Like any other aspiring entrepreneur with a good amount of capital in hand, you might be looking for investment choices.
Now, if you are stuck thinking about the risk involved in starting a new business, why not invest in a business that is already up-and-running?
Franchise investment is the answer!
I’m sure you are aware of popular brands that are looking for franchise investors to expand and grow their brand presence across the globe. Some of the most popular franchise in the US include names like KFC, SUBWAY, and Burger King.
You may have come across multiple articles covering the process of applying for a new franchise, but have you ever thought of investing in an already existing Franchise?
Yes, you’ve heard it correct!
There are chances when an existing franchise owner may give up either because, either the concerned person:
– Has run the franchise for many years and wants to retire
– Don’t have a person/children behind to take over the franchise
– Franchise not making profits
The first two reason are digestible and can be an ultimate franchise investment opportunity for you, however, in the case of the third scenario you may may want to do your homework.
Three things you need to ask yourself before investing in an already existing Franchise
1- The key reason why the franchise is giving up.
2- The demand for products offered by the franchise.
3- The impact of sales as per the location, like are there more competitors involved within the span of years?
Three key benefits of investing in an existing Franchise
Buying an existing franchise will automatically give you access to experienced staff who are already in sync with customers in that location. Therefore, you will automatically eliminate the hassle of training them.
Second, as the business is already in existence you may be lucky enough to have organized inventory in hand, unlike when applying for a new franchise.
3- Existing customer base
Lastly, the existing franchise may have already developed a good relationship with customers around at the location, hence you can improve their experience and make them your loyal ones.
Obviously,you will have to make a purchase price, like some franchisors may allow you to assume the existing franchise agreements until its expiration, while some may ask you to enrol for a new franchise agreement.
To make your decision and evaluation easy, it is always suggested to involve a Franchise Advisory because they’ll make it easy for you to understand the situation, as well, as guide you through the funding process and documentation requirements for taking over the franchise.
Best of Luck!!