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What are the Benefits of Buying a Franchise Resale?

Here Sue Moore, President and MD of Cleaning Franchise, Bright & Beautiful, talks us through the benefits of buying a franchise resale business.

Franchise sales are on the increase in the UK with the contribution of franchising to the UK economy estimated to have increased by 46% over the past 10 years.

As the market has matured, naturally, the resale of franchise businesses has become more common.

There are lots of reasons why people decide to sell their business. Some of the most common reasons are life changing events, health reasons, retirement or simply feeling the time is right to move on to pastures new.

The current owners may have built in an exit and retirement plan, or want to put money into another investment, having enjoyed the original investment and the income it achieved for them.

So, what are the main advantages to buying an existing business such as a franchise resale?

Established business

A franchise resale represents a great opportunity because a lot of the groundwork has been put in place for the new buyer, something that also applies to buying other pre-existing businesses.

Someone else has already put in the effort to start up and build the business and it may now be in a position where it is ready for considerable growth.

When you are acquiring an existing business, it is also very important to consider the people working within it. There could be existing employees in place and they may be experienced, willing and able to help you take the business to the next level.

In addition, there will usually be relationships in place in your territory – with clients, with other businesses offering complimentary services and with employees – that you can nurture and develop to build the brand even further.

Proven concept

An existing franchise business is one that someone has already proved the value of and made work, with a track record, presence and brand reputation in their field.

As part of a franchise network, it’s also been proven to work several times over, which should give you even greater peace of mind.  

Buying an existing business may mean that you’re likely to have a higher capital investment, but on the plus side, the business may already be operating profitably.

If you need to raise business funding or part of the finance to invest in buying an existing business you could find that high street lenders are more likely to lend on the basis of existing business performance.

For risk averse financiers a proven franchise concept can present an attractive proposition.

Established brand

Building a brand from scratch can take years to achieve, so an established company name and reputation is a real bonus and something that an incoming franchise owner can use to create demand in their local area.

Establishing a brand which stands out from the crowd, has clear values and attracts clients can take years to achieve.

When you buy into an established franchise business that can demonstrate and articulate the strength and advantages of its brand, this should give you, your clients, employees and all stakeholders confidence.  

Ready to go

When you buy a resale you really are hitting the ground running. You’ll usually purchase the assets of the business which may include premises, the existing stock, equipment and client list.

This means that the business is likely to be generating sales from the first day you take over and it should continue to generate at least the same level of income as it was generating before the sale.

It may be a steep learning curve but with reputable franchisors, you will undertake intensive training and you’ll be well supported to help you take over the business successfully.

Ready to grow

When you buy an already established business, with team members, supply contracts, processes and clients already set up and working, your focus can be on growing that company and taking it forward.

A lot of the day to day operational functions may be taken care of as the business should already have a structure in place which allows you to work ‘on’ rather than ‘in’ the business. 

This leaves you in a great position to come in as an owner manager to focus on the things that can be done bigger and better to drive the business forward. Because you’re not starting from scratch, you will also be able to review profits, potential and marketing activities and meet with the franchisor as part of your due diligence.

This will give you a very clear picture of the strengths and weaknesses of your local business so you can build an immediate plan for growth and expansion.

Business resales can be a great opportunity. A franchise resale may offer an even faster route to business success; with a wide range of investment levels and different opportunities.

However, it’s also important to remember that, just because someone else wants to move on from a business, doesn't mean that there is any kind of issue with it. Rather, it can often present a fantastic opportunity and one that can be a great way to build a business using an existing company as a foundation.

Sue Moore

About the author

Sue Moore is President and Managing Director of Bright & Beautiful, an award-winning concept in housekeeping services, delivered by professionally trained housekeepers. Bright & Beautiful has more than 50 franchises nationwide, employing over 500 people and with a multi-million-pound turnover.


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