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What are Franchise Resales?

 You probably know what a franchise is, but do you know what franchise resales are? If you've been researching franchises in order to invest in one yourself, you've probably come across the term "franchise resale."

This term refers to an established franchise whose owner has decided to sell his or her franchise. There are many different reasons for why the owner may have decided to sell their franchise, but oftentimes the resale happens after several years of success. They may decide to move onto a different phase in their lives, want to start another business in a differend field or may want to get their return on investment in a big way.

According to a NatWest / bfa survey for 2007, 29% of franchises offer resales. The well established franchises will usually be the ones with more resale opportunities than an up and coming franchise.

Franchise ResalesLet's examine the advantages of buying a franchise resale:

  1. You will be buying a business with an existing customer base.
  2. The brand name has already been established locally.
  3. Your franchise can potentially be successful from day one!
However, keep in mind there may be a very steep learning curve, as you will be taking on a business that is already up-and-running, with certain business practices already in place. You will have to really hit the ground running with a franchise resale! But if you're really looking for a high performing business that can give you a quick cash flow, franchise resales may be the best option for you. As always, before jumping in head first, check with your solicitor or accountant about the legal and financial ramifications of taking on a resale opportunity.
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