There are significant advantages to owning Multi-Unit Franchises. Let’s focus on 4 benefits you will have by utilizing strength in numbers.
For example, multi-unit franchises will have the ability to leverage purchasing power. If you run and operate an office supplies Franchise and you sell office supplies and equipment you would be making larger purchase orders which in return could save you a significant amount of money. Should these supplies sell faster in one store then another you would have the option to transfer the items to the location where they are being sold faster and optimize the efficiency of sales and re-purchasing.
Multi-unit franchises have the ability to leverage purchasing power
Another benefit of multi-unit Franchising would be savings on advertising costs. If you run a hair salon Franchise chain you would have the ability to run one marketing campaign for the benefit of all of your Salons, thus increasing the efficiency and cost of your advertising cost per location.
Training expenses could also be substantially discounted when utilized across a multi-franchise network. Whether you make one training manual, one training seminar and/or pay one company representative to train at all Franchise locations the savings would be divided among all Franchises and allow for significant savings.
Finally, last but not least you have the ability to allocate resources and personal among all locations. This is taking into consideration that most multi-unit Franchise purchases are generally located within the same geographical location. Should a company tool break or break down? You can simply borrow that same tool from another location and save on the cost of downtime. As for personal, should multiple employees take a vacation or sick days at the same time or last minute you can recruit personnel from another location to cover a shift as opposed to not having the work be done for the period of time during the absence.
Overall you will have a lower marketing cost per location. You will have the advantage of creating one training regimen that benefits every Franchise location. As you can see there are many benefits to utilizing strength in numbers across a multi-franchise organization.