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Investing in an existing franchise can save you some of the ground work involved in business ownership. However, there are a few important strategies that you’ll need to know to effectively navigate the resale market, make informed decisions and maximize your potential opportunities.1851 Franchise spoke with&nbsp;<a href="https://www.linkedin.com/in/lisa-plonka-cpa-cfe-95a25a15/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=navigating-the-resale-market-a-buyers-guide-to-acquiring-existing-franchises-2725844" target="_blank" rel="nofollow">Lisa Plonka</a>, assurance partner at&nbsp;<a href="https://www.plantemoran.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=navigating-the-resale-market-a-buyers-guide-to-acquiring-existing-franchises-2725844" target="_blank" rel="nofollow">Plante Moran</a>, about the key considerations prospective buyers should keep in mind when they’re considering purchasing an existing franchise in the resale market.<h3>Evaluating an Existing Franchise</h3>First and foremost, you’ll want to decide on an industry in which to start your search. Plonka suggests taking your education and work experience into account to see if a given concept matches your skillset. If you’re unsure where to look, enlist professional help.“Franchise brokers can help align your strengths and operating style with a particular brand,” Plonka said.Once you have found an existing franchise that suits your background, you’ll need to do some thorough research to determine the potential of the concept and the likelihood of your success.“Look at the long-term viability of the franchisor, considering factors including their franchisee opening and closing statistics, key financial ratios and overall trends in their particular industry. This can be done through a review of their Franchise Disclosure Document (FDD) or other publicly available sources,” Plonka said. “Closely evaluate the historical financial performance of the location(s) you are looking to acquire compared to the franchise system overall.”If you find data that is less than positive, that doesn’t necessarily mean you should pass up on the opportunity. Dig deeper to try to understand the root of the poor performance or issues. According to Plonka, this can help you decide if there is an opportunity for improvement with the location or if the market simply does not have an interest or need for the brand.&nbsp;Another area of consideration when evaluating an existing franchise in the resale market is the requirements that will be placed on you by the franchisor should you invest.“Understand current and future capital needs, such as the franchisor’s required schedule for remodels, equipment replacement or other immediate cash needs of the business that you might step into,” Plonka said.&nbsp;Plonka advised asking questions about the lease or real estate arrangement, as well as the existing staff members. You’ll want to know if you’re expected to assume an existing lease under your new ownership and if you’ll need to negotiate new terms. You’ll also need to know the status of the current employees, including whether they’ll transition with the sale and how viable finding replacements will be if they don’t.<h3>Acquiring an Existing Franchise vs. Starting a New One</h3>There are a lot of factors to consider when acquiring an existing franchise. In fact, you might be thinking it would just be easier to start from scratch with a new franchise location. In reality, however, there are pros and cons to both sides.“Opening a new location of a franchise can be a lengthy process between selecting a site, preparing an existing building or constructing a new building to the franchisor’s specifications, hiring employees, etc,” Plonka said. “Purchasing an existing franchise business offers a turnkey solution.”Although acquiring an existing franchise offers some advantages with systems set up and ready to go, it does come with some uncertainty. Plonka explained that it’s important to gain clarity on any transfer fees and who needs to pay them, whether or not you’re starting a new franchise agreement or taking over the existing agreement, any applicable terms of renewal and opportunities for expansion in the future.&nbsp;<h3>Common Pitfalls To Avoid in the Resale Market&nbsp;</h3>Entering into an existing business comes with its complexities, and there are many common errors in the franchise resale market you’ll want to avoid. The first is a lack of understanding of franchising in general.“If buyers have not worked in a franchised business before, it’s critical to understand how the franchise model works, including what you can control and what is regulated by the franchisor,” Plonka said.Plonka also suggested that new franchisees take full advantage of the support offered by the franchisor — including training, marketing support and transition guidelines — to make the process easier. Failing to leverage these resources is a common pitfall and one that is easy to avoid.Another resource that many new franchise owners overlook is the existing franchisees with the brand.“Current franchisees are an invaluable and often untapped resource to new franchisees, as they can provide market insight, an overview of current challenges, and resources that have helped them succeed,” Plonka said.&nbsp;<h3>Strategies for Identifying and Negotiating Profitable Opportunities&nbsp;</h3>Acquiring an existing franchise offers an excellent avenue to entrepreneurial success if you know how to navigate the resale market. Once you understand the general process and are ready to start your search for an available franchise, bear in mind these tips for identifying and negotiating the most profitable opportunity: make your interest known and enlist the experts.“If there is a specific brand the buyer is most interested in, they might consider reaching out directly to the franchisor to find out if they know of any franchisees looking to exit the system,” Plonka said. “As in all business acquisitions, it’s critical to lean on the support of trusted advisors who have direct experience with franchised businesses. Legal advisors, accounting professionals and capital providers can ensure all aspects of the purchase agreement, franchise transfer, entity structuring and financing are properly handled.”Interested in learning more about franchise ownership? Check out these resources and stories:<ul><li><a href="https://www.1851growthclub.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=navigating-the-resale-market-a-buyers-guide-to-acquiring-existing-franchises-2725844" target="_blank" rel="nofollow">1851 Growth Club</a></li><li><a href="https://1851franchise.com/20-fast-food-franchise-opportunities-2024-2725122#featured">20 Fast-Food Franchise Opportunities to Explore in 2024</a></li><li><a href="https://1851franchise.com/3-reasons-why-you-may-want-to-consider-multi-franchising-2725286#industry">3 Reasons Why You May Want to Consider Multi-Franchising</a></li><li><a href="https://1851franchise.com/franchising-basics-what-is-a-franchise-agreement-2725476#columns">Franchising Basics: What Is a Franchise Agreement?</a></li></ul>

