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Franchise risk

Question
Is it riskier to invest in a new franchise concept rather than an established one? 
Answer
In general, it's considered riskier to invest in a franchise that is untested or not widely distributed. On the other hand, there may be more reward opportunity.

If the new concept is being rolled out by a franchise company with several other successful concepts under its belt, the risk may be somewhat reduced.

Some people prefer to be "first in." Others want to wait until the franchise brand already is established. In either case, there is always business risk. 
Brain Trust contributor: President-Life Changer of Franchise Selection Specialists Inc.
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