Now more franchisees are broadening their portfolios by investigating alternative franchise companies that complement their existing business.
Of course, franchisees and franchisors know the advantages of multi-unit ownership under a single franchise brand. Nonetheless, there are numerous significant advantages to cross-brand franchising.
Adding complementary brands to your portfolio is a smart approach to expanding your portfolio. However, before deciding which brands will work best with your existing concept, you should conduct considerable research, as with any other business choice.
The brands should be mutually beneficial to optimize your investment, but forecasting a successful addition might be challenging.
When researching prospective complementing franchises, consider the following questions:
- What is the current profile of my customers?
- Would my current consumers find this brand appealing?
- Is this brand a rival to my current concept?
- Is there a location for this franchise in my territory?
- How can this brand and my current franchise help each other?
- How can I market these brands together?
- When is it time to go horizontal rather than vertical with one brand?
When you've established a level of comfort with your current franchise, expanding with a complementing brand can be a smart approach to growth.
There are several ways to build on your success as a multi-unit, multi-brand owner, whether you're growing inside a single franchise brand or seeking complementary brands.
Are you interested in expanding with a complementary brand franchise? Please schedule a quick call here.