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MANAGING MULTIPLE FRANCHISES

How do you ensure that your investment and hard work as a franchisee pays more than your competitors or even more than your fellow franchisees? Easy. If you are making good money from one……get another franchise.

People looking for ‘real’ money in the food franchising business have to be good, but if you have a flair and dedication, are brave and forward thinking, you could find yourself with more than a brace of franchises which may, or may not, be in the same line of business.

Whilst many large franchisors tend to work in similar ways, despite the disparity between foods, and have similar strict contractual codes of conduct, suppliers, cleanliness, premises and all manner of regulations to ensure worldwide homogeneity, if you had your first franchise in, for instance, burgers, you’re likely to use the knowledge you gained to purchase another franchise along the same lines.

However if you are selling a different product, it doesn’t actually make much difference to the management structure of a franchise. Ice cream or Japanese food, Mexican food or coffee, chicken or seafood, the basic rules are the same, as is the final product.

Turning from working franchisee into an owner and manager of several franchises is something some people are good at, but of course some people are not. Some have exceptional entrepreneurial skills and others can make just as much money by sticking to what they are good at and expanding a good business into a good large business.

The entrepreneur, on the other hand, may take on a coffee franchise, smoothies, pizza, chilli or any other because he is the owner rather than the day-to-day manager, and he/she will delegate responsibility for the running of that particular establishment to people who already know how to do it and are trustworthy.

Working franchisees often seem reluctant to delegate responsibility to others, so few branch-out into anything other than their own type of franchise whether it is doughnuts or fish and chips. If they are any good they will succeed admirably and be glad that they didn’t take that franchise for ……..the other year and kept the capital to expand the existing business.

The other type of franchisee is the businessman and nothing else. He doesn’t know his latte from his mocha suppliers; couldn’t tell you the difference between a Chinese or a Japanese dish on his menus, likes the hot-dogs from the street vendor beneath his office and goes to a little place round the corner for his burgers; the nice little Italian place up the road makes best pizzas for a hundred miles around and the steaks at that quiet place the other side of town are wonderful, so why is this?

Well, he or she owns the local franchises for pretty much everything so they need a break from their ‘own’ food from time to time.

Rather than be constantly having to go between franchises as the working franchisee does, these people only really are interested in managing their portfolio of franchises and have no part of the day-to-day running of any of their investments. They spend their time ‘number crunching’ and occasionally visiting their staff.

Usually the larger franchise entrepreneurs have a small staff themselves to look after the businesses, as well as the people working in them, so they are not unduly burdened with work themselves.

Many can be found in the Caribbean and other exotic places for much of the year, popping back ‘home’ from time-to-time to buy another franchise or two!


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