What is Franchise Resale?
A Franchise Resale is the sale of an established franchise that has been in business for several years. Just like a traditional small business for sale, a franchise resale will have financial books and records, a lease, a sales history and a client list or client following. This may be one of the greatest advantages of buying an established franchise resale over a brand new one. In most cases, the franchisor facilitates the sale of the established franchise on behalf of the franchisee. It’s standard that franchisors work with business brokers nationwide to help sell their resale franchises.
What are my costs and fees?
The franchisee is the one who pays the selling broker. There is never a cost to the buyer of a resale franchise for the broker’s assistance.
Most franchise resales involve a franchise transfer fee and/or the payment of a standard franchise fee in addition to signing the franchise documents. As part of the sales negotiating with the franchisee selling the franchise resale,it may be possible for the buyer to get the seller to pay just the franchise transfer fee.
How much training do I receive?
Franchisors provide the same training and support to buyers of new franchises or established resales. A franchise resale buyers will be required to attend the training provided at the corporate office and also to participate in any additional onsite training at the buyers franchised location.
At Business Broker World we represent numerous well known franchise brands. Several of these companies offer resales. If you would like to invest in an established franchise as an alternative to buying a new one, please contact us so we can research what is available to meet your budget and criteria.