Starting a Franchise: Buy New or Established?

If you’re looking for a great launch pad to owning a small business, a franchise can be an ideal place to blast off. We’ll help you reduce the hemming and hawing over whether to buy a new or existing franchise.

Becoming a franchisee can be a great path to entrepreneurship. Franchisees leverage the strength of an established brand and a tried and true business model while the franchisor serves as a source of capital—an asset that is particularly welcome in today’s tight fiscal atmosphere. So how should you become a franchisee? Should you start fresh or set the quick trajectory of buying an business from a seasoned franchise entrepreneur?

Opting to Buy an Existing Franchise

There is a general sense among buyers that investing in an existing franchise location is easier. That may or may not be the case,
depending on the specifics of the location, but it’s true that there are several pluses of investing in an existing franchise as you chart the steps to purchasing a franchise: 

1. History

An existing franchise opportunity can be a turnkey business acquisition. It’s already been in operation so the seller can demonstrate a performance history showing profitability as well as concrete numbers that will help you figure out it’s cash flow and make project future performance. These are two key elements in assessing value. 

2. Flexibility

There my very well be a set fee structure for new franchise locations, which will impinge on the buyer’s ability to negotiate on terms or price. But buying a franchise business for sale puts you right across the table from the seller with more ability to negotiate the terms and maximize the return on your investment.

3. Client Base

An established and loyal client base is a massive benefit for a franchise entrepreneur. Existing franchise business for sale strikes a quick route for new owners to take advantage of an established customer since the franchise brand gives customers a sense of consistency, tapping into memories of positive experiences with the franchise brand. 

Reasons to go with a New Franchise

With a new franchise location, you take on higher risks along with higher rewards. While every franchise business opportunity is different, new franchisees often find out that building a new location provides merits that simply aren’t available with an existing operation: 

1. Lower Purchase Price

New franchise companies for sale are often a better deal because you aren’t buying existing cash flow from an established customer base and you aren’t paying for “goodwill” value often expected by sellers of existing franchises. If the new franchise is successful, you’ll reap the financial benefits of the franchise history, not the seller.

2. Tabula Rasa

A new business offers a fresh start to buyers; a franchise business opportunity unaffected by the habits, preferences and/or flaws of a previous owner. Although you’ll have to put your nose to the grindstone to forge your business in an untried community, you don’t have to worry about skeletons popping out from closets of previous businesses.  

3. Pristine Infrastructure

When you buy a new franchise, it’s likely that your equipment and facilities will also be new or at least newer than they would be if you bought an existing franchise. Out of date equipment isn’t always a deal-breaker, but in some sectors it’s important to ensure that the business has reliable machines and current designs.

To learn more about fun business opportunities with High Touch High Tech, visit us online at ScienceMadeFunFranchise.net.

High Touch High Tech is the leader in innovative hands-on science and nature experiences for children, serving over 4 million children annually with 27 franchise locations across the United States, Canada, Turkey, Singapore and South Korea.

Increase Franchise Cash Flow with PayPal

How can you increase liquidity for your franchise business? One way is to make it easier for customers to pay. PayPal provides a quick, easy, and inexpensive way to accept online payments through your web site. With a personal account, PayPal costs $.30 for each payment received plus 2.9% of the transaction total. There are no setup or membership fees. Here are 4 steps to get up and running:

1. Sign up for PayPal

After clicking the Sign Up button on the PayPal home page, select Personal Account. This will provide you with options to create the type of account that is least expensive to use and the most conducive to small business use.

 

2. Build payment buttons

Payment buttons will allow users to add items to their cart from your web site. There are a variety of button types to choose from to maximize sales rates on your product or service. You can choose Buy Now, Donations, Gift Certificates, Subscriptions, Automatic Billing, or Installment Plan.

There are a range of options to configure to suit what you are selling. Several examples include: drop down menus, text fields, price, currency, shipping, and tax.

 

3. Place payment buttons on your site

Once you configure the button options for the button type you have chosen, click Create Button and you will see button code provided for your web site. The code is Internet language for the pay features your are adding. Copy all of the PayPal code and paste it on your web site where you want the pay features to appear. This can be done using a web site editor like Dreamweaver, or a Content Management System (CMS).

If your franchise provides a CMS, a lot of the work will be done for you. You will just have to paste the code on the appropriate branded page.

 

4. Test your new payment buttons

No matter how bright and shiny your new e-commerce checkout features look, you have to make sure they work before the job is done. Use your own credit card or PayPal account to post a transaction and then log in to PayPal to check the transaction.

Now you’ve provided an extra channel to receive business funds and eliminated hurdles in the way of potential customers becoming paying customers.

To learn more about fun business opportunities with High Touch High Tech, visit us online at ScienceMadeFunFranchise.net.

High Touch High Tech is the leader in innovative hands-on science and nature experiences for children, serving over 4 million children annually with 27 franchise locations across the United States, Canada, Turkey, Singapore and South Korea.