One-Stop Shop: Owning multiple brands under a parent company

It might seem daunting to manage multiple brands, but a parent company can be the lifeline you need to take that risky step in your entrepreneurial journey. Many aspiring and existing business owners are hesitant to own multiple brands because of higher financial risks, increased complexity for day-to-day operations, or concerns over weakening each brand’s identity. However, a parent company can take the pressure off each individual franchisee and address those concerns, creating a one-stop shop that gives them an advantage over the competition.

Diverse insights

Owning multiple brands under a parent company provides the unique advantage of having access to a range of insights that can be used to leverage your different brands’ marketing strategies and operations. Franchisee networks can be crucial for the growth of your businesses by allowing you to exchange tips and ideas, discuss common challenges, and brainstorm ways to adapt your operations to meet the changing needs of consumers.

Having knowledge of various brand perspectives will also help to differentiate your business from competitors. While my Grease Monkey and SpeeDee Oil Change & Auto Service centers are both under the FullSpeed Automotive parent company, the brands are distinct in the services they offer at their shops. For example, Grease Monkey specializes in quick oil changes and routine maintenance while SpeeDee offers a full line of automotive repair and diagnostics to compliment oil changes and vehicle maintenance. Owning different concepts allows you to gain insight into multiple markets, better understand consumer behaviors, and make informed strategic decisions that are difficult to replicate under single-brand ownership.

Operational efficiency

Multi-brand owners are able to cross-train employees so that they can enhance their skills and ensure best practices are shared across locations. Training your team to work in different brands provides flexibility in staffing and reduces the need for specialized hires as your employees understand the aspects of the day-to-day operation for each business.

An immediate benefit of multi-brand ownership is the ability to share resources among various brands. This can include marketing, logistics, and technology to reduce any redundancy and streamline your operations. For example, some parent companies have a single marketing team assigned to create campaigns that serve multiple brands, resulting in cost savings and a cohesive message to consumers. Sharing these resources simplifies operations and allows multi-brand owners to focus on other tasks.

Economies of scale

Operating multiple brands under a parent company leads to increased economies of scale. This efficiency permits the expansion of services, the offering of discounts, and the reduction of operational costs, maximizing overall profitability. The parent company can leverage their bargaining power to negotiate prices with suppliers when purchasing materials in bulk. This is particularly beneficial in the automotive industry where auto repair shops need large quantities of specific vehicle parts, accessories, and tools. These savings then get passed on to consumers in the form of reduced prices, giving your brands a competitive edge.

Parent companies are also boosting economies of scale through their investments in technology. As businesses try navigating the latest services on the market, parent companies take the lead in finding best practices to utilize those resources in productive ways. From automation to targeted marketing platforms, it’s important for aspiring and existing entrepreneurs to stay on top of these tools so that their businesses can reduce costs, improve efficiency, and achieve sustainable business growth.

In essence, owning multiple brands under a parent company is more than just expanding the product line; it is a strategic approach for enhancing your operations and ensuring long-term success. From a unified training program to marketing support, a parent company provides unmatched resources to help take your franchises to the next level and create a sustainable business model for any industry.

Chris Beckham owns three SpeeDee Oil Change & Auto Service franchises and two Grease Monkey franchises in Louisiana. Prior to becoming a franchisee, he was a corporate employee with FullSpeed Automotive.