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Perhaps you’ve dreamt of being a franchise owner but are stuck on which franchise to enter. Or, perhaps, you’re ready to expand from one franchise to multiple franchises. In either case, there’s good news — becoming a multi-brand franchise owner has distinct advantages that can propel your success forward in franchising.
Yes, franchise ownership comes in a variety of shapes and sizes. Let's break down the benefits of being a multi-brand franchise owner to understand better what’s possible when opening and running multiple franchise units under various brand names.
Diversify Your Portfolio. Diversify Your Revenues.
When you own a single franchise, you’re married to the ebb and flow of what happens in that singular industry and brand. For example, if the franchise is seasonal, there will be a feast or famine approach, causing you to go all in during certain months and pull back out again during other months. That can lead to burnout during busy times and anxiety during slower periods.
By diversifying your franchise brands, you can better insulate yourself from this feast-or-famine lifestyle. Investing in multiple brands across industries allows you to diversify your revenues and risk. When markets fluctuate and changes happen in one industry, you still have revenue through the other franchise. You’ll be less dependent on economic downturns and better equipped to maintain steady revenue flows.
Cross-Promotion Opportunities
As a franchise owner, you have a unique opportunity to cross-promote other businesses in your area. This includes cross-promotion of your other franchises, as long as there’s synergy between the two brands. For example, if you open up a children’s franchise and a coffee franchise, you could easily cross-promote to parents who often appreciate a good cup of coffee while in the throughs of parenthood. Likewise, your coffee shop could host events that would bolster the brand awareness of your children-based franchise.
This approach isn’t just about brand awareness, either. It’s also a powerful way to build customer loyalty by serving your audience better. When you can infuse your business into multiple areas of their lifestyle, you’ll offer a better overall experience, increasing the likelihood of repeat business.
Share Your Resources
Opening a franchise requires equipment, supplies, and knowledge. As a multi-brand franchise owner, you can leverage economies of scale by purchasing in bulk for all brands and reducing overall costs across your businesses. In addition, you may be able to negotiate more favorable price points with contractors and suppliers. As a result, your bottom line and profit margins increase.
But it’s not just financial resources you can leverage across brands. It’s also knowledge. Each franchise offers its training, which means you have more growth and learning opportunities that can catapult you forward, fostering more collaboration and collective learning.
Multi-brand franchise ownership has many opportunities, allowing individuals to increase revenue streams, tap into new marketing opportunities, and better leverage resources. You’ll have opportunities and future growth through this multiplication of brands. Now that the question is why you should consider owning multiple franchise brands, consider which various industries and brands you could open to maximize your franchise ownership successes.
Kimberly Crossland is the founder of Roadpreneur and Cruisin' + Campfires, two companies designed to keep families together and living in freedom through travel and entrepreneurship. The goal of both businesses is to inspire meaningful change through the power of a strategic, thoughtful approach to life and business. In her free time, you can find her looking for a new adventure together with her two boys.