Question: Is it better to buy an operating franchise or to open a new one?
Because there are so many variables, there is no simple answer. Here is just a sampling of some of the issues to consider.
One advantage to buying an ongoing business is that the purchaser could be up and running immediately after the closing, while the acquisition of a new franchise may require time to find a location, rebuild to meet the franchisor’s standards, and acquire necessary materials and equipment. However, the continuation of an existing franchise may be delayed if the purchaser is first required to upgrade to meet the franchisor’s current standards.
Another plus is that an existing business will have an actual operating history, while a new franchise may have no track record.
Continue reading.
