Updated May 2025
Definition of a Piggyback Franchise
For anyone interested in purchasing a franchise, it’s important to understand common franchising terms, one of which is “Piggyback Franchising” or “Combination Franchising”.
A piggyback franchise is defined as “a business within a business i.e. a combination of two franchises operating under the same roof.” (Franchise101 Inc).
What is Piggybacking in Business?
While a piggyback franchise is typically two franchises operating under the same roof, there are other ways piggybacking will occur in business. Some of these include:
- Retail colocation – Two businesses operating under one roof (e.g. a coffee shop inside a bookstore).
- Brand piggybacking – One business leverages the popularity or credibility of a more established brand to build recognition or trust (e.g. a startup tech accessory brand collaborates with Apple to produce “Made for iPhone” certified accessories).
- Distribution piggybacking – One company uses another’s distribution channels (e.g. a local food brands using a major grocery chain).
- Marketing piggybacking – A brand partners with another’s campaign (e.g. a startup included in a larger brand’s influencer giveaway).
- E-commerce or marketplace piggybacking – Selling on third-party platforms instead of building your own.Selling on third-party platforms instead of building your own (e.g. a brand selling exclusively through Amazon, Etsy, or eBay rather than creating its own e-commerce site).
- Franchise piggybacking – Two franchises share a location and costs (e.g. a Subway and TCBY in one store).
7 Real-World Piggyback Franchise Examples
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.
Common Piggyback Franchise Setups
- 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
Pros and Cons of Piggyback Franchising
Piggyback franchising is often a symbiotic relationship between two franchises. However, every type of partnership will have drawbacks worth considering.
Pros of Piggyback Franchising
- Lower Startup & Overhead Costs – Sharing space with an existing business reduces rent, utilities, and build-out expenses.
- Faster Market Entry – Piggybacking on an established location or customer base can accelerate brand visibility and customer acquisition.
- Built-In Foot Traffic – The host business attracts regular customers who may also engage with the piggybacked franchise, increasing sales potential.
- Operational Synergies – Complementary businesses can share resources such as staff, POS systems, or inventory management tools, leading to operational efficiency.
- Stronger Appeal in Limited Spaces – Ideal for malls, airports, campuses, and other high-traffic but space-constrained environments.
Cons of Piggyback Franchising
- Limited Control Over Environment – The host business may control aspects like layout, hours of operation, or overall customer experience.
- Brand Dilution Risks – If the host business has a conflicting brand image or low standards, it can affect the perception of the franchise brand.
- Dependence on Another Business’s Success – The franchise’s performance may be heavily tied to the host business’s foot traffic and stability.
- Restricted Growth Potential – Space and scalability are often limited, making it harder to expand operations or product offerings.
- Possible Contractual Complexities – Sharing space often involves complex lease agreements or revenue-sharing models that can affect profitability and autonomy.
Is Piggyback Franchising Right for You?
Piggyback franchising is not as common as traditional standalone franchise models, and its prevalence depends on various factors such as business type, market demand, and regional trends. For instance, piggyback franchising often makes operational sense in the fast-food and convenience store industry, but it’s probably not well-suited for an upscale restaurant in the fine dining industry.
That being said, not all franchisors offer piggyback franchising, and the concept is more common in specific niches. Even if you choose an industry where combination franchising seems popular, not every franchisor in that industry will promote it in their network.
If executed strategically, piggyback franchising can be a cost-effective, low-risk way to break into competitive markets. However, it’s essential to evaluate the franchisor’s support for shared-space operations and understand the lease or co-location terms involved.
How FranNet Can Help You Start a Franchise
Ready to explore piggyback or traditional franchise ownership? Schedule your free consultation with a certified FranNet franchise consultant today. We’ll match you with the best franchise opportunities tailored to your goals — at no cost to you.