Looking for a new franchise business might lead you to the idea of buying a “resale” franchise. There are many positives to buying an existing franchise, one critical one being the track record of profitability.
It is difficult to find franchises for sale, depending on what category you fancy. The franchiser holds the first right of refusal, so the franchiser is notified of any intention to sell.
Statistics show on average, businesses change hands within 5 years. This is not necessarily negatively, as there are many reasons that can lead a franchisee to sell. Retirement, family, and lifestyle changes are all common reasons why a franchise unit may be on the market. Every wise business owner has some sort of a time table for an exit strategy.
Here are some advantages that come with the purchase of a franchise resale:
Appraising the value is easier. You have historical sales and profit and loss data , providing the necessary information for an accurate forecast about the future prospects of the franchise.
The resale is fully equipped and ready to go. You can close on the sale of the business today and unlock the doors to let customers tomorrow.