What are the benefits of purchasing an existing franchise business?
We have listed below the common advantages of buying a franchise resale:
- The franchise concept already has presence locally, regionally and nationally and is known to consumers
- The buyer has an existing base from which to grow the business (existing historical data is useful for future strategic planning)
- Clientele of the franchise already exists – therefore the business has cash flow from the first day of takeover
- The business already employs staff who have the skills and training to function properly
- Equipment, infrastructure and premises already exist, which saves you the headache of trying to acquire and put these in place.
- Where a certain mature brand, for example Wimpy, is already operating in many locations with not many new sites available, purchasing an existing store is generally the only way to acquire this franchise business.
- Unfortunately as much as there are many positive aspects regarding this type of business, there are also sometimes negative aspects about these businesses which financial institutions may consider risks.
Learn more about financing a franchise resale