08 Sep, 2017

Hottest New Franchises

Hottest new franchises In preparing this article, I did a little research and I went and read all of the ads I could find for franchises for sale on the various websites, and in the franchise directories, as well as in the magazines you see on the magazine rack. I read through classified ads, and I clicked on links to various franchisors websites. It seems nothing has changed in the last few decades. Prior to retirement I ran a hottest new franchises company, and of course we were engaged in franchise sales. Although I never participated in any flashy franchise sales ads or marketing material, I did note that a number of franchisors including some that most would consider very reputable, were engaging in borderline marketing hype. A solid franchisor should not have to have an ad in a magazine that states; "this is the hottest new franchise on the market, get in on the ground floor, franchise territories filling up quick." Remember, buying a hottest new franchises is a long-term business investment opportunity. When you sign a franchise agreement the terms will be 5, 10, or even 15-years. You will be locked in once you sign that franchise agreement, and you will be obligated to all sorts of things. If the franchise you are buying is hot today, or if it is selling into a fad, or a trendy market, that could be short-lived, and you will be holding the bag for years to come when the market falls out for that product or service. Perhaps this is akin to buying a fast-moving small-cap mutual fund. These small mutual funds with the right manager can make a lot of money in their first couple years, but as the fund grows in size, it becomes more bureaucratic, and he gets followed by other investors, and it tends to move slower, and thus, is unable to capitalize on the opportunities. The big growth they experienced originally is no longer there, and the fund managers often quit and go find work elsewhere. In other words the brains of the organization leave which changes the entire dynamics. The same thing can happen with fast-moving hottest new franchises. In fact, it happens all the time. Just because a company is having a 500 or 600% growth rate for two or three years, doesn't mean it can continue that forever, in fact it's a rarity. And I would submit to you that when you see extremely fast growth rates like that, those franchisors can get them into trouble. So what I'm saying to you is be careful if you think you want to buy a hot new trendy franchise. Please consider all this and think on it. Hottest new franchises In preparing this article, I did a little research and I went and read all of the ads I could find for franchises for sale on the various websites, and in the franchise directories, as well as in the magazines you see on the magazine rack. I read through classified ads, and I clicked on links to various franchisors websites. It seems nothing has changed in the last few decades. Prior to retirement I ran a hottest new franchises company, and of course we were engaged in franchise sales. Although I never participated in any flashy franchise sales ads or marketing material, I did note that a number of franchisors including some that most would consider very reputable, were engaging in borderline marketing hype. A solid franchisor should not have to have an ad in a magazine that states; "this is the hottest new franchise on the market, get in on the ground floor, franchise territories filling up quick." Remember, buying a hottest new franchises is a long-term business investment opportunity. When you sign a franchise agreement the terms will be 5, 10, or even 15-years. You will be locked in once you sign that franchise agreement, and you will be obligated to all sorts of things. If the franchise you are buying is hot today, or if it is selling into a fad, or a trendy market, that could be short-lived, and you will be holding the bag for years to come when the market falls out for that product or service. Perhaps this is akin to buying a fast-moving small-cap mutual fund. These small mutual funds with the right manager can make a lot of money in their first couple years, but as the fund grows in size, it becomes more bureaucratic, and he gets followed by other investors, and it tends to move slower, and thus, is unable to capitalize on the opportunities. The big growth they experienced originally is no longer there, and the fund managers often quit and go find work elsewhere. In other words the brains of the organization leave which changes the entire dynamics. The same thing can happen with fast-moving hottest new franchises. In fact, it happens all the time. Just because a company is having a 500 or 600% growth rate for two or three years, doesn't mean it can continue that forever, in fact it's a rarity. And I would submit to you that when you see extremely fast growth rates like that, those franchisors can get them into trouble. So what I'm saying to you is be careful if you think you want to buy a hot new trendy franchise. Please consider all this and think on it.