{"id":890,"date":"2016-09-22T00:00:00","date_gmt":"2016-09-22T00:00:00","guid":{"rendered":"https:\/\/www2.businessbroker.net\/blog\/2016\/09\/22\/buying-a-franchise\/"},"modified":"2016-09-22T00:00:00","modified_gmt":"2016-09-22T00:00:00","slug":"buying-a-franchise","status":"publish","type":"post","link":"https:\/\/www.businessbroker.net\/blog\/buying-a-franchise-or-business\/buying-a-franchise\/","title":{"rendered":"Buying A Franchise"},"content":{"rendered":"<p>When buying a franchise, you can enter into a franchise agreement with a franchisor and start a business as a franchisee or you can purchase an on-going business that is a franchise. &nbsp;You would still enter into a franchise agreement with a franchisor but would have a business with a financial history and customers, etc.<br \/>\n<span class=\"Apple-tab-span\"> <\/span><\/p>\n<p>Buying a franchise is a personal decision, and there are advantages and disadvantages. &nbsp;The most common advantage I&rsquo;ve heard is the security. &nbsp;You are usually buying name recognition, which attracts customers; and you have the franchisor available to guide you. &nbsp;If you are starting a franchise business, the franchisor will do a marketing survey to determine the best location. &nbsp;Many times the franchisor will purchase the real estate and lease it to you. &nbsp;This helps you get started, as you don&rsquo;t have to tie up so much capital in the location and can concentrate on building up the business. &nbsp;Franchisors usually have requirements for the size, style and decorations of the franchise. You will notice that most franchise locations look exactly the same and sell identical items. &nbsp;&nbsp;<\/p>\n<p>If you are starting a business that is not a franchise, you are taking a greater risk, as all costs and plans are your total responsibility. &nbsp;Of course, the franchisor makes money from you as long as you have the business by charging franchise fees. &nbsp;These fees vary according to the franchise. &nbsp;If you buy an ongoing franchise, the above will be the same except you will be buying the cash flow, as you would whether or not the business is a franchise. &nbsp;When the purchase transaction closes, you will immediately start making money from sales instead of starting to build your customer base.<br \/>\n<span class=\"Apple-tab-span\"> <\/span><\/p>\n<p>Obtaining financing for the purchase of a franchise is usually easier than obtaining financing for an independent business, either due to your chosen franchise&rsquo;s success rates or lender partnerships through the franchise itself. &nbsp;Preparing a thorough business plan is important before applying for a loan. &nbsp;That is sometimes easier with the help of the franchisor and taking advantage of that expertise. &nbsp;<\/p>\n<p>Expansion is also a factor when considering a franchise, since franchising makes owning a second or third location a much easier process than opening a second independent business location.<br \/>\n<span class=\"Apple-tab-span\"> <\/span><\/p>\n<p>If you like things structured and like to have someone make your plans or assist you, a franchise would probably be a good choice for you. &nbsp;You will have the support of a group of people. &nbsp;You will also have brand awareness and some general advertising by the franchisor. &nbsp;Of course, you will be required to keep accurate records and send reports to the franchisor, along with franchise fees and advertising fees.<br \/>\n<span class=\"Apple-tab-span\"> <\/span><\/p>\n<p>Whether you purchase a franchise agreement and start a business or purchase an ongoing franchise business, you must be approved by the franchisor. &nbsp;Your financial statements will be required, along with personal and business history. &nbsp;The purchase price of a franchise varies with the franchise, and that amount will become an asset of the business. &nbsp;If you purchase an on-going franchise, that will be part of the assets you are purchasing. &nbsp;You will also pay fees to the franchisor each month, according to the amount of your sales. &nbsp;This will be a percentage of sales, and that percentage varies depending on the franchise.