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When searching for a new franchise, you’ll quickly discover how many options are available. Some franchise options you’ve heard about before. Other names might be new to you. Knowing which choice is right for you isn’t always easy. To help you navigate your path and find the right investment, consider the benefits of an established vs. an emerging franchise.
Benefits of Investing in an Established Franchise
Established franchises are those whose brand names are well-known and regarded. These are two of the distinct benefits of investing in a business that has years of experience under its belt.
Name Recognition
One of the key reasons many new franchisees opt to invest in an established franchise is name recognition. Having a household brand name acts like the wind in your sails. You won’t have to go to as great of lengths to educate your market about your product or service. Your market already knows the brand name, what’s offered, and what to expect when buying from you. All you have to do is open your doors and follow the plug-and-play systems in place from corporate.
Proven Systems
Established franchises benefit from having years of experience to work out the bigger kinks. They’ve tested systems and seen what works—and what doesn’t. Working with a company that has done a lot of this initial heavy lifting means you can show up and get moving with more momentum faster. Better yet, since systems are refined over time, you’ll likely have an easier time learning as you maneuver through the initial stages as a franchisee.
Hottest Hot & Trending Franchises
Woof Gang Bakery & Grooming
With more than 200 locations open or under development, Woof Gang offers best in class grooming, and a unique retail experience; our gourmet treats are made with love, and we just offer the best quality pet food. Each location is a committed to the happiness, well-being and health of pets.
Paul Davis Restoration
Join North America’s #1 leading insurance restoration network. Year-round demand in a booming industry!
EggBred
The EggBred goal is to provide the surrounding community an energetic and positive fast casual experience serving a delicious alternative to the often boring breakfast sandwich.
Benefits of Investing in an Emerging Franchise
Emerging franchises are those companies that might be less well known but are on a growth trajectory. They’re just coming on the scene, which means there are unique opportunities when investing in this type of franchise that can’t be ignored.
Having a Voice at the Table
Investing in a franchisee who’s still getting settled in the market and navigating their path forward offers you a chance to have your voice heard. Often, franchisors who are newer to the market lean on their franchisees for feedback. You become the eyes and ears in the field and can help shape the organization's future. That’s powerful and often desirable for any entrepreneurial-minded and creatively inclined franchisee.
Minimizing Risk
There’s a common misconception that established franchises are less risky. Not necessarily. That belief makes sense when considering the benefits of tapping into an opportunity with a name brands. But surprisingly, emerging franchises can often pose less risk.
One of the biggest reasons new brands form and grow in the market is that they’re being created in response to market shifts and new demands. That means these brands are often innovative and fresh, offering new opportunities for publicity and growth. This could minimize your risk and pose bigger growth into the future.
How Do You Choose Which One is Right for You?
There’s no right or wrong answer when choosing between established or emerging brands. By understanding the benefits of each type of franchise, you can choose the best suited for your franchise goals, preferred working conditions, and risk aversion.
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Kimberly Crossland is the founder of Roadpreneur and Cruisin' + Campfires, two companies designed to keep families together and living in freedom through travel and entrepreneurship. The goal of both businesses is to inspire meaningful change through the power of a strategic, thoughtful approach to life and business. In her free time, you can find her looking for a new adventure together with her two boys.