Buying a franchise resale is a great option for many people. You can make money from day 1, with all the training and support provided, and you’re able to join a company that already has an established reputation. However, before taking the plunge, there are some things that you should consider first!
What are your goals?
Before you embark on buying any business, you should consider, what your long-term goals are. Will this business help you to reach these goals? Will you be able to make a return on your investment?
Why is the franchise resale on the market?
This is perhaps one of the most important considerations. Generally, franchise resales are on the market as the owner is retiring or looking to pursue a new business venture. Occasionally a franchisee is selling because the business is not performing as they would have expected or they do not fit in with the ethos of the network.
You should always do as much research as you can before entering into any agreements. Even if the franchise is not performing as well as it could be, the franchisor may be able to show you how profitable it could be.
Training & Support when buying a franchise resale
Buying a franchise resale allows you to get into an industry that you have no previous experience of, with the support and training of an experienced franchisor. You may be a first-time business owner, new to the franchise industry or simply looking for a career in a new industry. All of this is possible with a franchise resale. Do your research before taking the next steps to see what kind of training and support package the franchisor offers.
Does the franchisor have a good reputation?
You may have found the perfect franchise resale, but before you take the next steps, you should do your research on the franchisor. Check out whether the franchisor has a good track record. Speak with other franchisees within the network, research online and meet with the franchisor and their team to discover as much about them as possible.
Will you be able to access financial support?
If you require funding to help you purchase your chosen franchise resale, you should research which banks are likely to lend you money and how much deposit you may require. Some banks have better relationships with franchisors or industries than others. Before you go further, you should speak with lenders to see what you are able to borrow.
When you register for our digital buyers portal, you have access to banking contacts. Meaning you can research your funding options with ease.
Does the franchisor have any specific requirements?
Some franchisors will accept hard-working, ambitious and diligent investors, whether they have previous experience or not. However, some franchisors will have specific requirements in terms of business, management or industry experience.
Some franchisors will allow owners to have other business or franchise interests, whilst others require franchisees to focus solely on their franchise. Some franchisors have expectations in terms of the distance between the franchisee’s home and the franchise. All of this should be considered before pursuing a franchise resale opportunity.
For more advice and guidance on buying a franchise resale, register for our digital buyers portal. Or call us on 01522 246811