Your shortcut to a squeaky-clean business future! In today’s world of busy schedules, convenience cravings, and heightened hygiene awareness, cleaning […]
Are Resale Numbers a Good Way of Judging A Franchise Operation?
Q I am interested in buying a franchise. Thought about a fresh startup and then considered a re-sale. I have been looking at how many re-sales a franchise has at any one time as a guide to how good that franchise operation is in general. Is this fair?
A Most mature franchisors can expect to have around 7-10% of their network for sale at any one time. All franchisees have a life cycle with the typical time to sell being 7 years for a smaller operation to 15 years for larger ones – it all really depends on what is involved. Newer franchise networks have very few available as they are still in the early growth stages. However with longer established and mature systems it is not at all a negative sign reflecting the quality of the franchise to see locations changing ownership. Basically nearly everyone who buys a franchise will at some point want to sell it.
In many ways the purchase of an existing business is a logical way to buy a franchise. Provided you are considering a fully structured resale, with all the supporting information (not just the P&Ls) available then this is the best route. Resales may cost a bit more in terms of initial cash but overall, when working capital is taken into account, can work out at similar outlay.
Recent Articles
How to Create a Franchise Business Plan That Actually Works
Thinking About Buying a Franchise? Let’s Talk Business Plans. If you’re eyeing that shiny new franchise opportunity, congratulations! You’re about […]
Franchise Financing: What Are Your Options?
So, you’ve decided to dive into the world of franchising. Congratulations! You’re about to join an industry that blends the […]
5 Notable Health & Wellness Franchise Concepts for Entrepreneurs
In today’s hustle-culture world, stress levels are climbing faster than your smartwatch heart-rate monitor. Add in an increasingly health-conscious population […]
First Steps to Franchise Ownership
So, you’re thinking about owning a franchise? Cue the dramatic music and slow-motion victory walk. You picture yourself as the […]
Should You Buy a Food Franchise? Pros and Cons Explained
Spoiler Alert: It’s not all burgers, fries, and fat profits. Thinking about diving into the food franchise world? You’re not […]
Featured Franchisors
Featured Resales
Tapioca Express - Plano & Frisco, Texas
Great Opportunity to buy an established Tapioca Express franchise
Cartridge World - Long Island, New York
Cartridge World franchise for sale in Long Island, New York
Featured Resales
Cartridge World - Washington, Missouri
Cartridge World franchise for sale in Washington, Missouri
Established, Mobile Restoration Service
Established, Profitable Franchise with Unlimited Growth Potential
