1851

When it comes to buying another franchise, one important thing to keep in mind is your “why.” This means considering your motivations and objectives behind purchasing the franchise.You should answer the question: What do you hope to achieve through this investment? Whether it's financial stability, career advancement, passion for the industry or other personal or professional goals, evaluating your "why" helps ensure that the franchise aligns with your values, interests and long-term aspirations.&nbsp;1851 Franchise spoke to&nbsp;<a href="https://www.linkedin.com/in/lizaleonard/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=guide-to-buying-another-franchise-define-your-why-2726331" target="_blank" rel="nofollow">Liz Leonard</a>, franchise advisor and author of&nbsp;<a href="https://www.franchisefastpassbook.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=guide-to-buying-another-franchise-define-your-why-2726331" target="_blank" rel="nofollow">“Your Franchise Fast Pass”</a> for advice on how franchisees can determine their “why.”<h3>Determine Your Reasoning for Expansion</h3>When thinking about expanding a franchise, there are a few common motivations. One is that they may want to avoid having neighboring franchisees — especially if it's a lucrative territory in terms of demographics and population. “It’s important to research that opportunity long and hard before you jump in and buy another territory,” Leonard said. “If you're going to expand the territory, you want to make sure you are in a position to expand not just geographically, but that you’re also able to expand your working capital. Do you have money allocated for this type of expansion?”&nbsp;Expanding typically involves investing in additional resources for the business such as another location, possibly a larger fleet of vehicles, employees, and more insurance.“You have to do a mini business plan and forecast forward,” Leonard said. “Does this make logical sense? Will you see a return on your investment over time?”&nbsp;<h3>Is Now The Right Time?&nbsp;</h3>A practical approach must accompany any motivation to grow and expand, says Leonard. When thinking about expanding your franchise, make sure it's the right move and not just something you want because it's new.&nbsp;Your current territory may be sufficient. Do a detailed financial analysis to see if the expansion makes sense. Talk to successful people in the same business for advice, and get support from experts in your field. Also, consider how you'll handle the current shortage of workers before making any decisions.“The dream of having multiple locations is something many franchisees consider, but it needs to be evaluated to the right level and you must have the right team in place,” she said. “You may have a dream to buy this other territory, but do you have that hand-selected team who’s going to run it the way you want?&nbsp;Are they in place to execute your vision from an operational and marketing perspective, as well as from a fiscal standpoint?”Expanding to another territory without proper staffing can lead to significant problems, such as being unable to serve your customers effectively. Providing quality service is crucial, but you must also ensure you can afford to pay your team. It's a balancing act between expanding and maintaining quality service. The motivation to expand is to increase revenue, but you need to carefully assess whether the new territory will be as profitable as you hope.<h3>Decide Whether It's The Right Fit</h3>When purchasing another franchise, it is crucial to thoroughly evaluate the companies you are considering."We have emerging brands, some that have been around for 25 years, and franchisors at what I call the 'mature level,'" Leonard said. “It's really important to understand the differences between these options.”&nbsp;To mitigate risk when considering franchise opportunities, assess whether you're a good fit for an emerging brand. Evaluate how well it aligns with your goals, risk tolerance, financial investment, and security. Study the industry broadly and then delve into franchising specifics. Consider factors like your market, the franchisor's story, and the company's financial track record to determine if it aligns with your business aspirations.Before deciding to become a franchise owner, it's important to consider whether the franchisor's culture aligns with your future goals. A good way to do this is by speaking to current franchise owners to gain insight into the daily operations of the business, including its culture, financial aspects, training, and support."This culture fit isn't something you can just address at the franchise corporate level," explained Leonard. "You will have a good understanding, but it's important to thoroughly interview at least eight to 10 franchisees to find out: Do they resemble me? Can I model myself after them? Do they have similar goals to mine?"<h3>Take Lessons from Your First Experience</h3>Before deciding to acquire another franchise, franchisees should carefully reflect on their initial experience.&nbsp;Leonard says to ask yourself, “Would I do it again? Was I successful? What would I do differently?” This introspection serves as a compass for future endeavors." "Before making any large investments seek advice from your mentor or financial advisor, whether it's someone at the franchisor level or your personal CPA. It's important to ensure that any expansion is well-planned, as the consequences of not doing so can be quite daunting. Don't rush into new territory without carefully considering the potential impact."&nbsp;Finally, when considering all these options, it's crucial to thoroughly assess past performance, financial stability, and your capacity to manage your business effectively. Drawing on past experiences and seeking guidance from mentors and financial experts can help ensure a successful expansion. The goal is not just to grow, but to do so in a sustainable and manageable way.Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com/?utm_source=1851franchise.com&amp%3Butm_medium=article&amp%3Butm_campaign=franchising-on-a-budget-how-to-do-it-2726297&utm_source=1851franchise.com&utm_medium=article&utm_campaign=guide-to-buying-another-franchise-define-your-why-2726331" target="_blank" rel="nofollow">www.1851growthclub.com</a> and start your journey.

