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Information about a Multi-unit Franchise

May 2, 2016

If you have a restaurant franchise, it is a good idea to own multiple locations, due to the many franchise opportunities available. A multi-unit franchise has many advantages. There are many benefits available, not possible with only one location, by owning several different locations.

Higher Profits

Multiple locations are often owned by people who are savvy and better capitalized. Financial growth is much higher than a single location. A greater number of potential customers and higher profits will occur as you continue to expand. For those who have only one location, your multiple locations will make you stand out. Having a mini-monopoly in one area that prevents other franchises from opening restaurants in this area, may lead to an agreement with the parent company.

Simplified Marketing

Advertising costs can be lowered by owning multiple locations of a restaurant. All your locations can be used when you run an advertisement. Marketing with postcards that list all locations can achieve the same thing if you use direct marketing. To test out new promotions to see if they are workable before applying them to all your locations, can be done by targeting your marketing campaigns to just one restaurant. 

Additional Employees

To make the business a success, you may feel you have to do everything yourself with a single location. However, you have a group of employees who help with the work with multiple locations. You will have more time to spend on important matters as you manage your multiple restaurants.

Sharing Resources

In addition, you can keep supplies and goods in bulk with multiple locations. For large volume orders, this can result in discounted prices. And, there is no worry about overstocks. For every location, you can also create a central warehouse for the distribution of all supplies and storage is kept in the warehouse. Financial strength is just one advantage among many advantage, even though operating a multi-unit franchise has its challenges.