Posts Tagged ‘established franchise’

Refranchising has always been a hot trend of the decade in franchising. The all-important question: Is refranchising beneficial franchisors, franchisees, or both?

Refranchising

Refranchising is basically about selling the franchisors’ own units to franchisees. So, yes, franchisees are buying established franchise business with well-run operation and positive cash flow.

To me, refranchising is a blessing – I am tired of starting up, and with franchising I expect more than just a start up business. For you who share my vision, you might be interested in refranchising, as well.

Why do franchisors refranchise?

Firstly, you need to know that own units are not always started up by the franchise company. Instead, franchisors…

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Entering Startup

Buying a franchise is not buying an established business. The fact is this: buying a franchise is ‘renting’ a proven system and established brand image – You can never, ever own the system and brand name (unless you own the franchise company.)

Apart from the system and branding, the new franchise unit itself is, in fact, a business startup.

Surprisingly, many franchisee candidates believe that buying a franchise is buying an established business that guarantees them a certain amount of income and a certain Return-on-Investment (ROI.)

First of all, nobody can guarantee you any results. Financial claims are based on averages, projections and/or estimates from past performance.…

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