emerging brands? pros and cons.

There are pros and cons to every emerging brand. The pros and cons depend on the investor. Here are some of the differences between a new brand and an established brand.

Many emerging franchises have great potential, and as a candidate, you either see an opportunity to build an empire or you don’t. Investigating a new brand will require a careful examination of its operations, marketing, support, development, growth, and execution.

PROS

Territories: Franchisors are more willing to offer larger territories to their first few franchisees.

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.

Growth with the Brand: Due to being a pioneer of the brand, candidates have an early adopter mentality and will be part of the development of the brand.

Area Developer: Room for expansion is ideal for investors who have financial goals for a larger opportunity while it is hot.

CONS

Executive Staff: In the beginning, an executive staff is practically nonexistent. It’s usually just the founder and maybe one other. So support may be a little insufficient because of limited resources.

Experiment: Because of the brand’s newness, a lot of the trial and error will be tested on those initial franchisees. Patience is key for the franchisee.

No History: There is little historical data or other franchisees the candidate can speak to. The new franchisee is really taking a leap of faith on potential. They are testing the waters and will set an example for others.

Brand Recognition: Branding will be a challenge as it is barely coming to market. It will take some time before the brand has established national or regional recognition.