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Juggling Two Different Franchises

Written on June 2nd, 2008 by Joseph in Franchise Industry.

The current trend of the franchising industry is towards multi-unit and multi-concept franchising. The first refers to those franchisees that open more than one unit of the same franchisor whereas the latter happens when the franchisee becomes associated with more than one franchisor. The advantage of taking different franchises is a very good idea. First of all, you don’t have to put all your eggs in one single basket when you go for multi-concept franchising. Generally, people choose concepts that complement each other or run on different seasonality. So, another advantage of being a multi-concept franchisee is that you can generate more income from a single location. Thirdly, getting a location becomes easier, as landlords prefer multi-concept franchises.

Hence, it is quite natural that people are attracted towards multiple-category franchising these days. But not everyone is cut out for it. In order to manage more than one brand, you will need a very good business sense and considerable amount of experience. Therefore, it is advisable to go for a second franchisor only when you have mastered the first one. Another thing you are supposed to make sure is that your old franchisor has no issues with your opening of another franchising business. The next thing you have to do is build up a team that can handle the extra pressure. You can also employ a competent manager, if you want to ease the burden on you. You can use the same warehouse to store your two different products, but ensure that you separate the accounting details of the two. This will make certain that neither of your franchisors finds anything to complain about.

Hence, the basic criteria for juggling different franchising categories is that you are required to have some business experience and a carefully laid-out infrastructure to accommodate all. The success of your multi-concept franchise will also depend on how much the franchising categories are supplementing each other. This kind of franchising is mostly observed in food-related industry where a burger-joint starts enjoying greater footfall after an addition of a juice or a smoothie stall. Another major way to boost your profit is taking two concepts that have different peak seasons. The best example that comes to mind is maintenance franchises that go slow in winter. During this period, you can take on Decorating Elves or any such holiday light-arranging franchising concept. Thus, the business doesn’t have to face any “lean period” and the franchisee succeeds all the way to the bank.

Whether you’re starting your first franchise or looking for a complementary opportunity, brandEXPANSION associates can help you find the right franchise opportunity. Contact us to learn more.