Buying Existing Franchises: How to Navigate the Resale Market

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Within the world of franchising, the resale market can offer some very lucrative opportunities, but only if you know how to navigate the complexities of it. 

Navigating the Resale Market: A Buyer's Guide to Acquiring Existing Franchises

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Extraordinary Brands

Extraordinary Brands Acquires Basecamp Fitness, Adding The High-Growth HIIT Concept to its Boutique Fitness Portfolio

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How Much Can I Make as a Beef O Bradys Franchisee?

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The Brass Tap: A Local Neighborhood Bar Franchise Designed for Engaged Entrepreneurs

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Fresh Coat

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How Kimberly Nelson Is Painting a Path for the Next Generation of Women in Home Services With Fresh Coat Painters

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Prince St. Pizza Partners With Dave’s Hot Chicken Franchisee for National Growth

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KKR to Acquire Nothing Bundt Cakes in $2 Billion Deal -  1851 Franchise

KKR to Acquire Nothing Bundt Cakes in $2 Billion Deal

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FTC Settlement Puts New Focus on Franchise Disclosure Standards - 1851 Franchise

FTC Settlement Puts New Focus on Franchise Disclosure Standards

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Applebee’s Franchisee Files for Bankruptcy as Dine Brands Moves to Acquire 53 Units - 1851 Franchise

Applebee’s Franchisee Files for Bankruptcy as Dine Brands Moves to Acquire 53 Units

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Why Skilled Trades Are Emerging as the Economy’s Most AI-Resilient Careers

