
Multi-Unit Growth
Early multi-unit owners at most business concepts were single-unit owners who succeeded with their original unit and expanded. When this growth starts occurring in the business, it is a good indicator that the brand has the potential for multi-unit expansion. At this stage, it is important that the business owner can confirm they have the resources to commit and a plan to start the process.
Once committed to grow the system through multi-unit expansion, you have a "game plan" that is proactive. Once you've re-engineered your operating, support, and training programs, you can start creating profiles and qualification systems to attract the right multi-unit owners for your brand. In several cases, the POS system will not integrate with multiple stores and does not have the capacity to handle the reporting needed for efficient operations. You have the resources and systems in place, the next step is to disclose those new systems in your Operations Manuals - not just rewrite Operations Manuals and make the system fit it.
1) Preparing and launching a multi-unit program. Your Operation Manuals is the starting point and roadmap that will guide your program. Since qualified, experienced multi-unit operators want to be able to discover key facts quickly, and either engage or move on to another concept, your Operations Manual becomes one of your primary tools and information centers for profitable growth. Most multi-unit businesses and operators will research concepts much differently than single-unit candidates, and most likely will not follow processes you've used in the past.
2) Business development marketing. It's likely your company website, brochures, and communications with candidates are created to attract single-unit owners. Making changes to attract multi-unit operators is a critical step that some company owned and franchise companies do not want to take because of the cost, or because they are concerned about losing the candidates they are currently attracting. To work with multi-unit owners, it is imperative to create the proper materials and systems or all your investment in changes will not be portrayed correctly. You have to talk the talk and walk the walk! Connecting the dots from the legal to the execution of documents is critical.
3) Profile the best multi-unit owners you can. Understanding the profile of your successful multi-unit candidate is a key to success. Granting to unqualified multi-unit owners who fail or don't open the required stores will only squelch your development efforts down the road because of the resulting challenges and validation calls with the wrong owners. Don't compromise in this area. This is the foundation of the plan that will move your system forward.
4) Finding the right candidates. Multi-unit marketing is a science, not a mass marketing effort. Once you've identified the profile of the right candidate for your system and the markets to develop, you are ready to assemble a marketing plan. Working with consultants and a marketing or advertising agency with success in multiple-unit sales and area development is the key. Funneling your leads into professionally conducted webinars online, with professional landing pages specific to the targeted lists, has been an effective method of screening and qualifying.
Advertising avenues are widespread, and vary depending on the concept and the target markets. Here is a partial list of activities and marketing ideas: targeted email lists; multi-unit owner conferences; direct mail lists; other multi-unit franchisees; email and direct mail lists; and print (local/regional newspapers and magazines, and trade magazines).
Slow and steady. This is not a quick process. It will take most companies about six months to pull together all the different components needed to be successful in a multi-unit expansion plan. Once this has all been completed, you can expect to attract around 5 to 8 qualified multi-unit operators who will be operating from 3 to 5 units each. If you can get their first unit open and start construction on the second in the next 12 months you will be well on your way to building a strong foundation for future expansion.