Both options have their attractions. It all depends on your appetite for risk and hunger for reward.
Should prospective franchisees look at buying into a new franchise on a greenfields site or would they be better off buying an existing and successful franchise? That is the question many franchisees ask themselves.
The answer really boils down to assessing what they want and their business style.
Generally speaking, new franchise outlets are cheaper. The buyer does not have to pay for goodwill and there is the prospect of getting a range of other deals in place to make setting up easier. A new franchise is also more likely to generate greater growth. But established franchise outlets have two key advantages: there is less risk and they are easier to run. Read more.