Guide to Buying Another Franchise: Check to See if Franchisees Own Other Brands

Owning a franchise is a great way to be your own boss and grow your business. Whether you’re just starting out with a single unit or thinking about expanding into multiple brands, knowing the ins and outs of franchise ownership is crucial. 

Here’s a guide to help you understand how to check if other franchisees own multiple brands and why it matters, with advice from Tim Parmeter, founder and CEO of FranCoach.

Why Consider Multi-Brand Ownership?

One of the great things about owning a franchise is the flexibility it offers. “You can build your franchise as big as you want,” said Parmeter. “You can also settle in at whatever level you want … as long as you are happy, the franchisor is happy.” 

For those with big growth ambitions, owning multiple brands is one way to build a franchise empire. 

“If you want to grow, and I mean really grow, it is all there for you,” said Parmeter. “Most people know you can be a multi-unit franchise owner. Whether that is physical locations or multiple territories of a non-retail brand. If multiple territories of a franchise still doesn’t quench your thirst for growth then multi-brand ownership is for you.”

Learning from Other Franchisees

You can get a lot of insight into the way a brand's franchise system works by simply talking to (and listening to) other franchise owners.

“When speaking with owners of a franchise you are vetting, it is understood how they got to where they are, even if they are single-unit owners,” said Parmeter. “Perhaps they didn’t want more than that. It at least gives you the path to success with one unit to plan for your growth.” 

In particular, Parmeter recommends talking to owners of multiple brands. “The struggle is less than 1% of franchisees own more than one brand and some franchisors don’t even allow it so a multi-brand owner can be hard to find,” Parmeter said. “If there is one in the system, you definitely want to learn from the bumps along the road that they hit … and I assure you they hit some.”

Choosing the Right Franchise

When you’re considering buying another franchise, it’s important to make sure it’s a good fit. Or as Parmeter puts it, “Focus on Franchise X to make sure it is right for you — then go kill it as an owner.” 

This means you should look closely at the support the franchise offers, the market potential and how well it matches your goals. Your success with the first franchise will set the stage for future growth.It’s also important to check if the franchisor allows multi-brand ownership. 

“But what if you really like franchise X and want to own it first before launching franchise Y, but no one in franchise X is multi-brand? Is that reason to not become an owner of X? Absolutely not,” said Parmeter. “If your long-term goal is to be a multi-brand owner, remember that you cannot own multiple brands without owning the first one.”

Planning Your Growth

After you’ve established your first successful franchise, think about whether you want to expand within that brand or try a new one. “You may find multi-units of Franchise X is enough,” said Parmeter. “If you still want more, then repeat the process to find your next brand and kill it all over again.” 

Careful planning and smart decision-making will help you grow your business effectively. By learning from other franchisees, choosing the right franchise and planning your growth carefully, you can build a successful multi-brand business. 

Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit www.1851growthclub.com and start your journey.