Benefits To Multi-Unit Franchising

TheFranchiseHound:

Entrepreneurial franchise owners have one goal in mind: multi-unit franchising. Why? Because that’s how you get rich. We’ve listed the tremendous benefits of multi-unit franchising as compared to operating a single franchise below.

1. Economies of Scale – The biggest benefit of operating several stores is economies of scale. Companies gain cost advantages as they grow. For example, certain franchises require vans as a means of transporting materials from one location to another. With just one franchise, the van would be used simply for that single store. However, with multiple units, the van could be used across all stores so the cost is spread out. If the van serves more than one store, its value to these stores increases while the actual cost of the van remains the same. Another example of this is employees. As you increase the number of stores, both regular employees and managers can be used at any of your stores so that you can share this variable cost with all your stores. Full article.

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