Starting a business is risky, especially for first-timers – about 20 percent of new businesses fail within a year. The franchise model uses established practices and operations, making it easier for new entrepreneurs to launch a business and control risk. It’s how the average unit in the Angry Crab Shack system grosses more than $3 million annually.
If stability is a selling point for many franchise candidates, then what is the benefit in investing in an emerging franchise? By default, these brands have had less time to build their reputations. However, they offer other benefits that are attractive to the bold and the business-minded. And Angry Crab Shack is perfectly positioned as an emerging franchise brand to provide entrepreneurs with a pathway to restaurant ownership.
Here are a few reasons why investing in an emerging franchise brand can be advantageous:
A fragmented industry is one that has no big players and has yet to see an established industry leader enter the market. Often, these industries are dominated by mom and pop shops or individually owned concepts.
For business owners, this presents an opportunity to become the industry standard or a leader in that space. Consider a market that’s saturated with similar concepts – a unique brand can rise above the fray. With more than 745,000 franchises in the U.S., the “buzz factor” of a new concept gives owners a competitive edge. An attention-grabbing, original concept increases brand recognition and attracts guests right from the start.
Furthermore, joining a franchise system in a fragmented industry means there’s more potential to grow and scale your business, as you’ll have more resources and brand recognition than your independent competitors.
An emerging brand with only a few locations will have more territories for franchise candidates to choose from. This makes it easier to select an optimal location given variables like target population or traffic.
Even after the business is up and running, investing in a new brand gives franchisees more input, as the system continually uses feedback to improve its model. Established franchise brands are more likely to be set in their ways.
Owners who join a franchise system in its early days enjoy a unique relationship with the franchisor as the system expands. These franchisees have a chance to shape the brand and contribute directly to its growth.
Emerging franchisors have more skin in the game than their more established counterparts. The franchisor-franchisee relationship will be more hands-on – that means more communication and assistance, as well as more dedication to your success. The franchisor has a strong incentive to help you launch a successful business from the outset, providing the model for you to build on as an independent operator.
Angry Crab Shack
As an emerging brand, Angry Crab Shack offers many of the benefits mentioned above. We have territories available across the country and are open to candidates’ preferences about location. Our current restaurants are located in areas with a minimum population of 200,000.
Angry Crab Shack offers a unique opportunity and the capability for a profitable investment to entrepreneurs. Our restaurants can create high ROI because of our low overhead and strong revenue. We’ve found that tasty seafood served in a fun atmosphere draws crowds and drives sales. Come find out for yourself!