How to buy an existing franchise

Funding a resale franchise

If you don’t want the hassle of setting up a completely new franchise, buying a resale is a great option. It means you don’t have to set up an office or fund a lot of resources. Even better, you’ll already have an established client list. As long as the business has been successful, there will also be a proven business model, with statistics on turnover and profit that will enable you to see the potential rewards from that particular territory. But you’ll need funding to buy the business – and we can help. We’ve formed close working relationships with some leading banks who understand the franchise sector. They could offer up to 80% of the funding you’ll require, over an extended period.

The initial cost

If you’re buying a resale franchise, the price will obviously vary from territory to territory, depending on a range of factors. In addition to the sale price, our fee will be £20,500 (exc. VAT), with an ongoing royalty fee of 6.5% (exc. VAT). Despite these costs, remember that a lot of the initial spadework has already been done – presenting you with a viable business that you can hopefully take to new levels. We’ll also be there to support you as you find your feet and start to grow your business. With your dedication and hard work, along with our help, you should soon have your franchise running successfully.

The seeds of success

By taking over a franchise from someone who’s leaving our network (the majority of whom are retiring), it won’t be too long before the new seeds you’re sowing start to bear real fruit. With half of our franchisees turning over £1 million a year, and some achieving double or treble that figure, your potential earnings are extremely good. Usually, an established office will achieve an operating profit (before franchise owner earnings) of around 12-18%. Typically, a market share of just 0.5% of older people in your territory could produce annual revenues of £1.1 million.