Learn about the benefits of multiple center ownership and how franchisees can grow their business.
Historically, opening a franchise has consisted of two general models to choose from: single-unit and multi-unit. A single-unit, or direct-unit, franchise is the simplest and most common type of franchise agreement. Buying a franchise using this model licenses you to own and operate a single franchise location. A multi-unit franchise agreement allows a franchisee to purchase the rights to open and operate more than one unit or store, traditionally in the same region.
Multi-unit franchising has increased in popularity and frequency in recent years. In fact, the majority of franchised units in the U.S. are now owned by multi-unit franchisees. According to FRANdata, 54 percent of the country’s 450,000 franchised units are controlled by multi-unit operators and that number is expected to continue to rise. The UPS Store franchise system allows and encourages our qualified franchisees to own multiple centers. In fact, approximately 52 percent of our franchisees own more than one center. There are many reasons why multi-center ownership presents a solid opportunity for growth and wealth creation. But first, let’s consider some of the differences between owning one franchise versus multiple franchise locations.
Differences in Ownership Responsibilities
Single-unit franchise owners are often directly involved in the day-to-day operation of their The UPS Store franchise. They are in their center every day, essentially fulfilling the roles of both owner and manager. However, multi-center franchise owners are typically less involved in the daily operations, relying instead on experienced general managers and staff to handle these tasks. Although still very involved in the business on a full-time basis, multi-center owners focus more on the higher-level management of their locations.
Benefits of Multi-Center Ownership
Even though more centers mean more responsibilities, most The UPS Store multiple center owners feel it is a great way to grow their business. There are several economic and efficiency benefits when it comes to owning multiple locations, particularly within the same market.
Although income varies by location size and type, owning multiple locations provides an opportunity to maximize profit and generate a more lucrative revenue stream. Aside from business volume, multi-center owners also have the potential for significant financial gains as a result of achieving greater operating efficiencies. Costs for expenses such as equipment and supplies or back of the house responsibilities like bookkeeping and human resource management can be shared across locations. Franchisees who own multiple centers in the same area can also benefit from shared staffing and marketing efforts. In addition, qualified The UPS Store franchise owners may also be eligible for reduced initial franchise fees and receive specialized training to help them grow their business.
While becoming a multi-center franchisee requires a higher investment level, it also provides more stability and a higher probability of success since prosperity is not dependent on the performance of just one location. The operation of profitable locations by seasoned multiple center owners can also provide a great deal of stability to the entire The UPS Store system.
What The UPS Store Multiple Center Owners Are Saying
It’s not only about maximizing profit, improving efficiency and increasing stability. For The UPS Store franchisee Jim George, multiple center ownership is also about the joy of the business, “We decided to become an MCO with The UPS Store because we loved our first store. It worked so well that we thought, ‘Why wouldn’t we want to have two or three of these stores?’ So, we were able to find some opportunities very close by within the community and explore purchasing those stores with the other franchisees that were there.”
Multiple center owner Jay Soucia was looking to take on a bigger challenge to spur professional growth while at the same time creating jobs in his community and sharpening the skills of his employees, “I saw that in order for me to expand myself as a business leader, myself as just a person, I needed to take on a bigger challenge.”
He continues, “I like managing a store, but I really wanted to manage a business. I wanted to grow an operation. I wanted to create jobs. I wanted to create room for improvement for employees coming in…I just realized that I’m really good at making other people better.
A Variety of Options
The UPS Store franchise owners looking to expand their business by opening additional centers have a variety of options to choose from. Traditional, full-size stores are available as well as several non-traditional location types that allow franchisees to meet the needs of customers in their communities in unique ways.
Store in Store locations allow the owners of established retail businesses to provide additional value to their existing customer base while also gaining new ones by opening a franchise within their store. Non-traditional, store in store locations can be a great way for franchisees to grow their business while also providing valuable products and services that may be lacking, especially in smaller or rural communities.
The UPS Store centers in hotels and convention centers present another opportunity for franchise owners to branch out into multiple center ownership. Hosting a unique mix of vacationers, business travelers, exhibitors and conference-goers creates a prime location for a business center capable of accommodating a variety of needs from packing and shipping to professional printing.
Colleges and universities are often in desperate need of a facility to streamline mail, package delivery and storage solutions, in addition to providing a full line of services like packing, shipping, printing and faxing, as well as being a resource for moving supplies. In some areas, like Nashville, The UPS Store center at Belmont University services the entire community as well as students, faculty and staff.
Military bases provide another unique opportunity for franchisees to expand into multiple center ownership. The UPS Store centers on military bases not only provide valuable services to on-base businesses and community members, but they also help families stay connected with loved ones.
Whether traditional or non-traditional stores in urban or rural markets, we love helping qualified The UPS Store franchisees grow their business by becoming multiple center owners. Many opportunities for opening a franchise are available across the country including existing stores ready for business as well as open markets for development. To learn more, reach out to our franchise development team, join one of our weekly webinars or attend a live event in your area.