25 Jan TIPS ON BUYING A FRANCHISE RESALE
When searching for the right franchise business to buy, there are a ton of options for you to consider. One of the best options to consider is buying a franchise resale business. Are you ready to buy a franchise opportunity? Buying an existing franchise – known as a franchise resale can bring down the cost of starting your own business.
You can find lots of tips online but one of the best articles we found is 10 Tips On Buying A Franchise Resale.
Here are some important things to consider when looking at existing franchise opportunities known as a franchise resale business:
- How many owners have operated the franchise in its current location? How long, what period of time? Find out why the current owner wants to sell.
- Find out what will be required should you buy the franchise, then later decide to sell. What restrictions are there?
- Find out how many franchisees sell out each year company wide? A large number of terminated agreements may indicate a problem.
- Talk to current and former franchise owners.
- Read the company’s Franchise Offering Circular. Make sure you read the entire document and that you understand it. Give a copy to your attorney as well.
- If the building that houses the business is leased, talk with the owner of the building.
- Check the company out as thoroughly as you can.
- Find out if the current employees will be staying, or if you will need to hire an entirely new staff. Having employees who are already trained is a big plus – especially in the case of managers.
- Investigate market trends for that type of business in the location it is in. Will it be strong in the future? What is the current competition and the potential for future competition?
- Will the current owners agreement be transferred to you, or if you will need a new agreement with the franchisor?