<br \/>\n<span class=\"Apple-tab-span\"> <\/span><\/p>\n<p>Comparing owning a franchise business or an independent business, you will have complete control with an independent business; but you will have a bigger investment of time, as all decisions will be made by you. &nbsp;You will have more profitability owning an independent business, as you do not pay fees to a franchisor each month. &nbsp;You can also make changes in the products and the selling prices whenever you choose. &nbsp;An advantage of the franchise, however, is that you have a group of experts continually looking for ways to improve your business. &nbsp; &nbsp;&nbsp;<br \/>\n<span class=\"Apple-tab-span\"> <\/span><\/p>\n<p>Starting your own business will require more time, talent, and dedication than any other job you can have. &nbsp;While it requires an investment of both your money and yourself, the risk can definitely pay off, emotionally and financially. &nbsp;Investing in a franchise, however, can also diminish any potential downsides of branching out on your own. &nbsp;It is a personal decision only you can make. &nbsp;If you are more comfortable with the structure provided by a franchisor, you will likely find the fees a small price to pay.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When buying a franchise, you can enter into a franchise agreement with a franchisor and start a business as a franchisee or you can purchase an on-going business that is a franchise. &nbsp;You would still enter into a franchise agreement with a franchisor but would have a business with a financial h<\/p>\n","protected":false},"author":3,"featured_media":103,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-890","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-franchise-or-business"],"yoast_head":"\n<title>Buying A Franchise - Blog<\/title>\n<meta name=\"description\" content=\"Buying A Franchise - Read now on BusinessBroker.net&#039;s Blog\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.businessbroker.net\/blog\/buying-a-franchise-or-business\/buying-a-franchise\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Buying A Franchise\" \/>\n<meta property=\"og:description\" content=\"Buying A Franchise - Read now on BusinessBroker.net&#039;s Blog\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.businessbroker.net\/blog\/buying-a-franchise-or-business\/buying-a-franchise\/\" \/>\n<meta property=\"og:site_name\" content=\"Blog\" \/>\n<meta property=\"article:published_time\" content=\"2016-09-22T00:00:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.businessbroker.net\/blog\/wp-content\/uploads\/2022\/12\/franchisebusinesssign.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"700\" \/>\n\t<meta property=\"og:image:height\" content=\"465\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Punith Kumar\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Punith Kumar\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.businessbroker.net\\\/blog\\\/buying-a-franchise-or-business\\\/buying-a-franchise\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.businessbroker.net\\\/blog\\\/buying-a-franchise-or-business\\\/buying-a-franchise\\\/\"},\"author\":{\"name\":\"Punith Kumar\",\"@id\":\"https:\\\/\\\/www.businessbroker.net\\\/blog\\\/#\\\/schema\\\/person\\\/7428ffeebaa66ba6be836d3b6b4b4d24\"},\"headline\":\"Buying A Franchise\",\"datePublished\":\"2016-09-22T00:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.businessbroker.net\\\/blog\\\/buying-a-franchise-or-business\\\/buying-a-franchise\\\/\"},\"wordCount\":773,\"image\":{\"@id\":\"https:\\\/\\\/www.businessbroker.net\\\/blog\\\/buying-a-franchise-or-business\\\/buying-a-franchise\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.businessbroker.net\\\/blog\\\/wp-content\\\/uploads\\\/2022\\\/12\\\/franchisebusinesssign.jpg\",\"articleSection\":[\"Buying a Franchise or Business\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.businessbroker.net\\\/blog\\\/buying-a-franchise-or-business\\\/buying-a-franchise\\\/\",\"url\":\"https:\\\/\\\/www.businessbroker.net\\\/blog\\\/buying-a-franchise-or-business\\\/buying-a-franchise\\\/\",\"name\":\"Buying