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How to Diversify Your Franchise Portfolio

Jack 5/16/24 5:10 PM

Multi-Unit Franchise Burger Franchise

4:34

Are you an existing franchisee who is interested in learning how to diversify your franchise portfolio?

At Jack in the Box, we’re able to help multi-unit investors diversify their portfolio by adding a burger franchise to the mix.

In this article, we’ll take an in-depth look at your options when it comes to diversifying your franchise portfolio.

Why Diversify?

In the world of franchising, success often comes from building a strong portfolio. However, just like any investment strategy, diversification is key.

Relying solely on one franchise brand can leave you vulnerable to economic shifts and industry-specific downturns.

For example, a downturn in the business services industry might be offset by steady growth from your restaurant franchise.

Diversification of your franchise portfolio also opens the doors to new customer segments and potential revenue streams.

How to Choose a New Franchise

Diversifying your franchise portfolio can be a smart way to spread risk and increase your overall earning potential. Here are some key strategies to consider during your search for a new franchise:

Non-Competing Brands: Avoid adding franchises that directly compete with your existing brands. This will help you maintain a strong market position for each brand. Plus, most franchisors will not allow you to own a competitor in the same industry.
Complementary Brands: Look for franchises that can compliment your existing business. This can create synergies and attract a wider customer base.
Consider Different Industries: Diversifying across industries can provide a hedge against economic downturns that might impact specific sectors. For example, if you’re heavily invested in service-based franchises like pet grooming or home improvement, you may want to consider a brand in the QSR (quick-service restaurant) industry.
Similar Operational Models: Franchises with similar operational models can leverage your existing expertise and infrastructure and make them easier to manage.
Available Markets in Existing Footprint: Another way to build synergies within your current portfolio is to look for a brand interested in expanding in your existing market.

It’s also important to consider your interests and goals to ensure you choose a franchise that aligns with your passions and financial objectives.

Don’t forget to thoroughly research any new franchise opportunity by analyzing consumer trends, demographics, and competition in your target market.

Should I Consider a Jack in the Box Franchise?

If you don’t already have a burger franchise in your existing portfolio, then you may want to add Jack in the Box to the mix.

Here are some reasons to consider a Jack in the Box franchise:

Established Brand Recognition: Jack in the Box is a well-known fast food restaurant chain with a loyal customer base. This brand recognition can help you attract customers from day one.
Diversified Menu: Jack in the Box offers a wide variety of food items, including hamburgers, chicken sandwiches, tacos, salads, and more. This variety can help you appeal to a wider range of customers.
Focus on Drive-Thru: Jack in the Box has a strong focus on drive-thru service, which is a convenient option for customers on the go. This can be a major advantage in today's fast-paced world.
Digital Ordering App: Jack in the Box offers online ordering and a customer loyalty app, which can help you increase sales and attract new customers.
Training & Support: Jack in the Box provides franchisees with comprehensive training and support, which can help you get your business up and running smoothly.

These are just a few reasons to diversify your franchise portfolio with Jack in the Box. Please note, it’s important to carefully consider all the risks and rewards involved before making any business decision.

Interested in learning more? Click here to get started…