​​Should You Start from The Ground Up or Look at A Franchise for Sale?

by Vanessa Lovie 8th of July, 2022
​​Should You Start from The Ground Up or Look at A Franchise for Sale?
​​Should You Start from The Ground Up or Look at A Franchise for Sale?

It's exciting to think about the prospect of establishing your own organisation. Many people think the only way to be successful is to start from the ground up and build from scratch. One option that is often overlooked is the possibility of buying a franchise for sale to satisfy your dreams. 

A franchise for sale is part of an established system and can come with many benefits. We will cover 4 reasons why you should consider a franchise for sale over starting from scratch. 
 



 

1. The Franchise for Sale has Systems

 

Behind the rose-coloured glasses of owning an organisation, is the amount of time and effort it takes to establish systems. Anyone who has been part of a well established franchise can appreciate the attention to detail and how well outlined every step and procedure is.

The key to any successful franchise for sale is their ability to replicate. The ability to make and sell a product or service, again and again without variation. The systems a franchise for sale has in place is what makes this possible. 

If you look at any major franchise for sale such as McDonalds, KFC or Gloria Jeans you will see the extensive systems they have in place for everything from employee training, to product delivery to marketing. You wont even get a chance to buy one of these franchises for sale if you dont meet their pre-determined criteria, that is because they have a system. 

When you start from scratch, you need to build your systems. If you have been an owner before you know what it takes, the days, weeks, years of constantly creating, adapting, changing and re-writing. As we all know, time is money. Buying a franchise for sale will save you the time it takes to establish the extensive amount of systems required to be successful. 

The FCA is the peak body that oversees franchises in Australia and has a number of resources available for people who are considering buying a franchise for sale. 



 

2. Reputation Equals Sales 

 

Just about everyone knows what a McDonalds cheeseburger tastes like, or a caramel latte from Gloria Jeans. People will visit a business again and again to receive that particular product or service. When your looking at a franchise for sale you are looking to be part of a reputable organisation. A lot of money has been spent by the group to build their reputation and they will go to any lengths to protect it

Branding and reputation are at the core of a franchise for sale. You will notice, that the more well-established a franchises for sale is, the higher the asking price. This is because reputation leads to sales. 

When you are starting from scratch, you have no reputation. People don't know who you are or what you offer. You will need to invest alot of money into marketing to build your brand. At the onset of any new business, there is alot of hype, customer will come and visit and experience what you have to offer. Hopefully, you can engage these clients and turn them into long-term customers.

A franchise for sale will have gone through that initial hype, depending on how long it has been established. The longer a location has been established, the more sales history you will get to review. If it is a new franchise for sale, you will need to ensure you conduct proper due diligence. Whilst the head office and over-arching group will have a brand and reputation, your particular location may be brand new and you will need to have a solid understanding of the sales and support. 
 


 

Statup or Look at a Franchise for Sale


 

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3. You Will Have Support When Buying a Franchise for Sale

 

When you start from scratch, you are a bit like a lone ranger. There are thousands of decisions you have to make when building a business that you don't necessarily have to face when buying a franchise for sale. These decisions can lead you to success or failure. If you are an experienced owner or entrepreneur you will have a better understanding of what you can expect and how to limit potential issues. 

Some of the things you need to navigate when starting from scratch; 

  • Sourcing products and finding suppliers

  • Choosing a shop location

  • Accessing finance to grow the business

  • Hiring new employees

  • Processing GST and Tax obligations

  • Managing cashflow

  • Establishing a marketing plan and budget

  • …and so on. 



 

When buying a franchise for sale you are entering a group, you are not about to buy a business. The key message here is that you are part of a bigger group. This group is established by the franchisors. The reason this exists is to ensure that the reputation is maintained. A franchise for sale has nothing if it is not part of a group that has a clear system and can deliver on the brand its customers expect. 

So it is in the franchisors’ and your best interest to have ongoing support and training. In fact, it is legally required that any training is outlined in the franchise agreement. 

Beyond the initial training you receive when buying a franchise for sale, typically you will get ongoing support. This includes everything from employee management, marketing assistance, financial training and more. A franchisor will want to support its franchisees as they all reflect upon one another. If one franchisee stops delivering on the repetition this can affect the whole groups reputation.

So a major benefit of buying a franchise for sale over starting from scratch is the support provided. This is beneficial, especially for first-time owners. 

 

4. Time is Money

 

If the goal of being an owner is to make money, this should be your focus. People go into ownership for a number of different reasons. Beyond the desire to earn a decent income, is the flexibility and following your passion. When you look at a franchise for sale, you can find an opportunity that ticks all of your boxes. 

Building from scratch takes a lot of time, ask any current owner. Rarely does a business skyrocket to a healthy income within a year or two. In fact, 60% of startups fail in the first 5 years. Owners get burnt out and realise the startup just isn't making enough money or they weren't able to manage its success. 

If you have an industry or type of organisation you are interested in such as a cafe for sale you will see there are hundreds of opportunities available. Buying a franchise for sale, allows you to walk in and start earning an income from day one. There is no need to spend years building the start-up waiting for the money to roll in. When you start to calculate the costs involved in establishing the start-up, and the loss of income while waiting for it to turn a decent profit, you can see why a franchise for sale could be a good option. 

 
 

Find a Franchise for Sale Near You
 



So if you are the type of person who is thinking about going into ownership, know that you have options beyond starting from the ground up. Franchises for sale are part of a bigger group and hence are well established. They have the systems in place to help you grow and be successful.

As with any major decision including buying a franchise for sale, always obtain professional advice so you know what you are getting into. There are specialist business brokers and coaches who can help review an opportunity you are looking at. 


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About the author


Vanessa Lovie

CEO Bsale Australia

Vanessa is the current manager and CEO of Bsale Australia. Over the past 11 years as a business owner, she understands what it takes to grow a ...

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