A number that seems impossible until you learn The Plan.
This isn’t a theory. Many successful multi-unit franchise owners have executed this.
There is no limit to what you can build once you have a strong foundation.
1) Find a franchise that fits like a glove
Find an industry with strong tailwinds that will be around forever and growing.
Opportunities exist in food, fitness, services, sports, senior care, personal care, pets, children, B2B, health & wellness & more.
Within the industry, you need to find a brand that you love.
Someone with a strong business model, rock-solid support, and a leadership team who cares deeply about franchisee profitability.
There is no magic bullet. It’s about finding the right business for YOU.
My team can help you find a great brand. Click here to book your first call.
2) Consistently makes money (without risking it all)
“Average Unit Volume” (AUV) is a popular term in franchising.
Often franchises are ranked by this metric. The problem is it only tells part of the story.
There are 4 other components to consider: profit, cost, odds & timeline
What about the profit margins? Sales are meaningless with no profit.
What does it cost to open? $2M vs. $200k?
What are the odds that I’ll hit that number? A few top performers can drive up the average.
How long will it take…1, 5, or 10 years?
Instead, think in terms of “Average Unit PROFIT” (AUP)
Brand A: $1M AUV x 15% net = $150k AUP
Brand B: $2M AUV x 10% net = $200k AUP
3) Path to the target number of units
Figure out how many units you’ll need based on the AUP.
Brand A: $150k AUP x 7 units = $1M
Brand B: $200k AUP x 5 units = $1M
How many units can your target market(s) support?
If it can only support 5 and you need 10, then you’ll need multiple markets (or find a different brand).
Consider other franchisees in your market. You could be competing with them or they could want to sell.
Let’s say we pick a $150k AUP brand with a goal of 7 units
4) Roll your sleeves up to learn the business
A franchise gives you the tools, support, & blueprint, but someone still needs to build it.
Plan to roll up your sleeves and dive right in.
Learn every aspect of the business. Work the counter, make the burgers, clean the floors, sell the jobs, do the final walkthrough, reconcile the books…. whatever needs to get done.
This helps you understand what it’s like. You know what great looks like. You’ll also know when someone is BS’ing you.
Expect to work harder than ever for less than minimum wage.
The goal is to build the foundation that will become an empire.
1 unit: $100k/year
5) The hardest jump (where most franchisees get stuck)
Your first one is going great, so you open unit #2.
Be prepared for the hardest jump of your journey.
With one unit, your success is 100% correlated to your direct involvement. Your presence drives results. Your energy sets the standard. Your attention catches problems early.
Then you open #2 and everything breaks.
You try operating both locations like the first one, but there are only so many hours in the day. But that math doesn’t work.
The solution is to transform yourself from a doer to a leader.
Stop trying to be everywhere. Start building systems & teams that work without you.
2 units: $250k/year
6) Build out the District (the fun begins)
This is the crazy part.
Once you figure out two units, adding 3, 4, & 5 isn’t that much harder.
You’re no longer the bottleneck since you’re leading through others. You’re building a bench to promote from within when new units open up.
You’ve figured out the business model, marketing, vendors, cash flow, accounting, etc.
Once you hit 5 locations, promote someone from within to take over as the District Manager (DM)
The front-line team reports to your DM. Their phone is blowing up all day instead of yours.
You’ve got some freedom for the first time in years.
5 units: $500k/year
7) Rinse & repeat
You now have time to focus on growth since you’ve removed yourself from the day-to-day.
You build a strong back office to support payroll, HR, AP, AR, & general admin without your direct involvement.
You build relationships with other franchisees, which could turn into acquisitions. You drive around with a commercial realtor, scoping out new locations. You get more active in the local small business community.
You open (or acquire) 2 more locations that your DM will oversee.
7 units: $1M/year.
Mission accomplished
What’s Next?
You can continue to expand through development or acquisition.
You can take some time to travel the world.
You can diversify into other brands.
The whole point of owning a business is supporting the life you want.
Want Help Executing The Plan?
Reply here.
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