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If you are thinking of buying a franchise in an established and mature franchise system, you should consider buying an existing business from an outgoing franchisee as there are many benefits to an investment of this nature – staff, customers and cash flow from the start, premises and stock in place and a proven business history to name a few.
While the benefits are clear to see, it is also important that you should not drop your guard when considering this type of purchase. All the rules which normally apply to the purchase of a franchise, apply equally to the purchase of a franchise as a going concern.
Here are the key areas you need to think about:
There is a lot to consider, but taking over an existing established franchise business could provide a quicker route to a higher return, and should be generating income from day one.
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