The growth of multi-brand franchising

One, two, three brands…. or more? There is a growing trend in the number of franchisors offering multiple concepts from under the same corporate roof, all with the goal to expedite successful growth and expansion.

For franchisors, a big part of the appeal behind multiple-brand franchising is to have a diversified portfolio- spreading risk across several concepts and applying best practices from each system. For franchisees, it can mean discounts on franchise fees for those buying the right to open an additional brand from the same franchisor, stronger vendor partnership with collective buying power, and guidance from a seasoned parent organization that exponentially grows its support for multiple brands.Dwyer Group multi-brand franchising

“Multi-concept franchising is a solution for certain types of franchisors and franchisees,” says our own Dr. John Hayes, internationally-recognized franchise expert and author of numerous Amazon best-selling books on franchising. “Most are happy with one business. If it’s profitable and enjoyable, who needs more? Well, there’s always someone who wants more, and multi-concept franchising fills the need.”

Better for your portfolio

BRIX Holdings, LLC is a Dallas-based, multi-brand franchising company specializing in foodservice chains within the better-for-you segments. This includes Red Mango® Yogurt Café Smoothie & Juice Bar, Smoothie Factory® Juice Bar, Souper Salad®, RedBrick Pizza®, and Greenz®. From probiotics in frozen yogurt to gluten-free options for pizza, the integrity of the menus across the BRIX brands are championing a healthy bottom line for business too.

In a recent interview with Franchise Interviews, Craig Erlich, President of BRIX Holdings, discussed BRIX’s portfolio of healthy brands and the benefits of having multiple-brands under one umbrella for both BRIX and for current and potential franchisees.

Family celebration destinations

Sister companies Sovrano, LLC and KeyCorp, LLC are enjoying tremendous success with two brands that cater to the family celebration and entertainment market.

Approaching two years since Sovrano LLC bought the Gatti’s Pizza brand, the new ownership has rolled out two new prototypes: Mr. Gatti’s, the family fast casual concept with small arcade, and Gatti’s Pizza, the pizza buffet with family entertainment center. With corporate-owned locations already proving the concept, franchise development has begun to carry the brand to multiple areas. The goal is to reach 300 locations by 2022.

Likewise, it’s a little over one-year since KeyCorp purchased Gigi’s Cupcakes and since then the brand has seen sweet success, an expanded corporate team to support the network, operations updates, interior updates for existing locations, several new store openings as well as new locations set to open throughout Texas, Ohio, Virginia and Florida.

The friendly face of service

And then there are Super-Franchisors – a term that was recently bestowed on Dwyer Group by The Sunday Times of London. A king of multi-concept franchising, Dwyer Group is now a holding company of 19 service brands (17 of them franchisors) and more than 2,800 franchise owners across the globe. Building on their incredible portfolio, earlier this year Dwyer Group launched an overarching brand, Neighborly, an online platform in North America which offers a unique direct service function to provide consumers assistance with nearly all aspects of their home – from landscaping and plumbing to painting and more. Forbes even touted “Why Neighborly May Beat Amazon In The Skilled Labor Market.”

When done right, multi-brand franchising offers great potential to a franchisor seeking to diversify their portfolio, increase profitability, and build larger, stronger organizations.