Franchising is teeming with decades-old brands that have stood the test of time – why would anyone consider buying a franchise from a brand new franchisor instead? There are many reasons for this: Although newer franchise concepts can involve more risk, you can usually have more influence over the development of the brand, can get in at a cheaper price than future franchisees, and have more available territories to choose from. If that sounds tempting, there are plenty of new franchise brands to consider: an estimated 300 companies begin franchising each year, and of the 1,389 franchisors that applied for our 2024 Franchise 500 ranking, have almost 17% started franchising in the last five years.
So what are the strongest new and emerging franchise concepts? That’s what we evaluated in this ranking, which is based on the reviews these companies received during the Franchise 500 evaluation process. We examined 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.
It can be an exciting prospect to jump on board with the next hot concept, but keep in mind that this list is not intended as a recommendation for any particular franchise, but rather as a starting point for your own research. Before investing in a franchise business, be sure to carefully read the company’s legal documents, consult a lawyer and accountant, and speak to existing franchisees.
Related: These Franchises Are Big Earners Right Now and They’re Fun!
We asked the best new and emerging franchisors
Why did you decide to franchise your business?
“Franchising has been a great way to quickly scale our business. We knew we were on the right track with the amazing success of our company’s business and wanted to spread it nationally as quickly as possible. Franchising was the clear path for our business model.” — Justin Crowell, Co-Founder, QC Kinetix (#9)
“I developed this concept as a franchise model from the beginning. I had always loved the franchise model and knew I wanted to connect with people who had that entrepreneurial spark. In addition, due to the consistency and high reproducibility, it was a perfect fit for a franchise model.” — Michele Henry, Founder and CEO, Face Foundrie (#57)
“I love supporting and mentoring entrepreneurs. Franchising allows me to work with passionate, community-minded people to help them achieve entrepreneurial success while making a tremendous positive impact.” — Kristen Denzer, Founder and CEO, Tierra Encantada (No. 104)
What unexpected challenges have you faced since franchising and how did you respond to them?
“Our biggest challenge was figuring out who best fits our model and who we should get the message out to. We landed on corporate refugees and people who want to leave their 9-to-5 jobs behind because our franchise allows people to work part-time at first, and eventually they can quit their job and work full-time.” — Neel Parekh, CEO, MaidThis Cleaning (No. 58)
“As we helped our first franchisee go live, we realized there were several aspects we needed to streamline. “We decided to develop a business-in-a-box concept where we work with vendors to provide programs for payroll, accounting, marketing, insurance, etc. so that franchisees can basically sign on the dotted line.” — Jeff Gartner, co-founder and CEO, Hudson Valley Swim (No. 77)
“Choosing the right franchisees. Initially, our enthusiasm led us to welcome anyone with interest, but we quickly learned that alignment of vision and values is critical. We have implemented a comprehensive screening system that goes beyond financial qualifications to evaluate a candidate’s commitment to service excellence. This shift has changed the game.” — Al Noufaro, Franchisor and CEO, Junk Chuckers (No. 115)
As an emerging franchise, how can you compete with more established franchises?
“To differentiate ourselves, we have launched various initiatives that energize the brand. For example, our partnership with Blue Origin. What other concept could claim that its consumers can send postcards into space? It’s about encouraging creativity. We leverage our contacts and constantly look for ways to surprise and delight our guests.” — Josh Halpern, CEO, Big Chicken (No. 48)
“We market ourselves as an ‘anti-franchise franchise’ and I believe that allows us to reach a slightly different market than most franchise brands. We don’t need any previous restaurant experience – just a desire for social commitment and entrepreneurial spirit. First and foremost, we have to want to have a beer with you. — Matteo Rachocki, CEO, Voodoo Brewing Co. (No. 84)
“Franchising is a relationship business. The business model and economics of the entity must be competitive, but we will always stand out through the relationships we build with candidates and franchisees. Because we are a young system, we have some advantages, such as an accessible leadership team, flexibility in direction and plenty of green space in key markets.” — Beck Miller, Senior Director of Franchising,
LaundroLab (No. 143)
Related: Do you want to own a lot of companies? These are the 150 best franchises for multi-unit owners.