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How much can franchisees make? It’s a question many prospective owners ask before investing in a franchise. While earnings tend to be driven by variables such as industry, location and general management skills, a proper understanding of the key factors driving profitability can help franchise owners develop expectations that are realistic.&nbsp;Multi-unit franchisee&nbsp;<a href="https://www.linkedin.com/in/mangesh-patel-9368569/">Mangesh Patel</a>, who’s readying the launch of six&nbsp;<a href="https://www.beefobradysfranchise.com/">Beef ‘O’ Brady’s</a> restaurant locations in the Macon, Georgia area, shares insights from his franchising experience.<h2>Understanding Franchise Income</h2>Keeping operational costs in check can have a major impact on overall earnings. Taking a proactive approach to expenses such as food and labor, as well as payroll and scheduling, can help align actual franchise income with general expectations for the business.“I just had a meeting with a couple of people, and they said, ‘You talked about a 25% profit margin, but I’m only doing 12%.’ So, I looked at the figures they sent me,” Patel said. “Their&nbsp;<a href="https://1851franchise.com/calculate-restaurant-franchise-profit-2730476">restaurant</a> food cost was running at 37%, which should be around 30%. The national average is about 32%. If I do things correctly, my average food cost needs to be at or below 30%. And payroll should run around 18%. But many people run 25 to 28%.”So,&nbsp;<a href="https://1851franchise.com/unraveling-franchise-earnings-how-much-can-you-really-make-2723935">how much can franchisees make</a>? Here are five areas to consider.<h2>Practical Tips for Prospective Franchisees</h2><ol><li>Control Costs From Day One:&nbsp;It’s important to monitor payroll, food and supply costs closely. Overstaffing and inefficiencies can quickly reduce profits.</li><li>Plan For The Opening Surge:&nbsp;Traffic within the first few months of opening is likely to be higher. It’s important to adjust staffing and inventory accordingly, and pay close attention to how those levels change as time goes on.</li><li>Invest In Training:&nbsp;Properly trained workers can help reduce waste and improve overall service, which has a direct effect on net income.</li><li>Understand Your Market:&nbsp;Each market is unique and revenue potential will vary depending upon location, demographics and competition.</li><li>Track Metrics Regularly:&nbsp;Food cost percentages, labor ratios and weekly sales data act as key indicators operations may need to be adjusted.</li></ol><h2>What Profitability Really Comes Down To</h2>Patel notes that if franchise owners manage labor and costs properly, it’s not impossible to achieve strong cash flow even in the first year, bucking some franchising trends.So,&nbsp;<a href="https://1851franchise.com/how-much-can-you-make-as-a-franchise-owner-2724761">how much can franchisees make</a>? While results tend to vary, careful planning, disciplined operations and a proactive approach to assessing initial costs are essential. But by grasping and guiding the elements that drive franchise profitability, franchise owners can maximize overall business earnings, scaling a business that’s sustainable financially over the long term.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

How much can franchisees make? This guide explains what drives franchise earnings and how to manage costs, with expert tips from multi-unit owner Mangesh Patel on maximizing your franchise income.

How Much Can Franchisees Make? A Guide for Prospective Franchise Owners

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Building&nbsp;<a href="https://1851franchise.com/how-do-you-build-a-franchise-business-plan-2717037">a business plan</a> is a crucial operational step for any entrepreneur. But how do I build a business plan for a franchise that complements the franchisor’s system while addressing the unique needs of a given location? In this guide with expert tips, you’ll learn how to craft a thoughtful, actionable franchise business plan.<h2>Start With The Franchisor’s System In Mind</h2>So, how do I build a business plan for a franchise? Well, avoiding repetition is a good start.“You specifically don’t want to duplicate what your franchisor is doing,” said long-time multi-unit&nbsp;<a href="https://www.solafranchising.com/">Sola Salons</a> franchise owner,&nbsp;<a href="https://www.linkedin.com/in/haynes-chidsey-6a36a06/">Haynes Chidsey</a>. “There’s a reason why you join a franchise system and why you pay the fees and costs associated with it.”A strong franchise business plan should take advantage of the resources, marketing and operational systems that the franchisor provides (while utilizing daily experiences at the local level to help fine-tune what matters locally).<h2>Focus On Local Priorities</h2>A franchise business plan should be&nbsp;<a href="https://1851franchise.com/strategicfranchising/how-to-build-a-strong-franchise-brand-presence-in-your-local-community-2729771">locally focused</a>. It should reflect the unique characteristics and needs of each local market. It’s essential to identify opportunities to attract local customers, build relationships within the community at the local level and tailor services to the regional preferences required by each market.“Be complementary to what your system provides,” said Chidsey. “Stay locally focused. That’s what I would say is key. Avoid mistakes by focusing on the magic.”<h2>Practical Steps For Building Your Plan</h2><ol><li>Assess Both Market And Competition – Build a thorough understanding of local demand, competitors and potential customer base. This will lead to more informed projections. &nbsp;</li><li>Define Financial Goals – Include startup costs, ongoing fees and revenue expectations in the business plan. Staffing, rent, marketing and working capital should all be factored in. &nbsp;</li><li>Leverage Franchisor Resources – Incorporate the systems, training and support offered by the franchisor (instead of reinventing processes). &nbsp;</li><li>Set Operational Priorities – Decide which areas require hands-on local management (as opposed to areas guided by the franchisor). Focus energy where it’s most impactful. &nbsp;</li><li>Review And Adjust – A business plan shouldn’t be static. So, track performance, adjust strategies and refine priorities as the franchised business scales.</li></ol><h2>The Takeaway</h2><a href="https://1851franchise.com/chapter-3-developing-a-franchise-business-plan-2722586">Creating a franchise business plan</a> is about balance. With a clear plan that integrates franchisor resources and local insight, franchisees can confidently move forward, knowing their businesses are structured to thrive. Leveraging a proven franchisor system to make smart, locally relevant decisions is key. By slowing down to go fast, and catering to the local trends or demands unique to each market, zees can more effectively build a roadmap and franchise business plan capable of delivering long-term success.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

How do I build a business plan for a franchise?

