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Opening a second location: the systems to copy first

By Joseph Gomez Salazar · Paper StPublished Oct 11, 2026Drafted with AI from the public sources listed below. Published by Joseph Gomez Salazar. How we make these guides

Short answer

Before location 2 opens, copy 7 systems from location 1, so what you learned there can travel. In a study of 36 pizza stores, know-how faded fast (Darr, Argote and Epple, 1995). It moved between stores with the same owner, but not between different owners. In our view, shared systems are how it moves.

The goal

You'll be able to name the 7 systems a second location leans on, score each one, and fix the gaps in order.

What to expect

You'll get: the 7 on one page, a readiness score, and a 6-line checklist.
Expect: about 6 minutes to read, and 30 minutes to score.
For: owners with one location that works, planning a second. Not for: buyers of a franchise, who get these systems from the franchisor.

Is this you?

Could a new hire close up tonight without calling you?
Do your books show profit for each location on its own?
Do both locations share one customer list?

3 yeses? Skip to "Worked example". Any no? Start with the 7 systems.

On this pageSections

The 7 systems to copy

How we chose them. Each one keeps location 2 doing the work the same way, seeing the same customers and stock, or reading the same numbers. Do them in this order.

1Written how-tos: the work gets done your way

What it tells you: whether a new person can do the task without calling you.
Where it lives: a shared folder or checklist app that both locations open.
How often: update when a step changes. Read them all every 3 months.
The red line: a task that lives in one head gets written down before you hire.
Example: "Close the till: count it, photo the count, enter the total in the sheet by 9 pm."

2One customer list: nobody starts over

What it tells you: who your customers are, and which location they use.
Where it lives: your booking or customer app, with a location field on every customer.
How often: every new customer, as they book.
The red line: if location 2 starts its own spreadsheet, stop it on day 1.
Example: a customer who moves across town keeps their history at the new location.

3One way to take orders: every order says where

What it tells you: how much work each location wins, from the same forms and phone line.
Where it lives: the same booking form or order screen, with a location choice.
How often: every order.
The red line: no orders on paper or in a personal inbox.
Example: the website form asks "Which location?" first.

4Location tags in the books: you see which one makes money

What it tells you: profit for each location on its own. One accounting app offers location tracking only on its 2 higher plans (QuickBooks).
Where it lives: the location or class setting in your accounting app.
How often: set it up before the first sale. Read it monthly.
The red line: in our view, months without tags are hard to split later.
Example: rent for location 2 is tagged "Location 2", not left in one pile.

5Stock counts per location: you know what is where

What it tells you: what is on the shelf at each place, and what to move or reorder.
Where it lives: your stock or till system, with one count per location.
How often: weekly, same day, same count sheet.
The red line: stock that moves between locations without a record.
Example: 12 bags of flour go from location 1 to 2, and are logged as a transfer.

6A training checklist: new hires are ready on day 5

What it tells you: when a new hire can work alone.
Where it lives: the same folder as the how-tos, one checklist per role.
How often: every new hire, day 1 to day 5.
The red line: nobody works alone before the checklist is signed.
Example: "Day 2: opens with a lead. Day 4: closes alone, then a lead checks."

7One daily numbers report: you can run it from anywhere

What it tells you: sales, jobs done and missed calls, for each location, side by side.
Where it lives: one sheet or dashboard that both managers fill in, or that the apps feed.
How often: daily, plus one short call a week.
The red line: a number missing 2 days running means a call that day.
Example (made-up numbers): location 2 shows 9 missed calls on Tuesday, against 2 at location 1.

All 7 on one page

The 7 on one page. Print it, or keep it open while you score.

#	System	What it tells you	How often	The red line
1	Written how-tos	A new person can do it your way	Update on change; review every 3 months	Nothing lives in one head
2	One customer list	Who buys, at which location	Every new customer	No second spreadsheet
3	One way to take orders	Work won per location	Every order	No paper, no personal inbox
4	Location tags in the books	Profit per location	Set up before sale 1; read monthly	No untagged months
5	Stock counts per location	What is where	Weekly	No moves without a record
6	Training checklist	A hire can work alone	Each hire, days 1 to 5	No solo shifts before sign-off
7	Daily numbers report	Both locations, side by side	Daily	2 days missing means a call

Seven systems sit between two shops. Arrows show each one set up at the first location, then copied to the second. — Fig. 1Set up once, copy to location 2. Key below.

Worked example: a bakery scores itself

Worked exampleMade-up numbers, not a benchmark

A bakery owner scores each system from 0 to 2.

