Keys to successful multiple-unit franchising.

The old potato chip commercial, "Bet you can't eat just one," seems to apply to franchising in the last few years. More and more franchisees are opening more than one unit, either of one brand, or of several.

The statistics are interesting. According to FRANdata, a franchise research firm in Washington, 27,000 franchisees own and operate two or more franchises in the U.S. These franchisees represent more than 30 different industries and operate more than 110,000 franchise units. Of these, 7,000 operate two or more brands. And more than 400 franchise companies have multiple unit franchisees in their systems.

There are good reasons for these big numbers as entrepreneurs examine closely the advantages.

Spread the risk. Multi-unit franchisees avoid the old pitfall of having all their eggs in one basket. A single-store operator is exposed to many business dangers, from accidents to a changing demographic n the neighborhood. If a franchisee owns several units it's unlikely that all of them will fail at once. If one sags because of changing consumer tastes, the others can support through the hard t rues. If it s the only unit, the whole business can go under, taking the franchisee's savings and hard work with it.

Spread the work. Single-unit franchisees have to be the whole orchestra. Multi-unit operators usually need a staff, and plan for it from the beginning. It means you can have a financial expert on staff (or at least on call) who knows the ins and outs of finance. Multi-unit franchisees should have the ability to gain economies of scale and spread their overhead costs over more units, thereby reducing them.

Seize the opportunity. Multiple unit operators usually have more capital to invest when an opportunity presents itself, Single-unit franchisees are usually buried in the details of running the business, with little time to think about opportunities, and limited capital when one comes around.

More clout. Franchisors look at multiple-unit franchisees differently because they're bigger and contribute more of the parent company's revenues. When a multiple-unit franchisee speaks, he or she is more likely to be listened to and taken seriously.

Multiple-unit franchisees fall under different headings, and each is a different animal. To take them from the smallest to the largest: Multi-unit franchising means more than one unit of the same brand operated by one franchisee; multi-brand franchising means two or more units from different brands; co-branding means several complementary franchise concepts under one roof; and area development refers to a franchisee who has contracted with the franchisor to develop an entire geographic territory (as large as a country or several states in many cases).

Each of these presents slightly different problems and challenges. Most multi-unit franchisees say that they didn't really plan to do it, but the opportunity came by and they took t. Most successful multiple-unit operators take the same steps to success.

Plan the organization. Handling even two or three stores is different from handling one. A multiple-unit operation needs a defined infrastructure able to hand e payroll, real estate, accounting, human resources and operations management centrally. Successful operators plan that infrastructure from the beginning; if not, they create it pretty quickly or get overwhelmed.

Manage the franchisor. The multiple-unit franchisee is usually sophisticated enough that he is past requiring hand-holding from' the franchisor. What he does require and has to insist on, is for the franchisor to manage, advance and protect the brand. They also expect support systems from the franchisor: operations, training, marketing, design, and accounting. They expect them to be maintained and continually improved and accessible. And they are strong enough to insist that these expectations be met by the franchisor.

Manage your finances. Multiple-unit franchisees have more income, and more demands. Without financial strength, failure can come quickly, and opportunities for growth can be missed.

Manage your people. According FRANdata, the top priority of successful multi-unit franchisees is good operations personnel, and good people skills for themselves.

There is no guarantee of success in multiple-unit franchising any more than in single-unit. But good management and careful planning will give a multi-unit operator a greater degree of success.

Eagle's Nest Homes

OUR SERVICES:

"I built the Regency II complete for S103,744 and it appraised for $132,000, for $27,756 equity upon completion."--Len W., FL

Since 1983, Eagle's Nest Homes has helped homeowners acquire a higher quality home at a cost up to 25% less than appraised value.

The panelization process provides a fixed pricing with a faster, easier erection time.

The "Builder Assisted" concept also provides the comfort and protection of a contracted builder PLUS identifies the proven dynamics, which reduce costs and increase equity.

The equity created provides the motivation to move forward. The savings and enhanced equity provide homeowners with several options:

Reduced mortgage payments.

Acquire more home than your mortgage ability would allow.

Utilize your home in the location and style that meet your requirements.

OUR BENEFITS:

Our budget was $150,000. We spent about $142,000. The house appraised at $192,000. By using a cost comparison, the house appraised at $222,000." --George H., OK

Reduced costs and equity creation via the program design.

Contracted builder participation for buyer and lender protections.

Panelization of the superstructure to increase quality, reduce erection time, and provide a fixed nonvariable cost for a major part of the home building project.

Eagle's Nest Homes has defined principles which can bring you the dual advantages of reduced cost home ownership and the possibilities of utilizing the equity created for future financial victory.