A Franchise - Blog\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.businessbroker.net\\\/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.businessbroker.net\\\/blog\\\/buying-a-franchise-or-business\\\/buying-a-franchise\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.businessbroker.net\\\/blog\\\/buying-a-franchise-or-business\\\/buying-a-franchise\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.businessbroker.net\\\/blog\\\/wp-content\\\/uploads\\\/2022\\\/12\\\/franchisebusinesssign.jpg\",\"datePublished\":\"2016-09-22T00:00:00+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.businessbroker.net\\\/blog\\\/#\\\/schema\\\/person\\\/7428ffeebaa66ba6be836d3b6b4b4d24\"},\"description\":\"Buying A Franchise - Read now on BusinessBroker.net's Blog\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.businessbroker.net\\\/blog\\\/buying-a-franchise-or-business\\\/buying-a-franchise\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.businessbroker.net\\\/blog\\\/buying-a-franchise-or-business\\\/buying-a-franchise\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.businessbroker.net\\\/blog\\\/buying-a-franchise-or-business\\\/buying-a-franchise\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.businessbroker.net\\\/blog\\\/wp-content\\\/uploads\\\/2022\\\/12\\\/franchisebusinesssign.jpg\",\"contentUrl\":\"https:\\\/\\\/www.businessbroker.net\\\/blog\\\/wp-content\\\/uploads\\\/2022\\\/12\\\/franchisebusinesssign.jpg\",\"width\":700,\"height\":465},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.businessbroker.net\\\/blog\\\/buying-a-franchise-or-business\\\/buying-a-franchise\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.businessbroker.net\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Buying A Franchise\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.businessbroker.net\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/www.businessbroker.net\\\/blog\\\/\",\"name\":\"Blog\",\"description\":\"BusinessBroker.net\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.businessbroker.net\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.businessbroker.net\\\/blog\\\/#\\\/schema\\\/person\\\/7428ffeebaa66ba6be836d3b6b4b4d24\",\"name\":\"Punith Kumar\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/09915c8c3e7cea335aea0800a4bd05937ddc8943842687c3fc1a1535452dbb74?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/09915c8c3e7cea335aea0800a4bd05937ddc8943842687c3fc1a1535452dbb74?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/09915c8c3e7cea335aea0800a4bd05937ddc8943842687c3fc1a1535452dbb74?s=96&d=mm&r=g\",\"caption\":\"Punith Kumar\"},\"url\":\"https:\\\/\\\/www.businessbroker.net\\\/blog\\\/author\\\/punith\\\/\"}]}<\/script>\n","yoast_head_json":{"title":"Buying A Franchise - Blog","description":"Buying A Franchise - Read now on BusinessBroker.net's Blog","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.businessbroker.net\/blog\/buying-a-franchise-or-business\/buying-a-franchise\/","og_locale":"en_US","og_type":"article","og_title":"Buying A Franchise","og_description":"Buying A Franchise - Read now on BusinessBroker.net's Blog","og_url":"https:\/\/www.businessbroker.net\/blog\/buying-a-franchise-or-business\/buying-a-franchise\/","og_site_name":"Blog","article_published_time":"2016-09-22T00:00:00+00:00","og_image":[{"width":700,"height":465,"url":"https:\/\/www.businessbroker.net\/blog\/wp-content\/uploads\/2022\/12\/franchisebusinesssign.jpg","type":"image\/jpeg"}],"author":"Punith Kumar","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Punith Kumar","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.businessbroker.net\/blog\/buying-a-franchise-or-business\/buying-a-franchise\/#article","isPartOf":{"@id":"https:\/\/www.businessbroker.net\/blog\/buying-a-franchise-or-business\/buying-a-franchise\/"},"author":{"name":"Punith Kumar","@id":"https:\/\/www.businessbroker.net\/blog\/#\/schema\/person\/7428ffeebaa66ba6be836d3b6b4b4d24"},"headline":"Buying A