When choosing a franchise to buy, there are numerous important factors to consider. What type of business are you passionate about owning? What type of business is missing in your local area? What is the total initial investment? Can you expect to recoup your investment during the initial term of the franchise agreement? This is just a small sampling of the type of questions you will need to answer—in many cases, with the help of an experienced Massachusetts franchise lawyer.
Another important factor to consider is the age and reputation of the franchise system. Does it make sense to buy an up-and-coming franchise so that you can get in on the ground floor and perhaps secure a large exclusive territory? Or, does it make more sense to buy into a well-established brand? Similar to the questions above, neither of these questions has a single “right” answer. Instead, choosing a franchise to buy requires a multi-faceted analysis, and you ultimately need to choose the brand that you believe gives you the best chance of success over the long term.
The Franchise Times’ Emerging Franchises and Top Brands to Buy
The Franchise Times recently published a list of 10 “emerging franchises” along with its 2024 Zor Awards “Top Brands to Buy.” Here are the franchised brands on each of these lists:
Emerging Franchises
- Buena Papa Fry Bar
- Beem Light Sauna
- Sabaraba’s
- The Coven
- Jars: Sweets and Things
- Funbox
- Brunchaholics BJ
- Tootl Transport
- New York Fries
- Larks Entertainment
“Top Brands to Buy”
- Overall Winner: Tim Hortons
- Sign Franchises: Fastsigns, Speedpro and YESCO
- Chicken Franchises: Bojangles, Bonchon and Zaxby’s
- Automotive Franchises: Jiffy Lube, Take 5 Oil Change and Valvoline Instant Oil Change
- Coffee Franchises: Biggby Coffee, PJ’s Coffee and Tim Hortons
- Business Franchises: AtWork, Express Employment Professionals and Spherion
- Food Franchises: Clean Eatz, Playa Bowls and Teriyaki Madness
- Home Franchises: Benjamin Franklin, Generator Supercenter and One Hour Heating & Air Conditioning
- Pet Franchises: Dogtopia, Wild Birds Unlimited and Woof Gang Bakery
- Swimming Franchises: British Swim School, Goldfish Swim School and SafeSplash Swim School
- Mexican Food Franchises: Bubbakoo’s Burritos, Qdoba and Taco John’s
Any time you are looking at a list of “top franchises” or “best brands to buy,” it is important to look at the methodology behind the publication’s rankings as well. Simply put, some franchise rankings are more biased than others—with many being “pay-for-play.” The Franchise Times publishes the methodology behind its Zor Awards online.
Pros and Cons of Buying an Emerging Franchise
Why might you want to consider an emerging franchise in Massachusetts? Usually, people consider up-and-coming franchises for the following reasons:
- Untapped Market Potential: Emerging franchises offer the opportunity to target not only new segments of the market, but also customers who might not be interested in patronizing the more-established franchised brands.
- Exclusive Territories: New franchisors will often (though not always) be willing to offer larger exclusive territories to their early-stage franchisees
- More Favorable Franchise Agreement Terms: Along with exclusive territories, new franchisors may be willing to offer other more favorable franchise agreement terms as well in order to bring strong candidates into the franchise system.
But, like all franchise opportunities, there are potential downsides to buying an emerging franchise as well. These include (but are not limited to):
- Lack of Brand Recognition: One of the main reasons to buy a franchise is instant brand recognition, and you won’t necessarily get this with an emerging franchise.
- Lack of Tried and Tested System Standards: Oftentimes, new franchisors will still be working out their system standards, and this can lead to confusion, disruptions and additional costs for early-stage franchisees.
- Lack of Experience with the Franchise Model: New franchisors often lack experience with the franchise model as well, as they are transitioning from operating at the unit level to overseeing and managing an entire franchise system.
Pros and Cons of Buying a “Top” Franchise Brand
Similar to buying an emerging franchise, buying a “top” franchise brand also has pros and cons. Some of the pros of buying a “top” franchise include:
- Instant Brand Recognition: Unlike emerging franchises, well-known franchised brands offer instant brand recognition that franchisees can use to attract customers from day one.
- Experience in Franchising: Well-established brands will also have more experience and familiarity with the franchise model, and their systems are more likely to be honed, organized and market-driven.
- A Large Network of Franchisees: If you join a large franchise system with lots of existing franchisees, you will be able to leverage their experience, and their collective bargaining power, if necessary.
Just like emerging franchises, there are potential downsides to buying into a well-established franchise system as well. These include (but are not limited to):
- Lack of Personal Attention: As one of hundreds (or thousands) of franchisees, you might not receive the same level of personal attention that you would receive in an emerging franchise system.
- Overemphasis of Profitability Over Franchisee Satisfaction: Larger franchisors also tend to prioritize profitability over franchisee satisfaction, particularly at the individual franchisee level.
- Limited Opportunity for New Market Penetration: If your local area already has one or more existing outlets, your ability to attract customers to your new outlet may be severely limited.
Request a Free Initial Consultation with Massachusetts Franchise Lawyer Jeffrey M. Goldstein
If you are thinking about buying a franchise in Massachusetts and have questions about the factors that you should be considering as you make your buying decision, we invite you to get in touch. Massachusetts franchise lawyer Jeffrey M. Goldstein has well over 30 years of experience representing prospective and active franchisees. To request a free initial consultation, please call 202-293-3947 or tell us how we can reach you online today.
This article is provided for informational purposes only. Goldstein Law Firm, PLLC does not recommend or endorse any particular franchise opportunities. Always do your due diligence before buying a franchise and make an informed decision based on your specific financial resources, risk tolerance, preferences, goals and needs.
