If you are an entrepreneur-lite, you may want to consider franchise resale opportunities. These opportunities present a unique opportunity for people with entrepreneurial skills to turn a failing franchise into a success. Franchise resales are typically staffed and ready locations that come with existing inventory, customers, and infrastructure. In some cases, a franchise resale will include ongoing support and help from the franchisor.
While buying a franchise resale can be an exciting opportunity, there are a few things to keep in mind. First, you must have enough liquid capital to pay for the franchise’s post-sale expenses. Second, you need to be fully committed to the business, as there are costs involved. While there are no special skills required, you do need to have a good business sense and be willing to invest your time to make the company successful. It is not a business that will make you rich overnight.
Finally, you must spend a considerable amount of time talking to the seller about the business. You may have to ask the seller questions about the business, but most franchise sellers are not eager to divulge every single detail of the business. In fact, they may answer only the most basic questions for tire-kickers, while holding sensitive information back for serious buyers. So, if the seller is hesitant to provide information, don’t be discouraged!
When buying a franchise resale, you should follow a structured process and provide all the details you need to make a sound decision. This process will identify potential growth potential and the investment required to launch ownership. It will also allow you to develop a business proposal to your bank. It is a good idea to contact the franchisor before you begin the resale process. If you are unsure about the business or its franchise resale process, ask the franchisor for advice.
When it comes to choosing a franchise resale, you should keep in mind the buyer’s life goals. Although buying a franchise with a specific career objective may seem attractive, it is not worth the risk of making a mistake in the first place. Remember that your life goals are more important than the franchise’s rules. Do not force your life goals into the business’s structure. That could lead to disaster and failure.
While franchise resales have many benefits, you must remember that they are not the same as buying a new franchise. It is important to perform due diligence before making a decision, including consulting with the franchise’s current owners about the reasons for the sale. A good reason for reselling is retirement, not fleeing multiple lawsuits in a single location. As with any other purchase, it is essential to review the bookkeeping and bank records of the business. A seasoned business executive, preferably a CPA, can assist in these areas.
In some cases, franchisors may offer franchise resales, which are an excellent way to enter the franchise industry. But be careful as they can carry a higher risk than a new franchisee. You should also understand that franchisors will be more likely to negotiate the price you pay for a franchise resale than an original franchisee. If you are serious about a franchise, you should research the opportunity thoroughly before making a purchase.