Franchise Opportunities In The United States

Franchise opportunities in the United States come in two varieties: new and existing businesses. Both have their share of pros and cons to consider.

Choosing Between New and Existing Franchise Opportunities

Franchises offer a host of advantages when compared to unique small businesses, including instant name recognition, assistance from the parent company, and a proven model to follow, to name a few. Once a buyer has decided to go with a franchise opportunity, however, that buyer must also consider whether to enter into a new agreement with the parent company or take over an existing agreement.

Choosing to enter into a new agreement allows a buyer to start from scratch and choose where to locate the franchise. Site location is a crucial part of creating any successful business. New agreements with parent companies carry high franchise fees, however. There is also a certain amount of risk to starting a new venture where revenue is unproven.

Choosing to take over an existing franchise often costs less than starting from scratch. Additionally, buyers have the opportunity to go over historical financial statements to predict how successful the business will be. The current owner may be trying to find a buyer for a reason, however, so it pays to ask why and proceed with caution to avoid jumping onto a sinking ship.

Working with a small business broker can help buyers find both new and existing franchise opportunities. Only brokers like RPI Commercial have the opportunity to access the full services of the International Business Brokers Association (IBBA) database. RPI can be reached at 1-877-549-5210 or through email at info@rpicommercial.com.