Every franchisee aspires to expand and gain new heights. Multi-concept franchise helps a franchisee to flourish and gain sustainable growth in times of unpredictable economic conditions. Read on to unravel this interesting concept
A multi-concept franchise involves buying the franchises of different brands at the same time. Franchisees with the desire to own a big empire out of their small outlet can opt for multi-concept franchising. The concept of a multi-unit franchise has been around for quite sometime. In this, a franchisee operates multiple stores of a solo brand. It has gained popularity with the rise of master franchisees and area developers. Today, we have more multi-unit franchisees than multi-concept franchisees. One of the reasons why multi-concept franchising is not popular is because a franchisor does want the franchisee to market other brands with that of his own brand as he feels the franchisee may not pay due attention to his brand. This can cause a big hurdle in opting for multi-concept franchising. Nevertheless, multi-concept franchising can bring in a lot of profits for franchisees, if they can cope with the pressures of managing different brands and businesses. Not all franchisees are capable of taking such a pressure, but, for those who can, it can work wonders for the franchise business. An over-all view of this up-coming concept has been provided for all interested franchisees.
A multi-concept franchise offers franchisees the opportunity to learn business skills from one brand and improve his performances in the other brand as well. This leads to increase in the over-all profitability of the business. This concept works best under the following considerations:
Let us now have a look at some of the benefits of being a multi-concept franchisee:
There are many other advantages but there are a few limitations as well. Many franchisees get into multi-concept franchising without realising the amount of hard work needed. Besides hard work and added pressure, the franchisee also has to raise a lot of capital for the franchise fee, renting and maintaining outlets with satisfactory infrastructure. Buying the required merchandise for your outlets can also increase the amount of capital needed. An added strain to all this can be the regular royalties paid to all your franchisors to run the outlets. This can be cumbersome for some franchisees.
A word of caution
In the urgency to expand the business, never forget to consult a good franchise attorney who can assist you to understand the clauses in the franchise agreement. Franchisees can court trouble if they get into multi-concept franchising without maintaining agreements with all the franchisors. Keeping all the considerations and short comings in mind, a franchisee can certainly enter into multi-concept franchise, as this is surely a profitable concept to bank upon.