Imagine purchasing a business that’s already thriving, with a loyal customer base and a well-known brand. A franchise resale can allow aspiring entrepreneurs to be their own boss and realize the dream of business ownership with less risk. With Neighborly®, our dedicated resale team supports buyers and sellers through every step of the resale, providing expert guidance and invaluable insights. Dive into the possibilities that come with franchise resales and how Neighborly can guide you toward finding the perfect opportunity for your future success.
What is a Franchise Resale?
A franchise resale is simply an existing business that is for sale. A franchise owner is looking to re-sell their franchise to someone else. However, not all franchises are equal. Typically, a franchise resale would fit into one of three different categories:
- High-performing - These are resales that, categorically, are doing very well. They typically have a good cash flow.
- Underperforming - An underperforming resale is a franchise that likely needs extra attention to help turn it around.
- Low performing - These franchises often have a negative cash flow. Yet, despite that, these franchises might still have some good attributes that make them worth purchasing, such as being branded in the area.
Why Would Someone Be Interested in Purchasing a Franchise Resale?
When looking at buying a business, consider asking yourself these questions:
- What are you looking to accomplish?
- What are you and your family looking to change?
- What are your goals?
Starting your own business can present a multitude of opportunities:
- The financial opportunity - a prospective buyer is currently in a corporate salary position where they don’t see where they can financially increase past that ceiling.
- The work/life balance - an individual is tired of working 60+ hours a week, helping someone else build their business.
- The relocation - A family is already relocating and must look for another corporate position or opportunity.
One of the key reasons that prospective business owners frequently cite for wanting to purchase an existing business is that the business is already established. Acquiring an existing business helps eliminate some of the heavy lifting you have to do with a start-up and can make the process easier.
Furthermore, there are additional benefits to choosing to buy a franchise resale versus an independent business. Numbers to numbers, an independent business versus a franchise may stack up equally. However, prospective buyers should consider the extra benefits that a franchise can offer, including the support system, infrastructure, and national branding. Not to mention, consumers tend to value the consistency that they can expect with specific brand names. Prospective buyers will need to weigh these various benefits in terms of the value that they bring.
When you are evaluating a franchise resale, consider these areas:
- Look at the performance of that business location
- Take into account how long they have been in business
- Understand what the trajectory of their growth is / how successful they are
Prospective buyers will also want to evaluate the franchisor, considering their relationship with their current franchise owners and understanding what kind of support they provide.
Neighborly Provides Buyers and Sellers With a Dedicated Resale Team
Support For Sellers
One of the reasons individuals buy a franchise is to build equity so that when they are ready to retire, they have something worth selling. However, for many franchise owners, not only is this the first time that they’ve ever owned a business, it will also be the first time that they have tried to sell a business.
When franchise owners are ready to sell, Neighborly can often help them realize their ROI (return on investment). A component of succession planning, Neighborly provides sellers with a team of experts that have experience selling franchises and can help coach them through the process and help them know what to prepare for.
Support For Buyers
This help that Neighborly offers on the seller's side directly impacts the buyer's side. When franchise owners use Neighborly’s support to help sell their business, the buying process is typically much smoother for buyers. It also affects how seamless the evaluation process is for buyers, allowing them to understand and evaluate the business they are considering for purchase alongside Neighborly and assisting them in determining if it’s a good fit.
In these resale situations, Neighborly is not representing either side, the buyer or seller. Instead, they are helping both parties by providing coaching and helping them through the resale process. If the buyer and seller agree that it is a good fit, Neighborly can help the two parties come together and agree on terms that work for everybody.
Find Your Franchise Resale With Neighborly
With so many franchise resale opportunities available, Neighborly offers franchise opportunities in over 19 home service industries, all designed with a proven business model. As a part of Neighborly, the world’s largest family of home service franchise brands, you’ll have access to the franchise help, tools, and support you need to make your business successful.
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