In franchising, there are companies like McDonald’s or Batteries Plus that are just one brand. There are also franchises that own multiple brands. These multiple brand businesses are PORTFOLIO FRANCHISES. An advantage of them is that they have SHARED SERVICES.
Shared services use the same technology and processes to drive OPERATIONAL EFFICIENCIES, deploy digital MARKETING STRATEGIES, and simplify FINANCIAL REPORTING.
There is also another big advantage to going with a portfolio franchise. When it comes to LONG-TERM WEALTH CREATION, there is an additional opportunity by “STACKING.” This expansion strategy allows a franchisee to stay in the same market, utilize their infrastructure, and add another brand or brands to their business portfolio. As a franchise candidate Mitch said, “It’s WASH, RINSE, AND REPEAT.”
Stacking brands in a single market is very attractive when it comes to an EXIT STRATEGY. PRIVATE EQUITY (PE) firms love this. Instead of having multiple businesses spread across multiple markets, it is much more efficient and profitable to have them located together.
Be sure to GAIN MORE INSIGHTS on portfolio franchises by tuning in to TODAY’S Franchise Minute podcast at 11:30 a.m. EST with franchise insider Dave Warn of Buzz Brands.