Dear Alesia,
I’ve decided to leave my job as a senior manager in a large corporation and take the plunge to fulfill my dream of owning my own business. I’m excited and nervous at the same time – and obviously want to make the best choice. I’ve been looking at different franchise brands and have a question for you. Is it better to get a franchise from an established brand, or is it better to go with a new brand and grow with it? I see the pros and cons of both options, and I would appreciate your input!
– This or That?
Dear This or That,
The answer is yes and yes! Both options are very viable, and it depends on your comfort zone. Emerging brands, which are young brands with 40 or fewer units, are still very much on a growth path and have more territories available. These brands often offer flexibility, depending on where they are in their development stage. Also, an emerging brand often looks to have its founding franchises help in establishing operations. As a side note, there are even micro-emerging brands, which are very small brands with fewer than 10 units open. People who are drawn to these types of brands find a thrill in getting in on the ground floor and want to influence how the brand sets up policies and operations.
On the other hand, established brands – sometimes called legacy brands – give comfort to people who have an aversion to risk. These investors look at prior performance over the years as an indicator of how the brand may trend going forward. While absolutely nothing is written in stone, long-term, established legacy brands offer the least amount of risk and provide solace to those investors for that reason.
One of the most effective resources to help you identify the types of brands and business models that will fit you best is a certified franchise consultant. A free resource to investors, franchise consultants work with their candidates in researching and identifying brands that will be a good fit, based on investment levels and business/life goals. To work with someone, please fill out the form here (https://franserve.com/franchise-opportunities/request-info/) and let me know what you end up owning!
– Alesia Visconti
Alesia Visconti, CFC, is the CEO/Publisher of Franchise Dictionary Magazine and the CEO of FranServe Inc., the world’s largest franchise consulting and expansion organization. She has 20 years of experience as a C-level executive, driving organizational development and taking companies to the next level. An author, professional speaker, and entrepreneur, her motto in life is “Work hard, play hard, help others, repeat.” As a self-proclaimed nerd, Alesia loves all things “superhero.”