Can I own more than one franchise at a time?

The starting point is to look at the franchisee’s existing franchise agreement. Most franchise agreements will usually contain a provision that the franchisee must dedicate their full time and attention to making the franchise successful. There will also, almost certainly, be a clause that states that the franchisee must not engage in a competing business. Therefore, a franchisee will need to obtain the franchisor’s consent before it can operate another franchise business.  The next consideration is whether the franchisee wishes to operate the same franchise business in another area or an entirely different one. If the franchisee wishes to operate the same franchise business in a different area, the franchisor will need to be satisfied that the franchisee has both the financial and practical capabilities to operate both businesses.  If the franchisee wants to operate a franchise that is different to its existing one, the franchisor will need to consider whether the franchise the franchisee wants to operate competes with or is complementary to the franchisee’s existing business. If the new proposed franchise business competes with the existing one, the less likely it is that the franchisor will agree to allow the franchisee to operate it. However, if the new proposed franchise business is complementary to the franchisor’s business, the more likely it is that the franchisor may allow the franchisee to open another franchise business.