You have probably heard the phrase “there is safety in numbers.” And this is true, even if you are talking about numbers of franchises. A clever business person can certainly own more than one franchise, and there are several ways to go about this.
Multi-Unit Franchise
A multi-unit franchise is one in which the franchisee agrees to purchase and run several (or many) franchises of the same type. In this model, the franchisee would take a more hands-off approach, since he or she could not serve as the manager for all of the stores. The average number of franchises owned is five, although there are owners who hold more than 1,000 stores for the same company.
One perk of a multi-unit franchise is that often the franchisor would discount the franchise fee after the first one you contract. This perk helps the franchisor because they know they can count on some solid store openings, and it helps you because you are getting a more reasonable price.
You can mix and match the types of franchises you buy if you so desire. Food franchises are the most popular types of franchises to move into the multi-unit realm, but automotive and beauty related franchises are coming on strong. You can own several of the same type of franchises in the same area, since you would understand how to run it very well, or you could diversify and buy a few food and a few automotive franchises, for instance.
Point of Access Franchise
Another way to own more than one franchise is to piggy back them on each other, and use one business to interplay with the other. For example, if you provide senior care in a franchise business, you might decide to start a handyman business because you see the need for that with your clients. If they already trust you to care for their family member, they would be more likely to use a handyman that you recommend as well.
Owning more than one franchise will give you the opportunity to make some money with a less hands-on approach to your business. Although most people think it is the branding that makes franchises so successful, it is actually the idea that the service or product offered with a franchise is constantly being perfected, and if you own more than one of the same type of franchise, that perfection will be even easier.