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Franchise Sale Direct provides a wide selection of advertisers offering franchises for sale and franchises for re-sale.  The site is easy to navigate and includes website links and contact information.

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Generally, it is can be somewhat difficult to find existing franchises that are for sale, depending on what business category you desire. In many cases, the franchiser holds the first right of refusal of the existing franchise, so the franchiser is notified of any intention to sell by the franchisee. 

Statistics show that on average, businesses change hands within five years. This is not to be interpreted negatively, as there is a wide array of situations that can lead a franchisee to sell his or her location. Retirement, relocation, health reasons, family, and lifestyle changes are all common reasons why a franchise unit may be for sale. After all, every wise business owner has some sort of a time table for an exit strategy.

 Here are just six of the benefits that come with the purchase of a franchise resale: 

Appraising the value is easier to perform and analyze. You have concrete, historical sales and profit and loss data at your disposal, providing you the necessary information to make an accurate forecast about the future performance of the franchise. 

The franchise resale is fully equipped and ready to go. You can literally close on the sale of the business today and unlock the doors to let customers in tomorrow morning.Pre-existing loyal customer base. When you buy a new franchise, your purchase decision is based on the sales and profitability of other franchise locations, but there is no guarantee regarding the performance of the new unit. With a resale, however, you have the luxury of knowing what to expect.

Attractive pricing. New franchises are offered at a pre-established, set price with little or no room for negotiation. Because a resale may be on the market for various reasons, such as personal or financial, it is within the realm of possibilities to purchase the business at below-market value. The franchisee might be flexible dependent upon the circumstances.

Time and Money Savings. The resale will come equipped with existing employees, suppliers, equipment, and operating systems.  This saves your budget for other areas, such as additional marketing and advertising.  You save valuable time by having seasoned employees who are efficient at what they do, so your training time is reduced substantially.  And your franchise has pre-existing business relationships with suppliers and vendors. 

Potential for buyer financing from the franchisee.  A resale might be easier on the wallet, as compared to the burden of the initial investment of a start-up franchise.  

Franchisers typically don’t prefer to have company-owned locations, so they like to maintain a database of potential franchise buyers.  An established, successful franchise resale may be a great option to consider.  

As a franchise consultant, I regularly work with franchise seekers looking for new start-ups, as well as re-sales. In addition to helping those looking for a new location, I maintain a regularly updated list of franchise re-sales in various categories and geographical locations.  Your preference is dependent upon your unique circumstances. 

Register for your Free Franchise Consultation. The Franchising Authority will help you find your perfect franchise!

Cory Barber is a professional franchise consultant affiliated with the world’s top franchise broker network. His free, confidential consulting services help guide you through the entire process of purchasing a franchise based on your background, skillset, lifestyle, and financial goals. For more information about his free Franchise Consulting Service, please visit: http://www.thefranchisingauthority.com or contact Cory at his office: 877-271-4305. Article Source: http://EzineArticles.com/?expert=Cory_Barber

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2009-11-07

USA

2009-10-19

Dallas

2009-10-14

N/A

2009-10-13

All

2009-11-04

Draper

2009-10-14

Draper

2009-10-14

United States, Canada

2009-10-15

Milledgeville

2009-10-14

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OH

2009-10-06

AZ

2009-09-30

San Francisco

2009-09-25

La Crosse

2009-09-25

Northern Indiana

2009-10-13

Charlotte

2009-10-21

Decatur

2009-10-21

Tacoma

2009-09-25

Southeastern NY

2009-10-13

Springfield

2009-10-21

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Auto Repair Business
Location: This Auto Repair Center is located in the heart of the Charlotte area. This center is… Charlotte

Auto Repair Business
Location: This Transmission center has been operating for the past 20 years in the heart of… Springfield

Property Management Inc. New Offices in your Area
Would you like the benefits of being in business for yourself but not by yourself? Would you like… USA

Property Management Inc.
Would you like the benefits of being in business for yourself but not by yourself? Would you like… USA

Developed Insurance and Tax Franchises For Sale (TWO businesses for the price of ONE)
Existing turnkey Insurance and Income Tax Offices for Sale in Los Angeles areas New territory… Huntington Beach

AUTOMOTIVE WHOLESALE DISTRIBUTION
MIGHTY DISTRIBUTING SYSTEM is an Atlanta-based company that, over the past 46 years, has become one… Philadelphia

AUTOMOTIVE WHOLESALE DISTRIBUTION
MIGHTY DISTRIBUTING SYSTEM is an Atlanta-based company that, over the past 46 years, has become one… Baltimore

AUTOMOTIVE WHOLESALE DISTRIBUTION
MIGHTY DISTRIBUTING SYSTEM is an Atlanta-based company that, over the past 46 years, has become one… Memphis

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 In view of the huge industry size, only one out of one hundred franchise establishments for sale equates to 8,500 franchise businesses on the market.  According to a 2009 PricewaterhouseCoopers LLP report prepared for the International Franchise Association, there are more than 850,000 franchise establishments.  Price Waterhouse puts franchise jobs at 9,578,000 and economic output at $835 billion.  These are real numbers.  The IFA is the preeminent voice and acknowledged leader for the industry worldwide. The Small Business Administration puts the number of franchise concepts (brands) above 2,500 and lists 1,065 in their Franchise Registry.  The SBA Registry lists those franchise systems whose franchise agreement has been pre-approved by the SBA, thereby shortening the loan process and ensuring consistent eligibility decisions. 

