It's no secret that multi-unit ownership is very popular in the franchise market. However, did you know multi-brand ownership is a fast-growing subset of the multi-unit ownership space?
More and more franchisees are diversifying their portfolios by investigating different franchise brands that complement their present franchises.
There are several significant benefits to cross-brand franchising.
Protecting Against a Single-Market Downturn
One of the main reasons a multi-unit franchisee may enter into multi-brand ownership is to insulate yourself against a single-market decline. Furthermore, diversifying your portfolio with franchises from several areas spreads any possible risk across many locations and brands.
Experience with the Customer Profile
When you start a franchise with a complimentary brand, you will be targeting the same demographic but fulfilling a different desire. A gym or fitness studio franchisee, for example, already understands their target demographic, people who prioritize their health and wellness.
This type of consumer will eventually have demands that are not met by a gym membership and may be met by a franchise with a similar goal and complementary product or service.
A health and wellness-focused franchise, such as a health food shop, is a natural fit for this particular group. The franchisee is already familiar with marketing to this demographic.
How to Grow Your Business with Complementary Brands
To optimize your investment, the brands should be mutually beneficial. Here are some questions to consider while evaluating complementing franchises:
- What is the current profile of my customers?
- Would my current customers find this brand appealing?
- Is this brand a direct competitor to my existing franchise?
- Is there a location for this brand in my territory?
- How can this brand help my current franchise and vice versa?
- How can I market these brands together?
There are several ways to capitalize on your success as a multi-unit, multi-brand owner, whether you're growing inside a single franchise system or seeking complementary brands.
Are you interested in being a multi-unit, multi-brand franchisee? Please schedule a call here.