Whether you are looking to expand your franchise portfolio or looking to start your first franchise venture, multi-brand franchise ownership could be an option for you. Explore what that means — and what it entails — for multi-brand franchise owners.
Multi-Brand Franchise Ownership
Multi-brand franchise ownership is exactly what it sounds like: owning franchises of two or more different brands. There are several ways to benefit from multi-brand franchise ownership. For example, if your franchises are all within the same industry, you have the opportunity to become an industry expert and build on knowledge you already have as you build your portfolio. On the flipside, if you are franchising in different industries, your portfolio will be less at the whim of any one circumstance. In other words, if you own a restaurant franchise and a landscaping franchise, the types of economic situations that might affect your restaurant aren’t likely to impact your landscaping business.
Multi-brand franchisees have quite a bit in common with multi-unit franchisees, especially when it comes to managing executive functions and trusting your staff. The biggest difference comes from having multiple franchisors and FDDs to live up to.
As the owner of multiple franchises, it’ll be impossible to be in every store or location every day. That’s why you will hire managers to run day-to-day operations at each of your franchise locations. During the hiring process, you’ll want to keep your eyes peeled for potential managers who have extensive operations experience, leadership skills and an infectious positive attitude. Your general managers will set the tone of each franchise location, regardless of the industry. Once you have general managers that you trust to report to you on a regular basis, you can focus on executive functions like communicating with franchisors and managing finances.
Communicating with Franchisors
Part of any franchisee’s job is to communicate with their franchisor about meeting goals, any required support and more. As multi-brand franchisee, there are more franchisors to communicate with, meaning it will be a larger part of your responsibilities. Having open lines of communication with your franchisors will not only be a great way to measure your progress, but it will also allow you to pass along pertinent information to the managers of your locations. Information like any technological updates, new signage or any new processes your franchisors are looking to implement.
Keeping an Eye on Financials
One of your most essential duties as a multi-brand franchise owner is ensuring that all of your franchise locations are meeting their goals and that their finances are consistently in the black. As with any business, making money is important. As is knowing where that money is going. By keeping your eye on the financial information for all of your franchise locations, you will ensure that your managers are accountable to you and that there are no financial “surprises” in store.
Are you excited to become a multi-brand franchise owner? Start exploring your next franchise opportunity with America’s Best Franchises.