Why Buy a New Franchise? Every successful franchise started with zero franchises. But one thing they all had in common was a successful model/system which could be duplicated and was based on sound business principles, and in most cases, although not absolutely necessary, years of success. It's all about the tools. Creating effective tools and using them correctly is a key and is what a model or system consists of. That is what all of our Clients have done or are doing. It doesn't matter if it is the 1st or 100th franchise, the tools will be the same. The advantage of buying early is that more opportunities become available sooner, such as buying additional franchises, becoming an area representative or area developer. Don't shy away just because the franchise is new. Candee Wilde of Franchise Inc. asked the question should a new franchisee consider joining a new franchise system? She answered her own question. Absolutely. Remember, every franchise industry giant had a first franchise. Early investors not only get in on the ground floor, they often can negotiate more lucrative franchise agreements. (Negotiation with established franchisors is all but impossible.) Of course, more locations are available in a new system, as are opportunities to become a regional franchisee. One important distinction needs to be kept in mind when talking about new franchise businesses. They are not the same as new businesses. Many new franchisors have been in business for years before they began selling franchises. Not surprisingly, businesses that are both new and new to franchising are more likely to struggle, according to a study by the Small Business Administration.