Have you thought about a resale franchise?
As a franchise consultant I work with many franchises and from time to time there are owners who are ready to sell their businesses. Some of the reasons people sell their business are:
- Time to Retire
- Moving to another area
- Illness forces sale
- Ready for a change
There are advantages and disadvantages to any business and buying a resale franchise or business is no different.
Some advantages include:
- The business is set-up and ongoing alleviating the time and costs for start-up.
- The new owner should be able to step in and after a short period of time run the business.
- A customer base is established.
- There are systems and employees in place.
- The potential buyer will have the opportunity to look at financial data in order to assess the business financially before purchase.
A few Disadvantages include:
- An established business costs more than a start-up since the buyer is paying for the goodwill and equity the seller has in the business.
- The new owner may not easily assimilate into the business and may lose business as a result.
- Customers and employees will need to be won over by the new owner in order to keep their loyalty.
- The business may not be as good as it appears on paper.
- There may be issues that do not come to light until after the purchase of the business.
- The new owner may never feel comfortable with the fact that they did not have the satisfaction of building the business from the beginning.
Many people purchase resale franchises everyday with great success. Be sure to take your time to investigate, conduct due diligence and hire an accountant and attorney to look at the financial data and any contracts before you sign.
New opportunities come on the market everyday all over the country for all categories of franchises. If you are interested in checking out your resale or new franchise options, let us help you find a business that is the right fit for you.