Greg Nathan, managing director of the Franchise Relationships Institute has conducted multi-unit franchisee summits.
ñPossibly the most significant insight I have heard from franchisees and franchisors who have experimented with multi-unit operations is this: ñWhen you get to three or more units everything changes,î he says.
ñWhen it comes to multi-unit franchising you need to operate from a different set of rules. These rules will again change as the number of units increases.
ñIn a research study involving 870 multi-unit franchisees we found they were significantly less satisfied than their single unit counterparts with the support being provided by their franchisors.î
So what should franchisors be doing? One suggestion Nathan has is for them to partner multi-unit franchisees with their better calibre field support managers; if this is not possible then multi-unit franchisees should have the opportunity to spend regular time with senior franchisor executives.
ñIn another study we completed for a large franchisor with a significant number of multi-unit operators, we found the more successful scored higher on measures of leadership, communication skills and business acumen.î
Before allowing franchisees to take on more units, franchisors should be measuring these and other important attributes, advises Nathan.
ñLetÍs make sure multi-unit franchisees have the best chance of a long and prosperous life by equipping them with the right knowledge and support,î he adds.