How to Buy an Existing Franchise
Buying an existing franchise can be a great way to help you earn money without having to worry about marketing and image building. When you buy a franchise, it is usually big chains and multinational companies that attract you and investing money in big names is the key to running your business successfully.
Getting a franchise can help you set up your business in a few days. Franchises are usually set up at key locations of the area, which means that you will save a lot of money in terms of finding a good team for marketing your business. Moreover, the training of staff may be provided if you buy a franchise of a big company like KFC or McDonalds.
Instructions
-
1
Decide what business will suit you
When it comes to buying an existing franchise of a company, you have multiple options at your disposal. People usually buy franchises of companies that have a good reputation in the market. You can consider several businesses before making up your mind one.
For instance, there are lots of food chains like McDonalds, KFC, Pizza Hut, and Burger King. You can also think of courier services. However, you should decide on a business that is less complex and easy to operate, even though the technical training is offered by the company. -
2
Search for franchises on sale in the newspapers and on Internet
The best way to buy franchise is to see if there are any franchises on sale. You can search for them in the newspapers and on the Internet. People, who already have franchises, my want to sell their existing business, and they use newspapers as an advertisement tool. There are lots of websites as well that advertise different businesses. Use Google search engine to find if there are any existing franchises on sale in your city. -
3
Ask for past financial records
Once you have set your sights on an existing franchise, you can do things like having a good look at past financial records. Financial records include sales figures, expenses, and cash flows. You do not have to be a finance expert to analyze the records; just a brief look at the numbers will help you understand how sound the business is. -
4
Ask why the owner is leaving the existing business
This is the most important question that will help you analyze the whole situation; will surely improve your chances of success in a franchise business. If the owner is quitting because of poor sales, you can do some speedy market research to know what went wrong with the franchise and what the market potential is.
