What to Look for in the Franchisor
With franchising it’s important to remember that you aren’t buying the business, but you’re buying the rights to use the company’s image, services, products, and systems. If you’re looking into buying a franchise resale, the things you look for in the franchisor are much the same as when you would buy a new franchise. Here is what you want to look for in the franchisor when buying a resale franchise.
Full Support Provided
One of the advantages of franchising is that you have the strength of an established corporation at your back. This means there will be various support systems to help you every step of the way. These supports include technical help, customer service, marketing teams, and supplier networks. The best franchisors provide 24/7 support to their partners. The franchisor’s head office should have all the facilities necessary to provide help when you need it, no matter what it is.
After buying a resale franchise, you will be required to go through the company’s training program. The training that the franchisor puts you through should cover all aspects of the business, and do so in a fully comprehensive manner. The duration and complexity of the training program depends on the nature of the business, but upon completion you should feel 100 per cent equipped and ready to handle any situation that might arise at your franchise.
Just as with buying a franchise, resale franchises will almost certainly require financing of some kind on your part to make the purchase. Part of the beauty of resales is that you can negotiate the price with the franchisee, but how you come up with the money to pay for it is another issue. You can borrow from financial institutions, but most franchisors have their own financing options available. Ask your franchisor what they have and see if they can accommodate you. There might be something better than what the banks are offering.
When you buy a franchise resale, you will of course be required to sign a contract. But before you scribble your signature on the dotted line, give the contract a thorough read through and make sure you understand fully what you’re getting into. Most franchises require a royalty fee, and your contract might indicate periodic increases on this fee or other recurring expenses that you’ll need to account for. Enlist the help of a lawyer when going over the contract and if you don’t feel that it’s a fair deal, see if your franchisor will negotiate terms.
The franchisor might have ambition expansion plans underway. If they do, this is a good sign that the company is making waves in the industry and has a strong business model in place. Growth potential could mean that the franchise is a business that could turn out to be a major money maker down the road.
These are some of things that you should look for in a franchisor before making a purchase. Take a look and find a great resale opportunity in your area on BeTheBoss.ca Franchise Resales.