Franchise Business Opportunity
Expanding your franchise business opportunity
It's always exciting to watch your business grow, so if you're found something that works, why not? Many franchisees who consider themselves successful start looking at taking the next step in order to expand their franchise business opportunity into something more.
A majority of franchisees own and operate more than one location; SUBWAY reports that over 70 percent of its franchisees own more than one SUBWAY restaurant and 82 percent of McDonald's franchisees own multiple units. Even the smaller, newer franchises are starting to catch up - Curves, the women-only fitness center that began franchising in 1995, boasts that over 50 percent of its franchisees own more than one location.
A variety of choices.
Once you have made the decision to expand, you have a number of ways to do so. Perhaps you want to become a multiple unit franchisee, where you own and operate more than one unit. Multiple unit franchisees add franchises gradually and one at a time. If you're more ambitious, look into becoming an area developer. This type of franchisee agrees to develop a set number of franchises in a designated area within a certain time period.
Many franchisees aspire to become a master franchisor, where an individual begins as an area developer but expands to the point that he or she is able to sub-franchise locations to other franchisees. The master franchisor then splits the royalties with the parent company and is released of the responsibility of owning and operating each individual location.
Finding new locations.
So how do you take advantage of and expand your franchise business opportunity? First of all, check that your parent company allows you to own more than one franchise. If this is the case, read the fine print. Does this mean that you may add franchises one at a time or can you focus on an area to develop?
You have a few purchasing options. You can add a franchise that the company already owns, you can buy a location from a fellow franchisee, or you can start over and build a new site. Your parent company might encourage you to take on another site, but don't rely on them to extend the invitation. Start looking for yourself and don't limit your search to the same franchise chain; if there's a failing competitor in your area, it can be profitable to snap up their old site and convert it into your franchise.