Why Buy A Franchise from a Business Broker?
There are all kinds of reasons to buy a franchise, including brand recognition, ease of marketing, an established business plan for success, and more. Buying a franchise comes with some big advantages, but why would you buy a franchise from a business broker as opposed to buying one on your own?
The truth is, there are a number of reasons to use one. Unlike shopping around for other items, there are a number of things you need to know before you purchase a franchise, and a business broker can help you answer questions and give you options others may not be aware of
Here are some of the reasons you should buy a franchise using a business broker.
An Inventory of Franchises
Typically, someone who wants to sell a franchise will use a business broker themselves. Why? So that they can do what they do best and run their business while it is for sale. A business broker also has an idea of what franchises are already in your area, and which ones it is best for you to consider.
If you want to be matched with the franchise that best matches your budget, your business skill level, and the kind of money you want or need to make from your business, looking at the business broker’s inventory of franchises can give you more choices than what you knew was out there.
Just like with other businesses, there are many ways to finance the purchase of a franchise. A business broker is aware of the finance options that will work for the franchises in their inventory and can help you decide what might work best for you. You can choose from several options:
- Cash/Your Savings: You can use cash or your savings or earnings from the sale of another business or from its profits.
- Conventional Loans: You can get a small business loan from your bank or financial institution to purchase a franchise.
- Small Business Administration (SBA) Loans: For longer-term loans, you can sometimes turn to the SBA for loans to finance a franchise.
- Franchisor Financing: Even if you are buying an existing franchise, sometimes you can get financing from the franchisor.
A business broker can help you understand and explore these options and connect you with the franchisor if you have questions. In many cases, Veterans have additional finance options a business broker can help them explore.
Expertise at the Paperwork
Buying a business is complicated. There is a lot of paperwork, and failing to perform one function or another might be very costly to your business. Just like you are an expert at running a business or being a manager, a business broker is an expert at navigating the purchase process.
For instance, if you are buying a restaurant, there are local and state laws you need to consider, and you need to understand what you are buying and what is leased from the franchisor. If there are leases involved, they need to be transferred into your name with the purchase.
This is only one example. Every state has their own laws about sales of certain types of businesses, and a business broker will be able to help you navigate the specifics.
A business broker can offer you many options you might not find on your own when shopping for a franchise, help you explore financing options, and will make sure that every piece of paperwork you need to do will be completed in the way it should be. Ready to buy a franchise in the Sacramento area? Contact us here at Rogerson Business Services to see how we may be able to help you.