If you are interested in buying an existing business, and particularly if you are a first-time buyer, you should seriously consider buying a franchise. There are many good reasons why buying a franchise is a sound financial decision, and here are five of them.
The business has a proven system already in place — An existing franchise is based on a business model that has been proven and matured over time by the franchisor. When you buy a franchise, you will likely succeed with hard work. You will not have to spend as much time going through a series of sales techniques to find what works. This will allow you to focus on the business almost from the first day you own it.
You have a support system in place from the franchisor and other franchisees — Buying a franchise means you are also buying the franchisor support system. You also should receive detailed franchise training by the franchisor before you take over the business. You may also be able to network with other area franchises and combine resources such as advertising or other networking to benefit the group at a lower cost.
Name recognition comes with the purchase — Imagine trying to open a local burger joint versus buying a franchise for a national burger chain. The name recognition is instant with a large franchisor, and this benefits you when buying a franchised business. Large franchises also advertise nationally for brand recognition, and this benefits franchisees like yourself by spreading the business name further than you could on your own.
Many franchises have been approved by the SBA — When a franchise is approved by the Small Business Administration, it allows franchisees to obtain financing for their purchase from local banks. Small independent businesses may have difficulty obtaining this same financing. For a list of franchises approved by the SBA visit https://franchiseregistry.com/.
Buyers can trust franchise sellers’ financial records — Franchisees are required to report sales to the franchisor for franchise fee payments. Many franchisors have computerized systems tracking franchise sales, so it is easier to obtain sales records to review and compare to tax records and other documents.
How can Hallmark Business Brokers help? — If you are in the greater Sarasota Florida area and are interested in buying or selling a franchise or other business, Hallmark Business Brokers can help. We provide support to assist you in the purchase or sales process. We help bring buyers and sellers together to streamline the process and eliminate many of the roadblocks. For more information on our services please call 941-445-4726.