With rapid technological inventions allowing even the smallest businesses to reach new audiences every day, and grants and lending initiatives available in every region, there has never been a better time to start a franchise in the United Kingdom. This development in the franchise industry has also led to the increasing popularity of franchise resale opportunities throughout the UK.
What is a franchise resale?
A franchise resale is a franchise where the previous franchisee is moving on from the business and the franchise is available for a new business owner to take over. There are a wide number of reasons why a franchisee may leave a franchise including:
- The expiring of the franchise agreement.
- The retiring of the franchisee.
- The franchisee looking for new professional opportunities.
Franchise resales are available in multiple industries and locations and franchise resale opportunities run the full gamut of investment ranges. As with traditional franchise opportunities, franchise resales can often be operated on a part-time or remote-work basis.
When you are deciding on a franchise resale you can choose from a broad range of options and there is bound to be an opportunity which matches your lifestyle, your skills, your passions and/or your career plan.
What are the advantages of a franchise resale opportunity?
There are multiple advantages associated with starting a franchise resale and it is these advantages which make this such an attractive proposition to so many entrepreneurs looking to start a business. The central benefits of starting a franchise resale include:
- You will receive access to a pre-existing customer base who are familiar with and loyal to the business you are starting. Your established reputation within the region in which you are operating is a great head-start for your business success.
- By starting a franchise resale, you will have access to previous trading figures which will give you an insight into the financial viability of the business. This is simply not possible with a business which has not yet begun trading.
- You will have full training and support provided by both the franchisor and the franchise seller, which will give you an excellent starting position for developing the business.
- If you start a franchise resale with pre-existing staff, these staff will have a thorough understanding of the business requirements and will be equipped to run the franchise from the very first day.
- With a franchise resale opportunity, you have the opportunity to grow and develop a business whose concept has already proven not to be seasonal or temporary.
What should you ask the franchisor about your franchise resale opportunity?
When you have found a resale franchise opportunity in your desired location and industry, which is within your investment range, then it is time to contact this resale franchise for more information. There are a number of important questions which you should ask the franchisor and the business seller to ensure that you start this resale franchise opportunity with every possible advantage.
1. Why exactly is the franchise being sold? It could be that the franchise agreement has come to an end or the franchisee is retiring but if it is due to financial concerns, it is important that you know this early in the franchise resale process.
2. What does the franchisee wish that they had known before they started the franchise?
3. What would the franchisee have done differently if they were starting the franchise again?
4. What about the business is its key value proposition and should, therefore, not be altered?
5. Will you have the same franchise agreement as the previous franchisee or will a new agreement be created?
When you have answered these questions and if you are satisfied with your answers, then you are in a strong position to take full advantage of your franchise resale opportunity.