TLDR

As a restaurant owner, you know that expanding your business through franchising can be an effective growth strategy. However, the costs and complexities of traditional franchise management systems may seem daunting. Fortunately, with the right tools, you can build a franchise empire efficiently without the officially designated "franchise mode."

By leveraging your existing Square point-of-sale and adding a white-label mobile ordering app, you gain the ability to easily manage multiple locations in a franchise-like structure. Each new location has its own LLC and bank account through Square. This maintains financial separation while still controlling operations through integrated platforms. Chains like Chip City's 39 locations show the power of this approach.

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Managing Multiple Locations With Square Online and Per Diem

Square Dashboard

The Square Dashboard allows you to effortlessly manage all your locations in one place. You can view sales reports, track inventory, schedule staff, and process payments across locations. Using the Square Dashboard eliminates the need to log in to multiple accounts to oversee your business.

Seamless Integration With Per Diem

Per Diem offers seamless integration with Square POS, enabling you to manage in-store and online sales through one platform. Customers can place orders and payments through the Per Diem app for pickup at their nearest location. Per Diem connects all your locations so customers always have the option to order from their preferred store.

Separate Legal Entities

Although your locations are connected through Square and Per Diem, Square recommends establishing each new franchise as a separate legal entity. You can set up individual LLCs and bank accounts for each location. This structure allows you to operate multiple franchises under one brand while maintaining legal and financial separation. Most franchisors find this approach simpler than Square’s franchise mode.

Streamlined Operations

Using Square Online and Per Diem to manage your franchise provides several benefits. You can oversee all locations through one Square Dashboard, and customers can place orders through the app. Per Diem offers a white-label solution so the app appears tailored to your brand. With streamlined operations and a unified customer experience, expanding your franchise is efficient and scalable.

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The Benefits of Staying Out of Square's Franchise Mode

Greater Control and Flexibility

By avoiding Square's franchise mode, independent business owners maintain full control over operations and the ability to make quick changes as needed. As a franchisee, you must follow the franchisor's strict rules and procedures, limiting your flexibility. Operating independently allows you to customize your business to best suit your local market and customer base.

Lower Costs

Franchise fees, royalties, and other ongoing costs can significantly impact profits. According to FranchiseHelp, the average franchise fee is $30,000, with royalties of 5-8% of sales. By operating independently, you avoid these fees and keep more of the money you earn. The savings can be reinvested into your business.

Build Equity

As an independent operator, you fully own your business and any equity built up over time. With a franchise, the franchisor typically retains ownership over the brand and controls how it is operated. While a franchisee can sell their franchise rights, the franchisor receives an ongoing cut of sales and fees from any new owner.

Legacy and Independence

For many business owners, building a company from the ground up and leaving a legacy is appealing. As an independent operator outside of the franchise system, you have the freedom to shape your business in your own vision. You can pass it down to future generations or sell it on your own terms. A franchise, on the other hand, is not truly your own.

Avoiding Square's franchise mode and operating as an independent business provides significant benefits like greater flexibility and control, lower costs, the ability to build equity, and independence to create your own legacy. For ambitious entrepreneurs looking to maximize profits and independence, staying out of the franchise system is the smart choice.

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Case Study: How Chip City Uses Per Diem to Manage 39 Locations

Centralized Management

Per Diem merchant dashboard provides Chip City with a centralized platform to oversee operations across their 39 locations in eight states. Rather than managing each franchise location individually through Square, Chip City can utilize the app's features to view sales reports, track expenses, and monitor daily operations for all locations in one place. This streamlined approach reduces administrative burden and ensures consistency in procedures across the brand.

Maximizing Control

Chip City maintains full control over each location through a permission-based system that restricts staff access and allocates specific roles. This allows Chip City to promote or manage individual locations separately. Staff at each franchise are assigned roles that determine which tasks they can perform and which reports they can access. Higher-level roles have permission to view aggregated data across all locations. This strict control ensures that Chip City's standards are followed and that no location operates outside of corporate guidelines. The permission-based system enables Chip City to scale its franchise operations while maintaining centralized oversight and management.

For franchises looking to scale operations, a white-label app integrated with Square POS can be an effective solution. The platform provides the connectivity and tools to manage various locations effectively without the high costs associated with Square’s franchise program. By handling responsibilities like location-specific marketing, analytics, and standardization through the app, the cookie brand has expanded across multiple regions, successfully building its brand through expansion.

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Final Thoughts

You hold the key to expanding your restaurant business into a thriving franchise using the tools already at your disposal. With a few strategic moves, you can establish new locations tied to separate LLCs and bank accounts through Square, bringing them together under one roof in your customized app. Growing at your own pace, you can reap the benefits of an integrated franchise model without the overhead of Square's franchise platform. Take control of your vision - add locations, connect them in your app, and watch your chain flourish. With the right approach, the possibilities are endless. Chip City's 39 seamlessly integrated shops prove franchising success is within your reach. The time is now to take the first step toward growth and prosperity on your own terms.

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