It is said that when you are at the top, the buck stops with you as a business owner or a franchisee. While it is true that you are responsible for what happens in your company, this doesn't mean that you must do it all. It doesn't mean that at all.

• Being accountable for everything, and actually doing everything, will lead to more stress, problems, and a constant feeling of being overwhelmed. That does not do you any good as a leader of your organization. 

Believe me, I have been in situations like these constantly, and I have to redirect myself to reduce that level of overwhelm and still get things done. That’s what I'm going to share with you next, some tips for business owners and leaders to eliminate the overwhelm.

Why do business owners feel overwhelmed?

Independent business owners, entrepreneurs, and franchisees tend to be overwhelmed because they want things done in a certain way and believe that nobody else can properly execute the business but them, at...

Superstar general managers get promoted to district managers every day. But unfortunately, those promotions are not always successful and the new district managers fail at their job.

• Business owners tend to think that, because these employees did such a good job managing one unit, they’ll for sure be great multi-unit leaders. The reality could not be further from the truth. 

Why does this happen? In my +35 years of experience in the franchise world, I’ve identified three of the reasons why district managers fail, as well as the strategies you can implement to help ensure their success in the long term.

Reason #1: The district manager’s job is completely different from their previous position

General managers are required to execute the brand and business management systems within the four walls of the unit. And they often work shoulder to shoulder with the one-unit franchisee, because these business owners get involved with the operation, sometimes...

Do you know the difference between a Multi-Unit Leader and a Multi-Unit Manager? People tend to confuse these two and even use them interchangeably which is not only confusing but also dangerous for your business!

• There is a significant difference in these concepts and if you are –or plan to be– a multi-unit business owner you need to understand this to make better decisions, or it can cost you big time.

Let’s review the differences between each so you can determine which one you need in your business. 

What is a Unit Manager?

• A unit manager is the leader of a business unit and they are responsible for everything that happens inside, as well as for the team's performance and results.

They are also accountable for the execution of the brand systems (the product, the service, and the image) and of your business management systems (people, team income, profit, and growing that unit's results). 

Learn all about the biggest secret in the franchise...

Why did you become a franchisee? Some of you might have been corporate executives that wanted to have your own business. Perhaps you retired and we're looking to invest in something productive. Maybe you intended to build an enterprise to have time and financial freedom. Or you are just a dreamer that always wanted to operate your own business and be in charge of your life. 

• Whatever your reason to become a franchisee, there is something that you all have in common: you wanted to have the power to own your destiny. 

When you have one franchise unit, you are actually acquiring a job because its cash flow and profitability don’t allow you to be independent.

That is why here at The American Franchise Academy we encourage investors to become multi-unit franchisees because that’s how you multiply your profitability.

Once you do that, you are able to hire a district manager to whom you can delegate operations. By having this professional on your team, you can...

Multi-unit franchisees can truly have time and financial freedom. But the more stores they operate, the less attention they can give each one.

• That’s why having a district manager becomes critical to ensure that all units function optimally. 

But, how many stores should they oversee? Here are five considerations you must analyze to make sure the district manager performs at their best.

1. Distance

If the units are far away, your district manager will spend a significant amount of time getting from one store to another.

And, if the distance is considerable enough, there may be an increase in expenses like gasoline, hotel (if they have to spend an overnight), food, and other supplies required to travel.

This means that even within your organization, how many units a district manager should oversee might differ, depending on how close or far the units are.

2. Complexity

How complex your business model is and the industry you operate in will also...

When you own one franchised unit you can pretty much control everything that happens between the four walls of your store. You get to hire, train, and manage all the people, so they get to know you and you get to know them. 

Even if you lack the proper business and management systems, you can compensate by just spending more time there and making things happen.

Different story when you are a multi-unit franchisee and you own more stores. To begin with, you probably have a unit manager in each unit and one or multiple district managers overseeing those locations. 

These leaders are the ones that inspire and lead the team to execute the systems for the business's success. They also manage all the operation details so you, the owner, can focus on the strategic growth of your brand and the scalability of your profits and, ultimately, achieve the desired financial and time freedom.

• Sound great, doesn’t it? But there’s a catch. For you to go from a one-unit job into...

 Being mindful of your expenses is a critical responsibility for a multi-unit franchisee. However, that alone cannot drive your long-term success. If you focus only on cost control, you won’t be able to move forward with strategic thinking and growth for your business.

• Every franchise brand has a proven financial model, we call it unit economics. 

There are five things about your business and the franchise brand that you need to be aware of to truly maximize your profits, make the most of your investment, and be successful as a top-performing franchisee. 

1. Understand the Unit Economics of the brand

This is the first step for you to be a successful franchisee. Financially speaking, you need to know the limitations of the brand you invested in. That means, knowing how to maximize the average indicators based on the experience that the franchise has had in its existing years.

Some of those indicators are:

• The average revenue of the franchise.
• The...

Although the multi-unit franchise model is gaining popularity, the number of multi-unit franchisees and district managers is yet very little. 

• There are around 790,000 franchise units and the average franchisee has about 1.2 to 1.3 units each. That means that the vast majority of franchisees have only one unit. 

For that reason, there is not a lot of information on how and when to hire the district manager and what they should be doing every day. Until now.

In this blog post, we’ll break down what are the key elements of the district manager’s job description. With this information, you can set clear expectations of responsibilities, activities, performance, and behavior, to give them (and you) the best chances of success. 

District manager job description, part 1: Role

What is the role of a district manager within the organization? There are two answers to this question:

1. To grow and protect the brand, the business, and the people they are...

The biggest reason why district managers fail is that instead of doing the job of a district manager, they become glorified general managers, or what we at The American Franchise Academy call “Super GMs”. 

It all starts with the lack of knowledge and understanding of what their job really is, which creates a tremendous challenge for the organization. 

Not only that. You are wasting time and investment on this critical resource because they are not performing as they should and delivering the expected financial results.

What do these leaders look like? Why is having them a bad thing for your organization? And how can they correct the path to be successful and achieve the business goals? 

That’s what we’ll review in this blog post, so you can identify this problem, be aware of its consequences, and what they should be doing to have better district performance.

General managers vs. District managers

A general manager...

The number of multi-unit franchisees is growing across the global franchising industry. And these business owners require a great district manager as their right hand to help them be successful. 

Why is this position key? Because then franchisees can delegate operations to get the time freedom that the model promises. But beware: to truly enjoy this benefit, the district manager has to be great at their job and meet certain criteria to ensure excellence.

The American Franchise Academy has identified the five most important qualities of district managers. Take them into consideration when hiring your next district manager. 

A piece of advice before we start: look at candidates within your current workforce of unit managers. See who of them has or shows these qualities and use this information as a radar to detect the next leaders of your organization.

1. A leader that inspires 

You need to hire a leader that inspires people. The district manager's job is not...