How To Buy A Franchise

Things To Consider When Buying A Franchise

How To Buy A FranchiseUnderstanding how to buy a franchise and buying a franchise can be a lucrative business opportunity, and a reliable method to achieve financial independence.

Franchises exist for every niche in almost every industry imaginable, but not many people know how to buy a franchise, or what to look for when buying a franchise.

The following resource has been created to share some of the business objectives that need to be considered when buying a franchise business.

In addition to the initial financial investment, buying a franchise business can entail additional franchise costs that cover marketing, inventory, employee salaries, property rental, software licensing, and a host of other add-ons. When buying a franchise, always break down the bottom line cost to see exactly what you are paying for in order to run your business.
Most franchises offer a support network to help during those times when unexpected situations arise and threaten to slow down operations (or worse, interrupt the cash flow of the franchise). Franchise owners advise that when researching franchises to buy, look into how accessible the support network is before you invest.
Remember that when buying into a franchise, the parent company has the final approval on many of the business decisions. For franchises that require a brick and mortar storefront, the franchisor has the ultimate say in the site location. Franchisors also dictate the hours of operation, sales territory (to avoid infringing on another franchise’s customer base), periodic renovations to be in-line with certain promotions and standards, as well as (in some cases) salary limits and incentives for employees.
When buying a franchise business, entrepreneurs are entering into a contractually binding agreement with the franchisor. The best advice from successful franchise owners is to hire a franchise attorney to go over the fine print of the contract before committing to any agreement. Franchisors often reserve the right to terminate a franchise contracts or refuse renewals to franchise owners, forcing them to sell their operations to other potential candidates. Always research the details of any franchise contract.
When buying a franchise, it helps to get to know a franchise owner who is partnered with the company you are researching. Develop a professional relationship and find out exactly how operations run on the front lines, and how involved the franchisor is in ensuring the success of franchise owners. This will give you a clear idea of whether or not a particular franchisor is a good fit for the goals you want to achieve.

Many franchise opportunities have a fairly hefty investment cost. When buying a franchise business, it helps to research if the franchisor will work with you to secure loans and other financing to keep your operation afloat until the business hits its stride. Check out the payment terms and interest rates, and figure out how long it will take to pay down any loans to the point of starting to maximize profits.

Want A Better Opportunity Than A Franchise?

The Commercial Capital Training Group (CCTG) offers the support network and full training that people seek when looking to buy franchise businesses, but CCTG does not have the added costs for marketing, business owners can run operations out of their homes, and the investment is well below what most franchisors offer.

Emerging business owners who participate in CCTG’s training learn to become commercial finance professionals – bringing in many thousands of dollars from a single deal, building residual revenues, and dictating their own hours. With the Commercial Capital Training Group, people get a business they can truly call their own, bypass the royalty and branding costs, and achieve financial independence on their own terms while helping other business owners secure the financing they need.

Further Reading