Put Yourself First: Multi-Unit Franchise InvestmentsPinot's Palette
The investment world is intimidating for many people. Do you put everything in real estate? Play the stock market? Trust your broker’s plan to riches? Should you play it safe and stick your savings in a bank? The answers are different for every person. After working with hundreds of franchisees, we’ve learned that investing in yourself by finding something you’re passionate about and pursuing it can be personally rewarding.
Groundwork for a Financial Future
We want to let you in on an investment secret: Open multiple studios over time. A Pinot’s Palette Area Development Agreement allows you to secure territories for your additional studios. It also reduces the franchise fee for those future studios. It’s a great option if you know you want to open additional studios but don’t have all the capital upfront.
Our franchisees know that opening a Pinot’s Palette studio transforms the way they feel about work (from dread to joy)! That point is obvious to anyone who’s looked at franchisee satisfaction ratings. For instance, Franchise Business Review conducts independent, third-party surveys of franchisees to evaluate franchisee satisfaction. Pinot’s Palette has been the number one paint and sip for franchisee satisfaction six years in a row.
Q&A: Paint and Sip Franchise Success
Successful franchisees who are looking to expand their investment should consider multi-studio ownership. For a second or third unit, franchisees apply the same skills and ownership-experience they developed running a single studio. The great thing about opening an additional studio is that you don’t have to start from scratch.
Single-studio owners are naturally skeptical of their ability to finance and manage multiple locations, but with the right balance and assistance from our support team it’s possible. Here are some common questions about multiple-unit franchise ownership, and our answers.
How soon can I open a second studio?
Traditionally, we want you to get your first studio up and running since building out another studio requires time that could be spent helping your first studio grow. If you need to acquire financing, we have a few resources available to new franchisees to help them with their investment. Small Business Administration (SBA) loans, local bank loans or retirement funds are the ways most of our franchisees fund their investment. We also have a couple of preferred lending vendors.
Where should I open a second studio?
While there’s almost no such thing as the perfect location, the Pinot’s Palette team considers site-specific details like ease of access, available parking and visibility from main thoroughfares. We use state-of-the-art software to analyze demographics, market viability and likely trade areas. Once you open one unit, we can analyze your customer data and have a strategic discussion regarding their zip codes and drive time to add another layer of analysis.
How do multiple studios reduce expenses?
Multiple studio ownership (within a fixed geographic area) can cut down your costs in many ways. At times, you get reduced pricing for supplies and advertising because you are purchasing more. You also have the option to share artists, bartenders and other resources between locations.
What’s the catch?
The catch is that you can’t be in two places at once! Owning multiple studios lets you expand your investment, but it requires effort and delegation. For instance, you’ll need to balance studio management between yourself and a capable manager. Multiple studios give you a larger territory to sell corporate events and private parties in, but you may need to spend more time making calls and visiting businesses in your territories. It takes an energetic, optimistic, go-getting personality to keep two, three or four studios humming along.
So, we’ve let you in on the secret. But how do you get started? The first step is to decide whether you want to sign an Area Development Agreement or take it one studio at a time. Regardless of which route you choose, you’ll learn by doing. Once you get the hang of things with your first studio, we can discuss opening additional studios. Focus on creating a relaxing and entertaining environment that both guests and staff enjoy, and you’ll be on your way to multi-unit investment.