At the base, the franchise is a system that lends itself to the ownership of multiple units. You buy in a brand that you believe has the remaining power. You follow the systems of the brand and you benefit from the support it offers. You resize and repeat the process again and again with each new site until you feel that you have grown enough.
But what happens if the growth plans of the franchise brand do not match yours? Or if the market you want to enter is too saturated?
Well, you start the process again with a different brand.
For those looking to diversify their multi-unit franchise portfolio, the growth of several brands may seem daunting at the outset. They are motivated by the idea of working with new people, learning new systems and facing new challenges.
In truth, the process is similar, regardless of which brand you belong to. Growing your portfolio with multiple brands is often the best way to reach your growth goals in a reasonable time. You just need to know what to look for and have the right resources in place.
1. Find Your Sweet Spot
When looking to add another brand to the fold, you should first examine yourself. Know exactly what you are good at and stay in these settings. If you look at a strong management portfolio , you will notice that almost all of the activities are with brands that have simple operations and that require a similar footprint. This is not a coincidence.
In our experience, we found these concepts are where we have been proven to shine. In business, we find it preferable to stick to what you do well. Simple franchise concepts with a small footprint are not only much easier to manage but with dedication and effort, they also have the potential to grow at a faster pace. Do not forget to find your comfort zone and start growing from there.
2. Work With the Right Brand
After the rehearsals, it’s time to evaluate the brand. With so many franchise concepts to choose from, knowing what to look for is the key. Our advice is to keep an eye on the established franchises that have good leadership and solid growth in the number of stores.
Why? Because the experience and the past are there, with a desire for improvement. Take Contender eSports, for example. The brand is partnered with the #1 Gaming Equipment company in the world that has existed since 1999. But unlike many franchises, instead of becoming obsolete or complacent, Contender eSports has a strong leadership that comes with new products, better systems, and new store design because of its strategic partnerships. As a result, the growth rate of Contender eSports sales and the number of stores are accelerating.
When a brand is already successful like Contender eSports, but continues to make positive changes to streamline processes and stay relevant, its commitment to growth is clear. Brands like Contender eSports have the gift of providing the best opportunities for serious and scalable growth while focusing on creating a better experience for their franchises.
3. Think With Your Calculator, Not Your Heart
When you think about the brand to develop, your decision should always be about numbers. I firmly believe that business decisions should not be emotional, but rather analytical.
One of the biggest mistakes made by first year franchises is that they buy a simple franchise because they like the product. This is not a good way to invest. Before you join a new brand, take the time to read the franchise agreement, study the numbers and make sure it can help you make the most of your investment.
If you are in a financial situation where the numbers make sense and the risk is worth it, you may not be able to stop yourself.
4. Hire the Right People
For multiple unit owners, the key to success is success – you can not do all the work yourself. You have to hire good people and then teach, train and develop. With every brand you add, your main role becomes more focused on developing exceptional managers who can act for you. In general, good employees do not work for bad managers. Personally, we recommend developing the talent of the interior. Bring people to your stores, develop them on a part-time basis, and develop that loyalty and trust.
The store managers who work in our establishments at Contender eSports are all go-getters are passionate about technology and gaming. We trust them and find them incredibly easy to use. They show a real commitment to their roles and are always eager to learn and improve constantly. Having people like these allows your multiple unit driver to work very easily – well, we should say easier.
So, what’s next?
There are a ton of places to start looking for the next brand to put in your wallet. Attend a multi-unit conference, read franchise magazines and, most importantly, talk to other operators from multiple units and discover their experiences. Once you do your research, find a brand you want to develop with. Start working and you will have the chance to see your portfolio grow faster.