With the rising popularity of franchising over the years due to their resilient business models, single-unit franchises appeal to prospective entrepreneurs. They may not have prior experience in running a business, have lower access to capital and may be a first-time business owner. Single-unit franchise owners come from all walks of life and the skills and experience they bring to the table can help them take their franchise unit off the ground. However, direct assistance from and access to the franchisor means they play a much more hands-on role than a multi-unit franchisee.
There are multiple advantages of single-unit franchising. Some of these include:
Despite the benefits, there are also some single-unit franchise disadvantages, which may include the following:
The difference between single-unit and multi-unit franchises is that single-unit franchisees are limited to one location or business unit, whereas multi-unit franchises are spread out across several locations simultaneously. This enables multi-unit franchisees to not only diversify their costs and investment as well as earn more at a faster rate but get training and support for the multiple units at the same time. If you would like to find out more about the difference between single- and multi-unit franchising, check out this helpful article.
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