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As you begin your franchising journey, it’s tempting to start out by looking at existing and well-established franchises. After all, organizations with decades of growth under their belts are less risky and more well-known, right? Maybe, but there’s more to the story that doesn’t meet the eye.
A growing franchise, one that has started and is seeing an upward trend of new customers, locations, and profits, can often times be an enticing alternative to the tried and true organizations. Leaning into this type of franchise certainly has its benefits, especially as you’re starting out in your franchise journey.
Your Initial Costs May Be Lower
Growing franchises often require a lower initial investment than well-known franchise brand names because they recognize that their company or offer is lesser known in the market. The lower initial investment can be a boon for entrepreneurs with a tight budget or those looking to minimize their financial risks because they can enter the market at a fraction of the cost while still benefiting from the support and proven business model the franchisor offers.
More Room to Expand
Established franchises may have limited territory availability due to existing franchisees occupying prime locations. With fewer franchisees already established, you can choose prime locations and access new customer bases. This freedom to expand into uncharted territory allows you to shape the market and establish yourself as a leader before larger competitors take notice.
In addition to expanding into uncharted location territories, you can tailor the offerings to local preferences and trends. This adaptability allows you to connect with customers deeper, catering to their specific needs and desires and giving you a leg up on the competition before other franchises or similar brands enter the market.
More Input on Future Growth
As a franchisee of a growing but not a well-known franchise, your voice matters. Franchisors often lean on founding franchisees for input and suggestions for future growth. The opportunity to actively shape the franchise's direction, contributing ideas and insights gained from your local market is significant. You can better cater to your specific market’s needs and help the brand build steam in your local area. That initial input will remain strong as the brand grows, giving you
a collaborative approach to the franchise's evolution and ensuring that it aligns with your market and customers' changing needs.
More Networking Opportunities
Networking doesn’t just happen between the franchisor and franchisee. The network of franchisees tends to be smaller and more tightly-knit in the beginning stages of the business. This smaller group provides a supportive community where franchisees can learn from one another, exchange best practices, and share valuable experiences. The sense of camaraderie means franchisees can grow together and benefit from each other's successes.
More Flexibility With Systems
Franchises with more years under their proverbial belt tend to have established systems and often have a more rigid structure, making it harder to adjust to local needs. On the flipside, when working in a growing franchise, you can be agile and responsive to market changes. There’s more opportunity to quickly adapt your strategies, introduce new products or services, and experiment with different approaches based on customer feedback.
More Momentum
As brands grow, they pick up momentum in the market. That momentum is buzzworthy and gets customers talking to each other about the new entrant, wondering when a store will open in their area. While the franchise may not be well known yet, being part of a growing brand provides the opportunity to ride that wave of recognition. People are often intrigued by fresh and innovative concepts. As the franchise gains momentum and expands, so does its brand awareness. You can leverage this upward trajectory to increase your visibility and attract customers eager to try something new and exciting.
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Knowing these benefits, it’s clear why many people are attracted to growing franchises instead of established brand names when starting their franchising journey. Regardless of your choice, finding the right franchise for your personal goals, interests, and the market is critical. Don’t count the lesser-known brand names out while finding your next franchise.
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.