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Why Buy An Existing Franchise Business Articles | August 31 Cheap College Jerseys , 2008
In today?s hyper competitive economy buying an existing franchise business can offer an individual a number of distinct advantages, and often a greater chance of success versus launching a new franchi...


In today?s hyper competitive economy buying an existing franchise business can offer an individual a number of distinct advantages, and often a greater chance of success versus launching a new franchise opportunity. In some cases these advantages could ultimately make the difference between success and failure for the average entrepreneur. Below you will find a list of some of the major and more obvious potential advantages of investing in an established franchise business. This would include a verifiable track record Cheap NCAA Jerseys Wholesale , lower investment, established customers, current income Cheap NCAA Jerseys Online , and generally a lower risk of failure.


Track Record & History:


When you buy an existing franchise business you have the advantage of being able to review and validate detailed past financial records that can help demonstrate whether the target business is ultimately a good investment or not. With a new franchise opportunity in most cases you are relying solely on potential sales projections provided by the franchise company based on demographics and how other established units are performing. In short, having the ability to see actual yearly sales volume, net income Cheap NCAA Jerseys Free Shipping , and operating costs can greatly increase your chances of making a good investment decision.


Potentially Lower Investment:


In some cases it?s not unusual to be able to purchase an existing franchise business for much less than the initial costs of a start-up opportunity. This scenario is even more attractive when you consider that the business may already be well established and profitable. And as a re-sale you may only be subject to a modest transfer fee versus paying a full franchise fee that new franchisees typically pay. You can view listings and compare general sales information about existing franchise businesses on directories such as www.bizbuysell.??


Established Customer Base:


When you buy an existing franchise business you also have the benefit of a built in customer base that has hopefully created a large reservoir of good will that will remain in place after the transfer to new ownership. ?It?s comforting to know that the previous owner has already invested a lot of time and money to create a loyal clientele and subsequent revenue stream. This should theoretically allow you more time to concentrate on other aspects of the business.


Current Income or Cash Flow:


In general, the majority of new franchise businesses don?t start making a profit until their second year of operation. This can be challenging of course for the owner operator who may not have adequate working capital to meet his business and personal expenses in the interim. In most cases (if you have made a prudent purchase) with an existing and established franchise you can rely on a fairly predictable cash flow that should cover your expenses (including debt service) and allow you to make a profit.


Easier To Finance:
- Frequently cost more than.