What to Consider before Opening a Second Franchise Location

Congratulations! Opening up a second franchise location means you have had undeniable success with the first. This success can be enthralling and make you only want to think about how to keep it going. You might even think opening a second location would be easier than the first two that you know what you’re doing. However, this is not always the case. Here are a few things to consider before opening a second franchise location

Do not rush into anything.

One of the worst things you can do is be so blinded by the success of your first establishment that it pushes you to decide to open a second one prematurely. Ensure that you have had adequate time operating in your first location and you have thoroughly learned how to manage the concept of opening franchises. Also, consider your work/life balance when thinking about opening a second location.

Consider funding and financial needs.

Before opening a second location, you should have a proper financial strategy planned out. You want to analyze the financial needs and your ability to provide funding for the new location. Then you want to find a source for the financing. Plan out a complete budget for the secondary location, including aspects such as permitting and construction, architectural fees, and up to 3 months of capital for operation. You should re-evaluate your relationship with your initial funder, and you want to be aware of the possibility of needing other funding measures.

Consider marketing plans and resources.

The best way to figure out marketing plans for your second location is by seeing what worked best for your first location. You want to fully understand your customer base and which marketing plans resonated with them the most. Next, create your revenue optimization plan as soon as possible, preferably from day one. Consult with your franchisor and make sure they agree with the next steps in your plan.

Originally published at https://tutoringcenter.com on September 10, 2021.