The Benefits of Owning Multiple Franchises [UPDATE 2025]

Updated: May 9, 2025

One of the benefits of owning multiple franchises is the opportunity to diversify your investment portfolio. With traditional investing in stocks and bonds, it is common to have your money spread out over different options. You can also achieve investment diversification with franchise ownership.

Nearly 55% of all franchisees in the U.S. today are multi-unit franchise owners. For the past decade, investing in multiple units has been a strategy of franchise owners who want to expand their portfolios.

Owning Multiple Franchises: Scaling and Diversifying Your Business

Owning more than one franchise location—especially across different brands—can be a smart strategy for building a strong, diversified business. Whether you want to dominate your local market or expand into different service categories, multi-franchise ownership offers numerous paths to success.

But first, it’s important to understand the distinction between multi-brand and multi-unit franchising:

• Multi-unit franchising involves owning several locations of the same franchise brand.
• Multi-brand franchising involves owning different franchise concepts, often in related or complementary industries.

Both paths offer growth potential, but multi-brand ownership brings the benefit of diversifying risk across market segments and customer types. For example, owning a home improvement brand alongside a home cleaning service may allow you to cross-promote while buffering seasonal slowdowns.

Benefits of Owning Multiple Franchises

• Diversification of Revenue – Different brands can thrive under different economic or seasonal conditions.
• Leadership Growth – Managing multiple teams across industries sharpens executive skills.
• Market Reach – By covering more ground (and more customer needs), you improve brand visibility and local impact.

If you’re more interested in expanding within a single franchise—particularly in a high-growth industry like home improvement—explore our guide to multi-unit franchising to see how this focused approach can lead to long-term profitability and operational efficiency.

How to Own Multiple Franchises and Grow a Diversified Franchise Portfolio

1. Clarify Your Strategic Objectives
   Determine what you want your franchise portfolio to achieve. Are you looking for stability through diversification? A broader customer base? Passive income streams? Clarifying your intent helps guide which brands—and how many—you take on.
2. Choose Complementary or Contrasting Brands
   Some franchisees choose brands that serve similar customers in different ways (e.g., flooring + home cleaning), while others deliberately go into completely separate industries to spread risk. Think about how new brands will fit with your current systems, staffing, and market.
3. Balance Time and Team Management
   Running multiple brands demands sophisticated time allocation and strong personnel. Be prepared to train general managers, create separate but consistent brand playbooks, and monitor performance across varied business models.
4. Develop a Portfolio-Level Infrastructure
   Standardize what you can across all franchises—such as accounting software, HR systems, and customer service training. This makes it easier to track performance and scale more efficiently.
5. Master Financial Planning and Capital Allocation
   Each franchise may have different capital needs. Learn how to allocate resources between brands and units based on profitability, seasonality, and growth timelines. Strategic reinvestment is critical to long-term portfolio health.
6. Know When to Grow—And When to Hold
   Expansion shouldn’t happen just because you can. Regularly evaluate whether each brand is hitting its targets, and don’t be afraid to pause and optimize before scaling further. Smart growth is sustainable growth.

If you’re considering expanding within one brand instead, read our in-depth guide on multi-unit franchising for best practices and long-term advantages.

Multi-Brand Franchise Ownership: A Strategic Move for Long-Term Growth

Owning multiple franchises can be a powerful way to build long-term wealth. Whether you expand within a brand or across several, the key is having the right strategy, resources, and mindset. Diversify with confidence and, when in doubt, start by evaluating which franchise model best aligns with your strengths.

ProSource Wholesale franchise owners typically own multiple ProSource units, and some own franchises of other widely recognized franchise brands. We offer an attractive investment, with a $6.1 million AUV, and we look forward to having that discussion with you.

Submit our franchise form today and a member of our franchise development team will connect to start the conversation.