How do I build a business plan for a franchise? In this guide with expert tips, learn how to build a plan that leverages franchisor resources, focuses on local priorities and brings long-term success.

How Do I Build a Business Plan For a Franchise? A Guide For Prospective Franchisees

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Understanding&nbsp;<a href="https://1851franchise.com/how-much-money-do-i-need-to-buy-a-franchise-a-guide-2730910">the total investment</a> required for a franchise is one of the first questions prospective franchise owners ask. While the answer can vary widely depending on brand, industry and market, knowing what goes into it can help entrepreneurs evaluate opportunities realistically (and avoid costly surprises).So, what&nbsp;is the total investment required for a franchise? The total investment reflects everything needed to open and operate the business and adequately navigate its early stages, from buildout to working capital.<h2>Why The Total Investment Matters</h2>Transparency is important. Investment details should be front and center early in the discovery process. It should also be a significant element of the franchise development website for any business opportunity.“The most visited page is the initial investment/start-up cost,” said&nbsp;<a href="https://thejointfranchise.com/">The Joint Chiropractic</a> Senior Vice President, Development&nbsp;<a href="https://www.linkedin.com/in/cmsherwood/">Craig Sherwood</a>. “This is not a surprise. This question is almost always the first a candidate will ask during the initial phone call. It’s critical for a brand to be transparent with not just the initial investment information but the royalties and fees associated with becoming a franchisee.”Developing an accurate understanding of the full financial picture required allows potential zees to assess affordability, tolerance for risk and long-term expectations (before moving ahead or signing a franchise agreement).<h2>What Goes Into The Total Investment?</h2>While every franchise system is different, the total investment required typically includes several core components. “The investment range includes three months of operating costs, the franchise fee and related expenses,” said&nbsp;<a href="https://www.simplycabinetryfranchising.com/">Simply Cabinetry</a> owner and CEO&nbsp;<a href="https://www.linkedin.com/in/dianasimmons-simplycabinetry/">Diana Simmons</a>. So, what is the total investment required for a franchise?&nbsp;Here are five components:<ul><li>Franchise Fee – The upfront fee paid to join the franchisor system and access the brand, training and support available. &nbsp;</li><li>Buildout and Equipment – Costs tied to general construction, leasehold improvements, signage, fixtures and equipment. &nbsp;</li><li>Inventory and Opening Supplies – The initial product, materials or inventory required to open. &nbsp;</li><li>Working Capital – The funds needed to cover payroll, marketing and operating expenses during the first few months of operation. &nbsp;</li><li>Ongoing Fees – Royalties, marketing contributions, technology expenditures and other recurring fees outlined in the franchise disclosure document (FDD).</li></ul><h2>Making An Informed Investment Decision</h2>So, what is the total investment required for a franchise?&nbsp;<a href="https://1851franchise.com/how-much-capital-is-needed-to-buy-a-franchise-2716989">The amount required</a> to launch a franchise opportunity can range from tens of thousands to several hundred thousand dollars, or more, depending on the industry, concept and recognition of the brand. That’s why a thorough review of FDD Item 7 (estimated initial investment) and consultation of experienced franchise counsel is crucial.A clear understanding of the total investment required to start a franchise can help candidates navigate the process more effectively. By asking questions early and thoroughly evaluating costs, franchisees can determine whether a brand aligns with their financial goals, laying the foundation for long-term success.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

What is the total investment required for a franchise?

What is the total investment required for a franchise? In this guide with expert tips, learn the costs of starting a franchise, including the fees, buildout, capital and ongoing expenses required.

