Purchasing a Franchise

What is a Franchise?

So far, we’ve talked about building your own business from the ground up. However, franchising allows you to leverage the experience and hard work that someone else has already done.

With a franchise, the main corporation sells the rights for a subsidiary business to a third party, with terms laid out in a franchise agreement. The main corporation typically has a well-defined business system, with operation manuals, advertising protocols, reward programs, training, support systems, and more.

Where to Find Franchises and Resources?

Franchise opportunities can be found in trade publications, online directories, newspapers, and local franchise organizations. If you are interested in a particular franchise, contact their head office for information.

Most countries have franchise organizations that provide resources, support, and franchising opportunities. Here is a list of some popular groups.

Note: These organizations and links were accurate at the time of publication. Velsoft takes no responsibility for the content of these sites, whether by inclusion or omission.

Words of Warning

When exploring franchise opportunities, remember:

  • Most franchisors do not allow someone to buy out an existing franchisee. Always make sure you’re working with the franchisor themselves.
  • That in-depth research is still important, particularly when forecasting revenues and expenses.
  • Some entrepreneurs make their money from selling franchise rights, not from the business itself.
  • Always have a lawyer review all contracts and agreements.
  • If it sounds too good to be true, it probably is!