Investing in a newer franchise versus an established national franchise each comes with its own set of advantages and potential challenges the brand needs to solve for. Here are some benefits and what you need to consider:
Lower Initial Investment:
- Newer franchises like Stoner’s Pizza Joint often have lower initial franchise fees and startup costs compared to well-established national franchises. This helps franchisees mitigate their risk and make their capital work for them.
Potential for Growth:
- Being part of a newer franchise may offer greater growth potential, as the business is still expanding and developing and prime markets are still available for development. This can lead to more opportunities for territory expansion and increased profits over time.
Innovation
- Emerging growth concepts are in the envious position of being able to watch the missteps of larger, less entrepreneurial brands and pivot quickly, taking advantage of their nimbleness and adaptability.
Closer Relationships with Franchisor:
- With fewer franchisees, newer and legacy franchisees should have access to the top decision makers in the brand and have the experience of being heard. This can result in more personalized support, guidance, and a stronger sense of community among franchisees. More entrepreneurial franchisees appreciate the more informal relationship leadership has with its founding franchisees.
Flexibility and Adaptability:
- Newer franchises can often move and grow at their own pace, rather than at the rigid and bureaucratic demands of larger franchisors operating as large corporations.
Ultimately, the decision between an emerging growth franchise and an established national franchise should align with your business goals, risk tolerance, and desired corporate culture (informal and entrepreneurial vs more buttoned-down, rigid, and corporate).
For more information about emerging growth opportunities with Stoner’s Pizza Franchise, click here for more information.