As a franchise business owner, you may find yourself interested in multiple franchises that are in the same space. For instance, maybe you own one fast-food restaurant location, and you are looking forward to opening another. But you are not sure that you want to open the exact same type of business in a new location, and you are instead looking at other types of fast-food franchises.
Even though you fully understand how to run a franchise location, these businesses would technically be competing against one another for the same group of potential customers. Are you allowed to open multiple franchises that are connected to different, competing brands?
Checking your franchise agreement
As a general rule, the answer is yes. You likely can own multiple franchises from different brands, even if they compete with one another.
You could also consider starting a franchise location in an entirely different industry, which would not be competing with your existing fast-food location. It depends if you want to branch out into a new industry and if you think your local area could support it.
But the key is simply to check the franchise agreement that you signed for the initial location. If that agreement stipulates that you cannot own a competing franchise, you would be violating the contract by opening your new franchise. So it is very important to understand exactly what rules the documentation lays out and what you have already agreed to when taking steps to move forward with another business opportunity.
If you have any questions or concerns during this time, it can help to work with an experienced attorney.