Web Accessibility icon

Font Resize


In my business, WestStar Franchise Group, time and time again I have heard, “Not that brand because it’s too new, I want a more seasoned brand with tenure.” Yes, it may be new, but will it be more successful than a tenured brand? That’s the million-dollar question.

There are pros and cons to every emerging brand. The pros and cons can also be perceptually based on the unique investor. Let’s take a close look as I break down the differences of a new brand vs. a tenured brand.

Many emerging franchises have great potential and as a candidate you either see an opportunity to build an empire or you don’t. Researching a new brand will take careful analysis of their operations, marketing, support, development, growth, and execution.


Territories: The Franchisors are more willing to offer larger territories to their first few franchisees as an incentive. Prime territory is available for the picking.

Negotiations: Franchisors are more likely to negotiate small terms like territory size, first right of refusals, future development plans, sliding scale royalties, and creative funding options.

Access to the Founder: When brands are new, the founder is heavily involved so more times than not, candidates will have their calls and training with the founder. Huge value-added as they will go the extra mile not to have their first franchisees fail.

Growth with the Brand:Due to the intimacy of being part of the brand early on, candidates can grow and be a part of the development of the brand itself, as well as participating in more corporate positions.

Masters/Area Developer:Room for expansion as an AD or Master is wide open, and it allows you to obtain these developments programs with ease of availability. These situations are ideal for investors who want to be pioneers and seize the opportunity while it is hot.


Executive Staff: In the beginning, an executive staff is practically nonexistent. It’s usually just the founder and maybe one other. Support may be a little sketchy because of limited resources.

Guinea Pigs: Because of the brand’s newness, a lot of the trial and error will be tested on those initial franchisees (such as processes, strategies, marketing, software, etc.) The franchisee will have to be patient during these growing pains.

No History:There is little historical data or other franchisees the candidate can speak to. The new franchisee is really taking a leap of faith on potential. It’s a huge gamble. They will have no one to validate or see any sort of record on how well they can perform. They are testing the waters and will set the example for others. If they fail or succeed, they are setting the benchmark.

Brand Recognition: Branding will be a challenge as it is barely coming to market. It will take some time before the brand has established national or regional recognition.

Read it in the Franchise Dictionary Magazine