There is a new buzz term in franchising: Co-branding. Co-branding is the offer of more than one franchise concept by the franchisor/franchisee. The concept is not new. A franchisor offering more than one franchise concept is sometimes referred to as a family of brands or sister brands. Think of the food industry. Think of hotels. A deal was just announced by Doc Popcorn & Dippin’ Dots. The sister brands, Doc Popcorn and Dippin’ Dots were offered franchisees with the opportunity to operate the two concepts in joint in-line or kiosks in malls. http://www.businesswire.com/news/home/20160322005428/en/Sweet-Savory-Growth-Plan-Doc-Popcorn-Dippin%E2%80%99
For co-branding the franchisor provides more than one franchise the opportunity offered to the same franchisee. There are pluses and minuses to co-branding. How are covenants of non-competition, non-solicitation, and confidentiality handled? Are franchise terms coterminous?
A new twist on the co-branding has been the pairing of unaffiliated brands [brands not owned by the same franchisor]. As with co-branding, the pluses and minuses are still present, but the concerns regarding cross defaults, renewal, and co-mingling are enhanced and more problematic.