There are many myths about franchises. Today, we debunk the myth that an emerging franchise brand is automatically a riskier investment than an established one.
Logic says that a new brand with under 20 franchisees is a riskier investment than a franchise with 200 franchisees. However, that is not always the case.
BEFORE JUMPING TO CONCLUSIONS, ASK these questions:
What is the track record of the people launching the new brand?
How often have they launched new brands?
What is the track record of those brands and their franchisees?
Is this a stand alone single brand or is it part of a larger organization?
When it comes to emerging brands, or any franchise brand for that matter, ASSUMPTIONS can be quite DETRIMENTAL.
There are more and more PORTFOLIO FRANCHISE COMPANIES which own MULTIPLE BRANDS. It’s part of their GROWTH STRATEGY to launch NEW BRANDS in their AREA OF EXPERTISE. One such portfolio franchise company was featured in our podcast last week. Its expertise is in Home Service Concepts that cater to mid to upper-income homeowners.
To learn about EVALUATING EMERGING BRANDS, listen to this highly informative and interesting podcast.