisation makes it easier to duplicate procedures from location to location, which means that you will develop management expertise regarding the business more quickly and be more efficient in training your team on how to implement policies and procedures. The in-depth understanding of how the franchise system operates that is facilitated via standardisation will permit you to more effectively lead your team’s performance of delegated tasks.

• How have you helped existing multi-unit owners inspire and motivate their team when they are not physically present at a given location?

In reviewing franchise opportunities, keep in mind that managing a team working in remote locations can present unique motivational issues. Be sure to enquire whether the franchise system sponsors incentive systems, bonus structures, and rewards programs. Successful franchisors offering multi site opportunities will have developed methods to encourage strong performance among team members.

Multi-site franchise opportunities can be extremely rewarding! Just remember to do your research to ensure that the franchisor in which you are interested has the right support systems that maximises your opportunity of multi-site franchising.