Pros:
1. Increased exposure for the brand – An esports franchise will provide increased visibility for your business, allowing customers to explore its offerings in more detail. This could be through game streams, tournaments or other events. Additionally, it could draw in new potential customers who would not have been previously exposed to your brand.
2. Improved customer loyalty – Esports has a passionate and loyal fan-base, many of whom will stick by their favorite teams over time. This presents an opportunity for franchises to establish deep relationships with new customers and retain them as long-term advocates for their business. This also helps in building brand loyalty.
3. Improved brand recognition – An esports franchise gives your business the opportunity to create a recognizable brand identity and develop strong relationships with customers and partners. Brands that have invested in esports teams often witness immediate advantages, as they are exposed to a large audience of potential new customers.
Cons:
1. High start-up costs – The cost of starting an esports franchise can be significant, as you need to invest in the necessary equipment and resources. Additionally, there are often league fees associated with joining a particular tournament or competition. This is a considerable barrier to entry for many businesses who may not have the budget to compete on this level.
2. Complex legal requirements – Depending on the country or region your business is based in, there may be a range of laws and regulations related to esports. This could potentially limit the scope of activities you can engage in or require additional resources to ensure compliance.
3. Difficult competition – Esports is becoming increasingly competitive and it can be difficult for new entrants to establish themselves within this industry. This is especially true for smaller businesses who may not have the budget or resources to compete on the same level as established teams. Additionally, there are often geographical limitations in terms of the tournaments you can join and this can limit your exposure to potential customers.