The Multiple Choice Franchisee

If running one franchise brand wasn’t enough, how about two or three? Although difficult, this has become a growing trend among franchisees.

Greg Hamer Sr. has seen much success running both a KFC and Taco Bell, reports Entrepreneur.

For a decade and a half, B&G expanded across Louisiana, Texas and Mississippi. But in 1998, when Yum! Brands, the parent company of Taco Bell, began allowing franchisees to buy into its other concepts, Hamer decided to get into Kentucky Fried Chicken, too.

“We hadn’t reached our saturation point, but we wanted a little diversity and opportunity for growth, and at the time, the way KFC’s territory was set up, it was a little easier to develop than Taco Bell,” Hamer says.

But just because the same group owned the two restaurants didn’t mean Hamer was on autopilot when switching from chalupas to chicken. “Operationally, the brands are really, really different in their approach and how they operate, and their technology is different,” he says. “They even have a different type of employee, believe it or not.”

These days, franchisees who want to go beyond the traditional single owner-operator model have to ask themselves whether multiconcept franchising is the right way forward.

“Multiconcept franchising is a solution for certain types of franchisors and franchisees,” says John Hayes, franchise expert and professor of business and mass communication at Gulf University in Kuwait. “Most are happy with one business–and why not? If it’s profitable and enjoyable, who needs more? Well, there’s always someone who wants more, and multiconcept franchising fills the need.”

Photo by Bobby P.

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