Why it is a Great Idea to Buy a Franchise

Business brokers San Diego make it easy for entrepreneurs to own a business without having to build one from scratch. This is a great thing when you consider that about 50% of startups fail within the first five years. However, although buying an existing business is a great idea, not every business is worth investing in. Your business broker or investment advisor will help you evaluate your options keenly when searching for a business to buy. Brokers help with due diligence, negotiations and financing. One of the main recommendations for people planning to buy a business is the franchise.

Why are franchises a great idea?
There are many reasons why a business broker San Diego may recommend a franchise. The main reason is the minimization of risk. Franchise business model is a proven model that has processes in place and a lower failure rate than a startup. Franchises offer the true opportunity to buy into the complete independence of a small business but with the benefit of a larger business network.

Part of the reason why franchises have a lower risk is because they come with brand recognition. When searching for a business to purchase, you are most likely searching for one that is well-known. A well-known business is what you get with a franchise.

After signing the contract, the franchisor and the franchisee will enjoy an ongoing relationship. For starters, the franchisor will offer training to the new franchisee so that they get their business on the right track. Because of this training, you don’t need prior experience running the business.

Another great thing is that you will get corporate support from the franchisor when it comes to marketing and advertising initiatives. You also get to leverage on a network of resources as well as professionals to help you get established.

Perceived disadvantages
When you talk with experienced business brokers San Diego, they will make you aware of the perceived drawbacks of owning a franchise. The two main disadvantages are the high initial franchise fee and high royalty fees. The final decision will, however, fall on you.

All things considered, buying a franchise is the best investment you can make and a business broker can help you find the best franchise for you to buy. It is, however, important that you do your own research in order to identify the franchise that will work best for you. The best thing is that an experienced business broker will provide you with a list of all available businesses for you to consider.

Business Brokers San Diego

What Client’s Say

We Couldn’t Be Happier

"When we thought about selling we had no idea what our business was worth or how to go about selling. What you were able to do was to cut through the fog so that we understood the valuation issue and had a comfort level with the process. As you know we ended up selling for somewhat more than the original valuation and we got all cash and our CPA loved the way our tax liability was minimized. We couldn’t be happier!"

Over $250,000 More

"Our first contact with you shocked us when you suggested that we wait 18 months before selling because you believed that if we hit our projections that the value would be significantly greater. As it turned out we not only followed your advice but also got slightly over $250,000 more than we originally had hoped for. It is seldom that we have had the opportunity to deal with a firm that doesn’t want both money and a commitment NOW. It was clear and obvious that you had our best interests at heart."

You Got the Valuation We Agreed On

"You did a great job on the sale of our business in really beating the bushes for buyers, including a UK company that was an active suitor. You managed to get the valuation that we had all agreed upon and got it substantially all in cash and got the transaction closed with little to no problems or expensive lawyers involved."

Thank You for Handling Our Business

"Our business was smaller than what your firm normally handles but it was a BIG part of our net worth and savings. Thank you for handling our business and we were very pleased and delighted with the results."

More Than Anticipated

"Our transaction was involved as we had different corporate entities located in different states. Our only regret is that we didn’t retain your services before 2012 when we paid $25,000 to a firm in Texas that did a valuation and market analysis for us before then failing to do anything in the way of trying to sell our business. You got it sold for more than anticipated."

The Sales Process