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ABOUT FRANCHISING

RESALES

Thursday 24th January 2008

It is worth remembering that it is normal to run a franchised outlet for a set period of time and a franchise agreement typically runs for a minimum of five years after which there is a chance to renew.


However, after a franchisee has been successfully running their business they do have the chance to realise a potential capital return on their investment by selling the business.


 


At the current time 29% of franchise systems are likely to offer resales according to the NatWest / bfa franchise survey 2007. It is worth remembering that franchisors who already have an established network will be more likely to have resale opportunities as they have a suitable platform to support the entry of new franchisees.


 


There can be advantages to buying into a resale as you are taking on a business which potentially already has a developed and sustainable position within the local market from the outgoing franchisee. This can mean that you can start making a profit from the start. You need to remember that a great deal of hard work and determination will still be needed though in order to make the business successful in both the short and the long term.


 


It is also essential that you still do all the necessary research to make sure that the find the right resale opportunity which suits your exact needs.

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