Franchise Portfolio: How to Diversify and Increase Profit

Ready to diversify your franchise portfolio? Check out the pros and cons of diversification, learn if you’re ready to add a new brand, and get our recommendations on recession-resistant opportunities to consider.

Successful diversification is not just about timing but also about aligning a new venture with your overall business strategy, personal goals, and market opportunities. Knowing the right time to diversify your franchise portfolio hinges on your current business operations and personal readiness for expansion. Start by assessing the stability and success of your existing franchise. If it runs smoothly, shows consistent profitability, and doesn't require day-to-day oversight, it might be the right time to consider tackling a new brand. As long as you have the personal bandwidth and sufficient capital reserves or access to financing that won't jeopardize your existing operations, it's a green light to explore new opportunities.

Pros and Cons of Diversifying Your Portfolio
To determine if adding a new franchise brand is advantageous, let’s take a closer look at the pros and cons of diversification.

PROS

• Risk reduction: Spreading your investments across various sectors can mitigate risks.
• Steady revenue: Diverse franchises can provide more consistent revenue streams.
• Market flexibility: You're better positioned to adapt to changing market trends and consumer demands.

 CONS

• Management challenges: Overseeing franchises in different sectors requires a broad skill set.
• Investment allocation: Diversifying demands significant investment, which needs careful planning.
• Understanding new markets: Venturing into unfamiliar sectors requires thorough market research.

The Power of Vertical Expansion and Co-Branding
Vertical expansion and co-branding can eliminate many of the headaches involved with diversifying your business. Vertical expansion, where you invest in complementary franchises, is gaining traction and eliminates the need to familiarize yourself with a new industry. It enables you to enhance customer value and maximize operational efficiency.

Co-branding can also be a powerful tool to diversify. Having multiple brands under one roof creates a unified customer experience and builds a more robust brand image. Shared resources and practices can improve business performance and allow you to provide comprehensive services to your customers.

Why Choose Moran Brands?
As you determine whether diversification is the right step, consider industries that demonstrate resilience and growth. Sectors like healthcare, fitness, and technology are thriving, but the automotive industry stands out for its consistent demand. Integrating an auto franchise into your portfolio taps into a recession-resistant market that's integral to everyday life and shows promising growth, especially with the advent of electric vehicles and new automotive technologies.

The automotive industry offers a blend of stability and growth potential. A report from KPMG provides a bright outlook for the aftermarket automotive industry. More than 85% of vehicles currently on the road are older than four years, which is a positive indicator for the auto repair industry. The trend toward SUVs and trucks is expected to dominate, with projections showing they could account for 80% of all new car sales by 2030. The popularity of SUVs and trucks is good news for the auto repair sector, as these vehicle types typically cost 10% to 15% more to maintain.

Moran Family of Brands, franchisor of six brands in the aftermarket auto and window tinting industry, shines as a top auto repair franchise opportunity. We provide a strong support system and proven business models to help our franchisees lay a solid foundation for potential success. Our brands, which include Milex Complete Auto Care, Mr. Transmission, and Turbo Tint, provide a range of services, from transmission repair to window tinting, enabling you to cater to a wide customer base. Co-branding allows for cross-selling opportunities, enhancing your profit potential.

Learn More About Moran
As you consider expanding your franchise lineup, think about the potential of partnering with Moran. Our approach to co-branding can significantly enhance your portfolio's value. Learn more about how to become a franchisee with Moran Brands, and drive your success to new heights.