For anyone interested in purchasing a franchise, it’s important to understand common franchising terms, one of which is “Piggyback Franchising” or “Combination Franchising”.
Definition of a piggyback franchise: “in essence a business within a business i.e. a combination of two franchises operating under the same roof.” (Franchise101 Inc).
Piggyback franchising is a symbiotic relationship between two franchises. Not only does it allow both businesses to share the overhead costs, but they can also benefit from each other’s marketing without directly competing against each other. Oftentimes, a smaller niche-market business will ride on the shoulders of a larger business such as a coffee bar in a gas station.
7 Examples of Piggyback Franchises
To better understand the concept of piggyback franchises, let’s explore some real-world examples.The following examples of well-known franchises will help you conceptualize a piggyback franchise:
- Subway and TCBY – This example is fairly straightforward. A Subway restaurant offers sandwiches while TCBY sells frozen yogurt in the same store. Sandwiches and frozen yogurt are not competing products, and offering them at the same place appeals to a broader audience.
- The UPS Store and Mailboxes Etc. – Some UPS franchise locations offer services associated with Mailboxes Etc. This allows customers to access shipping and mailbox services under one roof.
- Jiffy Lube and CarQuest Auto Parts – Some Jiffy Lube service centers offer CarQuest Auto Parts stores on-site. This not only allows customers to get their vehicles serviced, but they can also purchase auto parts and accessories in one visit.
- Holiday Inn Express and Staybridge Suites – These hotel brands often operate under one roof while catering to different customer needs.
- Pizza Hut and WingStreet – Pizza Hut’s WingStreet concept offers pizza and a variety of chicken wings in the same restaurant.
- PetSmart and Banfield Pet Hospital – Some PetSmart locations have an in-store Banfield Pet Hospital, which offers pet owners both retail products and veterinary services in one convenient location.
- McDonald’s and McCafé – Many McDonald locations have a separate McCafé section for coffee and pastries. While McCafé is owned by McDonalds, it operates as an independent brand.
A few general examples of what a piggyback franchise might look like include:
- A yoga studio and a rock climbing gym
- A vending machine in a convenience store
- A fast food restaurant inside a gas station
- A car dealership with a service center
- A restaurant inside a hotel
- A salon in a department store
- Two fast-food restaurants
Interested in Franchise Ownership?
If you’re interested in owning a franchise, piggyback or not, then FranNet can help. Our expert franchise consultants will evaluate your specific desires and abilities to match you with the right franchise opportunity. You’ll have hundreds of verified brands to choose from. We will guide you through the franchise buying process and make sure you have everything you need to make an informed decision. All of this comes at no cost to you! Schedule your free consultation today!