There are three fundamental differences for potential franchisees investing in new, lesser-known franchise brands compared to larger household names which serve essentially the same market.
In this regard, comparing a new lawn mowing franchise to an established restaurant franchise is pointless, but comparing new versus established restaurant brands (for example) will highlight the importance of these three key differences.
The first is that the entry cost will usually be lower for the new and lesser-known brands as these franchisors will be less likely to charge as much for access to their brand, intellectual property and training.
However, savings achieved in these intangible elements of the franchise offer may be partially offset by higher equipment or store fit-out costs compared to established brands, who may have greater buying power or construction efficiencies to keep overall store opening costs down. Read full article here.