By Amy Addington, Woofie’s
The franchise industry was a $936B industry, based on output in 2025, with total sales up 4.4% from the previous year. In fact, the industry has grown faster than the broader U.S. economy in the past year, according to the Congressional Budget Office. The number of franchise establishments is expected to have increased to over 850,000 total units (a 2.5% increase) in 2025 (IFA).
Owning a franchise can lower entrepreneurial risk (given often well-established business models and offer potential for investment and growth. Some statistics on operating franchises suggest that they may have better success rates over independent businesses overall. Franchise ownership can also be appealing to those nearing retirement, looking for a second career, or seeking a more flexible lifestyle.
As an existing or prospective franchise owner, owning multiple franchise brands can be beneficial. Market Researcher FRANdata, estimates that multi-unit franchise operators control over 50% of all franchise units.
What are some of the benefits of multi-brand franchising, and what should prospective franchisees consider if they think this diversification strategy might be the right move for them?
Five Benefits and Considerations in Multi-Brand Franchising:
- Potential for revenue diversification, growth – Franchise owners that operate multiple brands may seek to build a more diversified “portfolio” of businesses to accelerate growth. Just as in expanding a portfolio of stocks, one benefit of multi-brand franchising is the potential for owners to have more opportunities and be less dependent on the performance of a single unit or industry. Successful multi-brand franchise owners may be able to maintain a more stable or predictable cash flow and be less immune to economic or geographic factors if they are able to effectively spread risk across businesses, markets, and/or locations. Some franchise owners approach multi-brand franchising with a goal of increasing EBITDA (or Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of how much revenue a business generates from core operations, used in determining the value of the business for resale), to grow the businesses and eventually expand exit options.
As a prospective multi-brand owner, consider: what is the industry and life stage of your existing, and prospective, franchise? Is there a need for the products and services in the market? Does the new brand truly diversify revenue, or does it overlap seasonally, operationally, or financially? Also look at the existing and prospective businesses’ product margins and efficiency of staff, seasonal and economic factors that may influence sales, and profitability. Are there ways to reduce high fixed costs from rent, software subscriptions, or others, and to ensure repeat business?
- Leverage established systems and efficiencies – Franchisees that own more than one brand may be able to capitalize on existing operating procedures and roles, resources – overhead costs, management, staff, marketing – across brands. They may also be able to leverage purchasing power and cost control for greater economies of scale.
Those looking to partner with the same company for a different brand, may also benefit from familiarity with the franchisor, their systems, and operating playbooks, and similarities across brands, to enable a faster ramp-up. With a better understanding of existing processes and procedures, They may be able to more easily ramp up and scale a similar business that they have some experience and confidence in.
Consider: Your role/involvement and capabilities in taking on more responsibility, or to hire others; your ability to replicate proven processes, systems, and experiences, rather than starting from scratch; your relationship with your franchisor, and their existing procedures and resources, and how you might benefit from them. How might you capitalize on existing systems and what new systems and resources will need to be instituted?
- Potential for lower customer acquisition costs – Multi-brand franchisees may benefit from word-of-mouth referrals or cross promotion to existing customers for complimentary services from a prospective franchise brand. They may also be able to share marketing costs across brands, including for:
- Marketing or social media staff
- Advertising – in print, billboard, signage, direct mail postcards, yard signs, door hangers, leave behind flyers
- Event booth space
- Local chamber and other organization memberships
Consider: Your existing customers, the ideal customers of the prospective franchise, and potential overlap. How might you leverage different types of marketing to gain loyalty across prospective brands?
- Brand affinity and culture – For franchise owners that already have a strong relationship with their existing franchisor, adding a new brand may feel like a natural extension. If you are already working with a franchisor with strong leadership, respected brands, effective training, support, and resources, that you trust, expanding into multi-brand franchising with that franchisor may be a way to capitalize on the relationship and benefits.
Consider: Your relationship with your existing franchisor – what you like and what could be improved. Does the franchisor’s values align with your passions and lifestyle? What other ways might you capitalize on existing strong resources?
Buying an additional franchise brand can be a smart decision, if thoughtfully and strategically assessed, and can have potential to compound learning, purchasing power, leadership, service, and customer depth. Could it be a fit for you? One way to assess it is to talk with other franchise owners, and your franchisor about how it might advance efficiencies, long-term wealth, resilience, and your exit options.
Amy Addington is co-founder and president of Woofie’s—an Authority Brands company and premium pet services brand focused on pet sitting, dog walking and mobile pet spa services—that she built after leaving a successful corporate tech career more than 20 years ago. She can be reached at [email protected].