Multi-brand franchising is owning several franchises under different brand names as opposed to multi-unit franchising which is owning several franchises under one umbrella.
Successful franchisees looking for new avenues of growth often consider and pursue multi-brand franchising which can be very lucrative, exposing them to new and exciting challenges.
Multi-brand ownership has significant benefits for franchisees:
- By expanding their portfolio of brands, the franchisees’ investment is diversified as all their eggs are not in one basket. Owning brands in different market segments can balance each other out in an uncertain economy.
- Franchisees can also achieve a balanced cash flow where one franchise can offset a slow market in another franchise.
- Existing expertise such as human resources, accounting and operations in a franchise can be utilised as a centralised support to the other brands without great staff expansion.
- Franchisees can reach higher levels of performance quicker and easier from their existing knowledge and experience.
If you are considering this kind of investment, you are already doing something right!
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