Driving profitable growth through multi-unit franchising

A little noticed trend has emerged as franchise networks start to mature.  Around the world, many franchisors are experiencing the growth of multi-unit operators within their franchise networks.

 This trend has been driven by aspirational franchisees, rather than by a definitive strategy developed by franchisors.  There is often little appreciation of the value and the risk a multi-unit franchisee poses to the franchisor and the brand.

A carefully planned multi-unit franchise strategy can create an excellent parallel growth path to recruiting new franchisees.  The correct strategy can reinvigorate the talented but tired and/or jaded, manage less franchise relationships over more units and drive increased unit performance by better micro-management.

This strategy can also be used to replace underperformers without trying to sell poor performing locations to individuals outside the organisation, who do not readily understand the potential a run-down franchise may offer.

 

Rod Young

Rod Young is Executive Director at DC Strategy.

DC Strategy is the region’s leading specialist consulting and legal firm. Our specialist teams in Strategy, Franchising, International and Legal have developed the networks and brands of many of the region’s most successful businesses. Contact Rod Young at rod.young@dcstrategy.com