Franchising brings countless benefits. One of those benefits is the opportunity to go into business for yourself with the support of an established franchisor who understands what it takes to be successful in their industry. While a franchisor’s support system can encompass a wide range of essential business activities such as payroll, insurance coverage, marketing, training, and legal compliance, some aspiring business owners opt to buy a business that comes with even more built-in support: a franchise resale.
A franchise resale is an established business for sale that is already part of a franchise network. The current owner might be retiring or moving on to another business venture. Rather than close the franchise location completely, the owner sells the business to recoup their initial investment (and hopefully make a profit) so it can continue serving area customers. The sale typically involves a transfer of the franchise agreement and the associated rights and obligations to the new owner. It may require approval from the franchisor depending on the terms outlined in the original franchise agreement.
Resales like these offer a valuable alternative for entrepreneurs who are ready to jump in and build upon meaningful relationships with local businesses and job seekers in their markets. While both brand-new and resale opportunities present unique advantages, franchise candidates should consider the following when deciding between starting a new franchise location and purchasing a franchise resale.
Established Client and Candidate Base
Getting the word out about a new staffing franchise and the services you offer can be difficult. Today’s fractured, niche-based media environment makes it difficult to reach all corners of your community. Plus, many customers continue to patronize a business out of inertia. Your business has to really shine and meet the customer’s needs to convince them to switch to your services.
Furthermore, if your brand is new to your community, you have to work harder to educate your audiences about what product or service you offer in the first place!
A franchise resale vaults you ahead of those barriers to community entry. Compared to starting from scratch, franchise resales allow you to hit the ground running by leveraging a location’s existing knowledge of your brand and its reputation in the marketplace. Equally as important, you start with an existing client and customer base. That business inertia works both ways: As long as your continue to deliver the level of service they’re accustomed to (and of course you will!), they have no reason to switch to a competitor.
Having that book of business to start with puts you, the resale buyer, at a big advantage. Once new franchisees have completed their onboarding and spent time learning the ins and outs of their new business, they are able to rapidly capitalize on current and new revenue opportunities because they don’t have to establish their brand in their marketplace.
In the staffing industry, a seasoned team is a valuable asset. Our resales often come with a team willing to continue their employment with your new staffing office. These recruiters, business development managers, and admins have a strong rapport with clients and candidates as well as insights for how to succeed at growing your business in the local market.
You’ll likely have an orientation period when you and the staff get to know each other's strengths, and potentially update some processes. However, you’re still ahead of other franchise owners who must spend time working to get their brand-new staff up to speed on every aspect of a new franchise’s operations. While a new franchise location requires a focus on the day-to-day operations to lift it off the ground, a resale team knows how to keep the wheels turning, freeing up your time to focus on strategy and big goals.
Elevate an Existing Business
Resales are not only about launching a business of your own – they also provide the opportunity to take an existing business to new heights. Acquiring a franchise resale means inheriting a business with a proven track record and reputation in the community. However, once you take over ownership, you will set the vision for where you would like it to go next.
Back Office Support
New franchise owners experience unwavering support at every step with our robust back-office infrastructure, whether they are building a new office or taking over an existing location. With identical training, technology, and support that brand-new franchise locations receive, Spherion ensures the same seamless transition into ownership with less ramp-up time.
Potentially Lower Entry Costs
Let’s face it, starting a business from scratch can be a bigger commitment than many may realize. Franchise resales typically present more reasonable entry costs compared to building from the ground up, bringing more financial flexibility and a quicker path to profitability as well. With a resale, you spend less time finding a building or space to rent. Your office equipment and signage is already in place. You can bypass other startup branding expenses as well. Buying a franchise resale saves on some startup costs and a lot of time.
In addition, if you're a US military veteran or a member of the SBA’s recognized minority groups, you may qualify for a discount on Spherion’s franchise fee.
Tailor Your Franchise Investment
Here at Spherion, we are all about offering prospective franchisees multiple paths to ownership to unlock franchise growth with us. Ready to talk about all things resale? connect with the franchising team to discuss the resale opportunities available with Spherion.