5 Strategies to Diversify Your Franchise Portfolio

Are you looking for a list of the best strategies to diversify your existing franchise portfolio?

At Del Taco, we’ve noticed there are many different ways multi-unit investors can enhance their portfolio via franchising.

In this article, we’ll highlight five of the most popular strategies investors use when it comes to diversifying your franchise portfolio.

Why Diversify Your Franchise Portfolio?

Franchising, like any investment strategy, rewards those who build a diverse portfolio.

While a single franchise brand can be successful, it exposes you to the risks of economic shifts and industry downturns.

Imagine a downturn in business services being offset by the steady growth of your restaurant franchise – that's the power of diversification!

Diversification opens doors to new customer segments and broadens your revenue streams, creating a more resilient business.

1) Target Non-Competing Brands

When searching for a new franchise to add to your portfolio, avoid adding one that directly competes 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.

2) Look for Complementary Brands

Looking for franchises that can compliment your existing business is another key strategy to consider.

This can create synergies with your existing businesses and attract a wider customer base.

A popular example is a gym franchise owner adding a smoothie franchise on or near their current locations.

3) Consider Different Industries

Diversifying across industries can provide a hedge against economic downturns that might impact specific sectors.

For example, if your portfolio is mostly made up of hotel franchises you may want to consider adding a quick-service restaurant (QSR) to the mix.

4) Seek Out Similar Operational Models

Owning franchises with similar operational models can leverage your existing expertise and infrastructure.

This allows you to take everything you’ve learned and built from prior franchising experience and apply it to your new business.

Seeking out franchises with overlap in the operations department can make them easier to manage in the long run.

5) Identify 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.

You’ll notice most franchise brands have a map of territories where they are either available for expansion, not pursing at this time, or sold out.

These maps will help you find brands who are searching for new franchisees in your market and may be open to building locations in your area.

Have You Considered Del Taco?

If you’re missing a taco franchise from your existing portfolio, then you may want to consider adding Del Taco to your lineup of brands.

Here are a few reasons to purchase a Del Taco franchise:

• Own the #1 Fast-Food Restaurant in 2024: …
• Say Hello to Fresh Ingredients: Since 1964, Del Taco has been serving freshly prepared, craveable food at an unbeatable value. This is one of the many reasons we’ve grown to the second largest brand by units in the Mexican QSR industry.
• Prime Real Estate Availability: With nearly 600 locations in the United States, we still have plenty of white space availability in some of the most exciting markets in America.
• Drive-Thru & Mobile Pick-Up Lockers: Our latest prototype features dual drive-thru lanes and mobile pick-up lockers for customers on the go.
• Digital Ordering App: Del Taco offers online ordering and a customer loyalty app to help you increase sales and attract new customers.
• Training & Support: Our restaurant support team provides franchisees with comprehensive training and on-going support to help you get your business up and running smoothly.

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

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Check Out These Additional Resources

We hope this article gave you a better understanding of the many strategies to consider when diversifying your franchise portfolio.

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

At Del Taco, we’re looking for multi-unit franchisees who are excited to bring our fresh real ingredients to their local community.

Here are some additional online resources you may like to check out:

• How Much Does a Del Taco Franchise Cost?
• 15 Best Taco Franchises to Own From This Year
• Which Taco Franchise Makes the Most Money?

If you have any questions, please contact our franchise sales and support team.