Work From Home Closed / Asset Sale Service Resale Franchises for sale

While starting a new franchise from scratch has fantastic advantages, buying a franchise resale elevates these advantages even further.

The advantages of buying a franchise resale include:

• Fully established territory and reputation: when you buy a franchise resale, you are acquiring a business that is established in its market, either for short or long period of time. Customers know the brand, which will help you generate immediate sales and maintain customer loyalty.
• Returning customers: because the franchise has an established territory, it’s likely that it has repeat customers. This means you won’t need to invest a significant amount of effort into acquiring new customers.
• Faster return on investment: when buying a franchise resale, it’s possible to start earning profits sooner than you would with a new franchise. If you manage it effectively, you’ll likely generate a positive cash flow.
• Training and support: while still a benefit of starting a new franchise, you’ll still have access to existing training programs and support systems that have helped previous franchisees run the territory.
• Lower risk: it’s common knowledge that starting a business has high risks. Buying a franchise resale eliminates a lot of these risks, especially because you can review its financial performance and existing operational processes before buying it.

While these advantages are exciting, you still need to conduct thorough due diligence when buying a franchise resale. Some of the factors you should consider are:

• Financial performance: you obviously don’t want to buy a franchise resale that isn’t performing well. It’s important that you review financial records (sales, profits, and expenses), and make sure the business is profitable and has potential for growth.
• Reason for the sale: when buying any business, you need to understand the reason it’s being sold. It could be retirement, relocation, or personal reasons.
• Franchisor approval: has the franchisor approved the sale and transfer? Be sure to check if there are additional requirements or fees associated with the transfer.
• Location and market analysis: although the territory is established in its market, you still need to evaluate the franchise resale’s location, competitive environment, target demographic, and growth potential.
• The franchise agreement: no matter what type of franchise you buy, you still need to understand and review the franchise agreement. What are the terms, obligations, and restrictions? Also review the fees, royalties and support provided by the franchisor.
• Reputation and online presence: in your spare time, review the franchise’s reputation, reviews, and online presence. This will shed light on how customers perceive the brand so you can get a different perspective.