How to Identify a Good Franchise Business for Sale
Finding a good franchise business for sale requires careful research and patience. But that doesn’t mean the process has to be stressful or confusing.
Today, there are literally thousands of franchises you can choose from. From small, one-person operations to multi-location enterprises with the most well known brands in America, there is almost no limit to the types of franchises available to you. But it’s crucial to understand that not all of these businesses offer a great opportunity. In fact, you may soon discover that you’ll have to weed through many bad opportunities before finding a good, truly lucrative franchise business for sale.
Here’s what to look for.
Checklist: Franchise Business for Sale
Is there a franchise disclosure document?
First and foremost, you’ll want to make sure you are dealing with a legitimate company that is legally set up to sell a business opportunity. By law, every franchise business for sale must have a franchise disclosure agreement. This document provides crucial information about the company and the opportunity – including a lot of the checklist items below. If there’s no disclosure document available, then you should be very suspicious.
What products or services will you be selling?
To be successful in any business, you need to have good products that people want and need. Don’t be enticed by new fads or “breakthroughs.” Review your potential products carefully to ensure there is a wide market and plenty of demand.
What work is involved?
Running an auto repair franchise is a lot different than running a vending business, for example. Every franchise has different operations and requirements for the owners. Even if you are looking for a franchise business for sale (More) in which you can be an outside investor, you may find yourself doing a lot more than what you had planned. Make sure you know exactly what you’re getting into.
What profit margins can you expect?
How much will you earn on each sale? What are the typical earnings for other business owners? Have profits been trending up or down over the last few years?
How much does the business cost to open and operate?
You probably already have a number in mind for how much you want to spend to open your business. But you must make sure to look at the total costs: immediate, ongoing and long term. Will you have the necessary capital to keep the business running?
Where is the best location for your business?
Be sure that you will be opening the business in an area that fits your target market. If there is too much competition, or not enough of the right demographics, then you will quickly run into problems.
Vending: Best franchise business for sale?
HUMAN Healthy Vending offers a highly lucrative alternative to traditional franchises. We are revolutionizing our industry with attractive, state-of-the-art machines, stocked with fresh, healthy foods and snacks.
Our independent operators earn the best profits in the industry while running a simple, easy-to-deploy business that is very scalable. Call us at 310.845.7745 to see why Forbes calls HUMAN Healthy Vending one of “America’s Most Promising Companies.”