What is the Total Investment Required for a Franchise? A Guide For Prospective Franchisees

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What industries are trending in franchising? As consumer behavior continually shifts and technology continues to drive the further evolution of operations, some franchising sectors are gaining momentum, offering opportunities for franchise owners at any experience level.A proper assessment of trending franchise industries can help zees ensure alignment of the investment against lifestyle goals, scalability of a given model and general demand over the long-term.<h2>Why Certain Franchise Industries Are Gaining Traction</h2>Franchise trends are often driven by lifestyle changes, demographic shifts and evolving expectations in terms of desired flexibility and convenience. Lifestyle-driven franchising is playing a growing role and industries that combine the notion of service-based models (with flexibility and less overhead) are also increasingly attractive.“Recently, during our 2025 national conference, our co-CEO mentioned that this has been a booming time for leisure travel,” said&nbsp;<a href="https://worldtravelholdings.com/">World Travel Holdings</a> Public Relations and Corporate Communications Manager,&nbsp;<a href="https://www.linkedin.com/in/michael-cadigan-3a156b86/">Michael Cadigan</a>. “Not just for people booking trips but for those entering the industry because of the lifestyle it offers.”<h2>Trending Industries</h2>So, what industries are trending in franchising?&nbsp;Here are five that stand out:1.&nbsp;<a href="https://1851franchise.com/what-are-the-best-travel-agency-franchises-2721343">Travel And Leisure</a> Franchises tied to leisure travel are benefiting from renewed demand and remote-friendly operations.&nbsp;“As long as you have a stable internet connection, you can stay plugged in with clients and customers,” Cadigan said. “Being able to work from anywhere allows people to enjoy the lifestyle they’re looking for.”2.&nbsp;<a href="https://1851franchise.com/low-cost-home-service-franchises-2729482">Home And Property Services</a> Maintenance, repair and specialty home services remain popular due to aging housing stock and infrastructure, which can deliver something close to recession-resistant demand. These franchises often feature lower startup costs and scalable operations.3.&nbsp;<a href="https://1851franchise.com/best-health-and-wellness-franchises-2026-2730886">Health, Wellness And Recovery</a> From fitness studios to recovery and wellness concepts, franchises focused on physical and mental health are continuing to grow as American consumers prioritize long-term general health.4.&nbsp;<a href="https://1851franchise.com/exploring-eco-friendly-franchises-for-world-environment-day-2725492">Eco-Friendly And Sustainable Services</a> Franchises focused on cleaning, energy efficiency and sustainability-focused services appeal to entrepreneurs prioritizing values (they also tend to tout recurring revenue and tighter operating models).5.&nbsp;<a href="https://1851franchise.com/ai-impact-restaurants-franchises-human-centric-technology-2730903">Technology-Enabled Retail And Services</a> Brands utilizing tech like automation (or data and digital platforms) are improving overall efficiency while minimizing labor challenges (rendering tech-forward franchises en vogue).<h2>Key Takeaways</h2><ul><li>Follow lifestyle-driven demand (as opposed to hype) &nbsp;</li><li>Assess scalability and overhead (before investing) &nbsp;</li><li>Seek out industries with recurring or essential services &nbsp;</li><li>Assess whether the business model supports flexibility &nbsp;</li><li>Align industry trends with your long-term goals</li></ul><h2>The Bottom Line</h2>So, what industries are trending in franchising? Travel services, home services, wellness, sustainability and tech-enabled concepts are all experiencing continual momentum at the moment. By developing a thorough understanding of where demand is growing and why, prospective franchise owners can make better decisions and invest with confidence in industries well-positioned for strong long-term success.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

What industries are trending in franchising?

What industries are trending in franchising? From travel and wellness to home services and eco-friendly concepts, these industries are trending as demand grows for flexible, scalable business models.

What Industries Are Trending in Franchising? A Guide For Prospective Franchisees

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Franchise Opportunity Deep Dive: A fast-casual restaurant brand serving made-from-scratch sandwiches, salads, soups and pizzas rooted in Southern hospitality.


Newk’s Eatery Franchise Costs, Fees, Profit and Data for 2026

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Beef 'O' Brady's Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: Beef ‘O’ Brady’s is a family sports pub concept built around community, casual dining and lifelong local loyalty.

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Visiting Angels Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: Visiting Angels is a senior home care franchise focused on in-home support for seniors and individuals with disabilities.

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BrightStar Care Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: BrightStar Care is a home health care franchise that provides both medical and non-medical services.

Navigating the Resale Market: A Buyer's Guide to Acquiring Existing Franchises

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