How Multi-Unit Franchising Can Lead to Higher Profit

There are many ways to increase your bottom line as a franchisee. A common trend growing in popularity is owning more than one franchise unit. In fact, more than half of all franchised units in the United States today are owned by multi-unit franchise operators. That calculates to 43,212 multi-unit operators controlling more than 223,213 franchised units in the U.S. Why? Multi-unit franchising has many benefits that yield big gains for franchisees.

Multi-unit franchising exists in two ways. First, you may purchase the rights to develop and own multiple franchise units in an exclusive territory under one brand. The second option is to operate franchise units of multiple brands to diversify a business portfolio. Entrepreneurs who own multiple franchise brands often form their own corporations.

No matter how you do it, many entrepreneurs look at multi-unit ownership as a great way to improve profitability and possibly reduce risk.

The Pros and Cons of Multi-Unit Franchising

The benefits of owning multiple franchise units are simple economics. More business means more sales and more profit opportunity. Your return on investment is elevated. In many ways, everything gets easier because you’ve already done it once. You’re already following a solid business model, and now you’re multiplying that model. The advantages affect your overhead, which includes the potential for better supply pricing by vendors with higher bulk orders. Not to mention the already successful marketing plan in place grows exponentially, highlighting all your owned units.

Bigger often does mean better in this situation, but it is important to remember that increased size means the bottom line also increases. Employee benefit package costs may decrease as your organization becomes larger. Those benefits are very appealing to attract good employees. On the other hand, additional franchise units translate to the need for more employees to run your operation. Attracting competent workers, including managers overseeing all locations, will be a challenging task.

If you are franchising with several brands, it could be challenging to navigate the nuances of each business model. Your job will evolve to following and understanding the differences in trends and consumer behaviors across the industries in which you’ve invested. You have made a significant financial investment in these franchise brands, which can make or break you.

What to Consider

Before you dive into the multi-unit side of franchising, it’s best to get incredibly organized. Have a full understanding of operations, training and support you’ll receive from the franchisor. Understanding finances and how they change when you increase overhead and subsequent sales is key to success. Financially speaking, be very certain that you can afford additional units. For those new to franchising, consider the conservative approach by increasing unit sizes one location at a time, and make sure you are comfortable with the profitability of your existing franchise units before adding more.

AAMCO’s Multi-Unit Franchising Opportunities

If you are working with a reputable brand like AAMCO, your chances of success are high as both a single- or a multi-unit franchisee thanks to several factors. AAMCO is the world’s largest and top-rated car transmission franchise. We attract customers and franchisees alike because we have been a trusted, household name for more than 50 years. Our iconic brand attracts new and experienced franchisees by simplifying the process of owning, staffing, and running a complete auto repair franchise. No other auto repair business can claim to be the leading experts in transmission repair, which affords AAMCO owners a built-in revenue stream.

AAMCO has been growing with the times. We have trained specialists who can care for cars that are 20 years old as well as newer models with intricate computer operations. We believe in continuing education, which makes our car care technicians the best in the industry now and in the future. But it’s not just that AAMCO is leading the complex car repair industry, we also are making owning and operating an AAMCO center easier than ever before. This means that there is real opportunity for entrepreneurs to add the AAMCO brand into their franchising portfolio and maximize their profitability.

Own an AAMCO Franchise

With nearly 600 centers across North America, AAMCO is actively seeking operators who are passionate about the brand and committed to providing the highest-quality service. Potential franchisees should have a minimum net worth of $250,000 and liquid assets of at least $65,000. Depending on the real estate site selected, franchisees can expect startup costs of between $223,600 and $330,500, with a $39,500 initial franchise fee.

 

Sound intriguing? If you want to learn more about AAMCO, request more information about our franchising opportunities.

 

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