1851

The franchise industry produces thousands of new concepts each year, and with so many to choose from, it makes sense that some investors may favor a diversified approach.But according to <a href="https://www.linkedin.com/in/adamgoldmanfranchise/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-investment-diversify-or-stick-with-one-brand-2714820" target="_blank" rel="nofollow">Adam Goldman</a>, the franchise consultant behind <a href="https://www.franchisecoach.net/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=franchise-investment-diversify-or-stick-with-one-brand-2714820" target="_blank" rel="nofollow">franchisecoach.net</a>, there’s an art to investing in the franchise space.&nbsp;“I believe in franchising you can expand either horizontally or vertically,” said Goldman. “You can have multiple units, like if you open three OrangeTheorys in one market, or you could have a home service brand and maybe go ahead and have a painting franchise and a mosquito control franchise that all feed off each other.”Franchise investments differ from investing in a retirement fund or stock in that they require your time and physical management. In that sense, for many investors, buying multiple brands’ franchises could be biting off too much to chew.&nbsp;“If you’re looking for something semi-absentee, it’s pretty hard to run one service business, let alone multiple,” said Goldman. “Instead, buy a salon fleet where you don’t have any employees, it’s a real estate play. Like a WeWork for salon professionals, you’re just subleasing that space. It’s a great type of franchise for the person who has a day job.”The equation changes if you’re looking to spend your days actually running the business. In this case, more options open up.&nbsp;“If you’re someone who has a few hundred thousand to spend and you have some time on your hands, maybe you could have a tree removal service,” said Goldman. “You’d spend a lot more time on this, but you’ll be able to run it as an owner/operator vs. a semi-absentee.”Running a business as the owner/operator comes with the bonus of not having to pay a manager, so it can help your franchise investment see a greater return on investment, but the cost is hours out of your day.&nbsp;For the pure investor, say, somebody with a management company looking to buy into trusted brands, the option of picking unrelated brands becomes viable.&nbsp;“There could be a situation where someone wants to prepare for risk in the market,” said Goldman. “They want something COVID-19 proof and not COVID-19 proof. Something where they might have bought a boutique fitness situation and now it’s going through a rough patch, so they want something that’s more of an essential business.”&nbsp;But, overall, Goldman says these investors represent a small percentage of the total community. For almost anyone besides an institutional investor or a wealthy heir, investing in franchises should be a careful, controlled process where the investor waits to see how one brand pans out before jumping into another.“I like the whole idea of having all your eggs in one basket, and then protecting that basket,” said Goldman.

Franchise Investment: Diversify, or Stick with One Brand?

1851 Franchise

Investors looking at the franchise space may find themselves spoiled for choice. But is it better to choose one brand and invest heavily, or to run with a few brands and hedge your bets?

franchise-investment-diversify-or-stick-with-one-brand

Lawn Doctor

Design with photo of John Perry and Lawn Doctor logo

How a 20-Year Industry Veteran Tripled His Sales With a Lawn Doctor Franchise

lawn-doctor-franchise-success-story-john-perry

Fitness Premier

The Secret to Fitness Franchise Success? It's Not Just the Workouts

fitness-premier-franchise-marketing-support

Fresh Coat

Photo of Fresh Coat vehicle with ladders on top

The Rise of Home Improvement Franchises: Why Now Is the Time to Invest

why-invest-home-improvement-franchise-fresh-coat

HomeTeam Inspection Service

Photo of HomeTeam inspector in red polo and khaki pants, walking by branded vehicle

Real Estate Today: Behind the Drywall: The Truth About Home Inspections

purpose-of-home-inspection

Dog Training Elite

Dog Training Elite Franchise - DTE - National Service Dog Month - 1851 Franchise

Celebrating Service Dogs: Why Proper Training Changes Lives — And How Dog Training Elite Is Leading the Way

dog-training-elite-national-service-dog-month

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Design with American and Federal Reserve flags against light blue background

Federal Reserve Expected To Cut Rates by Quarter Point, a Move That Could Boost Franchise Growth

fed-rate-cut-boosts-franchise-growth

Potbelly to be Acquired by RaceTrac in $566 Million Deal 

racetrac-acquires-potbelly-in-566-million-deal

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

caribou-coffee-names-scott-kennedy-ceo-eyes-continued-growth

McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

mcdonalds-launches-extra-value-meals

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Friendly’s Parent Company Acquired by Multi-Unit Franchisee as More Owners Take the Lead in Brand Acquisitions 

friendlys-parent-company-acquired-by-multi-unit-franchisee-as-more-owners-take-the-lead-in-brand-acquisitions

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

Multi-Unit Wendy’s Operator Signs 12-Unit Deal With Layne’s Chicken Fingers

ricki-oberoi-laynes-chicken-fingers-growth

DevHub - Meet the Supplier - 1851 Franchise

DevHub: Scalable Digital Marketing for Franchises and Multi-Location Brands

devhub-meet-the-supplier

1851 Franchise Deep Dive graphic with Sparkle Squad logo

Sparkle Squad Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-sparkle-squad-franchise-costs-fees-profit-and-data

Design with school-aged child standing on pencil with text "Education Franchises" and "<$500K"

Top Education Franchises Under $500K To Explore in 2025

top-education-franchises-under-500k

Franchise Investment: Diversify, or Stick with One Brand?

MORE STORIES LIKE THIS