FNB Franchising Summit 2015 Owning and operating multiple franchise units
Morne Cronje Franchisees who make a success of their current franchise often consider owning a second or multiple franchise units. Franchisors might also grant a second or multiple units to existing franchisees as they have proven that they can make a success of their franchise. “A multi-unit franchisee is defined as the franchisor awarding the right to a franchisee to operate more than one unit within a defined territory. To manage and run multiple franchise units requires ongoing dedication and commitment,” says Morne Cronje, Head of FNB Franchise. There are a few factors to consider before embarking multiple franchise units. 1. Expenses A multi-unit franchise owner will have higher expenses not just due to the normal additional operating expenses, but also due to the need for a good infrastructure. Owners will need to ensure that the units are consistent throughout and will have a higher capital requirement as revamps to the outlets will be required. 2. Sound Fina...