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Summary - What is Franchise Resale? - How do Resales Become Available? - Advantages of Buying an Existing Resale Opportunity - Conclusion |
What is a Franchise Resale?
A franchise resale is a unique opportunity for investors to take advantage of an already successful franchise territory and continue to build on its existing momentum.
Unlike a traditional franchise investment where you are starting from scratch with a brand-new franchise territory, a resale is the purchase of an existing franchise location with an established customer base and a fully staffed team.
The franchise resale investment process will involve three different parties (you, the franchisee and then parent franchisor), rather than just an agreement with the franchisor.
How Do Resales Become Available?
A resale can be put up for sale for a number of reasons, but the majority of sales are due to the current owner stepping away from the business, either through retirement, illness or moving on to another venture.
Depending on the initial franchisee agreement, either the franchise or the parent franchise will facilitate the sale of an existing franchise territory.
Hottest Franchise Resales Available Nationwide – Buy an Existing Franchise Business Franchises
Signs Express: Oxford Resale
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Advantages of Franchise Resale Investment
- Immediate Revenue: An existing resale is fully operational and generates sales, often providing you with cash flow from day one. This allows you to skip the initial ramp-up period where a new franchise typically operates at a loss until the breakeven point.
- Reduced Uncertainty: Due to a proven track record, you will have the advantage of analysing the previous financial statements and overall performance history of that territory such as revenue, expenses and your customer retention rate. This means you do not need to soley rely on the parent franchise’s projections for a brand-new territory.
- Easier Access to Financing: Banks and other financial institutions are more likely to lend to businesses with existing track records and available financial data that can be easily reviewed.
- Established Footfall: You will have a built-in customer base and will already be known in the local community. This will save months of deploying initial marketing and advertising efforts to build brand awareness.
- Experienced Staff and Operational Systems in Place: The business will more than likely come with experienced employees who are already trained in the franchise's systems and know the day-to-day operations. This ensures continuity and avoids the awkward and time-consuming process of recruiting and training a new team.
- Completed Location Fit-Out: The cost and stress associated with site selection and building of a new premises is completely wiped out and removed from the equation so you can get started immediately once the purchase is complete.
- Established Local Brand Recognition: The brand name and the services provided are already familiar to the locals so you have a leg up already in comparison to starting a new business from scratch in a brand-new location.
Conclusion
Investing in a franchise resale is a smart and quick way to establish yourself as an entrepreneur and make significant profits in a short amount of time. By taking on an existing business territory, you are already set up for immediate success and financial return. You have the flexibility to build on the current set up and grow from there with existing frameworks and operational set up already in place.
A franchise resale is an investment opportunity not to be missed.