What are the benefits of buying a franchise resale?

The greatest advantage will be that you have actual proof of performance of the location or territory involved, be that good or bad. You will be picking up at least some sort of existing customer base with whom you can continue to do business and should ensure you have some income from day one of your operation, which should make the cash flow better than a greenfield start-up.Lessons from the incumbent franchisee will mean you can continue to do more of what works and less of what doesn’t in the marketing and operation of the franchise, plus you will get at least their view of the effectiveness of the franchisor’s support services. Depending on the size of the business, you may also have the opportunity to take on existing, experienced, well trained staff who know the ropes and can help you get going quicker.Given all those potential advantages, you may be surprised to learn it is not uncommon for a resale to cost far less than a brand new site. Given that all the necessary conversion works and equipment purchases will have been done and significantly depreciated, while there may be many more years of useful service left in them, there are many bargains to be had. Having said that, always make sure you know the true reason for the resale, so you can calculate whether you are likely to overcome or eliminate whatever the previous franchisee’s difficulties may have been.