Ask around, and most people think franchising means starting from scratch, a shiny new store, grand opening balloons, maybe a few first-day jitters. But that’s not the only way people are getting into the business. More and more, buyers are turning to something that used to be overlooked: franchise resales.
Yes, buying an existing franchise location. Although it may seem somewhat ordinary, it has become a reasonable choice for more and more new entrepreneurs. Imagine it as buying a house that was already owned by someone else; oftentimes, that’s where the actual value is.
In those areas where the franchising phenomenon is noticeable, like Southeast Asia, for example, this situation is becoming evident. If you’re curious about how that trend is shaping up in Vietnam, this Vietnam Franchise resource gives a helpful overview.
But let’s back up. Why are some people choosing used over new? What’s the catch? And is this a smart move for someone just getting into franchising?
Let’s talk through it: pros, cons, quirks, and all.
What is a Franchise Resale?
When someone buys a franchise resale, they’re taking over a location that’s already in operation. The business is up and running. It has customers. It has staff. It might even be turning a decent profit. Someone else did the heavy lifting of setting it up, and now they’re selling it to move on.
That “someone else” might be retiring. Or relocating. Or tired. Sometimes things just don’t work out. Sometimes they do, and the owner’s cashing in. Either way, the business changes hands, and the new owner steps in.
It’s franchising, just with a head start.
Why Would Someone Want a “Used” Franchise?
You’d be surprised. Here’s why this idea is catching on with more first-time franchisees:
1. It’s Already Generating Income
Let’s not pretend: cash flow matters. A resale might already be earning money from day one. That’s a huge deal compared to building from the ground up, where it can take months (or longer) to break even.
No guessing. No waiting. You can open the doors and start collecting revenue, assuming the numbers check out, of course.
2. You Skip the Setup Phase
Site selection, build-out, licensing, hiring, training… It’s a process. And not everyone wants to go through it. With a resale, much of that is done. You’re stepping into something that works, or worked, at least, and your job is to keep it running, fix what’s broken, and hopefully grow it.
3. You Can See the Track Record
New franchises are always a bit of a gamble. You don’t know how the location will perform until it opens. But with a resale? You’ve got actual data. Real sales numbers. Real expenses. You can judge it based on facts, not hype.
It’s like buying a car with the service records. You can see where it’s been and what it might need next.
The Catch: It’s Not Always Simpler
Now, let’s not pretend this is the easy road. Franchise resales come with their own headaches.
1. You Might Be Inheriting Problems
A business isn’t just walls and furniture. It’s people, habits, and sometimes baggage. The staff might be great, or they might be burned out. The customer base might be loyal, or just barely hanging on. If the previous owner ran it into the ground, you could be walking into a mess.
2. The Brand Still Has Rules
Just because you’re buying a resale doesn’t mean you can do whatever you want. The franchisor still has standards, contracts, and expectations. Sometimes they even have to approve the sale. You’re buying into something, not out of responsibility.
3. It Can Still Be Pricey
A successful resale doesn’t come cheap. If it’s performing well, the seller knows it. You’re buying goodwill, not just equipment. And that goodwill costs money. Sometimes, a resale costs just as much, or more than a new franchise would.
But you’re not paying for the “thing,” you’re paying for time. For momentum. For proof that it works.
So… Who’s This Good For?
In my experience, resales appeal most to people who:
- Want to minimize risk
- Have business or management experience already
- Like the idea of skipping the startup phase
- Don’t mind stepping into someone else’s system and fixing what’s broken
It’s also solid for folks who want to buy multiple locations over time. Some franchisees build entire mini-empires just by collecting underperforming units, fixing them up, and letting them run.
It’s not flashy. It’s not on billboards. But it works.
Tips if You’re Thinking About It
Thinking of going the resale route? Here’s what I’d suggest:
1. Do a Full Financial Review
Ask for at least 2–3 years of financials. If they can’t provide that, walk. Look at gross revenue, net profit, payroll, rent, royalties—the whole picture. Better yet, have a franchise accountant look at it.
2. Interview the Staff (If Possible)
They know what’s really going on. Are they sticking around? Do they like how things are run? A solid team can make or break the transition.
3. Understand Why It’s Being Sold
Don’t accept vague answers. If it’s not performing well, you need to know why. If it’s doing fine, why is the owner bailing out? The “why” tells you a lot.
4. Talk to the Franchisor
They may have input, restrictions, or requirements for the transfer. Get clear on what you’re stepping into. Some franchisors are helpful. Some are… less so. Better to know upfront.
Final Thought: Don’t Dismiss the “Used” Option
Look, new franchises are exciting. It is your chance to make a unique mark on things, create a squad of your own, and launch everything from scratch. But there’s something underrated, almost practical, about stepping into something that’s already alive.
Resales aren’t for everyone. You have to do your homework. But for the right person? It’s a shortcut that works.
Not a gimmick. Not a gamble. Just a smarter way in.
