The beauty of buying a franchise is that you can bank on other people's experiences. If a brand already has 50 or 100 units up and running, then there are 50 or 100 examples to gauge the way that company works with its franchises, what monthly costs to expect, how day-to-day operations will look, and where the profits are likely to stand.
But if you're a brand's first franchisee-or even its second or third-the metrics of past performance are nonexistent. So why would anyone go first?
Obviously someone has to, and those who do believe there are opportunities and benefits worth grabbing. In fact, as we emerge from the pandemic with a new understanding about what it means to be financially resilient, more and more people are trying to snag the first franchises. They have many reasons, which you'll read about in the following pages. But here's the big picture: They're seeing franchising more as a modern way to be an entrepreneur.
"Some of the realities with the older brands [are] that the territories aren't available, or the brand has antiquated technology, or maybe the food isn't healthy," says Rick Grossmann, who does franchise executive coaching and brand development through his company, Franchise Bible Coach. "Younger franchisees are less worried about being an early adopter and are more excited about being techenabled, flexible, and different."
Is There a 'NUMBER ONE' Type?
When he thinks about franchise buyers, Grossmann sees two categories: early adopters and proof-of-concept types. People have a different tolerance for risk, and that tends to determine which group they fall into.
"An early adopter is excited about being in on the ground floor, about being a part of the group as the company continues to form. They usually have more direct access to the team, and they understand there's going to be some hiccups and some edges to smooth out," he says.
Denne historien er fra Startups - Summer 2023-utgaven av Entrepreneur US.
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Denne historien er fra Startups - Summer 2023-utgaven av Entrepreneur US.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
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