Guide to Buying Another Franchise: Define Your Why

Buying Another Franchise: Define Your Why and Ensure Success

1851 Franchise

Before buying another franchise, franchisees should determine their motivations and decide if now is the right time. 

guide-to-buying-another-franchise-define-your-why

Pool Scouts

Pool Scouts Expands Hope Floats Fundraising Efforts for 2025 

Pool Scouts Expands Hope Floats Fundraising Efforts for 2025, Aiming to Surpass $100,000 in Total Donations

pool-scouts-hope-floats-fundraising

Filta Environmental Kitchen Solutions

Why Rochester, New York, Is a Great Market To Open a Filta Environmental Kitchen Solutions Franchise

why-rochester-new-york-is-a-great-market-to-open-a-filta-environmental-kitchen-solutions-franchise

Fresh Coat

Fresh Coat Cares: Painting a Brighter Future for Communities Nationwide

fresh-coat-cares-painting-a-brighter-future-for-communities-nationwide

USA Ninja Challenge

Franchise Broker Turned Owner Opens Kid’s Ninja Gym in Kansas City

franchise-broker-turned-owner-opens-kids-ninja-gym-in-kansas-city

Crust Pizza Co.

Crust Pizza Co. Franchisees Secure Real Estate, Projected To Open the Newest Pizza Restaurant in Georgetown, Texas, on May 5, 2025

crust-pizza-co-franchisees-secure-real-estate-projected-to-open-the-newest-pizza-restaurant-in-georgetown-texas-on-may-5-2025

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Yum Brands Reports Strong Q1 Results with Big Boost from Taco Bell

yum-brands-reports-strong-q1-results-with-big-boost-from-taco-bell

QSR: McDonald’s Gains Momentum With Chicken Innovation, Value Deals and Franchisee Support

mcdonalds-franchise-recovery-chicken-strategy-value-deals-2025

The Future of Franchising: Trends and Predictions for 2025 and Beyond

the-future-of-franchising-trends-and-predictions-for-2025-and-beyond

Restaurant Business: Crumbl Cools Its Expansion, Refocuses on Profitability

restaurant-business-crumbl-cools-its-expansion-refocuses-on-profitability

Franchise Face-Lifts: Why Major Restaurant Brands Are Betting Big on Remodels

franchise-face-lifts-why-major-restaurant-brands-are-betting-big-on-remodels

The Ultimate Guide to Selling Franchises: Building Your Brand’s Growth Machine

ultimate-guide-to-selling-franchises

Franchise Financial Reporting, Analytics and Business Intelligence | Qvinci

Franchise Financial Reporting, Analytics and Business Intelligence | Qvinci — Emerging Leaders in Franchise Support

franchise-financial-reporting-analytics-and-business-intelligence-qvinci-emerging-leaders-in-franchise-support

franchise supplier award design with Locate AI logo and 1851 Franchise badge

Franchise Real Estate Services | Locate AI — Emerging Leaders in Franchise Support

locate-ai-emerging-leaders-in-franchise-support

Consulting and Development | Big Sky Franchise Team — Emerging Leaders in Franchise Support

Big Sky Franchise Team: Expert Consulting for Scalable Growth

consulting-and-development-big-sky-franchise-team-emerging-leaders-in-franchise-support

Franchisee spotlight image with Randy and Sandy Craft, Children's Lighthouse logo on blue background

The Crafts’ Successful Journey from New Parents to Children’s Lighthouse Franchisees

the-crafts-successful-journey-from-new-parents-to-childrens-lighthouse-franchisees

Franchisee spotlight image with photo of Robert Trujillo and UWRG logo on blue background

How Robert Trujillo Expanded His Construction Business With UWRG

how-robert-trujillo-expanded-his-construction-business-with-uwrg

District Taco Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-district-tacos-franchise-costs-fees-profit-and-data

Layoffs Surge to Pandemic-Era Highs, Opening Doors for Franchise Growth

layoffs-surge-to-pandemic-era-highs-opening-doors-for-franchise-growth

Health Care Professional in the Non-Profit Space Brings TruBlue to North Pittsburgh

health-care-professional-in-the-non-profit-space-brings-trublue-to-north-pittsburgh

Guide to Buying Another Franchise: Define Your Why

MORE STORIES LIKE THIS