Dual branding is when two or more franchises set up shop beside one another or within one another. Can you think of any high-bred franchises you’ve seen? A&W + Shell, Long John Silver’s + KFC, Walmart + McDonalds (or Subway in some cases), Target + Starbucks, Barnes and Noble + Starbucks – these are just some popular examples. The point of this is to give consumers a fuller shopping experience by offering these other amenities.
In dual branding, the stores will usually share something, in many cases it’s a dining area. Many times stores with the same parent company will combine their franchises in one building so they aren’t losing business to another company, but keeping it in the family. A good way to set this up is consider what time of day your business brings in the most clientele and pair up with another franchise who has the opposite. If you bring in more people in the morning than the afternoon, find another franchise to bring more customers in, in the afternoon. You can more than likely convince other franchises to work with you if you mention bringing in more customers at their weaker time.
You can also consider the fact of cutting costs if you split the building and real estate costs with your franchising partner. You will need to discuss this option with your franchisor to be sure they are not only alright with the idea, but that they are also prepared with the proper equipment and signage for a shared space. In many cases, your franchisor may have to talk to the franchisor of the other company to check on these very things and to make sure they have a clear understanding of the partnership. Before deciding on this, you’ll also want to compare the sales/profit potential of the dual branded with that of the single branded locations. Space split between franchises usually means smaller space and that could mean less staff. These are all things to consider when you consider dual branding.
Finding the Right Place for Your Franchise
Now that you know the types of locations out there, it’s time to look deeper into the subject: What makes a location good? Obviously traffic flow, accessibility, and cost all take part in the value of a location, but it’s not always that simple. With today’s market, many of the most amazing spots to open franchises have already been taken—but that doesn’t mean they are none left out there. On top of that, you have to keep in mind the consumer trends and what might be a great spot now may be a terrible spot in five years because of—well—the fickle consumer and their trends.
But don’t fret. Exploring location options is one of the fun parts during the pre-opening business. You just have to keep in mind that startup costs will vary the most when it comes to location based on the place, whether it’s inside of or outside of something, building from scratch or just repairing and redesigning, and so on.
A great idea to prepare for this step is as you do your other research on franchising, start taking the long drives around town if you plan to open where you live and keep your eyes out for a place you might be interested in erecting a franchise. You’ll notice that some of the best spots in town will never have for sale signs up and that’s because the brokers hear about them immediately so it could also be in your best interest to talk to real estate agents and brokers about land that is not advertised that you may be interested in, even if it’s just to hear them say it’s not for sale at the moment, they might even be able to give you a lead on a similar location.
Read More From Franchise Series 7:
- Getting Your Franchise Started
- Common Site Options for Franchising Your Business
- A Closer Look at Some Sites for Franchise
- What Constitutes a Site as “Good” for Your Business?
- Understanding Business Layout and Encroachment
- Securing a Place for Business and Building Yourself In
- Setting Up Your Franchise with Contractors and Supplies
- Options for Franchise Merchandise and Supply Ordering
- Procedures for Receiving Merchandise at Your Franchise
- Maintaining Inventory in Your Franchise – Front and Back of House
- Training Yourself Before You Open Your Franchise
