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New vs. Existing Franchise


If you’re not sure whether to purchase a new franchise, or look at existing franchise opportunities, then this article ‘New vs. Existing Franchise’ was written for you. We will discuss the positives and negatives of purchasing a new franchise, and what you must avoid if you’re going to get a good return on your franchise investment. After reading this article, you should have a question answered on whether purchasing a new franchise is better than purchasing an existing franchise.

In general, it’s wise to invest in existing, successful business model. However, the reason people purchase new franchises are because they provide alternative benefits, mainly they are more cost efficient. Sometimes the difference between purchasing a new franchise versus an existing franchise is in the six figures. New franchises have lower start up cost, because they are more of a risk. If you’ve always wanted to own a franchise, but can’t get all the funding needed, it would be wise to look at new franchise opportunities.

Secondly, new franchises offer more flexibility in the franchise agreement. For example, if you’re purchasing a franchise from McDonald’s, you’d have very little say in how you could arrange the store layout, where you can locate at, and how you can use the franchise’s name. Most successful existing franchises allow for very little innovation. However, new franchises often encourage innovation and idea generation. Specifically, if you can come up with a great idea for the franchise, you can earn a lot more money with it… read more

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