In a
recent article on Yahoo Finance "Dickey's Barbecue Pit" has announced (or at least claims) that it has become America's fastest growing quick-serve barbecue chain. Dickey's Barbecue Restaurant currently has 146 locations open in 33 states and plans to open an additional 70 franchise locations in 2011. The company's annual growth rate over the past 2 years is claimed to have been averaging 35 percent. Dickey's attributes its growth to mult-unit franchise sales claiming that:
"Multi-unit franchise owners witness dramatic results with more immediate gratification. Single-unit owners see success, but they also need more patience".
As a franchise lawyer I am an advocate for multi-unit franchising however franchisors and franchisees need to know that "multi-unit" franchising does not guaranty success. Multi-unit franchising requires a single franchisee to open and operate multiple franchise locations. Economies of scale and efficiency is, no doubt, a benefit of multi-unit franchising, however caution is required. Franchisees must possess sufficient capital and the franchisor must possess the necessary systems and procedures to "profitably" manage growth. Franchise growth must include constant and continuous systems development.
For additional information about purchasing a franchise request a complimentary copy of "
An Entrepreneurs Guide to Purchasing a Business or Franchise" by Charles N. Internicola.
Category: Franchisee Services
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