Resale Franchise vs. New Franchise
If you want to own and operate a franchise business, you have two basic paths to ownership. The first is to purchase the rights to a new franchise opportunity and develop your business from the ground up. The second is to purchase a resale franchise that’s already operational.
While many entrepreneurs would rather start a new franchise, others prefer resale opportunities. Resale franchises typically cost more than the startup costs for a new franchise. But they also typically come with less risk and a faster route to profitability.
Some entrepreneurs love the challenge of building and developing a business. Others excel at managing an already up-and-running company. If you fall into this second category, it makes more sense to purchase an existing company. And if you prefer franchising, that means finding a resale franchise business. In this post, we’ll explore more reasons why you might be interested in purchasing a resale franchise instead of a new one.
Any time you purchase a resale business — whether a franchise or an independent business — you benefit from existing cash flow. A resale franchise provides you with an established customer base, allowing you to become profitable much more quickly. Instead of starting in the batter’s box, you’ll be on second or third base.
In the same way that a resale franchise provides you with existing customers, it also provides you with existing infrastructure. You’ll have key assets in place, such as a physical location, marketing resources, back-office systems, and equipment. And you’ll have a staff that’s already familiar with day-to-day operations.
If you get in on the ground floor with a franchise brand, you get your choice of territory. But if you’re late to the game, you might find yourself looking at markets with limited potential. Purchasing a resale franchise business will allow you to acquire the kind of territory you’re looking for.
If you believe that owning a franchise would be a better option for you, then now is the time to invest! If you’re considering starting a franchise in windows and doors, reach out to us at Shield BP today!