The risks and rewards of being a trailblazer
Louise Harris QFP explores the benefits, and the risks, of being one of the first franchisees in a business.
Contrary to what you may assume, just because a brand is new to the franchise system, doesn’t mean it can’t be a sound investment. In fact, there are plenty of reasons to ‘get in on the ground floor’.
When any ethical franchise launches, they should already have tested the model and be therefore bringing a proven system to market. Of course, that business has been run by the franchisor, so prospective franchisees should check the pedigree of the operator and whether the franchisor has the skills and resource to make both the business, and the franchise, a success.
It’s likely that early franchisees can benefit from a reduced franchise fee or investment. This is in part to encourage recruits to the business, but also because in the early days the network is smaller than in an established brand (and so proven up-and-running individual franchisees are fewer).
That said, any good franchisor will fully vet potential franchisees and only proceed if both parties are a good fit, just as one that has decades of franchising behind them would. Plus, the fee will undoubtedly increase for new investors as the franchise grows and becomes more popular, so for these initial members of the network their faith in the growing business is rewarded by this introductory offer.
Early adopters of a franchise model may find that systems and processes aren’t particularly polished – and the model may need some tweaks to make it work for everyone.
For this reason, new franchises may appeal to those with an entrepreneurial streak; while all franchises require that you ‘follow the business model’ to achieve success, a new brand may offer the prospect of you helping to shape the model, its systems and influencing the business itself (a factor less likely to be found in franchises of longer standing).
Look for a business that has sound foundations but is open to the fact that they may need to adapt a little. And make sure that, as a franchisee, you are prepared to be a bit flexible as change is inevitable. Franchisees in first usually get their pick of the territories but most importantly, in my view, they also play an important role in growing and moulding the business. And become valued team members for their input.
In summary, due diligence into the pedigree of the business will keep any risks to a minimum. At easyStorage a head office pilot territory and then two pilot franchisees tested the model before launching. This, along with our experienced storage team and a team of franchise experts added to with an exceptional brand proposition serves to minimise risk all round.
Louise Harris QFP is franchise manager at easyStorage
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