Franchising is a great way to own your own business by partnering with an existing company. However, hitching your wagon to a budding successful company can be a potentially smart way to create future wealth. Investing and franchising with an emerging brand may just be one of the most important aspects of building your bank from franchising.
No matter what concept you choose, the chance of financial success can be enhanced by aligning with an advancing brand. Every major brand today started as a single store. Imagine owning a Five Guys location from the very beginning. If you’re able to get in on the action earlier then the returns can be stronger! Just take a look at the numbers.
- It takes 6 to 10 years to get your money back with an established brand.
- Emerging brands may offer returns on the initial investment in just 1 to 3 years.
- Burgeoning concepts often have lower start-up costs, making them more accessible to a larger pool of entrepreneurs and faster to become operational.
- Out of all the existing franchise brands, 82% fall into the categories of Early Stage or Emerging, meaning they have less than 100 territories.
Sure, there might be risks associated with franchising with an emerging brand over a more established business, but if you ask us, the rewards far outweigh them! They may be less expensive to join, with much lower fees and better real estate that can be secured in new territories.
Becoming a multi-unit owner is also the ideal end goal. If you want to build wealth as a franchisee, taking your returns and reinvesting them back into the same concept in order to open and own more locations may benefit wealth creation.
If you are able to identify potential powerhouse businesses while they are still growing, you can get in on the ground floor of a seriously profitable franchise.
While it’s impossible to guarantee which brands are going to take off and become successful sensations all around the world, we can help you spot a brand that’s on the rise with just these few essential questions.
1. Who is Behind the Brand?
You can tell a lot about the future of a business by taking a look at the owner themselves. A committed leader often reflects a strong determination to be the very best in the market. If you can make sure that they are really passionate about their product, then you can guess that they will go further. A boss always needs to be all in on their business, it takes serious dedication to succeed. Find a franchise where you know you can count on the enthusiasm of the person in charge!
2. How Fast is the ROI Expected to Be?
When you franchise with an emerging brand, a key consideration, among many others, is often getting your money back as quickly as possible. A fast ROI can always indicate that it’s a good brand to bet on. It may seem simple, but the sooner you’re able to turn a profit, the better. This allows you to reinvest and become a multi-unit owner. This is the optimal way to build wealth and help grow the brand you’re benefiting from at the same time.
3. Are They the Real Deal?
If there’s one thing today’s market has made clear, it’s that consumers prefer to pick a brand that they can trust. Buyers want a genuine experience, and they care about the message behind all the marketing. Power to ‘em! You can spot an emerging brand easier by looking at the identity behind the business and even why it was started. Authenticity goes a long way in any market sector.
4. Does It Have Strong Economic Numbers?
The numbers never lie. You want to partner with a concept that has already seen some impressive returns. The value of the existing locations should be evident and backed by strong economic units regardless of the sector it’s in. This is such an important indicator to examine when trying to find an up-and-coming business to franchise with.
5. Is It a Trending Market?
It’s not just the brand that should be emerging, but the market itself as well. When we say trending we don’t mean some passing phase either. Find a sector that has been steadily growing over the course of a few years. See if the demand is there for the product and if it’s likely to increase based on the surrounding culture. You’re searching for a long-term trajectory of scalable growth here.
The bottom line here is, to make sure to pick a winner! The United States is home to the largest franchise industry in the world. It’s no wonder why so many business-savvy self-starters are flocking to these partnership opportunities. The simple business model and proven framework of a franchise can mean you’re looking at a strong ROI.
Many are searching for the exact right brand to be a part of and eventually achieve financial freedom. Considering the potential of any particular brand for scalable growth can be the ultimate determining factor in being able to build wealth.
Remember to consider these few important factors when asking about any potential franchise partners. They will help you to see if there is really the potential for the brand to grow and then you can get in on the ground floor. Find out who is behind the brand, how quickly can you expect the ROI, if the brand is authentic, if it boasts steady numbers, and if the market sector is trending up.
While becoming a franchisee is certainly an easier way to make your riches than starting a brand from scratch, you still need to know exactly what to look for! Finding a way to franchise with an emerging brand can help investors potentially cultivate a lucrative standing within any industry.
Learn more about how to find out if franchising is the right fit for your financial future by contacting our team of franchising experts today.