Login Register

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

Cleaning Franchises: 10 Pros and Cons

Cleaning franchises can offer a range of benefits and drawbacks for aspiring business owners in the cleaning industry. Understanding the […]

Starbucks Franchise: Why You Can't Own One & What to Consider Instead

Introduction The Starbucks franchise brand has become synonymous with premium coffee and has a global presence with thousands of locations. […]

Manufacturing Franchises: 5 Ways They Can Build Your Wealth

Manufacturing franchises can potentially build your wealth in several ways: Established business model: Manufacturing franchises typically come with an established […]

Owning a Chick-fil-A Franchise: Pros and Cons

Chick-fil-A is a popular American fast-food restaurant chain known for its chicken sandwiches, nuggets, and waffle fries. The company was […]

A Printer Franchise Could Make a Great Impression on Your Finances

If you're considering owning a printer franchise, here are some things you should know: Printer Franchise Training and Support Most […]

Owning a Dunkin' Donuts Franchise: Pros & Cons

Is the thought of owning your own business and being your own boss interesting to you?  Would you prefer to […]

Featured Franchisors

Featured Franchisors

Featured  Resales

Carvel franchise - Lindenhurst, NY
Carvel® Ice Cream franchise for sale in a great location!
Custom Window Coverings Business
Opportunity to own an existing custom window coverings franchise
Thriving Kickboxing! Knockout Community!
Cash Flow! Impeccable Reviews!
Play It Again Sports Massapequa, NY
Great store and a great location!
CertaPro Painters Resale in Pheonix AZ
Own a professionally managed painting business!
Party Princess Productions - Las Vegas,
Own a Fun Business providing high-end party

Featured Resales