Mix-'n'-Match: 3 Franchise Brands With Low Buy-In Cost That Lend Themselves To Multi-Brand Ownership

Today, multi-brand ownership is one of the most popular trends within the franchise industry. In fact, multi-unit or multi-brand franchisees now account for 76.5% of franchised restaurants and 53% of all franchises, according to FranData research cited by Entrepreneur Magazine.

For younger and more experienced franchise owners alike, multi-brand ownership is an attractive business option. As franchisees expand their portfolios, they are increasingly looking to other franchise brands that complement their existing concepts. There are several key advantages to cross-brand franchising, including an increase in revenue, a decreased risk in a single-market downturn, a wider consumer base and operational cost savings.

Although a diversified portfolio can strengthen a company, it depends heavily on several factors, including the initial and ongoing costs versus the revenue potential. Investment costs, operational strategies, site location and business models vary from brand to brand and can affect the success of a portfolio. 

Here are just a few franchise brands that lend themselves to multi-brand ownership. 

Burger King

Traditionally, the QSR and fast-casual segments are the most likely to feature multi-brand owners. A major chain like Burger King provides a low cost of entry as well as unparalleled brand recognition to established franchise partners, which has resulted in an average ROI of over 12%. Some of the brand’s largest franchisees, such as Atlanta-based GPS Hospitality—which got its start in 2012 when a group of former Arby’s employees purchased 42 restaurants from Burger King corporate—benefit from cross-brand ownership. GPS, which now owns more than 200 Burger King stores, originally purchased seven Popeyes Louisiana Kitchen units as a way to spice up its portfolio in 2016. The company has not slowed down since, acquiring 11 more Popeyes locations in 2017 and 75 Pizza Hut franchises earlier this year.

Wireless Zone

With more than 370 locations across the country and additional owners expected to sign on to develop more stores in new key development markets by the end of the year, Wireless Zone is the nation’s largest Verizon retailer. In addition to a low cost of entry, the franchise features exceptional support and a tried-and-true system in place that promotes the immediate success of multi-unit owners looking to generate quick profits. The proven business model has resulted in a large number of successful, multi-brand owners. For example, one franchise operator owns 15 Wireless Zone locations, a hotel franchise and three home-related franchises. 

Wetzel's Pretzels

Concepts with a small real estate footprint like Wetzel’s Pretzels allow business owners to open up in a high-traffic area such as a shopping mall and generate a quick return on investment—not to mention the brand’s kiosk model, which creates an even easier start-up process. Plus, the franchise has co-branding relationships with Cold Stone Creamery, Juice It Up!, Swensen's and others. By creating an operational knowledge base of similar concepts, multi-brand franchise owners can use those lessons to grow their future business endeavors faster and more effectively. Instead of making naive mistakes, franchisees are already leaps and bounds ahead of the competition, even when entering a new business.