Seeking a Ground Floor Opportunity? Why You Should Consider New and Emerging Franchise Brands...

FranNet of DFW & Oklahoma actively works with hundreds of franchise opportunities and can speak to the value proposition of many other concepts that comprise our brand inventory. If you’re looking for a huge selection of concepts, of all price ranges, that represent a host of different industries, franchising will never disappoint. Our clients are often amazed at the sheer number of franchise opportunities in the marketplace today, but one category we’d like to highlight in particular is new and emerging brands.

It's quite common to refer to new and emerging brands as ground floor opportunities - a chance for franchisees to invest in the next big thing. When comparing an emerging franchisor with an established one, there are numerous pros and cons to consider. As we like to say at FranNet of DFW & Oklahoma, the ultimate decision is based on a brand that aligns with your personal preferences, goals, financial tolerance, and lifestyle choice. As for new and emerging brands, here are a few advantages you’ll receive…

What Constitutes an Emerging Franchise Brand?

While franchise systems are evaluated and rated in many different ways, it’s widely accepted that new and emerging brands either recently launched their business proposition or have not yet grown to establish 50 units. While many business models operate well beyond the startup label, new and emerging brands are competing in a marketplace with thousands of established brands, making the initial stages of growth a challenge. But that can also be an opportunity.

Harnessing the Potential…

Depending on the value proposition of the product or service an emerging brand has to offer, you could be investing in a first-to-market or industry disruptor. If, in fact, the franchisor does become the next big thing, you’ll have gotten in on the ground floor and the value of your investment could skyrocket beyond your expectations. Yet always keep in mind that the opposite is also a possibility. That being said, emerging brands allow franchisees to grow with the brand and have an outsized influence on the company’s direction thanks to a close-knit relationship with the corporate team. If you can harness the potential of an emerging concept, there may be plenty of opportunities to influence the brand’s innovation and growth.

Other Advantages to Consider

Many emerging brands enter the marketplace at a considerably lower price point. This is a plus for the value-conscious candidate who may also be new to the franchising world. Then there are the prime territories – which usually have yet to be claimed. Lastly, it’s not at all uncommon for new or emerging brands to operate in a highly fragmented marketplace, with no real industry leader. In fact, it’s one of the primary reasons they usually are emerging brands. If the franchise has indeed built a better mousetrap, you could be well on your way to capturing an enviable portion of market share.

As we like to caution at FranNet of DFW & Oklahoma, investing in a new and emerging brand doesn’t come without risks, a few of which bear mentioning. First, there’s usually not a reliable track record of sustained success. Emerging brands typically have smaller corporate teams, support programs, and name recognition. And it’s also possible that banks and lending institutions may see an emerging brand as more of a financial risk when it comes to funding.

But, for those who have patience and are willing to grab the brass ring, an emerging brand will always have the potential to become a sound investment down the line.

Let’s Chat!

If you’d like to know more about franchise opportunities and ownership, please get in touch. FranNet of DFW & Oklahoma is uniquely qualified to match your potential with the possibilities that come from small business ownership through franchising. All you have to do is allow us to be your guide. Our no-cost, no-obligation consultations have helped hundreds of entrepreneurs in North Texas and Oklahoma secure a future that belongs to them and them alone. If you’d like to get started on your entrepreneurial journey, we’d love to introduce you to a whole new world of possibilities through franchise ownership.