You’re considering going into business for yourself. Perhaps you’re looking into a franchise, but you’re not sure you’re ready to start a brand new franchise outlet. Even with all the support and systems in place to aid new franchisees, the thought of tackling a brand new franchise outlet can be intimidating to some. An attractive option for those individuals may be a resale franchise opportunity.

Franchises all over the country will routinely be resold by the previous franchisee for a variety of reasons. These outlets may be a little more “ready-made” for an immediate business opportunity, yet all businesses aren’t created equal. Also, you may not know which franchises are for sale.  Many times, the franchisee must work back through their franchisor in a resale opportunity.  You need to find the right guidance and investigate, there’s no substitute for performing your proper due diligence throughout the business investigation process.

Consider the following:

Finances

Look into the historical track record for the finances of the business. Ask to see balance sheets, tax returns and profit-and-loss statements. Understand from the franchisor how these numbers stack up against their other franchisees’ numbers in similar markets. Also, make sure you’re able to properly value the company based on that historical data. You may enlist the help of a knowledgeable CPA who can help determine the value of the business.  (more…)

At FranNet, we believe franchising makes sense no matter what stage in life you find yourself. As you may have witnessed yourself, the job market no longer provides the long-term security it once offered. Previous generations grew accustomed to a certain career and the length of time they would be in that job — this is now less of a reality than ever before.

One of the things to consider in a life or career transition is that people are living a healthier lifestyle than ever before. This adds to longevity. People are living longer lives today and perhaps a little more willing to make changes in their lives. So with 50 being the new 40, 40 the new 30, and so on, how can you plan for the long-term?

Think about it—if you’re downsized around the age of 50 and expect to live just the national life expectancy, that’s nearly another 30 years of your life you’ll need to account for. Are there companies out there clamoring for a 50-something former corporate person? What will you do with yourself? Many are turning to small business ownership and franchising. And there’s even a term for it. It’s called your “Encore Career.”  (more…)