Starting a business of your own can be a challenge. There are many moving parts, lots of scenarios, and plenty of work to be done to get a fully functional and stable business off the ground and running. But for some savvy entrepreneurs, the initial success sometimes outstrips even their wildest expectations. You may have a dependable customer base, a well-trained and reliable staff, and sales numbers that even top the brand’s projected break-even point.
If you find yourself in this situation, and you believe success breeds success, you may be tempted to keep the accelerator on the floorboard and go for more. Still, you may wonder how you should expand into new territory when everything is working so well. As it turns out, there is a strategy for this scenario – and it’s called multi-brand franchising. Multi-brand franchisees are also multi-unit owners, hence the acronym “MUMBO.”
Establishing a Diverse Enterprise Operation
It’s not unheard of to deploy your franchising resources in a new direction – opening another establishment in the same family of franchisors, but under a different brand name. Many franchise parent companies – including Unleashed Brands – purposefully include concepts that complement one another, centering on one comprehensive theme such as our youth enrichment business model. In a way, you’re going out on a limb, yet you’re still part of the initial franchise tree. And it can be a strategic path for building a diverse enterprise operation of your own.
In the world of franchising, it’s quite common for entrepreneurs to own more than one franchise. In fact, according to recent statistics compiled by market researcher FRANdata, it’s estimated that 54% of all franchisees are multi-unit owners. It’s a strategic move because it makes a lot of business sense. And, as we’ll see, it comes with several benefits.
Advantages of the MUMBO Strategy
There are clearly multiple advantages to a multi-unit, multi-brand enterprise operation. Since you’ve already established one well-oiled machine, getting the second unit off the ground won’t be nearly as tough. And it’s an obvious way to build up your operation - and the accumulated wealth that comes with it. Here are a few other specifics:
Co-Promotion – when you own one or more franchise operations, you can search for ways to co-promote your businesses, especially if they complement one another. This works exceptionally well when the brands you own are geared to reach similar target audiences
Scalability – you can easily take the lessons learned the first time around and apply them to your second, third, or fourth franchise operation, scaling them up as you see fit. You also have the option to allocate shared resources, including staff, inventory, and equipment
Capital & Resources – rather than starting from scratch, multi-unit, multi-brand owners may not need the same level of capital and resources they required the first time around. In fact, reinvesting the profits of your initial business into a second or third operation is actually a highly recommendable strategy
Customer Acquisition - owners who choose to diversify with brands that serve the same customer, can take advantage of serving that customer for a greater period of time than they would have with one brand alone
It’s worth mentioning again that some franchise parent companies are deliberately designed to encourage multi-unit, multi-brand ownership. In exploring the business models and franchise concepts owned by Unleashed Brands, you may discover an attractive route to becoming the enterprise-level entrepreneur you’ve always dreamed you would be. And thanks to the training and ongoing support we provide, we’ll be glad to guide you on this journey!
A Little More About Us…
The Unleashed Brands platform includes Urban Air Adventure Park, Snapology, The Little Gym, XP League, Class 101, and Premier Martial Arts youth enrichment franchises. As the parent company, Unleashed Brands was founded to curate and grow the most innovative and profitable business opportunities that help kids learn, play and grow. Over the last 10 years, the team at Unleashed Brands has built a proven platform and know-how for scaling businesses that focus on serving families. All have become first-in-category brands by providing fun, engaging, and inspiring experiences that help kids with their No. 1 development goal – to become who they were destined to be.
To speak with one of our franchise experts and learn more about our children’s business opportunities, simply fill out this form and an Unleashed Brands representative will be in touch shortly.