--- title: "When to Go Multi-Brand? Understanding the Right Time to Diversify a Franchise Portfolio" url: https://burnaze.com/article/d3b996d4-e1c1-4a0c-afe7-fdd32c55dbb3 source: "Franchising.com" original_url: https://www.franchising.com/articles/20261015_when_to_go_multibrand_understanding_the_right_time_to_diversify_a_franc.html author: "Aicha Bascaro" category: "Franchise Industry" industry: "Franchise Industry" topics: ["Development & multi-unit"] published: 2026-10-15T11:00:00.000Z modified: 2026-10-31T14:43:15.297Z image: https://imgs.franchising.com/art/articles/10892_plate.jpg --- # When to Go Multi-Brand? Understanding the Right Time to Diversify a Franchise Portfolio **TL;DR:** Franchisees should consider becoming multi-unit, multi-brand operators (MUMBOs) based on their reasons for diversification, such as operating many brands, diversifying their business, or making more money. The best time to become a MUMBO depends on the franchisee's goals and existing business structure. *By Aicha Bascaro, originally published in Franchising.com on 2026-10-15. [Read the original](https://www.franchising.com/articles/20261015_when_to_go_multibrand_understanding_the_right_time_to_diversify_a_franc.html).* ## Story MUMBOs are a major emerging trend in franchising. When should a franchisee consider becoming a multi-unit, multi-brand operator? While I do have an answer to that question, I'd first ask franchisees the reason why they want to go multi-brand. I believe the best time to become a MUMBO will depend on their answer. Here are some of the top reasons franchisees decide to become multi-brand operators, and what they should know about each. Reason #1: To operate many brands If a franchisee’s goal is to simply own multiple units across different brands because it excites them, they can become a MUMBO whenever they want. However, they should understand that they may lose focus and earn less money as a result. A franchisee won’t be an expert in any of the brands, and therefore their businesses won’t operate as well as they could. Since they won’t know the operations as deeply, they won't run the businesses as efficiently as they would if they focused and excelled on one brand. That may limit their earning power. Operating multiple brands could derail or jeopardize their success if the existing business isn’t big enough to have additional leadership to support it. Reason #2: To diversify the business If the franchisee’s goal is to protect their business through diversification, becoming a multi-brand operator could be a smart move. That gives the franchisee some cushion if one business or industry struggles. For example, if they operate a food service brand, they may choose to explore ownership of a personal service or retail brand. Before jumping into a new brand, I recommend having at least three district manager areas in their existing franchise business for the following reasons: If a franchisee has only one district manager area and that person leaves, they'll be stuck running that district while also working on strategy and growth. If a franchisee has two district manager areas and one leaves, the remaining DM will have to double the number of units they manage while the franchisee hires, trains, and develops a replacement. As a result, the remaining DM could become overworked and resign, leaving the franchisee in the untenable situation of running both areas themselves. If there are three district managers and one person leaves, the other two can temporarily split that area to oversee those units while the franchisee hires, trains, and develops someone who can eventually take over. Although the existing DMs may be overworked, dividing the area is more feasible than doubling their workload. If district managers have the ability, systems, and structure to support each other, franchisees can focus on growth and strategy rather than day-to-day operations. Reason #3: To make more money If a franchisee’s goal is to make the most money, I would say they should never go multi-brand. The best approach is to become an expert in their existing brand. That means knowing exactly what it takes to become successful and grow, as well as understanding the people who work in that brand and the customers who prefer it over the others. The deeper and more intricate the understanding of a franchise brand, the more profit franchisees will make because they’ll know exactly what to do, and how to do it, to earn more money. That’s the path that large multi-unit franchisees have followed. Nadeem Bajwa owns 275 units, all with Papa John's. Brent Veach operates 55 locations, exclusively with Del Taco. Many franchisees don’t go multi-brand; instead, they become experts in one franchise brand and learn how to be successful with that model. Before diversifying their ownership portfolio, franchisees should carefully consider why they want to be a multi-brand operator. Based on that reason, they can choose the right path for their franchise journey: never go multi-brand, wait until they have three district manager areas, or do it at any time but with less money and at the risk of jeopardizing their business. ***Aicha Bascaro** is a franchise veteran, business growth strategist, and CEO & founder of the American Franchise Academy. ## Entities - Franchising.com (publication) - unit expansion (topic) - Multi-Unit (sector) - Papa Johns (company) - Del Taco (company) - franchise portfolio (topic) - business diversification (topic) - Aicha Bascaro (person) - Nadeem Bajwa (person) - American Franchise Academy (company) - multi-brand strategy (topic) - Brent Veach (person) --- Originally reported by Aicha Bascaro, Franchising.com (https://www.franchising.com/articles/20261015_when_to_go_multibrand_understanding_the_right_time_to_diversify_a_franc.html). Summarized by Burnaze (https://burnaze.com/article/d3b996d4-e1c1-4a0c-afe7-fdd32c55dbb3).