Things are seemingly returning to some sense of normalcy. Although the future and impending economy continue to be uncertain, it does appear that things are normalizing as people return to the business at hand. One movement that is hard to ignore exists in the labor force.
The shutdowns and social distancing protocols changed many people's perspectives and outlooks on life, including attitudes about working to accumulate wealth for companies and employers. Many reject the notion that they should trade most of their time to earn a paycheck and consider other options, such as becoming a business owner through franchising.
For those ready to take a leap of faith and start on a new venture, the question is whether they want to take one additional risk and try their hand with an emerging franchise or if going down the path of buying an established brand is better. If you are ready to begin accumulating wealth for yourself and branch out on your own, which one is for you?
Franchising - A Proven Business Model?
When most people think about being a franchise owner, they think of a well-established brand, a mega-brand like McDonald's or Dunkin' Donuts, but thinking of only the most prominent brands can price them out of the market. Although it might be a common thought that buying into a well-established franchise reduces the risk of failure, that is not the case.
It is foreseeable that the old status quo of businesses might not adjust to people's new trends, thoughts, and desires as life pivots in the post-pandemic atmosphere. Many new and exciting franchise opportunities are finding their market share as we head deep into 2022 and beyond. They may offer just as much - if not more - in the potential for growth, satisfaction, and sustainability than established brands.
Pros and Cons of Investing in Emerging Franchise Brands
Both established and emerging franchises have pros and cons; the key is to find the less risky options while balancing sustainability and satisfaction. One significant advantage to buying an established franchise is consumer awareness. Although all franchises offer a proven business model, established ones have a history, leading to higher performance predictability.
On the other hand, established brands also have the potential for outdated business models that have lost their luster and come with market saturation and consumer fatigue. Also, they often command a higher buy-in investment, which can outprice most investors.
The pros and cons of an emerging franchise are also varied. On the one hand, they typically come with an upward trend and the opportunity for rapid growth due to their excitement and "newness," which sometimes leads to a high degree of adaptability that you can't get with an established brand. Emerging franchises tend to have more "wiggle room" to adjust for consumer trend changes, which does not necessarily mean that the business model isn't strong or set in stone.
It simply means that there is less tendency by consumers to hold fast to what they already know. The major drawback with an emerging franchise is often there are more responsibilities placed on the individual franchise units to extend the ever-growing brand awareness.
So Which New Franchise Concept is for You?
So which is for you - an emerging franchise or a traditional one? Before you decide, here are some of our emerging brands to look into.
In a post-pandemic era, people have become increasingly aware of their health status and how important it is. The DRIPBar is a franchise targeting cellular health and overall quality of life and well-being. The type of cocktail offered at the DRIPBar combines cellular scientific nuances targeted to help people live healthier and more vibrant lives.
Their niche market is not restricted to people dealing with chronic illness; it is for anyone who wants to increase their overall health. The DRIPBar offers vitamins and supplements via IV therapy, administered by professionals. Also, it is a semi-absentee franchise model, which allows business owners to pursue multiple streams of income and continue working in their current field or capacity.
The franchise fees are within range for the average investor. $55,000, with royalty fees of 7% and a startup cost of anywhere from $131 - $278k. To become an investor, you need liquid capital of $125k, a net worth of $300k, and a credit score over 700.
Ellie Mental Health Services
In the aftermath of the isolation and lack of social support that many individuals felt during the pandemic, many are still dealing with residual feelings of depression, anxiety, and other mental health issues. Telehealth was one industry that took on a life of its own during COVID, offering many convenience and accessibility that they did not have before.
Ellie Mental Health Services is one such telehealth forum. It is one of the fastest-growing mental health companies around the nation. It also offers in-person services, community service outreach, and psychiatric medication management to corner all mental health needs.
The cash requirement to buy in is about $100k, with a minimum franchise fee of $60k. It is an absentee to semi-absentee franchise business model, allowing owners to have a hands-off approach and pursue other career paths. It also offers high support, including real estate procurement, financial aid, site build, marketing, recruitment, and training. Once established, they have brand development guidelines and shared service intake teams, so there is a lot of hand-holding to provide all the assistance you need for startup and success.
According to statistics, by the year 2050, more than 27 million seniors will require health and living assistance, putting a heavy burden on many families who are left to care for them. CarePatrol is a franchise dedicated to providing better options than what's currently available in the market, using technology and software for better placement and more informed choices.
CarePatrol attempts to be the answer to assisted living placement concerns, independent living needs, nursing home choice confusion, and memory care for a growing number of seniors who are increasingly in need of help to overcome the hurdles of dementia and other memory issues.
It touts itself as a business with a purpose that requires a very low investment buy-in at $100k, a culture of compassion and empathy, a high degree of training and support, the benefit of quickly becoming the industry leader, and far greater earning potential than competitors. It is also an option for a flexibility-seeking audience as a home-based business model.
As we return to similar conditions as a pre-pandemic world, the past three years have left their mark in many ways. One such perspective that has globally changed is attitudes about work/life balance. Those looking to stop the daily grind, enjoy more freedom and family time, and stop working to line the pockets of companies and business owners and instead start lining their own are looking for franchise opportunities.
But is an emerging or well-established franchise right for you? With many pros and cons to consider, having a trusted professional like Frannexus in your corner can get you on the road to a successful and lucrative future filled with satisfaction and personal growth. Contact us today to get started!
I would highly recommend Seth to anyone looking to explore the universe of franchise options. - Jay Weitzman, Franchise Owner
Let Frannexus Be Your Guide!
If you are considering investing in a franchise, don’t take the chance of choosing the wrong one and not achieving your goals. Learn from the experience of others in the franchise field, like a franchise coach, to have the greatest likelihood not just of succeeding but exceeding what you think is possible. At Frannexus, we have the expertise, knowledge, and experience to help you achieve your financial and personal goals. The right match is waiting for you, and Frannexus is the matchmaker to find your franchise soulmate.