I’ve been analyzing franchise trends for years, but I have to admit – the latest data from FranchiseInsights.com’s November 2024 Startup Sentiment Index™ caught me off guard. I’ve watched the industry evolve. What really jumped out at me was how these franchise insights completely challenge our traditional thinking about brand power in franchising.

Here’s what really struck me: well-known brands, which we’ve always considered a major draw, scored just 3.88 out of 8 in importance. This isn’t just a minor shift. It’s a complete reimagining of what matters in franchising.

And it perfectly explains something I’ve been observing: the remarkable success of emerging franchise brands.

Emerging Brands

Here’s some perspective. If you’d told me 10 years agi that entrepreneurs would be more interested in an unknown brand with solid financials than a household name, I might have been skeptical. But looking at this data, it all makes sense.

The top priorities are crystal clear: low cost of entry (5.42) and higher earnings potential (5.04). This explains why so many emerging brands are gaining traction. They’re can offer lower entry costs and sometimes better profit margins because they don’t carry the overhead of a big brand name.

What’s fascinating to me is how this connects to the strong showing of training and support (4.92) in the rankings. Emerging brands often excel here because they have to. Without the crutch of name recognition, newer franchisors typically invest heavily in franchisee support systems and training. They build their reputation from the ground up, focusing on franchisee success rather than maturity.

I’m seeing this play out in real time. Some of the most exciting success stories in franchising right now are coming from brands most people have never heard of. They’re offering robust training programs, strong unit economics, and thorough operational support – exactly what today’s entrepreneurs are looking for, according to this data.

The Rise of Solid Tech Stacks

The technology platform ranking (4.54) adds another interesting layer to this story. Emerging brands often have an advantage here too. Established brands might be tied to legacy systems, but newer franchisors can build their tech stack from scratch. They can implement the latest tools without the burden of outdated infrastructure.

The data suggests that entrepreneurs are doing their homework. They’re looking past the allure of big brand names, and making decisions based on substance rather than status. They’re prioritizing practical elements that directly impact their chances of success – like entry costs, profit potential, and support systems – over the perceived safety of a well-known brand.

This shift has profound implications for the future of franchising.

It suggests that the next big success stories in franchising might not come from established giants but from innovative emerging brands that nail the fundamentals.

For someone who’s watched this industry for years, it’s both surprising and exciting to see such a clear validation of what many of us have been observing.

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By Cindy Rayfield

Randy and Charity were rethinking their careers.

But, they were ready to do something different. After several years of doing stressful and time-consuming jobs in Colorado Springs, now was the time.

Charity, the risk taker of the two, knew that investing was the path they should take to give them cash flow. That would allow them to eventually replace their jobs one day.

The Risk Taker

An avid reader and researcher, Charity (the risk taker) had been a trauma therapist for over 20 years. She was a director at a psychiatric hospital and worked with victimized women. Stress was an everyday occurrence. Stress for her patients, and stress for her.

Early into their marriage, Charity put Randy and herself in a great cash flow position with real estate and alternative investing.

Randy explains, “Charity is definitely the risk taker in the relationship, but her research is always sound and does reassure me that we are making well informed decisions.”

To begin their investment journey, they turned one of their previous residences in Colorado Springs into a rental property.

But they still had their steady jobs for cash flow, and security.

The Planner

Randy (the planner) spent 10 years as a Deputy Sheriff in El Paso County, and later transitioned to IT for the next two decades. Strapped to a desk was starting to feel like a life sentence.

This wasn’t what he envisioned for the future.

Their other interests took them outside of the normal 9 to 5 – Target Shooting, Interactive Gaming, Ballroom Dancing, Hiking, Sports, Working Out. Freedom was the goal so they could do all these things and take their next big step – start a family.

Basically, they wanted more – they wanted their time back.

That’s when they started looking at business ownership.

Cash Flow, Equity and Freedom

Both Randy and Charity wanted what a business could give them – cash flow, equity and freedom. Charity put on her research hat and dug in.

Using her in depth research skills (and bringing Randy along for the ride), she started thinking about what businesses would do well in their hometown.

They both knew they were people oriented and wanted to impact their community in a positive way. After COVID, they wanted people to come out and enjoy themselves and they wanted to do that too.

Charity already had extensive experience in running a business, as well as experience in the restaurant industry, and Randy had years of management skills. Combining their strengths would be key for them in running a business.

Charity explained, “Having invested in residential real estate, we now felt we should look for other investment opportunities to help diversify our portfolio. Owning several businesses would also allow us to transition to owners with more flexibility and freedom than we currently have.”

How would they find the right business? That was the next step.

The Connection

Randy remembered a connection he had. He went to high school with Cindy Rayfield, a franchise broker with the firm, IFPG. He found an old email from Cindy, and out of the blue, called her to find out how this whole franchise thing worked.

“After going through the screening and research process with Cindy, we found several franchises that deeply interested us. We finally selected two separate franchises and purchased six licenses. We couldn’t pick just one! We believe we selected the best possible combination for us,” recalled Randy.

The choice was tough, but they settled on two healthy food concepts – an Acia Bowl superfood franchise, and a growth concept in popular Asian fast food.

Agressive Plans

Their plans are aggressive. But the risk taker in Charity also knows how to roll up her sleeves and get things done. Randy, the planner, has their goals already set.

“In three years we expect to have four stores open and running. By five years we should have a minimum of six locations open in Colorado Springs. Our 10-year goal is to have 10 businesses and 15 residential properties. We also are hoping to have 3 children by then! Owning our own businesses, and our future, will allow us the flexibility and freedom to be better parents.”

Colorado Springs will be welcoming a powerhouse duo and some great food concepts to their fast-growing community!