Entrepreneurs exploring franchise opportunities often encounter multi-unit franchises, which allow franchisees to sign agreements to operate multiple locations.
For those new to franchising, the choice between starting with one location or committing to multiple units can be challenging. While owning several locations offers the potential for faster financial growth, it’s essential to evaluate the details of multi-unit agreements before deciding if they are the right fit.
What Is Multi-Unit Franchising?
Multi-unit franchising occurs when a franchisor grants a franchisee the rights to open two or more locations. The agreement typically specifies designated territories and timelines for launching each unit.
In contrast, a single-unit franchise agreement allows the franchisee to begin with just one location, with the option to expand later by signing new agreements. However, this approach carries the risk that desirable territories might no longer be available when the franchisee is ready to grow.
Should You Stick to One Franchise Concept or Diversify?
Entrepreneurs can pursue multi-unit agreements with different brands, such as owning three family entertainment centers, three restaurants, and three spas. However, there are clear advantages to focusing on a single franchise concept.
The main benefit of franchising is access to a proven system for success, but each brand’s system is unique. Learning multiple systems, software, and operations for different franchises can be time-consuming and challenging.
By sticking to one concept, franchisees can become experts in running that business. This expertise allows them to open new locations efficiently and avoid the steep learning curves associated with managing different franchises.
Should You Open Franchises in One Area or Spread Out?
Multi-unit franchisees have the option to open all locations in one region or expand across different states. The decision depends on personal business goals, the franchise model, and comfort with managing locations far from home.
Opening several locations in one area offers cost-saving benefits. Resources such as employee training, inventory purchasing, and marketing efforts can be shared across multiple locations. For example, bulk ordering supplies can lower costs, and marketing campaigns can cover all nearby locations, reducing expenses.
Concentrating locations in one region also reduces competition from other franchisees within the same system. Securing all locations in a region ensures exclusivity, protecting the franchisee from competition within the brand.
Why Multi-Unit Franchises Are a Strong Path to Wealth
Owning multiple locations creates multiple revenue streams, which increases earning potential. Entrepreneurs considering this route should thoroughly review the Franchise Disclosure Document (FDD) with a franchise expert or attorney. The FDD often includes financial performance details, such as gross sales, costs, and profit margins of existing franchisees.
Additionally, many franchisors offer discounted franchise fees for multi-unit agreements, as these arrangements help franchisors expand quickly and efficiently.
Why Launch Entertainment Stands Out as a Multi-Unit Franchise
Launch Entertainment offers a unique family entertainment experience with attractions for all ages, such as XP Arena, a ninja course, laser tag, trampolines, bowling, and more. It also features Krave Restaurant and Bar Hops beverage service, ensuring a diverse range of revenue opportunities.
This high-margin, service-based franchise model provides both single and multi-unit opportunities. The business is designed for repeat customers, supported by marketing programs and operational systems that help franchisees maximize profits, even without managing day-to-day operations directly.
From site selection and construction to the grand opening and ongoing support, Launch Entertainment’s experienced team is dedicated to ensuring the success of its franchisees. This makes it an excellent choice for entrepreneurs seeking to invest in a proven, scalable franchise model.
