Leveraging Portfolio Companies for Strategic Growth in Franchising

Have you ever thought about diversifying your revenue streams or acquiring another business to add to your existing business portfolio? If so, portfolio companies in franchising might be the route that you want to take.?

Benefits of Portfolio Companies

Here's the benefit of portfolio companies. The franchisor usually owns several brands that have a look-alike customer and a very similar operating model, so that you as the franchisee are able to grow, scale and diversify through multiple brand offerings, but also be under the same franchisor umbrella or parent company.

From Beauty and Wellness to Home-Based Services

For example, WellBiz Brands is the number one beauty and wellness franchisor in the United States. We've got five brands in our portfolio: Drybar, Elements Massage, Radiant Waxing, Amazing Lash Studio, and Fitness Together, and they all have a one-to-one customer to service provider business model.? WellBiz Brands offer a service to a customer, whether that's a blowout, a wax, eyelash extensions, or a massage, delivering that service under a similar operating model of recurring revenue through monthly memberships.

Another great example of a portfolio company is home-based services. These are franchisors that have service brands that are associated with everything inside and outside of the home. The franchise brands the portfolio company owns could be that they come to clean your gutters and spray your lawn because there's mosquitoes, or they could repair the floor in your kitchen, and that can all be done under one franchisor.

Looking to diversify your business portfolio and/or grow your franchise footprint, you should give portfolio companies a serious look. Especially if you are looking to diversify and grow your footprint, but not have the complexity of having to report to multiple franchisors which means learning multiple operating systems. Portfolio companies are a very smart, strategic way that you can grow your business. Drop a line below and let me know what your experiences have been with franchise portfolio companies.