| | Jul 20 | Buying a franchise
Multiunit franchise owners may have more than one brand in their portfolio. Is that good for their financial health? Or not so good?
Franchisees may feel safer with multiple brand diversification, thinking that it's less risky than having all their eggs in one basket:
Take, for example, Atlanta-based GPS Hospitality, which got its start in 2012 when a group of former Arby’s employees purchased 42 restaurants from Burger King corporate. The franchisee, which now numbers more than 200 Burger King stores, recently opened seven Popeyes Louisiana Kitchen units as a way to spice up its portfolio, says Scott Jasinski, CFO of GPS Hospitality.
“It provides the same upside potential and downside protection that any individual investor has with a diversified portfolio,”...