Here’s What to Expect When Owning Multiple Franchises

Owning a single franchise is a worthwhile investment, especially if you choose a successful long-term franchise with a reliable business model. But has the thought of owning multiple franchises ever crossed your mind? If so, you’re not alone. In fact, some entrepreneurs have experience in this area. But what should you know before becoming the owner of multiple franchises?

First, we have to specify that multiple franchises refer to multi-unit franchises from the same franchise group. Examples of franchise groups include Yum! Brands, Restaurant Brands International, Panera Brands, and Luxottica.

Can You Own Multiple Branded Franchises or Stick to One Franchise?

Most franchise groups are flexible. You can own various franchise brands or stick to a single franchise brand and own multiple units. But if you want to own a diverse portfolio of brands, it would be best to stick to similar models. For example, you can stick to quick-service restaurants, cleaning franchises, or real estate ones. This will help you specialize in one area and wouldn’t overwhelm you as much. Plus, you can share resources easier when you franchise in the same industry.

What Are The Advantages of Owning Multiple Franchises?

Sharing Resources & Lowered Costs

If you own multiple franchises, you can easily swap resources from one franchise location to another. For example, if one of your franchises is understaffed, you can assign one of your employees to another store. Or, you can put items from one store to another if one of your franchise locations is in an inventory deficit. With this in mind, you’ll have reduced costs by buying bulk and finding employees.

More Support & Recognition

Any franchisee appreciates the support from corporate. Multi-unit franchise owners, in particular, get this benefit because they already know when to turn to for help. Plus, there’s a chance that corporate can assist you better with your needs and be more receptive to your feedback. 

Other than that, you’ll be a trusted and reliable franchise associate for new franchisees coming in to invest. They could look to you for guidance on how to run their new franchise.

Multiple Revenue Streams

A single franchise unit is great for new entrepreneurs to understand how to run a franchise. Or for those who can only manage or handle one franchise. But those running multiple franchises can guarantee they’ll have various revenue streams. They won’t rely on a single franchise for money. With various franchises, you will have the much-needed investment to start a new franchise or hire new talent.

What Are The Challenges of Owning Multiple Franchises?

Time and Commitment

One disadvantage of owning multi-unit franchises is the time you need to dedicate to running your multiple franchises. Some franchises MIGHT require you to operate the business full-time. But some are more lenient, and you can delegate operations to a manager. Similarly, you might have challenges committing to one franchise, considering you must also keep an eye on your other units.

Riskier

Sure, investing in multiple franchises can increase profitability, but there’s more risk attached to your investments when you have more of them. That said, you don’t have to buy multiple franchises immediately. Give yourself time to get the return on investment on your first franchise. From there, decide if it’s worth having another franchise in another location.

Competition with Other Multi-Unit Owners

Opening multiple franchises is one thing, but another challenge you may face while owning multi-unit franchises is stiff competition. Some franchises can’t guarantee you’ll have a protected territory. This means others owners or franchises might take up space in other locations. Plus, if things aren’t going well with your franchise, this could affect your relationship with corporate.

Brands Allowing Multiple Franchise Ownership

Before you pursue multiple franchise ownership, ask yourself these questions first:

• Does the franchise even offer multi-unit ownership?
• Does the franchise own other brands you can franchise?
• Will you have the flexibility when running multiple franchises? (i.e., will they allow an absentee owner or a part-time system?)
• If you have one franchise, where will you open the new location?
• What franchise business models can you choose to achieve your goal of owning multiple franchises?

Once you’ve reflected on these questions, here are some brands that may allow multi-unit franchising:

• Neighborly – In an interview with Lee Downing, he says that he owns three Neighborly franchises.
• Applebee’s – According to a Forbes article, Greg Flynn owns over 2,400 Applebee’s stores.
• The Halal Guys – In the same article, Khurram Burrey owns multiple Halal Guys franchises.
• Authority Brands – In an interview with Rob Weddle, he discusses his experience as a multi-unit owner of one of the Authority Brands franchises – The Cleaning Authority.
• FAT Brands
• Inspire Brands
• Kahala Brands

Final Thoughts

When owning multiple franchises, you’ll encounter ups and downs. But what’s important is your readiness to operate various franchises. You will have to dedicate time and energy to running multiple franchises. But if you’re up to it, you can always reach out to your franchisor and request the possibility of adding new franchises to your name.