by Chris Buitron, CEO and president of Mosquito Authority®
Between The Great Resignation and a changing economy, more people are considering new career options and some are striking out on their own.
While a high percentage are starting businesses, others are buying into established franchises, becoming “franchisees” as they start off with one business unit and perhaps invest in more as they find success. The next phase, which is growing in popularity, is becoming a “multi-brand franchisee”.
A multi-brand franchisee invests in and runs business units of two or more brands that are owned by one parent company.
The venture entails more responsibility but also brings the possibility of great financial success. As franchisees become successful owning and managing their first franchise, many look for new avenues of growth. Multi-brand franchising can be lucrative and has become a growing trend in the franchise industry.
For the right kind of entrepreneur, the benefits of being a multi-brand franchisee can be many. But it’s important to realize that while fast-growing multi-brand franchises create exciting opportunities, they can also present extra risk. Before investing in or considering a multi-brand franchise, get professional advice from experts in the franchise industry.
Franchisees can experience the following benefits from investing in a multi-brand franchise:
A centralized and knowledgeable support system.
The existing infrastructure needed to support one franchise can often support other business units in the franchise’s other brands, such as human resources, accounting, and operations. Multi-brand franchisors offer franchisees access to a wide breadth and depth of knowledge. Their head office staff has experience in different business models and can pass that on to their franchisees. Existing franchisees can get up to speed quickly with the new brand due to their experience and familiarity with the franchisor’s practices and training procedures.
Cross-selling opportunities.
Brands operated by the same umbrella franchise and aimed at the same customer provide cross-selling opportunities that can gain business for all of those brands. A customer who trusts someone from one company will welcome recommendations from that company’s representative about another brand within the franchise. That cross-recommendation system works as long as the umbrella company maintains high standards across all of its brands.
Borrowing resources.
Given the staffing shortages that are plaguing many industries, being able to utilize some of the same employees for different brands without compromising overall efficiency is important. With two or more brands, a franchisee can offer employees cross-training and an expanded growth path as their skill sets improve. This helps attract and retain talent.
Diversification and protection from economic slumps.
In an uncertain economy, operating brands in different market segments can balance each other out if one sector gets hit harder than another. If a multi-brand franchisee sees one of its brands performing poorly, they can use revenue from their other brands to stay on an even track. Rather than adding on more units of the same brand, it makes sense to reduce risk by investing in a second brand that doesn’t compete with the first.
Excitement.
Franchisees with high energy and enthusiasm relish running different brands. It captures their entrepreneurial spirit in dealing with challenges, learning and running different businesses, growing them for the long haul and building wealth for retirement, and increasing their relationships with employees and customers.
Multi-brand franchising has grown significantly in the last few years. And as more people consider new options to solidify their financial future in our changing economy, the trend doesn’t figure to slow down anytime soon.
Chris Buitron, CEO and president of Mosquito Authority®, a nationwide leader in mosquito control with franchises serving communities across the U.S. and Canada. He was chief marketing officer for Senior Helpers, vice president of marketing for Direct Energy, and director of marketing for Sunoco Inc., where he supported the company’s 4,700 franchised and company-owned rental facilities across 23 states.
via https://www.AiUpNow.com
December 28, 2021 at 10:48AM by Contributor, Khareem Sudlow
