www.charlesjeromeware.com. " Here to make a difference."
Attorney Charles Jerome Ware is former special legal and microeconomic counsel to the chairman of the United States Federal Trade Commission. He is currently the best-selling author of five nonfiction books as well as founder and managing partner of the highly-regarded national law firm: Charles Jerome Ware, P.A., Attorneys & Counselors, headquartered in Columbia, Howard County, Maryland. This blog is for information purposes only and does not create an attorney-client relationship with the reader or anyone else.
Multiple-brand franchising is not a new business concept, but its time has certainly come.
Diversification is the key word now in the thinking and strategy behind the rapid growth in multiple-brand franchising. No matter how good the Return On Investment ( ROI) may be
from a single brand, savvy franchise investors know it's not wise to put all their eggs in one basket. As multi-unit franchisees seek new avenues for growth, increasing numbers of them are adding 2nd, 3rd, and 4th concepts, and more to their franchise brand portfolios.
Their are many reasons, taken alone or together, that inspire multi-unit franchisees to become multi-brand operators:
1. Territory build-out. That is, to continue growth in their current geographic region.
2. To balance economic cycles.
3. To balance geographic or seasonal cycles.
4. To balance cash flow.
5. To balance " day section' business : for example, breakfast - lunch - dinner, etc.
6. To hedge against surprises.
7. For co-branding ; for efficiencies of scale and profit-boosting.
8. For infrastructure efficiencies.
9. For hiring and retention efficiencies.
10. For compatible corporate cultures.
11. For increased entrepreneurial spirit.
12. For synergistic reasons.
The reader must remember that new brands generally cannot be in competition with the franchisee's
existing brand. The franchisee should always check with his or her current franchisor(s), the franchise agreement(s), and a franchise attorney before pursuing new brands.
[See,www.franchising.com/howtofranchiseguide/multipleconcept_franchising_the_growing_allure_of_
_operating_several_brands.html; Chapter 14: " Franchising-Opportunities And Scams", Legal Consumer Tips And Secrets : Avoiding Debtors' Prison in the United States, by Attorney Charles Jerome Ware, iUniverse Press (2011), http://amzn.com/1462051847 ]
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