Top Franchises Listed by Business Brokers
Real Estate

Top Franchises Listed by Business Brokers

Like all things in life, there is always a list of firsts in this or that. Franchises are no different and can be listed as the most popular, with range of cost and ease of purchase. Business brokers also have their own favorites to show potential customers.

If a potential franchise buyer is considering buying a franchise, then it makes sense to look at the rankings by various categories, as it will allow them to learn a lot by comparing different franchises. The Internet is a great place to learn a lot from this list in a short time.

types of franchises

There are many different franchises besides the fast food ones most people are familiar with, such as burger chains, chicken franchises, and seafood places. There are many different retail type franchises, service franchises, business type franchises, and tax plans. In fact, almost any type of business you can think of has a franchise competitor. Some of these franchises have a very high success rate. Some may rely primarily on the person buying it, such as a service company. If the owner is good at prospecting and selling his service, he will be successful. If they are not good at it, they may not make it, as the franchise is not well known enough to attract enough customers. This explains the lower ranking of many of the franchises that a person has never heard of and had no idea even existed.

Valuations by franchise cost

A person can buy a franchise for as little as a couple of thousand dollars and the price goes up to over a million dollars for some of the big name restaurants. Low-cost franchises appear to be home-based and operated by one person. What many of them offer is just a business plan on how to do business. This can be a high cost for a plan without other support or help.

At the high end you get training, ongoing support, a huge plus in being successful as these franchises have a very high success rate.

The popularity of these high-priced franchises also accounts for the fact that they sell at the higher end of the range. The success rate is high which is why they are popular.

Their popularity means that the franchise company can get more money for them than lower cost franchises. It is about the future success of the new owner and recouping his investment through profits.

Ease of Purchase Ratings

Low-cost franchises have higher ratings, since it takes less money to buy them. Higher cost franchises can be more difficult to purchase unless the buyer can arrange financing privately or through the franchisee people. A group of investors or a very wealthy private party usually buys the franchises at really high prices. Low cost franchises will sell on terms as they have little additional cost in the franchise. The higher price will go a long way in finding money for a buyer who feels they will do well with the franchise. Over time, they have developed all kinds of financial aid, from lenders to investor groups. They are really interested in selling to people who they think will make good franchise owners. They want to have successful franchise networks.

Business brokers have a selection of businesses to choose from. Commercial brokers generally represent sellers who have an existing business that they want to sell. Their listings vary between all types of businesses in a range of sales prices. When a buyer comes to them, they can show them businesses that are in trouble and are excellent examples of a successful deal. They also have all kinds of businesses for sale, so the buyer is presented with a selection of business types. This could be advantageous as the buyer may see something on the listing that he hasn’t thought of or even considered.

The business broker, if he is experienced, will have a very good idea of ​​the real value of the business he represents. Professional appraisers most likely arrived at the asking price. The prices have a built-in deception factor, but are closer to actual value than a guess.

The sheer number of options that these brokers can show prospective buyers should work to the buyer’s advantage. The options are many and from all types of businesses that could be considered for purchase. This ability to view all types of deals at the same time and compare prices and potential return on investment is one reason why all buyers should at least have a conversation with a business broker or two.

These conversations won’t cost anything, but they can help the buyer make better decisions between a new franchise and an existing business.

Talk to other franchise owners

If you have narrowed down the business to certain franchises, it would be wise to talk to the owners of other similar franchises. The information they will provide will help you make a better decision. When you find out what they like and don’t like about the franchise, this is great food to think about. There’s nothing like being warned about areas of contention and potential discontent in running a franchise. At least it will give him areas to question with the franchise people. After the sale is not the time to find out about problems you weren’t aware of and certainly not the time to be surprised. You may also find that there is room for some negotiation over the price of the franchise that was supposedly set in stone. Nothing is ever set in stone. Something that is said to be company policy is just that. It is an arbitration decision and it was not dictated from above. Policies are changed all the time within companies. If you really don’t like politics, walk away and find a different deal.

Conclusion

Looking at franchise ratings based on different criteria will give the buyer many ways to view different franchise opportunities. Comparisons by different means help the buyer to get a perspective of the business that they cannot obtain in any other way. Looking at the price ranges and understanding what they really mean is an eye opener for the franchise buyer. The fluff in the price can be guessed by comparing different franchises. Also popularity and success seem to have some degree of predictability.

Taking the time to discuss what the business broker may have on their client list can be more than worth it. There may be a business listed that the buyer never considered would be a better fit for the buyer’s needs and pocketbook. You won’t know unless you look.

Use the Internet to compare different franchises. This is the fastest and easiest way to do the comparisons. Any information you want about the franchise business can be found on the net. This is an excellent source of franchise information, statistics, and ratings. The net makes finding any information you want available by searching for it through a search engine.

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