THE PROS + CONS OF AN EMERGING BRAND n my business, WestStar Franchise Group, time and time again I have heard, “Not that brand because it’s too new, I want a more seasoned brand with tenure.” Yes, it may be new, but will it be more successful than a tenured brand? That’s the million-dollar question. There are pros and cons to every emerging brand. The pros and cons can also be perceptually based on the unique investor. Let’s take a close look as I break down the differences of a new brand vs. a tenured brand.
Territories: The Franchisors are more willing to offer larger territories to their first few franchisees as an incentive. Prime territory is available for the picking. Negotiations: Franchisors are more likely to negotiate small terms like territory size, first right of refusals, future development plans, sliding scale royalties, and creative funding options. Access to the Founder: When brands are new, the founder is heavily involved so more times than not, candidates will have their calls and training with the founder. Huge value-added as they will go the extra mile not to have their first franchisees fail. Growth with the Brand: Due to the intimacy of being part of the brand early on, candidates can grow and be a part of the development of the brand itself, as well as participating in more corporate positions. Masters/Area Developer: Room for expansion as an AD or Master is wide open, and it allows you to obtain these developments programs with ease of availability. These situations are ideal for investors who want to be pioneers and seize the opportunity while it is hot.
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