Today, the popularity of franchises prompts some investors to acquire multiple storefronts. Yet whether someone seeks to own a cell phone repair franchise, a fast food restaurant franchise, a hotel franchise, or some other type of franchised business, this strategy requires careful planning. Operating multiple sites usually involves complexity.

Research Franchise Opportunities Carefully

A prospective franchisee hoping to open multiple franchised outlets benefits by performing extensive research. Some franchises only accept franchisees interested in developing a single business operation. Others, by contrast, actively encourage investors to consider purchasing multiple franchises from their franchising company.

Franchisors in some cases may even offer incentives for this type of expansion, such as a temporary reduction in franchise fees. Both the nature of the business and the individual franchise business plan may significantly impact this issue. Some franchise companies encourage franchisees to acquire additional franchises from them because these business owners possess successful management track records and useful experience. Owning multiple franchised storefronts within the same chain enables some investors to develop very stable, profitable enterprises.

Acquiring Multiple Different Franchises

In some cases, investors contemplate eventually launching a variety of different franchised businesses in order to diversify their holdings. This strategy may cause conflict with a franchising company. Most franchise agreements prohibit franchisees from engaging in competing businesses (in order to prevent conflicts of interest).

Some companies may even terminate a franchise agreement if the addition of another franchise by a franchisee violates the provisions of the contract. It makes sense for a franchise owner to discuss this type of multi-franchising strategy carefully with an attorney. If the franchisee contemplates entering into franchise agreements with multiple franchisors, the terms of the agreements prove very important.

Synergistic Franchising

In certain situations, franchise owners effectively couple synergistic enterprises, however. For example, a carpet cleaning franchisee may also acquire a franchise offered by a franchisor in a completely different field, such as a pool cleaning franchise. Satisfied customers who sign up to obtain service from the franchisee may also decide to patronize its sister company.

Due to the complexity of this type of business, most experts recommend consulting about the terms of specific franchise agreements with reputable professional advisors before seeking to acquire multiple franchises. Franchising has become a very popular business model during recent years. Consumers do occasionally discover business owners in their communities who diversify by acquiring multiple franchises.