Due to our down economy income for many franchises has dropped significantly.  This has had a dramatic impact on prices and terms.  Business owners are pricing their establishments to sell.  Bank financing practically dried up during the worst of the economic crisis and severely limited the number of potential buyers.  Previously, seller financing was not offered and when it was negotiated, it seldom went above 20 per cent of the purchase price.  Now, sellers are practically acting as bankers.  Seller financing is common and ranges up to 50 per cent of the purchase price.  

It’s a buyers market.  If you are considering buying a franchise resale and have a nest egg of cash, you will find some very willing sellers.  The question is, are you willing to take a calculated risk in order to position yourself for exceptional profits as the economy recovers?

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A decent franchise will not only be a good idea, it will also be an idea that is under constant development. Find a franchisor that is committed to improving and developing the concept so that it can keep pace with their fast moving competitors.

Before committing to any franchise ask the following key questions:

What training is included within the initial franchise fee? Does the franchise provide you with a comprehensive operator’s manual? Do they have training videos that you can watch in the comfort of your own home?

Does the franchisor offer proper telephone support? Can you call them out with office hours in an emergency? Do they have a decent internet forum where you can chat with other franchisees?

Is the product or service a good idea? Do you think you will be able to market it? Is there decent demand out there in your local marketplace? What are the unique selling points compared to their closest competitor? Will you get an exclusive territory?

Will the business fit in with your lifestyle? Can you work the hours required within the business? Who will cover for you when you go on holiday? Will you enjoy managing the business? Never start any business just because of money. Find a franchise that you will enjoy operating and then you will not dread going to work every day.

Bear in mind that a franchise is like any other business in that it will take time to start making money. How will you cope in the meantime? Do you have enough slush funds to keep paying the bills until your new business starts generating an income?

Speak to your accountant and get him to check out the figures for you. It is always a good idea to get a second expert opinion and who better than somebody that looks at facts and figures all day, every day? At the same time, ask your bank manager what he thinks of the idea. If your bank manager and your accountant both think it is a good idea, it probably is!

How are the royalty payments calculated? When and how often do you have to pay them? Are they within the normal range or are they excessive? Are there any other ongoing payments you need to make? Many franchises charge a marketing levy for national advertising so make sure you check this out.

Read your franchise agreement carefully before you put pen to paper. Is it a fair agreement? Does it protect your rights just as much as the franchisors? A proper agreement will clearly spell out the franchisors obligations to you.

A franchise at the end of the day will only reward you if you put effort in. No business runs by itself. You should always be able to count on the franchisor for full support and guidance but at the end of the day, you will have to work within the business and grow the sales.

Do you think you have what it takes to manage your own business?

About the Author

Naz Daud – CityLocal Franchises Internet Business Franchise Franchise Business Directory Ireland Internet Franchises

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There is a rhythm and pattern ton life and to business.  The seasons and cycles of the plant world are generally well recognized.  In example, a plant sprouts, grows to maturity, flowers or produces fruit then withers and dies to decay and enrich the soil in support of the next cycle.   Businesses have their cycles also, but they need not die in order to benefit the next generation.   

The life cycle of a typical business begins with an idea or concept, the start up or grand opening, continuous fine tuning and adjustment until things seem to be running smoothly.  At this stage business is good and, albeit financially rewarding, not as exciting as previously.  Eventually, essentially all business owners come to the stage where the business begins to interfere with how they wish to live their lives and they begin to have thoughts of selling the business. 

Many never act upon these thoughts for countless reasons and as a result less than 25% of small businesses and franchises are ever sold.  This is indeed a tragic statistic but it gets worse in a down economy, not because of the economy – but rather because the decision was not made to sell at the time it was supposed to have been during the normal cycle. 

A Time to Grow and a Time to Go

Perhaps I can explain it this way.  There is a time to grow and if you are not focused on growth – it’s time to go.  There is no status quo. Either grow or go.  There comes a time in every business’ cycle when a business owner should make the decision to sell and sell to the entity that will take the enterprise to the next level. This time can be recognized as when the demands of the business begin to conflict with an owner’s desired lifestyle.  This optimum time or Window of Opportunity to sell at an optimum price does not last very long.  

When the decision to sell is postponed in favor of waiting out a bad economy, the window of opportunity will often close and business cycle’s end game begins and the business’ value begins to diminish.  This end game is not one designed or controlled by the owner but rather one enabled by the outside forces created by allowing a business to coast. 

When that window of opportunity passes we generally find the owner just going through the motions and allowing the business to coast or, more accurately stated, slide.  Decisions to invest in the business are postponed or rejected.  Eventually, and often, very quickly the slide accelerates with the end game no longer controlled by the owner.  Much of the value of the business has been dissipated.  At the end, either the business is “Sold” to a competitor (at the value of selected assets) or closed and the assets liquidated.  

A Down Economy Intensifies the Usual Seller’s Market

Selling more than 2,000 businesses through good times and bad over the last thirty years has taught us that good businesses can and do command premium prices in down economies and here’s why:

• Layoffs, company closings and down-sizing flood the marketplace with people wanting to buy businesses
• Pricing formulas do not change because of economies
• Most owners of good businesses postpone selling in a poor economy resulting in fewer opportunities for the increased number of buyers
• A business’s value is dependent upon its outlook for future profitability
• You can get tomorrow’s price today for your business if you choose a buyer who recognizes the opportunity your business represents and considers expectations of future profitability when assessing value.

In order to obtain an optimum price for a business, regardless of the economic condition, one must attract the type buyer who will recognize the opportunity the business represents.  In real estate, optimum value is determined by the entity that will recognize highest and best use of a property.  Business prices typically reflect an acquirer’s perception of future earnings under their ownership. Therefore, the optimum value of a business is determined by the buyer who recognizes the most opportunity the business represents.  A business can be considered worthless to one yet be worth millions to another.

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