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Emerging Franchise Opportunities

Sue Bennett

When my candidates are searching for a franchise, they often think they need a million dollars to get started in a name-brand franchise like McDonald’s. Not the case in today’s market. There are hundreds of emerging brands that are very reasonably-priced and concessions can be made. Just because you haven’t heard of a particular brand, doesn’t mean you shouldn’t take a look. When investigating any franchise opportunity, it is best to keep an open mind and consider an emerging franchise.

Recently I placed a candidate in a pizza franchise that was a new, and of course, he had not heard of the brand. Granted, since my candidate was the first franchisee, he had a lot to risk. Since the franchisor was flexible and willing to work with us, he offered several concessions to help lower the risks and increase the probability for success. The total cost, including the franchise fee, was considerably lower than most mainstream pizza brands. Also, thanks to a knowledgeable franchise attorney, the outcome was a “win-win” for both the franchisee and franchisor.

When considering an emerging franchise opportunity, consider the following:

Hire an experienced franchise attorney. If you are one of the first franchisees, and validation calls are limited, or non-existent, the price of an attorney will save you many headaches down the road. My candidate worked with a very knowledgeable franchise attorney who advised him properly, so that he was protected. Overall, the candidate indicated to me, “that was the best $1,000 I ever spent.”

Ask for concessions. When I consulted with my candidate, we asked for everything that was important to him and then discussed those items with the franchisor. Initially, the franchisor was apprehensive to make the concessions, but quickly realized, they had to offer some “perks” to help make the candidate feel comfortable signing the agreement.

Have a franchise consultant with you on every call. My candidate found it very difficult to ask for specific items without justifying, “why.” However, I was able to facilitate the discussions between the two parties and found a good middle ground to help solve their differences. Everyone was able to “air” their concerns without being offensive to each other. Since I was on every call with my client and the franchisor, I was also able to help the franchise attorney understand the dynamics of the discussions.

Be ready to walk. There were certain items that were really important to my candidate, and a few that were not. However, he felt strongly that if he didn’t get certain concessions, he was ready to step away from the transaction. In his mind, the risk was just too big. Being “ready to walk” allows the candidate to stay unemotionally attached to the transaction and keep his perspective focused.

Make sure everything is in writing. Once the concessions were agreed upon, the attorney drafted an addendum and both parties signed the changes.

Create a “win-win” transaction. Once the transaction was completed, both parties felt like they each got what they wanted. The franchisor was happy to land his first franchisee and my candidate got several concessions that he felt were very important to him, all within a reasonable price.

Buying an emerging franchise is a complex transaction and a franchise consultant at FranFinders will partner with you to provide clarity and direction so you can complete your franchise search with confidence.

About the author

Sue Bennett

Sue has always enjoyed serving others in her various roles as a business owner and employee. Her broad business background includes experience in the financial services, insurance and real estate industries. She also authored a book, Jumpstart Your Life, 401 Ideas to a Winning Attitude, and inspired hundreds of individuals with her upbeat messages. Sue has spent her lifetime pursuing her dreams, but more importantly, she’s committed her time and knowledge to encourage others to become successful business owners.

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