When you want to give your morning a boost, you ask for an extra shot of espresso in your Scooter’s Coffee® drink. When you want to give your franchise ownership a boost, you can do that with a multi-store development agreement. In fact, a majority of franchises in the U.S. are owned by multi-unit franchise operators, according to a study by FRANdata. This is because there can be real benefits to a multi-store development agreement with a franchisor like Scooter’s Coffee.
Increased Efficiency
Once you have your first Scooter’s Coffee up and running, you have the knowledge to do it again and again, becoming increasingly efficient each time. Multi-unit franchisees become more self-supporting over time. They understand the model and are able to implement it more swiftly each time.
Improved Employee Training and Retention
Similarly, training your staff gets more efficient and scheduling becomes more flexible. If you need to move employees between stores because of vacations or scheduling issues, that’s an option. You can team up your more experienced employees with the newer employees to help them learn. And once you have well-trained workers you want to keep, there are advancement opportunities available to them. Given that you won’t be able to be behind the counter at multiple locations each day, employing a top-notch staff is key.
Cost-Effective Marketing
As you open more locations, your marketing and advertising budget becomes increasingly cost-effective. While the cost of an advertisement doesn’t change, the number of stores that contribute to the advertising budget does. Say, for example, a newspaper ad costs $100. If you have a single unit, you are paying $100 for that ad. If you owned five units, each would pay only $20 for the same ad, making the cost per unit more manageable.
Protected Territory
Pursuing a multi-unit agreement comes with the added benefit of launching your business within a protected territory. This means that those making an initial mult-unit commitment are not competing with other successful, established Scooter’s Coffee locations to gain customers. This enhances the owner’s ability to establish the business in their area.
Centralized Operations Lead to Consistency
All operations do not need to be managed on-site for each location. For example, tasks like human resources and accounting can be centralized in a single location which makes them easier to manage. Because there is a single person who is responsible for these types of services, they are handled in a consistent manner for each location. This helps to improve both efficiency and quality across the units.
Increased Profitability
The multi-unit owner is likely to be more profitable. This is not simply because there is increased opportunity for earnings, but also because risk is spread out over more locations. When there’s a slow-down at one location, the others are likely to continue normal operations. This allows the owner to focus attention on the one that needs the most help.
Entering the world of franchising with a multi-store development agreement isn’t for everyone. It takes someone with the right combination of business skills, people skills and willingness to partner with Scooter’s Coffee. However, according to Franchise Business Review, satisfaction among multi-unit owners is higher than among single-unit franchisees. They cite the allure of more profitability and more freedom. You should take a look for yourself at ownascooters.com and see if the allure is there for you.
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