How to Buy an Existing Franchise (60-Second Video)
Here are three strategies for buying an existing franchise rather than starting from scratch.
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Sometimes buying an existing franchise can be a fast track to making a profit. Here are three steps to take to effectively launch this strategy.
- Ask. Finding existing franchisees who are willing to sell is simply a matter of asking the parent company what’s available. You can also check resources like Franchising.com which lists thousands of businesses for sale.
- Research. Since this is an existing business, you should have access to detailed financial information about its health. Ask for audited financial statements and review them with your CPA.
- Assess. If the franchise you’re considering isn’t doing well, try to ascertain if it is because the current owner isn’t putting in the required effort or properly following the parent company’s system. If you are sure that the problem is something you can fix, and that you’ll be able to get the location up to speed fast, you could get an amazing deal.
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