Buying an Existing Franchise Business
If you’re considering buying an existing franchise business, you’ll be happy to know you are making a sound business decision. Here are some of the many advantages.
Buying An Existing Business
- Higher Chance of Success – An existing business has already proven that it can operate successfully.
- Immediate Cash Flow – You’ll move right into the operation with no down time. Start-ups have extensive down time before the doors even open.
- Actual Performance Data as Opposed to Projections – Start-ups must project income and earnings through formulas and guess work. An existing business has a financial track record to help gauge the business by.
- Vendor Relationships – you can use the existing vendors while you shop for better deals.
- Established Customer Base – established businesses have a customer base to build on.
- Trained Employees – you’ll have a team of trained employees already in place.
Why Buy a Franchise?
Franchises offer proven products with proven successes. Many people have opened and operated a business very similar to yours, so many of the operational problems and pitfalls have already been worked out. Franchises offer a well-known name that gives you instant recognition and built-in credibility. The best part is, 85% of franchise businesses are successful after 5 years. Less than 20% of non-franchise start-ups make it through the first five years.
Franchises also offer great opportunity to add additional locations in the future. And training, one of the most difficult tasks for a small business to manage, is usually handled by the franchise company.
Buying an Existing Franchise
Buying an existing franchise offers the best of both worlds. In addition to the safety and high likelihood of success associated with a franchise, you get the benefit of skipping the start up period, which every entrepreneur will tell you, is the most difficult time for any business.
You’ll also enjoy immediate business and cash flow. Unlike buying a new franchise business, you’ll avoid the store build-out phase and many of the costs associated with the grand opening of a business. You’ll be operational immediately, and if you wish, you can be on the payroll from week one.
