This is the second of a four-part series that busts 4 great myths of multi-unit expansion. Myth: Your best operators will make great multi-unit owners. Ain’t necessarily so!
Today’s great operators know how to be successful in the model. Why not expand their reach to more territories and we’ll grow together? Franchisees will have to work harder, but they’ll make more money and increase their ROI (and we all know that profits are the key to franchise-happiness). Franchisors will have fewer people to support, better operators and less headaches. The hardest part is getting the financing in place. Once that’s done, the rest falls in line. Right? Wrong on four counts. It’s time to bust four great myths of multi-unit franchising. Keep reading to learn the truth.
Myth #2: Your Best Operators Will Make Great Multi-Unit Owners
Some people are just great operators. They run a tight ship, pay attention to detail, submit information and respond to requests on time, embrace the ops manual and know exactly what it takes to run a great operation. These habits check most of the boxes of franchisor checklists desired to establish criteria for expansion. Yet many great operators struggle to be great multi-unit owners. Why? Because to successfully manage multiple locations one must let go of day-to-day operations. For some this means relinquishing control of the things they like best and trusting others who are not as good at it.
Successful multi-unit operators are great communicators and active listeners. They would rather talk with their franchisor about systems than support. They brainstorm with their business management consultant about achieving targeted metrics and growth rather than the details of operations. They talk more about people than products. These traits are clues that an individual possesses the enterprise mindset required to lead. If a great operator doesn’t have these traits, they can still succeed if they are willing to learn leadership skills and a new way of managing. These things can be learned. Franchisors seeking to grow through multi-unit ownership need a clear strategy for identifying leaders: either target individuals with strong leadership skills or provide leadership training and coaching to enable their best operators to lead with an enterprise mindset.
Watch for two more multi-unit myths to bust in the coming days!
ICFE Special Session on Successful Multi-Unit Expansion
My colleagues and I will be presenting a full day session entitled: Advanced Financial Essentials: Driving Profitable Growth Through Multi-Unit Expansion at the Institute of Certified Franchise Executives special sessions on Saturday, February 8th at the IFA conference in Orlando. If you are seeking to expand your network through multi-unit ownership, I encourage you to join us!
Follow this link for more details and registration options: