What Are Franchise Resales?
In most cases, if you are to purchase existing franchise it is often referred as franchise resales which mean that you are buying a certain business that is already on the trade, enabling growth to be quicker providing the chance to save cost and time. A certain resale of a franchise could as well include brand presence and also customers within the existing location making it as of great help in growing the business rapidly.
There could be many reasons why there is a need for franchise resales such as the franchisee is into retiring, looking for relocation, having other business interests needed to concentrate into and a lot of reasons that might trigger the decision of reselling the franchise. But as a buyer, you must pay attention with some important factors with regards to the franchise in order not to regret afterwards. As you are into planning to buy a franchise think first of the reasons why you are to buy franchise resale. And some of the reasons why you are to buy existing franchise could include the following:
- Established Track Record – once you are to buy resale franchise you are as well to invest a franchise concept wherein there are already products and services being sold successfully. There will also be trading history that you could learn from supporting your plans for the future.
- Brand Recognition – you already have this brand recognition compared to starting up a business wherein you will need to work for many years just to build brand that is recognized in the market. Through buying resale franchise, there will be an assurance of immediate recognition of the brand.
- Instant Cash Flow – once you are to buy franchise resales that are already established it will also provide instant cash flow compared to a start-up business wherein you are to wait for numbers of months before you are to make your own profit. Through franchise resale, you already have your clients that are using the products and the services.
- Experienced Staff – there will already be staff or team that are well-trained and well-experienced in terms of running the business. There could also be a case wherein the former owner might still be staying for the purpose of providing smooth takeover and also to make sure that you are to fully understand everything about the business.
- Marketing Support – it will be hard for an independent and starting business to market the business so franchise resales have advantages regarding existing strategies in the marketplace. If you belong to a franchise, it might be of great help in terms of reducing cost being equally shared to other owners of the franchise.
- Reduced Risk – if you are to invest in a certain franchise resale then you are as well into eliminating or reducing the possibilities of any risks being involved by the business. In most instances, numbers of banks prefer to favour those that are in franchise resales compared to the new business start-up with regards to loans and finances.
Those are just among the reasons why buying franchise resales could be a better option compared to having your own start-up business. If you are guided with the above mentioned reasons then probably it would be easy for you to decide whether to consider buying franchise resale. If the above reasons are not yet enough to convince you to invest in a resale franchise then better consider the following benefits or advantages that you might experience if you are to buy a franchise resale:
- Right from day one there will already be flowing of cash
- Brand is already present in the local market place
- There are already customers and clients right from the start
- All will be in place such as stock, property and staff
- It will be easier to plan about the business based on the given data
- Funding process will be smoother since there is already a proven history of the business
- The main task of the purchaser is to simply grow the existing products and services
It would be hard to develop business presence within a new territory at the same time could be costly and time consuming, so taking the advantages that franchise resales could offer could be of great help. In order to speed up rolling your business and so reaching success, franchise resale is of great option especially these days that it is already reaching popularity in the market.
Now that you are provided with reasons, advantages and benefits about franchise resales may be you are thinking to already invest into. Never hurry for there are certain things to consider first before proceeding with the final move. You need to think about the key areas such as the following:
- Getting an advice from an expert accountant must be considered. An accountant could provide you the needed information or details about the certain business that you are to purchase. Accountants are experts in determining which business will be best option for resale.
- The market in the area could be assessed first regarding the competition level or other factors that might affect the business.
- The price of the products and services must also be considered whether reasonable or not. As you assess the entire business including all the factors, the price of the franchise resale must be reasonable enough. And accountants could again be of great help with regards to this matter.
- Pay attention with the type of the sale that the business is structured. Remember, there are two types of sale which are the share sale and the asset sale. Both of these sales have differences and so implications as well that might affect the business. Seek for legal advice before you commit with the franchise resale.
- And also consider whether you have enough money and also security of having an established business. It is important that you are prepared with enough money and security for it might affect the performance of your business.
Those are the things to consider and there are still a lot more once you are to consider buying franchise resales. In conclusion, buying franchise resale is not as easy as how others think it is for there are many things to consider first but if you are equipped with enough ideas about this type of business then everything will flow smoothly and easily.