About 60% of all franchise opportunities have less than 50 units.
One big feature of up and coming franchise opportunities is that they tend to be in an un-crowded industry that is not overrun with competitors. Management is more flexible and encourages participation from the franchisees. Very often there are more prime real estate or territory opportunities with emerging franchise opportunities.
It’s important when considering smaller franchise opportunities to ascertain what is the advantage of the franchise opportunity, why are they franchising, what benefit does the franchise offer the franchisees and its consumers? It’s a good idea to spend a day with a franchisee, and get very close to the owners. In other words get comfortable that the franchise offers value and that it is sustainable.
Another good thing is weigh the background of the key players, in other words the franchise may be a newer system, but there may be substantial experience and knowledge in that industry or in franchising. Check the background of the owners and key executives.
No matter what the size of the franchise, look for a franchise that has passion, a passion for product quality, a passion for its customers. Franchise opportunities that listen to their franchisees and customers, and have superb management teams and carefully selected franchisees, those are systems you’ll be proud to join. Those are franchise opportunities with bright futures.
Jim Coen, of Franchise Perfection, www.franchiseperfection.com is a franchise consultant, based in Chestnut Hill, Mass. Jim is on the Board of Directors of the New England Franchise Association Network (NEFA), the regional franchise trade organization.