What is the Difference Between Single and Multi-Unit Hair Cut Franchises?

October 17, 2021
Hair-Cut-Franchises

At Ultimate Barber, we take our hair cut franchise very seriously. This is one of the reasons why we encourage our franchise owners to get experience with building up and owning multi-unit franchises. There are many opportunities for multi-unit franchises. This is true whether they are of the same or different franchise brands. 

It’s easy for all this to be confusing. To help, here’s an explanation of the difference between single- and multi-unit franchises and the advantages of both. 

There are numerous differences between single and multi-unit franchises. The two types of franchise owners typically have differing priorities and business goals. In order to know which is right for you, you need to fully understand both, so you can make an informed decision. 

What is a Single-Unit Hair Cut Franchise?

Usually, a single-unit hair cut franchise owner operates a single barbershop or hair salon. It’s up to them whether they stick with just one hair cut franchise or open more units, at which point they’d become a multi-unit franchise owner. 

Often, single-unit franchises appeal to individuals who wish to invest in a franchise for the first time or those who wish to run a business as a less than full-time venture. A single-unit hair cut franchise may be a great investment, and it’s certainly the best place to start for a new entrepreneur. 

However, single-unit hair cutting franchises operate on their own and can be more easily managed than multiple units. This means that single-unit hair cutting franchise owners may want to minimize their risk more than perhaps a multi-unit franchisee would expect to.   

The Benefits of Single-Unit Franchise Ownership

There are several differences between multi-unit franchise ownership and single-unit franchise ownership. Here are the advantages of running a single-unit franchise. 

LowerSmaller investment

When you franchise with a single unit, you won’t need to invest as much money upfront as you would with a multi-unit franchise ownership structure. Even if you are not certain whether you want to invest in multiple -units in the future, a single unit can be a good way to test out a franchise system.

Lower costs:

If you are considering a single-unit hair cut franchise, it’s important to know that, with this kind of investment, you will be managing operating expenses at a lower rate than you would as a multi-unit franchise owner. 

Direct involvement in operations

A further advantage is that most single-unit franchisees have more direct involvement in the daily running of the business than multi-unit operators. Because you own, manage and operate the business yourself, you may not need to hire additional managerial staff, which could cut down your overhead.

The Benefits of Multi-unit Franchise Ownership

Although single-unit ownership works for many franchise owners, the benefits of multi-unit franchise ownership are numerous. The Ultimate Barber fully supports this type of investment for their hair cut franchise owners. Advantages include:

  • Increased growth potential: Typically, more seasoned business owners are drawn to multi-unit hair cut franchises, and they also usually have a larger amount of capital to invest. And in the case of Area Development franchises, they will even have an agreement with their franchisor enabling them to open and operate multiple units within a designated territory or area on a set development schedule. 
  • Focus on expansion: Unlike a single-unit franchise operation, a multi-unit franchisee typically focuses less on the daily operations of a single business unit and more on the expansion of the business overall. 
  • Multi-unit discounts: Many franchisors offer investment discounts to dedicated entrepreneurs who purchase more than one franchised unit.     
  • Greater sales volume: Owning more units means that your sales volume is higher than that of single-unit owners. When handled with skill and experience, this can lead to potentially higher financial yields for both the franchisee and the franchisor.
  • Strengthening the brand: Your franchisor will provide you with tried and tested marketing strategies to help you draw new clients. One of the advantages of multi-unit operation is that it enables you to establish a strong brand foundation across multiple units and across multiple areas or territories, thus helping the overall brand stand out. 
  • Reinvestment and revenue opportunities: More units mean a greater opportunity for reinvestment into your franchise locations. For example, you can pump more money into advertising and hire additional employees, as your locations grow. You can also offer retail more products at your stores to increase revenue streams.  

Why Ultimate Barber Lends Itself Well to Multiple-Unit Franchise Owners

Want to find a way to take control of your financial destiny? Consider investing in an Ultimate Barber multi-unit haircut franchise. Here are just a few reasons why Ultimate Barber can be a great investment solution for multi-unit entrepreneurs:

  • Excellent market demand: Currently, the barbershop industry is worth an estimated $5 billion and is expected to grow by 1.3 percent. This means that multi-unit haircut franchises can be sound investments that can be very rewarding. Another factor to consider is that you will not only be making money on haircuts and shaves, as up to 81 percent of sales within barbershops are accounted for by men’s grooming products. 
  • Professional support: When you join the Ultimate Barber family, you’ll never feel alone. Our expert team will be with you every step of the way. Whether you want to learn more about marketing or you have a question about expanding your franchise, we are always here to help.
  • Store location and build-out guidance: The physical location of your hair cut franchise is very important if you want your business to thrive. We will not only guide you as you find the perfect brick-and-mortar location for your barbershop, but we can also advise you on landlord negotiation and letters of intent. Once you have secured your building, we will also help you with the build-out so that your barbershop is in keeping with our Ultimate Barber brand style.                                     
  • Controlled costs: Because we are aware that the cost of operating a business can be significant, we help to ensure that investing in Ultimate Barber multiple units is done with knowledge of upfront and ongoing costs, and with access to established supplier networks 

Join The Ultimate Barber Team of Franchise Owners

Are you ready to join The Ultimate Barber franchise? Contact us today to learn more about our haircut franchise opportunities. We look forward to meeting you and talking about your plans for owning your own multi-unit barbershop business.