‎Entrepreneur.com:
Is it wise to become one of the first franchisees in a new franchise system?
Sure, it’s a thrilling proposition to get in on the ground floor of what is hopefully a superstar concept. And it might be particularly lucrative if startup costs (compared with that of long-established franchises) are low.
But of course, the downside is that some new franchises don’t survive the journey and are buried in unmarked graves along the way.
Before buying into a young or unproven system, it’s important to weigh the pros and cons. Most people think of young franchises as small startups, but there are typically three types of businesses in this category, including established companies that have finally decided to franchise. The common denominator is that each is asking you to invest when there’s little or no proven results from other franchisees who have gone before you.