Exploring Franchise Resales As A Pathway To Business Ownership

Do you need help buying an existing independent business and investing in a franchise? You can skip that process while gaining the advantage of both paths to business ownership. You can achieve this through franchise resale. A franchise resale is the sale or transfer of an existing unit that a franchise company has already sold. Read more about franchise resales to help you decide if it is worth your investment.

What are the benefits of franchise resales? 

There are several benefits associated with franchise resales, making them an attractive option for prospective business owners. However, evaluating each franchise resale opportunity is vital to ensure it aligns with your goals, skills, and resources. Working with franchise consultants can also provide valuable input and guidance. Here are just a few reasons why owning a franchise for resale could be the right choice:

1. Established Customer Base

By purchasing a franchise for resale, you won’t have to spend so much on marketing and advertising to attract new clients. Instead, it lets you focus on providing excellent customer service and networking with others within your niche. Nowadays, you can buy an existing franchise or sell your franchise through websites like Franchise Resales.

2. Proven Business Model

When you purchase a franchise for resale, you are practically buying into a proven franchise business model. The systems and processes for running the business have already been established and proven successful. This way, you will feel more secure during the early stage of business operations. 

3. Training and Support

Most franchisors offer training and support to new franchise owners. This is also true for those who are buying a franchise for resale. Likewise, this can benefit you as a new business owner because it can help ensure you have the skills and knowledge needed to run the business. 

Franchisors offer training at their company headquarters and on-site training. They also provide franchise operations manuals and other resources for new franchise partners.

4. Efficient Use of Resources 

Starting a new business from scratch can be a time-consuming and resource-intensive process. By purchasing a franchise for resale, you can save time and money by taking over an already-established operation. You can focus more on growing the business instead of getting bogged down in the details of setting everything up from scratch.

5. Reduced Risk

A certain level of risk is always involved when starting a new business. By purchasing a franchise for resale, you can reduce this risk by taking over an already-established operation. This can provide greater security and stability, especially for those new to business ownership.

6. Opportunities for Growth

Purchasing a franchise for resale can be a great way to grow a business. You can expand and potentially increase the customer base by taking over an established operation. Additionally, this can be rewarding for those who want to make a real impact and see immediate tangible results.

Key Factors to Consider with Franchise Resales

Franchise resales provide all the advantages of buying an established business and opening a new franchise. However, it’s essential to know that you’ll also have to go through most processes in both types of business acquisition. Here are some key issues you should consider if you decide to buy a franchise resale:

• Determining why the unit is available. There are several reasons why an existing franchise unit might transfer ownership. Sometimes, the current franchisee may have decided to retire or relocate or want to concentrate on other business interests. In other situations, it might be due to funding or management issues hurting the bottom line. Or it might be because the franchisee has decided that the business concept could be a better fit.
• Evaluating financials and asking price. When buying any existing business, you must thoroughly evaluate its financial history. You should examine the seller’s record and any other details you’ve gleaned from a professional accountant. Doing this will allow you to determine if the asking price is reasonable and get advice on whether the unit is a viable investment.
• Performing franchise due diligence. When buying a franchise resale, you must also investigate the master franchise. For instance, you can review the franchise disclosure agreement and interview other existing franchisees. Before making an offer, having everything reviewed by an experienced franchise attorney is crucial.
• Obtaining franchisor approval. When you buy a resale franchise, you must agree on a sale price and complete the purchase process. You must also seek the approval of the franchise company, as any new franchisee does, and pay any applicable franchise transfer fees.

Final Thoughts

Owning a franchise for resale has many benefits, including learning opportunities and a higher return on investment. If you are considering a franchise opportunity, consider buying one already up for resale. It offers all the advantages of starting a new franchise, with fewer challenges and hassles. Learn more about franchising by browsing the guides and recommendations at FranchiseHOW.