If you’re looking at franchises for sale, you’ll need to know about popular franchises in your area. A fast food franchise is one of the top franchises to own, since fast food will always be popular in urban areas. Your fast food franchise may also do well in suburban or even rural areas since they offer convenient options for customers.
If you live in or near Philadelphia and want to become a franchise owner, you may want to consider Zac’s Burgers. The restaurant chain was voted the best burger franchise in Delaware County and has been in business for 35 years. Becoming part of an established franchise makes it easier for you start running your business and maintain success. And of course, burgers will always be popular with most people, so if you market your business correctly, you’ll attract lots of customers on a regular basis.
The franchise business model is a brilliant concept in theory. However, you should keep in mind that purchasing a new franchise doesn’t automatically mean that your business will be successful. During your research, you’ve probably found that starting a new business is a risk and several start-up businesses don’t last for more than a few years. When you become a part of a franchise that already exists, you’re likely making a great investment for a variety of reasons.
Becoming a franchise owner can be life-changing for you and your family. You can make the experience positive by doing your research and making sure you’re familiar with all the terms of a franchise agreement before you sign. If you decide to become a part of a franchise like Zac’s Burgers, you’ll have a well-organized team that will provide helpful resources to ensure your success.
Here are some of the reasons it’s best to become part of a well-established franchise instead of a new franchise or independent small business.
You Can Get Started Right Away
Buying a franchise that is already established allows you to start business right away. You’ll have access to employees who are fully trained, a customer base waiting to get products from your franchise, vendors and even cash flow. You don’t have to worry about choosing the right location for your business since the franchise corporation will take care of this for you. You don’t even have to be concerned with reviewing the demographics for the area, since the franchise has already determined the proposed success of your business. With new franchises, you may have to wait over a year to start running your business, but this is not common with established franchises.
A franchise that has already been in business for some time has a history and reputation. You won’t have to guess about the success of the franchise. You can analyze the financial data about the business to know whether or not you’re making a wise investment.
More Room for Negotiation
With an established franchise, you’ll have more room to negotiate the purchase price. New franchises have a set price and terms you have to adhere to without much flexibility. When you’re taking over a franchise location or opening your new location with an existing franchise, you’ll likely be able to negotiate the overall price and payment terms. You may also be able to arrange training sessions from the seller according to the price and schedule that is most convenient for you.
Easier to Obtain Financing
In most instances, lenders are comfortable offering financing when you want to take over a franchise location. This is because established franchises have a proven track record of success and know they’ll make a profit from your location. Bankers will often look at lucrative franchise chains favorably, since these businesses have a lower risk loan repayment default. This makes the bank more likely to loan you the money you need to get your franchise started. Additionally, some franchises will offer leasing options of in-house financing you can take advantage of. If you’re a veteran, you can look into special discounts available through the VetFran initiative.
Many franchise compromise provide a training program at the corporate office, as well as training that will take place at your franchise site before you open your location to the public. A franchisor or franchisor team will offer you extensive training for running your business location in the same way other franchise locations are run. This ensures that you’re effective in conducting business and will help you eliminate many of the common mistakes business owners often face.
An Existing Franchise Is a Turnkey Business
Several business owners have the ability to run their companies successfully. However, they don’t have experience in all aspects of keeping a business successful and thriving, such as negotiating the terms of a lease of
Purchasing an established franchise means becoming part of a proven system, which can take the guess work out of running your business. This also helps you avoid some of the hard work of finding a location, negotiating a lease, finding the right contractors to complete building and renovations within your budget and on time, and establishing reliable vendor relationships. In some cases, you can start your finance location with trained staff already prepared to work.
However, it’s still important to do your homework, especially if you’re taking over a franchise location that was already in business. Aside from the transfer fee you’ll pay, your other terms and fees could be significantly higher than the seller’s.
When you decide to become a franchise owner, you’ll have the support of the franchise corporation and the security of knowing you’re part of a successful system. You’ll always be able to call, email or visit a franchise office to ask questions and get the advice you need. Existing franchisors usually also have a field staff who will visit your location and give you the consulting and coaching you need.
You can also talk to other franchisees for advice. These fellow business owners can give you insight that is specific to the franchise and help you figure out how to solve challenging to keep your staff and customers happy.
Finally, you won’t have to worry about putting a marketing plan together if you’re joining an existing franchise. Usually, your franchisor will take care of promotion, since your costs are covered by a Brand or Advertising Fund. You’ll likely be required to spend a certain amount of the fund on local advertising. The franchisor will give you an outline to let you know how to execute your marketing efforts, along with marketing materials and graphic templates. In some instances, the franchisor will also give you a list of vendors you should utilize for promotions.
As you can see, purchasing a franchise location is much different from starting your own small business. Since you’ll already have a system in place to follow, which increases your chances of success. If you invest in an established franchise, you’ll increase the likelihood that you’ll run a lucrative business for years to come.