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Opening Up A Second Franchise Location

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Opening Up A Second Franchise Location

By FranchiseKing, Guest Blogger
Published: August 7, 2013 Updated: September 20, 2016

Some people who are interested in becoming owners of a franchise business enthusiastically bring up the fact that they’d like to open more than one franchise.

Let’s find out what’s involved.

Choosing and Investigating a Franchise

First off, you have to choose, investigate and buy the right franchise. Once you do that, you can start thinking about opening your second one. So, let’s start at the beginning.

1.      Do you thoroughly understand the franchise business model,* including how and why it works so well?

2.      Have you done a thorough self-evaluation to make sure that you’re suited for a franchise business?

3.      Have you thoroughly investigated the franchise opportunities that you’ve chosen to look into?

4.      Did you get proper legal advice before you signed your franchise agreement?

5.      Did you obtain the right type of small business loan for your business?

Open For Business

You’ve had your grand opening. Local residents are starting to hear about your new business. More and more of them are checking your franchise out. Things are starting to feel good. Your cash register is ringing up sales. You want more of that.

After a few months of being in business – one that’s starting to look like a winner ­­­– you may start visualizing what it would be like to have another franchise location up and running. But, what needs to happen to make it happen?


How will you know when it’s the right time? Ask these questions:

1.      Is your current location making a profit?

2.      Can you use the state of your local commercial real estate market to your advantage? Is it depressed? Are there good deals to be made with landlords who have empty space?

3.      Do you have enough employees? Can one or two of them help you open another franchise location?

4.      Will your local banker be on-board with you? Will you be able to secure another small business loan with favorable terms?

Where Should You Open It?

If you’re going to open a second franchise location, it’s important to choose your physical location carefully.

Not only will you have to make sure that the location you choose is a prime one, you’ll have to make sure that it’s in your territory. The franchise agreement you signed has very specific language with regards to territory. For example, you may have to stay within a certain zip code or maybe even a certain county. That’s why it’s important for you to go over your franchise agreement before you talk to a real estate broker or a landlord. That way you won’t be setting yourself up for disappointment if you find out about a hot potential location for your second franchise unit that turns out to be out of your territory. In other words, don’t put the cart before the horse.   

Family Support

Is your family going to be on board you on this? Will they be comfortable with the idea of taking on more risk?

Think about what went on with those close to you when you were choosing and investigating the franchise that you now own. Did you have to convince your family of your idea to become a franchise business owner? What about when the subject of money * came up? How nervous were they?

It’s important for you to put yourself in their shoes. Just because you’re excited about the idea of getting another franchise unit open doesn’t mean that they are. Start discussing your ideas with them early on…not right before you’re applying for another business loan, or a week before you’re about to sign a 10-year lease on a new commercial space.

Having two successful franchise locations up and running can be great. They’ll enable you to get closer to your personal and professional goals. Just make sure that you have done the things necessary to set you up for success.

*Non US Government links


About the Author:

Joel Libava

Guest Blogger

The Franchise King®, Joel Libava, is the author of Become a Franchise Owner! and recently launched Franchise Business University.


Franchise Operations can be very costly, 10 times more than a new business with a new name.However, getting an automatic branding is a business sales booster within itself.When you buy a franchise your buying a brand.
We'd thought about opening up a franchise in a small area. The fees are triple what a normal new startup business would cost plus it's a very precise area and codes one must follow from the purchasing franchise company. It's not that risky when it's a well balanced business with a good area population. The thing that mattered to me the most was the years of paying overhead before you see a solid profit.
personally i have my misgivings with franchising as a form of entrepreneurship. franchise are way too expensive for my liking and it always reduces the entrepreneur to one geographic location and you are not in control since the standards for operating are pre-determined by the original entrepreneur. i just think franchising is a waste of money
Thanks for commenting. We all have our opinions on franchising. it's not for everyone-but it's a great business model.   Joel Libava
i have concerns over the expenses of a Franchise. I have seen the failure side of them. You need to research them tremendously. Talk to successful owners and also ones that have failed.
Chris,   You're right; the expenses in a franchise matter. Accountants can really help figure things out for franchise buyers. Thanks,   Joel Libava
Yes its true that locations plays an important role for opening a franchise but would like to ask what sort of management structure needed to run a franchise center.
Answer: A solid one. Duplicate the one you already have for your second location.   Joel Libava  
Joel what about having a good management structure? This would be key to operating a second location in working smarter and not harder. As mentioned before you don't want to purchase a second job, but rather a second location.
For sure, Bryce.   Second location. Not a second job.   Thanks for popping by!   Joel Libava


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