Franchises For Sale
Things To Know When Purchasing A Franchise For Sale
If you are a person with an entrepreneurial spirit, but you have never launched a business before, you might be contemplating the idea of opening a franchise business.
Franchises are great business models, because, in addition to the sense of independence that comes with opening and running your own company, the franchisor provides branding, marketing, training for owners and employees, and invaluable access to their support network to help with any challenges the franchise might face.
However, many emerging franchise owners are put off by the amount of funding it takes to launch a franchise from scratch – especially if the franchise requires a brick and mortar establishments with new construction, new equipment, and all of the other details which need to be purchased separately. As an alternative, many prospective franchise owners choose to look at franchises for sale, and get in on an existing operation.
Franchises For Sale Already Have Clientele
One of the main reasons to consider franchises for sale – apart from the reduction in cost – is that there is already an established client base. Buying a franchise for sale that has a decent financial history means that there is already revenue coming into the business, which can greatly offset the costs of the initial acquisition and the transition in ownership.
Inroads With Vendors
Existing franchises for sale already have well-established relationships with vendors and suppliers. While some franchises use only specific vendors, or buy proprietary supplies directly from the franchisor, transitioning into an established business relationship buy purchasing a franchise for sale gives you all of the existing benefits, including bulk discounts, or any business-to-business lines of credit that may have been established over the years.
Employees and Management
Acquiring franchises for sale means there is usually a management system in place, as well as employees who are already trained. This saves both time and money for you and the franchisor. One of the biggest hurdles in opening a new franchise is finding qualified employees and managers, but with that in place, the transition in ownership will go much more smoothly.
Before Buying Franchises For Sale
It is one thing to read all of the articles and statistics on franchises for sale, and it is quire another to see them in action. What emerging franchisees need to do is talk extensively with a franchise representative to learn how the corporations works, and then have a separate conversation with the owner of the franchise for sale to see how well expectation and reality line up.
The Conversation With The Franchisors
Franchisors like to interview potential franchisees to get a feel for their current finances, their ability to take initiative and manage an entire operation, while still adhering to the franchisor’s expectation. However, that interview is not just a one-way conversation. New franchisees should ask about financing, how much the recurring fees are to remain in “the system” with the franchisor, and if there is any financial assistance offered for buying an existing franchise.
The Conversation With The Existing Owner
The next step is to have a conversation with the owner who has a franchise for sale. Ask them how long they have been in business; how long it took from day one to start turning a profit; how much of the revenue actually ends up being profit; what the overhead is; and how communication works between the franchisee and the franchisor. If possible, ask if the franchise owner would be willing to let you shadow him to see what a typical day is like. It is a rare occurrence when franchise owners get to brag about their accomplishments as entrepreneurs, or get an opportunity to speak candidly about running a franchise. This should give you a very clear idea if this is the right decision for you.
The process of buying franchises for sale is not as simple as buying a house or a car. Every franchise operates differently. In some cases, the franchisee has an existing mortgage on the property, and that title needs to be transferred to the new owner. In other cases, while the franchisee may own the business, the franchisor may own the land. It is always wise to ask both the franchisee and the franchisor who owns the property, and what needs to be done to transfer ownership of the business to you.
The Biggest Benefits Of Buying Existing Franchises For Sale
As discussed above, most franchises for sale already have a customer base, and some (depending on the type of franchise) may have existing contracts with other customers. An existing franchise is already staffed, has relationships with vendors and suppliers, and there is already a system of operations in place to keep things running smoothly. Additionally, the business may already have a strong credit rating (which should be researched before deciding to buy), and this can be leveraged to secure additional financing, further on down the road. In essence, purchasing a franchise for sale is perhaps more “turn key” than going through the screening process and financial steps to build a new franchise from scratch.
The Best Types Of Franchises For Sale
When looking at franchises for sale, there are a number of strategies used for finding the “best.” Some people want to go with an easily recognizable brand, but that can run into problems if the area in which the franchise is located is saturated – either by that brand in particular, or the products they are offering. Others go for niche markets, thinking that uniqueness will grab them a larger market share and keep the likelihood of competition and saturation low. There is also a segment of franchise owners who want to focus on things people need, rather than luxuries and entertainment. The idea behind this is that if there is a dip in the economy, they will still be able to generate revenue while customers try to save money elsewhere by not purchasing frivolous things. The best advice is to get a franchise with an attractive brand and products or services that are widely sought after, at affordable prices, that an also weather a recession without taking too much of a hit, financially speaking.
Fitness Franchises For Sale
People are constantly trying to improve themselves, and enjoy the benefits of healthy living. Additionally, many people enjoy going to gyms and fitness centers because they get to socialize with like-minded people, network for business, and make new friends. Between offering classes and equipment at an affordable subscription rate, and a sense of “community,” finding a fitness franchise for sale is a very reliable source of revenue.
Restaurant Franchises For Sale
Very few people have the time to cook at home these days, and while the archetypal franchise model for fast food is still a billion dollar industry, restaurant franchises have diversified over the past few years. There are restaurant franchises for sale that cater to all sorts of dietary preferences and cuisines. Giving people access to great food at affordable prices will always keep restaurant franchises at or near the top of the list for the best franchises for sale across the country.
Business Services Franchises For Sale
Business services covers a wide range offering. Business services franchises for sale currently cover everything from taxes and accounting to temporary staffing, cleaning services for offices, transportation, delivery services, and more. Business services – while not offering the “fun” of certain other franchises – offer stability in revenue, and the ability to offer contractual agreements to clients, depending on the services offered. Some business services franchises for sale already have long-term contracts with state and federal agencies, which is guaranteed revenue for years to come. The biggest advantage in owning a business services franchise is that they are protected (to a degree) from major economic downturns, because businesses and the public sector still need staff, deliveries, and other services, regardless of how the general population is spending money (or not spending).
Similar To A Franchise, But Better
The Commercial Capital Training Group (CCTG) offers emerging entrepreneurs the opportunity to own their own business – complete with the freedom and independence of any startup – with the added benefits of full training, branding, marketing, and an around the clock support network to help with anything from technical issues to sales, and even general guidance.
CCTG specialized in the world of commercial finance, which is a recession-proof field wherein our graduates being businesses in need of money, and lenders with the resources to supply funding, together to make agreements, and make a sizable income in the process.
Our program has a lower overhead than most new and existing franchises for sale, plus we offer the opportunity for full financial independence. Graduates from our program get access to our exclusive board of lenders, as well as support from a group of financial professionals with over 80 years of experience.
If you have the desire to run your own business in a recession-proof industry that offers nearly unlimited revenue potential, with the advantage of having a large team supporting your independent ventures, then you should contact the Commercial Capital Training Group, today.