7 Reasons Why You Should Avoid Mainstream Popular Franchises
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7 Reasons Why You Should Avoid Mainstream Popular Franchises

popular franchises

You’re finally ready to take the leap and buy a franchise. You’ve done your research, but the mainstream franchises keep popping up and you’re wondering if maybe you should invest in one of the top 10 franchises. As tempting as that may seem, there is a lot underneath that shiny topcoat.

Popular franchises might be appealing because of how well-known they are and their proven success posted on every entrepreneur publication for the top franchises to invest in. But we want to shed some light on franchise opportunities and explore why the popular franchises might not be all their cracked up to be.

1. The Bigger The Franchise, The Bigger The Costs

Starting with the initial buy-in cost, where you will be asked to pay a one-time initial fee to become one of their franchisees. If you’re lucky, this fee can be as low as $10,000 – but more often than not, they typically average around $25,000. Some franchise’s initial buy-in fees can be as high as $500,000 or MORE and up to 8.5% of your monthly sales.

Example: The cost of opening a Starbucks licensed store is in the ballpark of $300,000 or more. Not to mention all the hoops you have to jump through before they will even consider your application.

2. Your Profits Will Take A Hit

When you buy one of the top franchises that are trending heavily across all markets, you are literally buying a team of shareholders. Most popular franchises have six to eight directors on their board and a ton of other committee members.

If that doesn’t scare you, then maybe knowing your profit margin is reduced due to all the excess fees that come with buying popular franchises.

In smaller franchises, you have smaller fees and more control over your expenses.

3. You’re Paying For The Brand

One of the biggest costs that your bottom line will take a hit from is brand recognition. You know all those big billboards and fancy commercials – yeah, you’re paying for them. Your initial investment will include brand recognition, but then you will contribute to an ongoing fund that promotes more awareness of the brand.

Every company needs advertising for people to find your brand, but the top 10 franchises and many others are already widely known across the world – think about McDonald’s, Burger King, Pizza Hut, etc., how much good is all that advertising doing when everybody already knows their brand?

Small underrated franchises like Chaps choose their advertising goals wisely and knows when it’s overkill. Why pay for something that already exists? You save big money looking for a franchise for sale that is not a leading brand.

4. Your Just A Number

When you buy into popular franchises, you become another one of their pages in a very big book. They will give you a ton of materials to read and follow while setting up your franchise and expect you to just follow the sequence.

With underrated franchises like Chaps, you’ll get personalized service that means the franchisor is with you every step of the way. They walk you through the process, answer your questions, and make sure you are set up for success. You become part of the family, unlike the process with popular franchises.

5. Rules, Rules, And More Rules!

When you invest in one of the top franchises that are very popular, you will be given a rule book that will make your head spin. From the way you train your staff to how you have to do the scheduling. There are rules for everything, including marketing, layout, operations, inventory, setup, color schemes, language, etc., the list just goes on and on.

With smaller franchise opportunities you will still have rules to follow because the same idea applies that the franchises should all follow suit. However, there are fewer rules and the franchisor is more open to suggestions. You could be the one to create the next big thing that hits your niche and get it approved to be in all the franchise locations.

6. Reputation

You’re probably thinking that popular franchises already have a good reputation, after all, they’re already popular and everybody knows their brand. But one of the risks of buying into top franchises is that with all the popularity comes more chances of something going terribly wrong.

Think about what happened with Chipotle and the food poisoning issue. Sure it can happen to smaller franchises too, but the odds are greatly reduced due to the size of the franchise. The bigger the name, the bigger the risks. Bad situations can blossom into closures, and that means the brand name is tarnished and so is your investment.

With the franchise owners being more involved with smaller franchises, the odds are lower that something will slip through the cracks. You will also find that employees care more about their jobs when they work for a franchise that values their contribution.

7. Customer Service Lacks

When you go to a small franchise you’re more than likely going to run into the owners or family members of the business. They take pride in making connections and community their top priority. Underrated franchises like Chaps makes you feel at home, they make you feel like you’re part of the success.

With other franchise opportunities, such as the popular franchises, you won’t find that same owner to customer bond. The franchise owner will rarely be there, if at all, and send out some hourly employee to deal with your issue. It’s more about business than about appreciation.

Bottom Line

Popular franchises won’t help you in becoming more successful without taking the credit and a huge cut. You won’t get the personal service you deserve and need, especially if you are a first-time franchise buyer.

Consider investing with underrated franchises like Chaps for a more personable experience that will set you for success for many years to come! Your success is key to their business model and they will help you every step of the way.

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