Growing From Single to Multiple Franchise Units
CONTRERAS: “In the franchise industry, 80 percent of franchisees are single-unit operators while only 20 percent own more than one store. The main reason one decides to become a multi-unit franchisee is because that model offers far better economic stability and more financial growth.
The most difficult stage on the path to becoming a multi-unit franchisee is going from one unit to the second, doubling one’s size. At that point, it’s essential the franchisees begin thinking more like multi-unit managers and less like owner-operators. To do this, they must step back from the day-to-day operations and teach others to become accountable. The goal is for the franchisee to take a more administrative and supervisory role while other employees take care of the daily operational duties and manage the staff at each location.
Motivation is also a key factor to becoming part of the 20 percent who control the majority of the franchise system. Ten years ago, I met with Charley’s Grilled Subs CEO Charley Shin when I was 23 years old, having just finished grad school. He asked me how many stores I wanted to open in 10 years. I said 10.
At that time, I had no clue as to how I would accomplish that task because it was the first time I was going to run a business alone. But I was motivated, and I know Charley Shin felt that energy and believed in me. Fast forward 10 years, and I’ve gone from a single unit to 27 locations.”
GOLDSMITH: “Great stores, great employees and great service are the keys to my success. But, first and foremost, I have a passion for what I do. When I tasted Red Mango frozen yogurt, I was hooked. And believing in something that is both delicious and healthy was a natural beginning to want to share it with others.
That drove me to make Red Mango available to consumers which then led to opening seven stores in 18 months. Nothing is more critical than location, location, location. I’ve chosen real estate for high traffic that is full of my target demographic. You can never overestimate the importance of great site selection, because high visibility is one of the best attributes for a beautiful store.
My next step for success is training. One of my main strategies is to mentor all my management and staff, until they reach their full potential. While running a store, I have a store manager who I am sure can operate on the highest level. I always show my managers all aspects of the business from food costs down to cleaning a bathroom. At the same time, I have another person (usually one of the supervisors) working on management tasks as well. This way when I move on to the next store, I have somebody ready to take the management role. By doing this, my employees are more confident because they feel they know all the aspects and facts they need to run a successful store.
I’m constantly teaching and showing my staff as much as possible. I found that members of your staff have a positive attitude if they know that you are working with them and showing them all you can, and giving them the tools they need to succeed. By working together, it also creates an environment where management feels comfortable around me and feels free to ask questions. It truly creates the opportunity for them to gain the training they need to succeed. The more they know and the stronger they are, the better off you are.”