Franchise resales are a relief for entrepreneurs who are ready to get a business of their own moving in the right direction.
Waiting… No one likes it. When we set out to do something, it’s nice to be able to get to it with delays kept at bay, if possible. If you want to embark on business ownership and wouldn’t mind a potential head start, it’s time to look at franchise “resales”. With a franchise that is already up and running, you could benefit with staff and equipment in place and a working operation with some foreknowledge on customer trends, and an idea about which marketing strategies and special offers have been most (or least) effective. Heck, there are existing franchise-for-sale opportunities in which a location is underperforming only to have a pumped-up, intelligent entrepreneur like you sweep in, assume command and turn the entire operation around towards the success for which it was designed.
If you become the champion of an existing franchise, whether it is performing well or not yet to its full potential, you will not need to wait for site construction or selection, no thumb-twiddling necessary while waiting for the lease to be signed either – PLUS, while you will absolutely need to greet your new community as a business owner and prove to them that your products and services are exactly what they need, if you buy an existing franchise, you will not need to wait for a customer base because you will have one in place with which to work immediately.
Dave Johnson, Minuteman Press franchisee in Coral Springs, Florida, wasted no time transforming his entrepreneurial ambitions into a reality and it was an existing printing business for sale that was just the right vehicle for him to do it. He says, “The positives of buying a resale can be a significant advantage in the right case and the challenges can be very manageable. Before buying, put together a business plan and adopt a strategy that allows you to take advantage of these conditions so you can get the best return from your investment.”
Dave Johnson gives us 3 good reasons to stop waiting and buy an existing franchise:
- You will have an existing customer list. You don’t start from zero and this is a big advantage.
- You may inherit experienced staff, which, if they are good, helps in the transition. When we purchased our franchise, we had a press operator that has been with the store 10 years. This brought me a lot of talent and experience that helped tremendously.
- An established store may have broader line of production equipment than a new store. In our case, we had a two-color offset press in addition to digital printing.
Foremost in your planning must be, of course, to select a firmly established franchisor who will back you all the way in key areas, starting with the research phase. Indeed, substantial research will be necessary to make sure that the existing franchise you may buy is a wise investment, even if it looks good on paper. It requires digging deeper than the financial figures and talking to the owner of the business as well as representatives of the franchisor to get a clearer picture of the reasons for the sale and to determine how you can capitalize on the situation. This brings us to the first piece of advice for you as you lock-in an ideal franchise resale opportunity:
Don’t rely on your accountant alone to evaluate the depth and breadth of the business!
Accountants are the lords of tax season and thank goodness for their nit-picky, money-saving knowledge of tax law and keen attention to numbers. However, a franchise that is up and running, but for a variety of reasons is now up for sale is not unlike a human being who you might consider partnering with on a personal or professional level. Some shallow people might choose to partner with another human being based on net worth alone, but let’s give you more credit. A business, like a person, is much more than net worth. Every franchise resale has its own story with unique variables that go beyond the spreadsheets accountants are so adept at managing and using to dish out advice. The decision to buy a business is laced with intricacies that require personal, in-depth evaluation of multiple areas; and in franchising, the first place to turn for such depth study is the franchisor.
Researching Resales logically is simple – Go to the source…
Let’s say you want to buy a print business for sale. Just because it is operating already and has a current owner doesn’t mean that is the only person you need to talk to, by far. A printing franchise for sale represents a franchise within the business-to-business services industry (or B2B) and franchisor past performance matters! You will be entering a partnership with the franchisor, your new and best ally. Why would you settle for anything less than the best? Search Google News for fresh insights on digital print design and marketing franchise opportunities. Know that the process of discovery for an existing printing franchise for sale should commence with steps similar to buying a new printing franchise. Begin by reviewing the FDD, meeting and talking honestly with the current franchisees using their system and sit down (in person) with franchise representatives to get the nitty-gritty about how they are going to support you and provide the training that you need and deserve for your investment.
Jeff Robey is the Florida Regional Vice President for the number-one rated digital print, design and marketing franchise Minuteman Press International, the stalwart leader of the modern printing industry. His corporation represents the best of the best and no matter what the industry in which you find a sweet existing franchise for sale, make sure it’s with an industry leader to save yourself unnecessary trials and…more waiting as newer franchisors are, frankly, still getting their acts together. Jeff has helped many entrepreneurs find the ideal situation for their personal potential. He indicates that it’s really not complicated to uncover the facts and find a winning situation for your personal goals and inclinations, but it does require research.
Jeff puts it plainly, “By contacting the franchisor and inquiring about existing franchise opportunities, then meeting with the franchise representative who should set you up with meetings that include existing franchisees, you provide yourself with an ideal forum for proper discovery. Beyond online research and the opinions of well-meaning friends and associates is the truth about making smart franchise purchase decisions, and the way to get that is to know the franchisor directly. This is the best way to go about reaching a franchise resale opportunity.”
When you see a franchise for sale, you might wonder “Why?” Get excited…
There are so many gratifying stories of people making impressive careers as franchise owners and with great love for what they have built, they decide it is time to embark on a new chapter in life, perhaps retirement. In other cases, unexpected events (like illness) may influence the decision as well. The most effective thing for you to do is reach out the franchisor (who will be your ultimate partner) and let representatives help you examine the motivation for selling, the current state of the business and whether or not your energy and financial investment are just the thing needed to continue to maintain or, perhaps, climb to award-winning heights.
Be on the lookout for franchises that could use a change in ownership in order to go from puttering along to positively thriving. There are numerous stories of savvy entrepreneurs coming upon unique opportunities to assume command of a franchise that has been run inefficiently. Sometimes, the current owner is making decisions that run contrary to the system which has proven to help thousands of people develop strong businesses and that causes a downward slide in growth. In these cases, you may very well present the right kind of leadership and management skills to turn an underperforming franchise into a winner, to your own benefit.
Frik Van Niekerk, Regional Vice President in South Africa for Minuteman Press International advises to forget new vs. resale and make your first priority finding an industry that suits you and a franchisor that honors your dedication with exceptional support and training. From there, you have an expert by your side to help you examine all of the viable options in your area. He says, “You first have to familiarise yourself with the brand and with the Franchisor in terms of accredit ability in the market place. You have to be sold on the franchise concept before even making a decision on a new or existing franchise. Doing a proper due diligence of the business for sale by looking at the two main aspects that determines the value of the business namely the asset value and a formula on the profit of the business.”
Buying an existing franchise is a way to cut to the front of the line of entrepreneurship by giving you an up and running business. You can secure a business that has been just getting by due to weak dedication to the franchisor’s best practices and step in with strong dedication – which in many cases has resulted in a complete turnaround and a growing business. Quite often, there is a healthy demand in that area for the company’s products and services and a golden franchise opportunity presents in which you can assume ownership and change the entire approach (usually by realigning with the franchisor’s proven system) thereby reducing expenditure and improving sales.
Simply put, your research into franchise resales could land a great deal onto your lap as a new business owner. Make certain you begin with a great connection to the franchisor with appreciation for the culture of the company and the obvious sense that they are as invested in your success.