Global Franchise 9.2 - Issue 56

As someone who’s knee-deep in franchise development and with a legal background in franchising, I’ve seen firsthand the complexities of investing in established legacy franchise brands versus up-and- coming franchises. Investing in a franchise involves a delicate balance between the stability of legacy brands and the innovative potential of a new player.When you invest in a legacy brand, you’re stepping into a well- defined market. Sure, you get instant brand recognition, but those prime spots? They’re often taken. You might end up in secondary or less glamorous markets, which can limit your growth right from the start. Legacy brands come with tried-and- true systems, which is great, but it also means there’s little room for flexibility. Want to tweak things or innovate? Think of it as trying to steer an oil tanker – it’s slow and cumbersome. The established procedures and supplier agreements can feel like they’re set in stone, which might stifle your creative ideas. Operating under a famous brand also means you’re up against a lot of competition. Not just from other brands, but from fellow franchisees. Market saturation can lead to internal competition, where franchisees are basically fighting over the same customers. This can dilute your market share and make it tough to stand out. On the flip side, emerging franchises offer the chance to enter fresh, untapped markets. As these brands are growing, they typically have open territories in prime locations. This gives you a golden opportunity to choose markets that fit your strategy and demographics, giving you a head start as the brand expands. Emerging brands are usually more open to new ideas and innovations. They value franchisees who want to get creative and adapt to local needs. If you’re someone with entrepreneurial spirit and fresh ideas, you’ll likely find a receptive audience here. This flexibility can make your franchise more responsive and better suited to local market demands. Investing in a new franchise can be like catching the wave at its crest. If the brand takes off, you could see significant growth. These franchises often have modern business models that attract new customer segments and offer the chance to build strong, personal relationships with the founders and executive team. Your feedback can help shape the brand’s development, making you feel like a key player in its success. Emerging franchises are often more willing to adapt their models to fit local markets, crucial for tailoring marketing strategies, product offerings, and operations. If you’re in tune with local conditions, this freedom can set the stage for long-term success and a powerful local presence. Drew Chalfant , franchise attorney and COO of FranDevCo, breaks down the highs and lows of investing in established legacy franchises versus up-and-coming brands – and considers why backing the new guy could be your smartest move yet. BACKING EMERGING STARS OVER LEGACY GIANTS B A T T L E O F T H E B R A N D S : Taking your franchise brand into international markets is one of the most exhilarating, yet challenging, moves you can make. It’s not just about planting flags on newterritories; it’s about flawless execution, meticulous planning, and robust support. By focusing on a clear strategy, strong systems, and lasting relationships with the right partners, franchisors can successfully navigate the complexities of expansion, unlocking new opportunities and driving their brand to new heights on the world stage. Set a clear international strategy early on It sounds obvious, right? Yet you’d be amazed at how often this step is overlooked or underplayed. To truly master international expansion, a rock-solid strategy needs to be your foundation from day one. This means getting buy-in from the boardroom to the breakroom – everyone should be on the same page.e. Why are you going international? Howwill this move be sustained in the long-termwithout draining resources from your domestic operations? These aren’t just questions to consider; they’re the blueprint for success. A good starting point is a thorough market analysis to identify regions with high growth potential, understanding local consumer preferences, economic conditions, and the competitive landscape. Armed with this data, craft a tailored market entry strategy that covers everything from brand positioning to marketing tactics, supply chain logistics and operational requirements. Once your strategy is in place, stick to it – but stay flexible enough to pivot when challenges arise. Consistency and adaptability are your best allies in maintaining alignment across your organization and among your franchise partners. And don’t forget to lock down intellectual property rights and trademarks in your target markets. This is non-negotiable for protecting your brand and ensuring smooth operations down the line. Build strong systems and processes International expansion isn’t just about replicating what works at home – it’s about adapting it to new environments. At Noodle Box, we’ve spent nearly three decades refining our operational manuals, training programs, and technology to support our global franchisees. Going global – a blueprint for success Play it smart and you can turn new markets into global success stories, says Callum Mackay , International General Manager at Concept Eight. 52 GLOBAL FRANCHISE Issue 9.2