Multi-Brand Franchisors: Empire Building Hotbeds
In the past decade we have seen multiple multi-brand franchise groups form, run by experienced executive teams. These groups are interesting because of a few key points that differentiate them from single brand franchise companies.
The first thing to note is that they pick a theme, this gives them strategic benefits within the markets they operate in. From marketing to technology, to business operations, these franchise groups are able to leverage across all of their brands to achieve maximum benefit.
Every brand markets via traditional marketing as well as social media and electronic marketing, but with multi-brand franchise concepts they get to market between the brands and it is this cross marketing that could achieve benefits that single brand companies can’t really leverage into.
Imagine it this way, a franchise company comes to clean your carpets and while there they leave a brochure for gutter cleaning, roof replacement, painting, garage doors, lawn services or any number of services that are related to the one that you just hired them for. The cost of that cross marketing is extremely low, the brochure didn't have to be mailed, it didn't have to be sent to your Facebook page or show up in a Google search. The brochure shows up in your house while you have received a service that you may be very pleased with, that is some brilliant targeting.
It is this perfectly timed cross marketing that leverages the customer relationships of multi-brand franchise companies. Servicing one client may lead to multiple revenue events on an ongoing basis.
From a technology point of view it's very easy to use the same, or very similar, technology backbones behind these companies that easily translate to cost efficiencies and better run operations. Analyzing financial data weather at the local office or the corporate office is much easier if all the platforms are the same.
Site selection and construction also become easier, more efficient and less costly because of the efficiencies you can build into a multi-brand system.
All in all, it is easy to see why Franchise companies build these multi-brand systems as a way to best expand their footprint Nationwide.
What does all of this mean to you, a potential franchise buyer?
It used to be very common that a franchise owner would buy and grow a single brand, but between goals that have grown to the Empire level and the deep pool of options, we are seeing more and more franchisees building portfolios with multiple brands. Now the geographic area you operate in can be more compact.
Before these big multi-brand franchise companies started becoming so prevalent, buyers would cobble together different brands offered by single brand franchise companies. This can become complicated because of the different business operations methodologies, technology platforms, marketing plans, site selection teams, construction companies and even franchise conferences.
Today growth and success can be made easier with these multi-brand offerings. You start with one brand in your desired market. Growth that as geographically far as you wish to travel on a given day. Then you add another brand from the same franchisor. Your training and support comes from a place that you are already used to. Site selection and construction all feels familiar. Business operations and marketing are systems you have mastered with your first brand. Your technology should look very similar among the brands.
For you as an owner this speeds ramp up time and how many stores you can operate because of the single touch point for multiple revenue streams. The efficiencies can also be a substantial strategic advantage to you versus the other operators you compete with in your local market.
So, what categories do these multi-brand franchise systems cover?
You can find them in home and commercial services: Home cleaning, disaster recovery (interior and exterior), lawn services, garage doors, driveway and concrete, painting, HVAC, Plumbing, locksmiths, electricians, handymen, duct cleaning and much more.
Food is another big category for these multi-brand offerings. In this group you may even find locations where two or more brands are sharing a single location to offer more dining options for customers.
Fitness is a booming category in this space, especially boutique fitness concepts. In recent years we have seen this as a prime example of how this approach can work well. While single brand companies can do quite well, their franchisees can have challenges growing their Empire when their city sells out. With a multi-brand approach they have more opportunity in their own back yard.
With a proper search and investigation you can be off and running with these multi-brand concepts and building your Empire. Make sure the role you will be in fits you, but there is a compelling approach here.
What is your success story? Let’s go find it!
George Knauf is a highly sought after, trusted advisor to many of the top franchise ownership groups in the world. With over 25 years of experience in both start-up and mature business franchise operations he is uniquely qualified to advise individuals that have dreamed of Building their own empires. Whether you have an existing portfolio or searching for your first franchise, he can help you to pursue your dreams. Contact the Franchising USA Expert, George’s Hotline: 703-424-2980.