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Choosing Your Franchise Adventure: The Established Path or the Startup Journey?

The path to becoming a franchisee can be both thrilling and a bit daunting with so many options to consider. One of the biggest decisions you'll need to make is whether to invest in an established franchise brand or take a leap into the lesser-known territory of a startup franchise. Each choice has its own unique set of advantages and potential challenges, and it's important to weigh them carefully against your personal goals, financial resources, and entrepreneurial spirit. So let's dive in and explore the pros and cons of purchasing an established franchise brand versus a startup franchise brand.

Established Franchise Brand


  1. Brand Recognition: One of the biggest advantages of buying an established franchise is the instant brand recognition that comes with it. This could attract a larger customer base from the get-go, as the brand has already built a reputation and customer loyalty.

  2. Proven Business Model: Established franchises have tried-and-tested business models, which can make it easier to secure financing from banks and other lenders, and also provides a blueprint for franchisees to follow.

  3. Training and Support: Established franchises often offer comprehensive training programs and ongoing support to help franchisees understand the business and operate it successfully. They may also provide marketing support and a set of standards and procedures to ensure consistency.

  4. Lower Risk: Given their track record, established franchises often come with lower business risk compared to startup franchises. This is especially true for franchisees who are new to business ownership.


  1. Higher Initial Investment: Because they are well-known and proven, established franchises often require a larger upfront investment compared to newer, less recognized brands.

  2. Less Flexibility: With an established franchise, there's often little room for creativity or customization. Franchisees are typically expected to follow the franchisor's systems and procedures strictly.

  3. Market Saturation: Depending on the franchise and the location, you may find that the market is already saturated with other outlets from the same brand. This could limit your potential for growth.

Startup Franchise Brand


  1. Lower Initial Investment: Startup franchises generally require a lower initial investment. This can make it easier for first-time franchisees or those with limited capital to get started.

  2. Greater Flexibility: With a startup franchise, you might have more room to be creative and adapt the business to suit your local market, as the franchisor's systems and procedures may not be as rigidly defined.

  3. Opportunity for Rapid Growth: With fewer outlets competing in the same space, a startup franchise can offer the potential for rapid growth and the chance to establish a strong presence in the market.


  1. Higher Risk: Startups inherently come with more risk. The brand may not be well-known, and the business model may not have been fully tested, which could lead to unexpected challenges.

  2. Lack of Brand Recognition: Startup franchises lack the immediate customer base and reputation that comes with a well-known brand, which might require more effort and investment in marketing.

  3. Limited Support: While some startup franchises offer support and training, it may not be as comprehensive as that provided by an established franchise. The franchisor may be figuring things out as they go along, which can lead to inconsistencies and uncertainties.

Ultimately, the choice between an established franchise and a startup franchise will depend on your personal preferences, financial situation, business acumen, and tolerance for risk. Just remember that all franchises were start ups once! We would be happy to discuss what is right for you.

Pros and Cons
Pros and Cons

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