As a contracted Representative working with a local builder you can show a difference of cost w. appraisal to an%--A cost of $110,000 produced a $145,000 appraisal! To get started, a $6,500 minimum house deposit is required for your own business, private use, or presale.

For a FREE color catalog with a price list and floor plans call MR. LOWELL at 1-800-579-1079.

Golden Corral 

Franchisees tell Golden Corral Corporation that they enjoy the best of both worlds.

On the one hand, they are CEOs of their own businesses, generating earnings for themselves and creating wealth for their families.

On the other hand, they receive continuous support from Golden Corral that starts long before the first restaurant opens.

The Wall Street Journal noted that the life of a Golden Corral franchisee "is a blend of entrepreneur and traditional manager."

That's because franchisees have a relationship with Golden Corral that is like that of partners who share in and contribute to each other's success.

Golden Corral contributes to the success of its franchisees by offering them the company's most valuable assets: a powerful brand name, proven operating system and ongoing assistance provided through real estate, construction, equipment, operations, marketing, food and beverage, training and human resources experts in the regional and home office support centers.

All of this is the product of a company that has grown and prospered during the past thirty years and is a national leader in the food service industry. There are nearly 500 restaurants in the Golden Corral system and dozens more open each year.

Of particular importance, more than 100 of the nation's Golden Corrals am company-operated, which means that corporate management is closely attuned to day-to-day market conditions and guest preferences. New menu items, improvements in operations, building remodels and equipment changes are tested in company restaurants and not released to the system until they are proven successes.

Innovation and creativity are central to Golden Corral and reflected in the company's statement of beliefs, which begins with this commitment: "We Never Stop Striving to Improve."

Golden Corral has built its business on service to others, treating customers as guests. Golden Corral pledges that it is honest in all that it does.

And it values the diversity of its franchisees, employees, guests and suppliers by demonstrating respect for the individual and providing meaningful work opportunities.

DENNY'S

Fifty years ago, a little doughnut shop opened its doors, and what is now known as Denny's restaurants has been opening doors ever since. Denny's gives people all across the country a good place to sit and eat, quality food, friendly and attentive service along with prices that represent a great value.

Denny's also opens doors for our franchisees. Our franchisees are the reason we've grown from one doughnut shop in a small town in California to the largest, full-service family restaurant in America, with over 1,600 restaurants within the United States, Canada, Costa Rica, Guam, Mexico, New Zealand and Puerto Rico.

Denny's generates more than $2 billion in system wide sales, and thanks to our focus on recruiting, training and developing franchisees, the average Denny's restaurant generates over $1.3 million in sales per year.

It is Denny's belief that America's diversity is one of our greatest assets when competing in a global economy. As a company, we view diversity as a rich source of ideas, creativity and innovation. This is the real reason we were named "Best Company for Minorities" by Fortune magazine for two consecutive years. We take pride in this honor, not just for Denny's the corporation, but for all of the people who make up Denny's.

Fifty years of hard work, dedication and opening doors. Can we open the door for you?

Call or visit us at www.dennys.com.

THE ENTREPRENEUR'S SOURCE THE AMERICAN DREAM 

A very small portion of people who aspire to be self-sufficient ever realize their dream. Some fear the unknown, but most are simply confused by the many options, prematurely dismissing potential opportunities when all they need to realize their dreams is information, coaching and guidance.

Terry Powell started The Entrepreneur's Source in 1984, creating the premier international source for information about a wide range of self-employment options, education and coaching. They represent their clients at all times bringing total objectivity to the process of finding career alternatives. Using informal interviews and profiling instruments, E-Source consultants guide clients through the process of selecting options that meet their requirements.

Becoming an E-Source consultant requires intensive training at the E-Source Academy where candidates are immersed in the unique philosophy and proprietary techniques of The E-Source. On-going training and support from national and regional support offices enable continued growth for consultants as they strive to help clients achieve their dreams.

E-Source clients are typically individuals who are tired of the corporate world and dream of self-sufficiency. With The Entrepreneur's Source, they enjoy a no risk, no obligation process providing a wealth of information and guidance in achieving their goals.

If you are interested in becoming an E-Source client or consultant, visit them on the web at www.theEsource.com; e-mail at [e-mail]; or call 800-765-4492.

Resource Guides

1. Franchise UPDATE's third National Multi-Unit Franchise Conference & Expo, January 2-3, in Ft. Lauderdale at the Bonaventure Wyndom Resort & Spa. The only conference dedicated to multi-concept franchising. (800-289-4232; www.franchising.com; www.mudcous.com).

2. FRANdata is the nation's leading source of information and analysis on all aspects of the U.S. franchise industry (www.Frandata.com).

3. The International Franchise Association, the national association of franchisors and franchisees (www.franchise.org).