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How to be a successful multi-unit franchisee

Sarah Stowe

Franchisees who want to build their business into a multiple site operation require a different set of skills from those needed to be a successful single unit operator, as these multi-unit franchisees attest. 
 
Getting to grips with the running of a franchise system is one thing; it is quite another to take that understanding, the knowledge of how to operate a single business and extend the skills to be able to perform at a high level and to take a more strategic role in the business. Increasingly franchisors see the value in encouraging their good franchisees to take on a bigger role within the network, but not every franchisor is geared up for this nor is every great single unit operator suitable for a multiple unit role. 
 

The importance of staff 

Brad and Matt Walker have won multiple awards from the Franchise Council of Australia for their business skills. As the FCA Multi-unit Franchisee of the year for the past four years, the pair has shown talents in operating two Grill’d casual dining outlets. 
 
“Being a great communicator helps. It’s important to be able to deliver your goals and plans precisely and effectively,” says Brad Walker. 
 
Bakers Delight franchisee Tony Kaye agrees. He admits “Being a person who likes to be in control and have an influence on the daily operations of the business my biggest obstacle was trying to be in two places at once. 
 
“As a single unit operator you have the luxury of building a team around you and you have the ability to make yourself a key person in that team if you desire. Once your business expands this luxury is taken away and you need to develop a hierarchy for each individual site with key people who can communicate direction,” he explains. 
 
Brad and Matt Walker discovered that getting the right people on board was vitally important for the smooth running of their business. And key to this was to really understand both the brand, and the franchise business, to evaluate exactly what skills the roles demanded. 
 
“You need to know your brand and business really well before you employ someone, what they need to be doing in the business,” says Brad. “In the early stages, the biggest challenge was growth. We spent more time in the newer store so we had to make sure the existing business didn’t slow its growth – having the right people on board was critical. 
 
“They need to have the right skill set and fit into the Grill’d brand. It’s pretty hard to get it spot on every time.” 
 
He says that stepping up from one store to two outlets was the biggest learning curve for the brothers. “You are spreading yourself so you can’t be hands on,” he says. “You need to be able to trust your team. We promoted from within our business and this helped us understand the skill sets and we were able to mould the people. We helped mentor them and they were like-minded.” 
 
Tony and Isla Kaye were named the FCA New South Wales and ACT multi-unit franchisees for 2014.  
 
“You need to be able to create your own universe and invite your team of staff to fill it with their great ideas. By engaging with staff and encouraging and supporting their development, they will become key contributors to your overall vision for the business,” says Tony. 
 
And communication is two way. “Creating an open, honest line of communication with a willingness to evolve your business in the direction that your brand navigates is what provides a strong foundation to a healthy relationship with your franchisor. The franchisor provides systems and direction and as a franchisee it is your responsibility to follow the franchisor’s guidance. In doing so you will uphold your brands image and ensure consistency throughout the network,” he adds. 
 
The Kayes believe there are many elements that aid success as a multi-unit franchisee. Time management, people management and leadership qualities are all skills that need constant review and improvement, the pair suggests.  
 
Tony says organisation is paramount. If he had the time again, he says, “I would be more organised. I really underestimated the power of forward planning for those initial first few months and the type of issues I might have to encounter, not only from an operational perspective but also a staffing perspective.” 
 
There is no doubt the franchisor can ease the transition to multiple unit operation, and Kaye found Bakers Delight stepped up to this. 
 
“With the assistance of the area manager, we were able to accelerate the rate in which we improved and maintained operational standards in the business. This was a task made easier with the assistance provided to me from the franchisor. Without the assistance of the area manager, a task that took time to improve would have taken considerably longer.” 
 

Plan for success 

“If I could pass on some advice to anyone who is thinking about becoming a multi-unit franchisee, it would be to take some time out of your usual routine and really plan for your success carefully. Plot your first 12 weeks of trade and allocate time to analyse your businesses performance.” 
 
Walker also has some guidance for anyone considering a multi-unit profile: make sure you get business advice on setting up the business correctly from the very beginning.  “We were a bit short sighted setting up the financials, now we look longer term,” he says. “We have two personal goals: the growth and development of our people, and the financial success of our business. The two go hand-in-hand.” 
 
There are specific challenges, and benefits, to being a franchisee with a partner, and these can be accentuated as multi-unit franchisees. Brad Walker sees the capacity for him and his brother to operate separate areas of the business as a distinct advantage. 
 
“Matt and I have benefitted from our relationship because we have different personalities and strengths. I’m more people based and HR, Matt has a financial, operations and strategic background.” 
So would the pair have done anything differently if they were starting out again as multiple operators? “We would probably have bought on vested interest moving from one store to two stores. That would allow for expansion and fill in some gaps,” says Walker. 
 
While the brothers brought experience running large operations and multiple unit business to the Grill’d franchise, they say it is essential to have a good relationship with the franchisor to be able to take the next steps as a franchisee. 
 
“Trust and belief is key. We know and trust the franchisor is making the correct decisions to grow the brand.”