Franchise sales are on the increase since as the new franchise sales market has to some extent matured, the resale of franchise business opportunities is on the rise. The reason franchise owners sell their franchise will vary and include: aging owners, life changing events, health reasons, retirement, boredom, and more.
Here are some of the advantages to buying an existing business such as a franchise resale:
- Established Business – A franchise resale represents a great opportunity because much of the groundwork has been put in place. Something that applies also to buying non-franchise businesses. Relationships, people, suppliers, and customers are often all in place and all one needs to do is take it from there.
- Protected Territory
- Proven Concept – An existing franchise business is one that someone has already proved the value and made it work. There is a track record, a presence, a brand, and a reputation in place. Often times a franchise is deemed to be less risky as systems and processes are proven and in place. That is not to say that such is not the case in a non-franchise business however, a franchise business is more likely to have systems and processes in place they will want you and expect you to follow.
Buying an existing franchise resale business may mean that you may have to make a higher upfront capital investment perhaps, but you get all the benefits and advantages of the franchise system without the start-up pains and dry years as the business is already generating income and profitability. Financing ability in a franchise system, known brand, and an earnings-generating business may make it more financeable. Building a brand from scratch can take years while an established name and reputation is something that a new franchise business owner can truly benefit from.
Buying a franchise resale, much like a non-franchise business allows you to hit the ground running plus get the benefits of the franchise system. That means that the business is likely to be generating sales from the first day you take over, and should continue to do so at least at the same level as before the ownership change. The franchisor will provide the training you and/or your managers require to successfully operate the unit as well as provide the support needed to successfully grow the business.