Franchisors are learning that multi-unit franchisees are the way to go when it comes to long-term success. These franchisees have the ability to invest in multiple units simultaneously and build them up quickly. This is just one of the reasons that franchisors favor multi-unit owners.
Starting a new business, even a franchise unit, is a gamble. Few ventures survive. However, experienced franchisees who already have the experience of one or several units are better prepared to weather economic storms. Not only do they have the experience, but many of these franchisees have more than one brand to provide cashflow.
An economically stable franchise location is a win-win for all parties, so naturally, franchisors feel that multi-unit owners are more dependable than those people who own just one.
While franchises are founded on the idea that multiple people will open and run new locations, working with a lower number of franchisees is always going to be easier than working with a higher number.
Teaching the ropes to people who lack the experience can be time-consuming. It also eats into the time the units could be making a profit. Experienced franchisees do not need hand-holding.
The more owners in a franchise, the more people there are to oversee. This may sound counterintuitive to the idea of a franchise. After all, is not the entire point to allow people to be their own boss? Yes, but there is still the franchise agreement and the standards of the brand that franchisees must uphold.
The more units in a franchise, the more of a competitive edge a brand will have in its market. The speed at which franchises expand across the region or country plays a huge role in setting the brand up for ongoing success.
Multi-unit owners have the resources and business savvy to facilitate a significant amount of expansion in a short period of time. Inexperienced first-time owners, on the other hand, must often focus all of their limited resources and time on a single unit.
Set The Stage For Multiple Locations With The Best Funding
Even with experience running a franchise unit, you still need solid funding that meets your needs and ensures you are financially prepared to keep all of your units up and running. ICA created a loan program specifically for franchisees that takes all of these factors into account.
Loans ranging from $100,000 to $10,000,000 give you the flexibility to get the perfect amount for your individual business needs. We base the dollar amount on the total project cost including working capital so that all of your bases are covered. We also expedite the closing process quickly, in 30 to 45 days, allowing you to expand faster.
Additionally, you will enjoy the following advantages when you work with ICA:
- Out-of-state borrowers are ok
- Fixed-term rates start at 6.5%
- Three to 10-year terms are available
- No personal collateral required
- No prepayment penalties imposed in most cases
Do not let financial limitations stop you from reaping the benefits of multi-unit ownership. Obtain franchise financing from ICA and expand your franchise empire.