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Should I Own Several of the Same Franchise or Diversify?

November 12, 2019
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Owning a franchise is a great way to get started in business. One franchise can lead to opening other franchises, giving you the opportunity to grow your business and build a better financial future. Franchises are a great way for the average American to get started in business because much of the work necessary to start a business is done. There's already a customer base, a recognized brand, and a business structure in place. That's why so many Americans are choosing to buy a franchise as opposed to starting a new business. One of the big questions, though, is whether it is better to own several of the same franchise as you grow your business or to diversify.

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What Exactly is Diversification?

As it relates to business, to diversify means to expand your business, but it goes even further. Owning several of the same franchises is not diversifying. It is expanding your business, yes, but you are still putting all your eggs in one basket. Buying several different franchises in the same industry is on the path to diversifying because you will have several different products, or "brands," in your portfolio. Real diversification, though, is buying franchises in several different industries, which many industry experts feel can be a huge benefit, primarily because if one of the industries isn't doing well for whatever reason, franchises you own in other industries can carry you through. Basically, the theory is that you don't want to rely on one franchise or industry for your livelihood. This sparks the debate over whether or not you should own one franchise or diversify.


As we've already discussed, owning a diversified franchise portfolio offers security when one of your franchises isn't doing well. You aren't relying on one source of income. Another reason diversifying is a good idea is that it gives you the opportunity to own complementary businesses that can work together to promote growth for each of your different franchises. One example might be owning a franchise that supplies mailing and packaging services and a franchise that does a lot of product shipping. As a franchisee, these two franchise opportunities can support one another.


The downside of diversification, of course, is that owning a single franchise location can be difficult enough, but owning several different businesses is even harder. It will require you to put on many different hats, depending upon the specific work you need to do for each of the very different franchises. Since you won't be able to be at each of your different businesses all the time, you will need to have a staff at all locations capable of handling the day to day business operations when you aren't able. You will also need to develop a variety of skills necessary to deal with multiple different franchises as opposed to learning one set of skills and procedures when you own a single franchise or several of the same franchises. When you diversify, you will also want to be careful not to compete with yourself, meaning you don't want to own a diversified portfolio full of franchises that will be in constant competition with each other.

Meaning of Diversification

So, Should I Own Several of the Same Franchise or Diversify?

Diversifying is a great idea and certainly smart. The safety net of having numerous franchises in different industries is ideal. Before you decide if you want to diversify or not, ask yourself if you are willing to take on the challenges of having so many different businesses and infrastructures in place. If you have adequate teams in place at each of your franchises, if you are able to manage multiple industries, and if you choose wisely so that your franchises are complementary, then diversifying is a great choice.

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If you are comfortable with owning a franchise in one industry and you simply want to multiply the success of your franchise, buying several of the same franchise will let you focus on one thing and focus on doing it well. If you go this route, it will be more important than ever to look for a franchise opportunity in an industry that typically does well under many different circumstances, particularly when the economy isn't doing well. Let's face it, if you are relying on one industry for your success, you want that industry to be one that typically does well all the time.

Let All USA Franchises Be Your Starting Point

Whether you are looking to buy one franchise, several of the same franchise, or you want to build a diverse franchise portfolio, All USA Franchises is a great place to start your franchise search by industry or by investment. At All USA Franchises, we are on a mission to list all 3000 plus franchises in the U.S. to bring you access to the full range of franchises available to you. If you're looking to diversify, there's no better way to find franchises in a variety of industries than by browsing the database at All USA Franchises.

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At All USA Franchises, we provide a great place for franchisors, investors, and franchisees to come together. Since we never charge a fee for franchise listings, investors and potential franchisees have full access to all of the franchise opportunities available, not just to franchise opportunities that pay for premium views. This gives investors and franchisees all of the information they need to make an informed decision.

Our franchise blog provides a wealth of information about financing, buying, and operating your franchise business. You'll find articles to help you with specific issues and articles to help you make informed decisions before you take the franchise plunge.


When you're ready to buy a franchise or to expand through diversification, let All USA Franchises be the place you go for the information you need. We're always here and there is no charge to list your franchise or search for a franchise. Don't wait another minute to get your piece of the American Dream.

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