avoid saturation by franchising with a smaller company
General Business

Why It Can Pay to Franchise with a Smaller Company

Interested in franchising? You may be wondering whether to open a branch of a well-known mega-brand or a smaller company.

When most people are ready to invest in a franchise, they do so for the benefit of working with a well-known brand name. Owning a franchise allows franchisees to experience the upsides of running their own business with a decreased risk of failure and a proven business model.

However, it may not be in your best interest to choose a franchise with a large company. For one thing, the potential for oversaturation can make it challenging to keep up with the competition. Furthermore, larger companies may not be capable of offering the level of support that your new business venture requires, and they may not be open to new ideas. 

You can mitigate these potential roadblocks by franchising with a smaller company. If you’re unsure whether working with a small or large company is right for you, consider meeting with an experienced franchise consultant who will help you find a franchise that suits your needs. But in the meantime, here are a few of the benefits of franchising with a smaller company.


Decreased Competition

Unlike larger, more expansive franchises, franchising with a smaller company benefits from decreased competition within the same company. Many potential franchisees assume that franchising with a large company will increase revenue, but this is not necessarily true. For example, if you were franchising with McDonald’s, the largest franchise in the world, it would be challenging to stand out when there’s an identical franchise on nearly every street.

If you choose a smaller company in the right location, it will benefit you greatly in the long run. When there are little to no franchises of the same type near your business, it increases the chance that customers will visit your location out of convenience alone. 


Increased Individual Support

If you’re considering investing in your first franchise, the entire process can seem daunting. In fact, many people choose to invest in franchises rather than their own small business specifically for the increased support that franchises offer. Typically, franchisors provide support in the form of equipment, an advertising plan, and a team of experts who can guide you through the process of franchise ownership. However, large companies often lack the same level of individualized support that smaller companies possess.

If you have a specific question or are experiencing a critical issue while running your franchise, it may be challenging to get in touch with the support team at a large company. In contrast, franchising with a small company means that you have the opportunity to connect with franchisors on a personal level and trust that they are there to support your efforts in times of need.


Increased Creative Freedom

Large companies often require stringent regulations to accommodate their size. Furthermore, they also need to ensure that each one of their franchise locations aligns with their brand.

While all franchises are subject to the operating procedures preferred by the franchisor, a smaller company is likely to allow franchisees to experience a greater level of creative freedom. Small companies that are on the road to expansion are open to new, fresh ideas. Since these companies are still growing, they are typically more willing to experiment to improve their business operations or marketing efforts. 


Hundred Acre Consulting

In some cases, franchising with a smaller company is the best option. If you’re still not sure which franchise is right for you, enlist the help of Hundred Acre Consulting. With years of experience, we can help you choose the best franchise for your skill set and guide you through the process of building a lucrative business.

Ready to find the franchise for you? Contact Hundred Acre today, and let’s get started!



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