1851

<p>Partnering with a franchise brand allows entrepreneurs to open a business with a <a href="https://1851franchise.com/why-buy-a-franchise-2714619#home"><u>proven business model</u></a> — a significantly less risky proposition than starting a business from scratch. But when buying into a franchise system, first-time franchisees often have the choice of opening a brand new location or taking over ownership of an existing location. While the latter option may seem like the safer bet, it has its downsides, too.</p><p>To help you determine which path is right for you, 1851 Franchise broke down the pros and cons of buying an existing franchise location versus starting from the ground up.&nbsp;</p><h3>Pros</h3><h4>Built-In Reputation</h4><p>Buying into an existing franchise means you’re walking into a business venture with an existing reputation in the community — good or bad, people have an idea of what to expect from your store. If the previous franchise owners established a good reputation, then you’re in good shape. If not, you may have some extra work ahead of you to prove to the community that under new ownership things will be different. Buying a franchise location with a poor reputation provides you with an opportunity to improve it and showcase your offerings to the community in the best way <i>you</i> see fit.</p><h4>Established Customer Base</h4><p>An established location comes with an established customer base. Depending on the kind of business you’re operating, that customer base may have a relationship with the store and the staff who run it. Whether they’re a regular or a more infrequent visitor, it’s important to honor that relationship and give the customer a familiar experience when they engage with your brand. If you choose to buy into an existing franchise, make a point to build on that relationship with existing customers while you seek out relationships with new ones.&nbsp;</p><h4>A Staff That Knows the Ropes</h4><p>Just like its customers, an existing franchise comes with trained staff who know how the business operates. This may alleviate the need for training staff. Plus, working with a staff that’s already well-aware of the day-to-day flow of business can help ease you into the transition, especially if you’re a first-time franchise owner.</p><h4>Outlined Expectations From Existing Business</h4><p>From the moment the previous owner hands you the keys, you will know what to expect from the business. The previous owner will clue you in on revenue expectations, marketing plans, the flow of store traffic and notes on employees. From there, you can figure out where you need to make improvements to run your business as successfully as possible.</p><h4>Immediate ROI</h4><p>The brunt of the upfront cost of an existing business is a little easier to swallow when you know that you will see an immediate return on your investment. There’s no ramp up time. As soon as you’ve completed training and gotten to know your staff, you enter a revenue earning environment.&nbsp;&nbsp;</p><h3>Cons</h3><h4>Resistance From Established Customers</h4><p>Humans are creatures of habit, and that may make the transfer of franchise ownership a little bit difficult, especially in the case of customer-facing businesses like a restaurant or retail store. Happy customers are the bread and butter of any local business, and that’s why it's important to honor practices of the previous franchise owner’s practices while introducing your own.&nbsp;</p><h4>Problems With Existing Staff</h4><p>Similar to a business’s customers, the existing staff likely has an allegiance to the previous owners and an understanding of the way they expect the business to run. If you’re looking to make changes to your store’s work patterns and operations, be sure to communicate them clearly to your employees, explain why you’re making them and show how they will improve business to avoid any issues.&nbsp;</p><h4>Taking on Existing Issue</h4><p>Buying into an existing franchise can mean buying into existing issues, and you could run into some hiccups when trying to set things on the right track. Whether the store was underperforming, demographics have changed or competitors have come into the market it’s important to do your research and consider why the previous franchise owner has decided to sell. Additionally, if the business isn't operating at up-to-date standards, that could mean additional costs that you’ll need to take on.&nbsp;</p>

Should You Open a New Franchise Location Or Purchase a Resale?

1851 Franchise

1851 looked into the pros and cons of buying into an existing franchise location versus starting from scratch. 

should-you-open-a-new-franchise-location-or-purchase-a-resale

Senior Care Authority

How This Senior Care Authority Franchisee Turned Love for His Grandparents Into a Lifelong Calling

how-this-senior-care-authority-franchisee-turned-love-for-his-grandparents-into-a-lifelong-calling

HomeTeam Inspection Service

Hometown News: Like Father, Like Son — Family-Run Inspection Business Blends Generations of Expertise and a Keen Eye for Detail

father-son-home-inspection-franchise-florida

KLA Schools

KLA Schools of Beachwalk Hosts Admissions Kick-Off Celebration

kla-schools-of-beachwalk-hosts-admissions-kick-off-celebration

Good Day Columbus: Home Insurance Expert Reveals Why Central Ohio Premiums Are Rising and How to Combat Costs

rising-home-insurance-costs-ohio

CapitalSpring

Primetime Fitness Expands Crunch Portfolio With CapitalSpring’s Backing

primetime-fitness-expands-crunch-portfolio-with-capitalsprings-backing

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 Development Website Builder

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

Potbelly to be Acquired by RaceTrac in $566 Million Deal 

racetrac-acquires-potbelly-in-566-million-deal

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

caribou-coffee-names-scott-kennedy-ceo-eyes-continued-growth

McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

mcdonalds-launches-extra-value-meals

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

AI Is Reshaping Franchising: $100 Billion Valuations and Hyper-Localized Advertising

ai-is-reshaping-franchising-100-billion-valuations-and-hyper-localized-advertising

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

DevHub - Meet the Supplier - 1851 Franchise

DevHub: Scalable Digital Marketing for Franchises and Multi-Location Brands

devhub-meet-the-supplier

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

Multi-Unit Wendy’s Operator Signs 12-Unit Deal With Layne’s Chicken Fingers

ricki-oberoi-laynes-chicken-fingers-growth

1851 Franchise Deep Dive graphic with Sparkle Squad logo

Sparkle Squad Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-sparkle-squad-franchise-costs-fees-profit-and-data

Design with school-aged child standing on pencil with text "Education Franchises" and "<$500K"

Top Education Franchises Under $500K To Explore in 2025

top-education-franchises-under-500k

Should You Open a New Franchise Location Or Purchase a Resale?

MORE STORIES LIKE THIS