Franchising is full of decades-old brands that have proven themselves — so why would someone consider buying a franchise from a brand-new franchisor instead? There are many reasons: Although newer franchise concepts may come with higher risk, you can usually have more influence over how the brand develops, you may get in at a lower price than future franchisees will, and you have more available territories to choose from. If that sounds appealing, there are plenty of new franchise brands to consider: An estimated 300 companies begin franchising every year, and of the 1,389 franchisors that applied for our 2024 Franchise 500 ranking, nearly 17% had started franchising in the past five years.

So which are the strongest new and emerging franchise concepts? That’s what we assessed in this ranking, which is based on the scores that these companies received during the Franchise 500 evaluation process. We looked at more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability. Only brands that started franchising in 2019 or later were considered.

Getting in on the ground floor with the next hot concept can be an exciting prospect, but keep in mind that this list is not intended as an endorsement of any particular franchise, rather just as a starting point for your own research. Before investing in any franchise, make sure you carefully read the company’s legal documents, consult with an attorney and an accountant, and talk to existing franchisees.

Related: These Franchises Are Big-Time Earners Right Now, and They’re Fun!

We Asked Top New and Emerging Franchisors

Why did you choose to franchise your business?

“Franchising was a great way to scale our business quickly. We knew we were onto something with the amazing success of our corporate stores and wanted to spread it nationwide as quickly as possible. Franchising was the clear path for our business model.” — Justin Crowell, cofounder, QC Kinetix (No. 9)

“I built this concept to be franchised from the start. I had always loved the franchise model and knew that I wanted to connect with individuals who had that entrepreneurial spark. In addition, the consistency and high ability to replicate made it a perfect fit as a franchise model.” — Michele Henry, founder and CEO, Face Foundrie (No. 57)

“I love supporting and mentoring entrepreneurs. With franchising, I am able to partner with driven, community-minded people to help them achieve entrepreneurial success while also having a tremendous positive impact.” — Kristen Denzer, founder and CEO, Tierra Encantada (No. 104)

What unexpected challenges have you faced since franchising, and how have you responded to them?

“Our biggest challenge was figuring out who would be the best fit for our model and who to cater the message to. We’ve landed on corporate refugees and people who want to leave their 9-to-5, because our franchise allows people to work part time initially, and eventually they can quit their job and go full time.” — Neel Parekh, CEO, MaidThis Cleaning (No. 58)

“When we helped our first franchisee go live, we realized there were several aspects that we needed to streamline. We decided to create a ‘business-in-a-box’ concept where we pre-negotiated programs with vendors for payroll, bookkeeping, marketing, insurance, etc., so franchisees can basically sign on the dotted line.” — Jeff Gartner, cofounder and CEO, Hudson Valley Swim (No. 77)

“Selecting the right franchisees. Initially, our enthusiasm led us to welcome anyone with interest, but we quickly learned that alignment in vision and values is critical. We introduced a comprehensive vetting system that goes beyond financial qualifications to assess a candidate’s dedication to service excellence. This shift has been a game-changer.” — Al Noufaro, franchisor and CEO, Junk Chuckers (No. 115)

As an emerging franchise, how do you compete against more established franchises?

“To set ourselves apart, we’ve embarked on various initiatives that inject energy into the brand. For example, our partnership with Blue Origin. What other concept can say that their consumers can send postcards into outer space? It’s all about embracing creativity, leveraging our connections, and constantly seeking opportunities to surprise and delight our guests.” — Josh Halpern, CEO, Big Chicken (No. 48)

“We market ourselves as the ‘anti-franchise franchise,’ and I believe that lends to a slightly different market than most franchise brands. We also don’t require previous restaurant experience — just a desire for community engagement and an entrepreneurial spirit. We have to want to have a beer with you first and foremost.” — Matteo Rachocki, CEO, Voodoo Brewing Co. (No. 84)

“Franchising is a relationship business. The business model and the unit economics need to be competitive, but we will always set ourselves apart by the relationships we develop with candidates and franchisees. Being a young system gives us some advantages, like having an accessible leadership team, being flexible in direction, and having lots of green space in major markets.” — Beck Miller, senior director of franchising,
LaundroLab (No. 143)

Related: Want to Own Many Businesses? These Are the Best 150 Franchises for Multi-Unit Owners.

https://www.entrepreneur.com/franchises/the-top-new-and-emerging-franchises-in-2024/472630