How to Compare New Franchises
Getting involved with new franchises can be a great way to get in on the ground floor of a big opportunity.
But, on the other hand, you have to be careful about investing in a business that is not yet well established. If the kinks haven’t yet been worked out, or there’s no proof that the business is viable or profitable for franchisees, then you could be headed for trouble.
Need some help? Here are a few things to keep in mind as you search.
What to consider about new franchises
Who’s behind it?
Who are the founders that launched the company? Who sits on the executive board? What experience do they have? Are they known for launching other successful franchise opportunities? If so, what were the reasons for their departure? If the opportunity is brand new, you’ll want to make sure the people behind the company have the expertise to make the franchise a success.
Just how “new” is it?
There’s a big difference between new franchises that are 3 years old and those that are 3 weeks old. Keep in mind that one of the most reliable ways to determine a business’s potential success is to look at the success of its establishments that are already operating. A brand new opportunity, one that hasn’t yet launched, won’t have any real-world data to look at.
Is it based on an existing business model?
Just because the opportunity is new doesn’t necessarily mean that it’s based on some revolutionary new business model. Some of the most successful franchises in history have been founded around existing models that were just slightly changed or improved. By looking for new franchises (Learn More) that use proven business models, you can reduce risk and help ensure your success.
What do the numbers look like?
If existing business owners have already been running the franchise, be sure to look closely at the profits and revenues, which should be disclosed in the franchise agreement. If the business is brand new, be sure to get specific projections produced by experienced financial analysts. What are the projected profits? How quickly will you see a return on their investment? How quickly will the business be profitable? These are all important questions to ask.
Are the products in demand or unique?
This is an important consideration, regardless of whether the company is brand new or decades old. Without good products that people need and want, your business won’t go anywhere.
Discover one of the best new franchises available today
Founded in 2008, HUMAN Healthy Vending has already established itself as an industry leader. We’ve flipped vending on its head by introducing a line of fresh, healthy foods and drinks, delivered via our state-of-the-art, LCD-screen-equipped machines with remote inventory monitoring, credit card readers and other innovative features.
HUMAN Healthy Vending has been named one of “America’s Most Promising Companies” by Forbes Magazine, and Entrepreneur Magazine’s “100 Brilliant Companies” of 2011. We’re also on track to become one of Inc. 500’s “Fastest Growing Companies.”
Contact us today to learn more about our fun, exciting and highly lucrative vending opportunities for entrepreneurs.