A common path to expansion and wealth-building in franchising is to own multiple franchises of the same brand. Having familiarity with the business model already makes this a much easier decision than diversifying into another brand.
It may seem more costly to open multiple franchises – and you wouldn’t be wrong – but the payoff can be much bigger than if you only opened one. There are many benefits to owning multiple franchises, but we’ll start off with five.
OPPORTUNITY FOR HIGHER PROFITS
As always with franchising, there’s no guarantee that you’ll perform above and beyond the system average. However, with the philosophy of “the more stores you own, the more money you’ll make,” you can increase your chances of having larger profit margins.
At MY SALON Suite, our locations are built on diversification – offering a wide range of services including hair cutting and styling, barbering, tanning, hair removal, massage, makeup, tattooing, and more. Each of our franchise partners can provide many offerings all from one location. With multiple locations, the range of services only expands.
Owning multiple franchises allows you to manage your risk. If one location is closed for remodeling, having other locations means you can offset lost revenue from the closed store. When you own and operate more than one location, you create a safety net in the event that one of your stores starts to struggle. Risk management is key to maintaining a healthy business portfolio.
The MY SALON Suite business model is ideal for those who already franchise, have independent businesses, work a full-time job, or are simply enjoying retirement but want to continue collecting income. Our absentee franchise model allows our investors to remain employed elsewhere throughout the length of their franchise agreement, if they so choose. From the start, our investors are able to practice solid risk management by continuing to work while running their business. With most of our franchise partners only needing to work about 10 hours a week in salons, owning more than one location with our brand is not overly taxing.
Owning multiple units gives you the power to take advantage of all the resources you have across your locations. For instance, many of our franchise owners at MY SALON Suite have one manager who oversees all their salons.
Keep in mind, too, that this concept goes further than employees. With multiple locations, you can market your business to a larger area. Therefore, advertising costs are less per location.
Speaking of reduced costs – economies of scale tell us that when the number of stores goes up, the cost per store comes down. Owning multiple franchise units allows you to spread your monthly fixed costs more evenly among them. Anytime you order supplies, you’ll likely buy in bulk – reducing the cost of inventory per location. You may even be able to negotiate with the vendor to give you a better rate since you’re purchasing a larger quantity of materials.
STRONGER FRANCHISOR & FRANCHISEE RELATIONSHIPS
A good franchisor will lend support and guidance to all of their franchisees. However, those who own multiple franchise units may have a bit of influence when it comes to pending change within the system. Franchisees who own multiple stores have incredible experience with the brand and are typically polished business owners – earning them more clout from the franchisor and other franchisees.
MY SALON SUITE: THE PREMIER MULTI-UNIT INVESTMENT
Owning multiple franchises may seem risky, but with MY SALON Suite, it’s actually a great way to manage your risk. Our brand has been franchising since 2012, and we now have over 200 locations across the U.S. We offer a unique investment opportunity that allows for semi-absentee ownership, limited payroll costs, and more time freedom.
We’re an award-winning franchise with a nod from Franchise Business Review, naming MY SALON Suite a Top Franchise in 2022 for our high earning potential and flexible semi-absentee ownership model. Our brand also made the Entrepreneur Franchise 500, coming in at No. 62. To learn more about MY SALON Suite, a leading salon suite franchise, and our available investment opportunity, request more information today.