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? Or play it safe and stick your savings in a bank? The answers are different for every person. But after working with hundreds of franchisees, we’ve learned that investing in yourself is an investment you won’t regret.
Groundwork for a Financial Future
We want to let you in on an investment secret that many of our franchisees don’t know about. It’s the Pinot’s Palette® secret to success – the kind of success that replaces two people’s corporate incomes with a job that they love. The secret is to open multiple studios over time. This approach creates a dynamic and rewarding investment that provides immediate income, plus passive returns for your retirement.
Our franchisees know that opening a Pinot’s Palette studio builds their bank accounts and, at the same time, 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, The Franchise Business Review conducts independent, third-party surveys of franchisees to evaluate franchisee satisfaction. Pinot’s Palette has ranked five years in a row.
Q&A: Paint and Sip Franchise Success
To pair that job satisfaction with earnings, franchisees should consider multi-studio ownership. It has the potential to double (or more) their single-studio income, of course. For a second or third unit, franchisees apply the same skills and ownership-experience they developed running a single studio. The expense and learning curve decreases dramatically for each additional studio.
Single-studio owners are naturally skeptical of their ability to finance and manage multiple locations, but it’s easier than you might think. Here are some common questions about multiple-unit franchise ownership, and our answers.
How soon can I open a second studio?
Traditionally, SBA loan officers are looking for the first unit to cash flow the second unit’s monthly loan payment (debt service) and they require two full years of business tax returns. There are always exceptions to this rule based on the franchisee’s net worth and liquid capital, as well as their business acumen and revenue ramp-up results.
Where should I open a second studio?
The Pinot’s Palette team uses state-of-the-art software to analyze demographics, market saturation and more to help you choose the perfect location. Once you open one unit, we can analyze your customer data and have a strategic discussion regarding their zip codes and traffic time to add another layer of analysis.
How do multiple studios reduce expenses?
Multiple studio ownership (within a fixed geographic area) cuts down your unit costs in many ways. Supply costs are lower because you order larger quantities, shipping costs are discounted, advertising rates are cheaper, and you 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 opens up a world of financial opportunity, but it requires effort and delegation. For instance, you’ll need to balance studio management between yourself and a capable manager. Multiple studios allow more opportunities for selling corporate events and private parties, but this also requires you to expand the radius and frequency of your sales calls. It takes an energetic, optimistic, go-getting personality to keep two or 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 successfully open a single studio. Learn by doing! Great single-studio owners make great multi-studio owners. Take it one step at a time, create a relaxing and entertaining environment that both guests and staff enjoy, and you’ll be on your way to multi-unit investment.