Advantages of Buying a Resale Franchise
Franchising is a great way to start a business because the risk is much lower than with starting a new company from the ground up. You get a full business model packaged and ready to go, and all you have to do is pay the fees, go through training, and follow the business plan. But there is another way to get into franchising, and that’s by buying a resale franchise.
A resale franchise is a franchise business that had already been up and running for some time and the current owner is looking to sell for whatever reason. There are many great advantages to buying one.
Franchise businesses have a success rate over 90 per cent, which is well above that of new small businesses which often fail in the first year. But when you invest in a franchise resale, your chance of success is even higher.With a franchise resale, you’re buying a company that has been around for a while and has already established a customer base. This means you’ll have cash flow from day one. You don’t need to worry about creating brand awareness, which is something that can take a great deal of time and effort to establish in your area.
The Legwork is Done Already
With a new franchise you have to put in the hard work of finding a site, building the store, hiring staff, and training them. With franchise resales, that is already taken care of so you don’t have to worry about all the preliminary work that can take months, or even years to complete.With franchise resales you can hit the ground running with a fully functioning store and savvy staff members from the start. You will also have an established supplier network, so that’s one less thing to wrap your head around. When you buy a resale franchise, all you have to do is grow what is already there instead of starting from square one.
Easier to Obtain Financing
When looking for financing to purchase a resale franchise, it is much easier to create a sound business plan that looks good to banks. This is because a franchise resale has cash flow and net income records, and the business valuation is easier to determine. You can look these up and make accurate projections on how much your business can expect to make over the next year. Compare this to a new business that hasn’t even been built yet where you have no idea how much it will make, and it’s no wonder why banks like franchise resales. They also have very low default rates.
When you buy a new franchise you have to pay what the franchisor demands. But with a resale you can strike a bargain with the franchisee to get a better price, or easier payment terms. A little wiggle room is always nice.
These are the key advantages of buying a franchise resales but there are many more. Take a look and find a great resale opportunity in your area on BeTheBoss.ca Franchise Resales.