0: only in someone's head.

1: written or set up, but only location 1 uses it.

2: written, shared, and used every week.

#	System	Score	Fix
1	Written how-tos	1	Share the folder
2	One customer list	2	None
3	One way to take orders	1	Add "Which location?"
4	Location tags in the books	0	Turn on tags, 30 minutes
5	Stock counts	1	One count sheet for both
6	Training checklist	0	Write it, about 2 hours
7	Daily numbers report	1	Add location 2's column

1 + 2 + 1 + 0 + 1 + 0 + 1 = 6 of 14. The two 0s come first: books and training. Our rule of thumb, not a study: fix every 0 before you sign the lease, and every 1 before opening day.

add the 7 scores = readiness, out of 14

Your turn: score your 7

#	System	Score (0, 1 or 2)	Fix
1	Written how-tos
2	One customer list
3	One way to take orders
4	Location tags in the books
5	Stock counts
6	Training checklist
7	Daily numbers report

If it goes wrong

Watch out

Common mistakes, and the fix for each.

You become the system.

Spot itlocation 2 calls you for answers every day.

Fix itturn each call into a written step (system 1). Know-how fades fast, as the pizza store study found.
Two customer lists.

Spot itthe same customer twice, with different phone numbers.

Fix itmerge into one list with a location field (system 2).
Books you can't split.

Spot ityour profit report shows one business.

Fix itturn on location tags before the first sale, then run profit and loss by location (QuickBooks).

Check your work

Done

Do-confirm checklist. Do the work, then confirm each line.

Every system has a score from 0 to 2.
No 0 is left when you sign the lease.
The customer list has a location field.
Location tags are on in the books.
Every role has a training checklist.
The daily report has a column for each location.

Check yourself

Answer from memory, then open the answers.

In the pizza store study, when did know-how move between stores?
Show the answer
Between stores with the same owner, not between different owners.
What is the red line for training?
Show the answer
Nobody works alone before the checklist is signed.

When this does not apply

You are buying a franchise. The franchisor supplies most of these. Ask to see its operating manual before you buy.
Location 2 is a different kind of business. Copy only systems 4 and 7. The rest will differ.
A pop-up or a season-only stand. Systems 3, 4 and 7 are enough.

Your next step

This week

score your 7 today, in 30 minutes. Then fix the first 0 on the list before Friday.

Go deeper: why write it down

Show the detail

The pizza store study. Researchers tracked 36 pizza stores in Pennsylvania, with 10 different owners, weekly, for about 18 months (Darr, Argote and Epple, 1995).

What they found	How to use it
Costs per unit fell as stores gained experience	Location 1's lessons are worth copying
Know-how "is found to depreciate rapidly"	Write it down before it fades
It moved between stores with the same owner, not between owners	In our view, shared systems help carry it

It is one study, from 1995, of one kind of store. It did not measure software. The direction still fits: lessons fade unless something holds them.

The manual test. Franchise rules make a franchisor list the table of contents of its operating manual, with the pages on each subject (16 CFR 436.5(k)(6)). It must also say which computer systems owners must use, and whether it can see their data (436.5(k)(5)). Could you write that table of contents for your business today? If not, start with system 1.

Sources

Darr, Argote and Epple, "The Acquisition, Transfer, and Depreciation of Knowledge in Service Organizations: Productivity in Franchises," Management Science 41(11), 1995, pages 1750 to 1762. Abstract. econpapers.repec.org/RePEc:inm:ormnsc:v:41:y:1995:i:11:p:1750-1762
US Code of Federal Regulations, 16 CFR 436.5, Item 11, paragraphs (k)(5) and (k)(6). law.cornell.edu/cfr/text/16/436.5
Intuit, "Set up and use location tracking," QuickBooks help. quickbooks.intuit.com/learn-support/en-us/help-article/track-location/set-use-location-tracking/L2raFkEBC_US_en_US
Intuit, "Run a Profit and Loss report by bank account," QuickBooks help (covers Profit and Loss by Location). quickbooks.intuit.com/learn-support/en-us/help-article/profit-loss-reports/run-profit-loss-report-bank-account-quickbooks/L7LG5aAyC_US_en_US

About this guide

How it was made: drafted with AI from the 4 public sources above. No Paper St client notes were used.
How it was checked: each number against its source, by a checker separate from the drafter, before release.
Who published it: Joseph Gomez Salazar. Published Oct 11, 2026. Last updated: not yet.
More: How we make these guides