Franchise","datePublished":"2016-09-22T00:00:00+00:00","mainEntityOfPage":{"@id":"https:\/\/www.businessbroker.net\/blog\/buying-a-franchise-or-business\/buying-a-franchise\/"},"wordCount":773,"image":{"@id":"https:\/\/www.businessbroker.net\/blog\/buying-a-franchise-or-business\/buying-a-franchise\/#primaryimage"},"thumbnailUrl":"https:\/\/www.businessbroker.net\/blog\/wp-content\/uploads\/2022\/12\/franchisebusinesssign.jpg","articleSection":["Buying a Franchise or Business"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.businessbroker.net\/blog\/buying-a-franchise-or-business\/buying-a-franchise\/","url":"https:\/\/www.businessbroker.net\/blog\/buying-a-franchise-or-business\/buying-a-franchise\/","name":"Buying A Franchise - Blog","isPartOf":{"@id":"https:\/\/www.businessbroker.net\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.businessbroker.net\/blog\/buying-a-franchise-or-business\/buying-a-franchise\/#primaryimage"},"image":{"@id":"https:\/\/www.businessbroker.net\/blog\/buying-a-franchise-or-business\/buying-a-franchise\/#primaryimage"},"thumbnailUrl":"https:\/\/www.businessbroker.net\/blog\/wp-content\/uploads\/2022\/12\/franchisebusinesssign.jpg","datePublished":"2016-09-22T00:00:00+00:00","author":{"@id":"https:\/\/www.businessbroker.net\/blog\/#\/schema\/person\/7428ffeebaa66ba6be836d3b6b4b4d24"},"description":"Buying A Franchise - Read now on BusinessBroker.net's Blog","breadcrumb":{"@id":"https:\/\/www.businessbroker.net\/blog\/buying-a-franchise-or-business\/buying-a-franchise\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.businessbroker.net\/blog\/buying-a-franchise-or-business\/buying-a-franchise\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.businessbroker.net\/blog\/buying-a-franchise-or-business\/buying-a-franchise\/#primaryimage","url":"https:\/\/www.businessbroker.net\/blog\/wp-content\/uploads\/2022\/12\/franchisebusinesssign.jpg","contentUrl":"https:\/\/www.businessbroker.net\/blog\/wp-content\/uploads\/2022\/12\/franchisebusinesssign.jpg","width":700,"height":465},{"@type":"BreadcrumbList","@id":"https:\/\/www.businessbroker.net\/blog\/buying-a-franchise-or-business\/buying-a-franchise\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.businessbroker.net\/blog\/"},{"@type":"ListItem","position":2,"name":"Buying A Franchise"}]},{"@type":"WebSite","@id":"https:\/\/www.businessbroker.net\/blog\/#website","url":"https:\/\/www.businessbroker.net\/blog\/","name":"Blog","description":"BusinessBroker.net","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.businessbroker.net\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.businessbroker.net\/blog\/#\/schema\/person\/7428ffeebaa66ba6be836d3b6b4b4d24","name":"Punith Kumar","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/09915c8c3e7cea335aea0800a4bd05937ddc8943842687c3fc1a1535452dbb74?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/09915c8c3e7cea335aea0800a4bd05937ddc8943842687c3fc1a1535452dbb74?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/09915c8c3e7cea335aea0800a4bd05937ddc8943842687c3fc1a1535452dbb74?s=96&d=mm&r=g","caption":"Punith Kumar"},"url":"https:\/\/www.businessbroker.net\/blog\/author\/punith\/"}]}},"_links":{"self":[{"href":"https:\/\/www.businessbroker.net\/blog\/wp-json\/wp\/v2\/posts\/890","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessbroker.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessbroker.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessbroker.net\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessbroker.net\/blog\/wp-json\/wp\/v2\/comments?post=890"}],"version-history":[{"count":0,"href":"https:\/\/www.businessbroker.net\/blog\/wp-json\/wp\/v2\/posts\/890\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessbroker.net\/blog\/wp-json\/wp\/v2\/media\/103"}],"wp:attachment":[{"href":"https:\/\/www.businessbroker.net\/blog\/wp-json\/wp\/v2\/media?parent=890"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessbroker.net\/blog\/wp-json\/wp\/v2\/categories?post=890"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessbroker.net\/blog\/wp-json\/wp\/v2\/tags?post=890"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}