Making Money - May 2018

(nextflipdebug5) #1

“We already employed a man with
the right skills for Aire Serv, so we
didn’t need new staff and had systems
in place to handle call-outs and
administration for both brands.”
Running three businesses can
be hard, Steve says, because there’s
some duplication of tasks and Dwyer
Group, like most franchisors, expects
dual franchisees to maintain separate
brand images, so van logos highlight
only one brand.
Pierre Jeannes, vice president of
operations for the Dwyer Group UK,
says: “A key advantage to owning
multiple franchise brands is being
able to have a bigger brand presence,
brand equity and slice of the territory,
as you are able to market the same
services to the same customers.”
However, he says: “You must prove
you can run two or more different
concepts simultaneously, have
financial capacity and business sense
and be willing to follow the correct
systems for each brand.
“Franchise owners must not forget
that each brand must retain its own
identity.”


Elio Auletta has four territories, which
he runs as a management franchise

Andy Myers: “Having neighbouring
territories delivers synergies”

Euan Fraser of AMO Consulting says: “Timing is crucial when you’re
considering going multiple. Getting it wrong could be disastrous.”
He advises:
Consider carefully if you want to go multiple and if so start planning
well in advance.
Pick the time to put your plan into effect. If you have a van-based
franchise, for instance, it could be when van number one has
reached an 80 per cent growth in sales.
Ensure you have enough funding available to cover the extra
investment and expansion costs, plus the temporary drop in revenue
before the second unit starts to pay for itself. Be prepared to be very
stretched to serve your first unit while you’re getting unit two up and
running. Ensure you have sufficient, trained staff to keep the first
unit delivering good results.
Maintain clear communication with your franchisor at every stage of
the operation.

WHEN TO GO MULTIPLE


MANY FRANCHISORS


ACTIVELY ENCOURAGE


SUCCESSFUL


FRANCHISEES TO GO


MULTIPLE”

Free download pdf