Business Continuity Planning to Reduce the Risk Of Disasters
The modern world is fraught with dangers and risks. We...
Many people choose franchising to benefit from the brand awareness that their target audience has of their chosen business. This is one of the factors that helps them get up and running quickly and start turning over money and making a profit. On the other hand, buying into a small or emerging franchise brand can seem like a bigger risk that is more akin to setting up an independent business as a strong customer community may not already exist and you may have to work harder to get noticed.
Although there are downsides to joining a small or emerging franchise, there are also opportunities.
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They're cheaper to join
It is usually cheaper to join a small or emerging franchise brand than a large, well-known brand. This is because the franchisor knows that it can be more challenging to appeal to prospective franchisees and often offers a reduced joining fee and royalties as enticement. This, combined with the usual benefits of franchising such as an established support network, training and access to a centralized supply chain, makes the step into franchising more affordable and less risky than going it alone.
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Less chance of overlapping territories
Big franchise brands may be supplying an oversaturated market. This can result in franchisees being unable to operate in their hometowns, instead having to travel to a neighboring town to avoid infringing on the established territory of another franchisee. With a small or emerging brand, this is far less likely to happen, meaning that prospective franchisees can set up in their hometown, where they already have local connections and may even be known and respected by their community. This increases the likelihood that they will be supported in their business endeavors.
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More opportunities to add value
Young brands need input to grow, and franchisors of these new and emerging business ventures are often open to ideas and suggestions from their franchisees. This can result in greater flexibility for franchisees in terms of operating and marketing the business within their area, in addition to allowing them more opportunities to contribute to the overall success of the brand.
By joining a new or emerging franchise, you have an opportunity to be involved in the company from its inception and throughout its growth, ultimately becoming a pioneer as it emerges a successful and thriving enterprise. By being with it from the start, you become a trusted advisor and a knowledgeable business person. Many feel that these benefits offset the risks, but this is a decision that only you can make. Nevertheless, you should not discount a small or emerging franchise brand until you have considered the entirety of the package.
