Is buying an existing franchise better or worse than starting my own?

Q: Is buying an existing franchise better or worse than starting my own?
Tony Fletcher, Cornwall

Peter Williams: It could well be better, Tony. Franchise Resales now comprise an important sector of the UK franchise marketplace and can offer advantages associated with the acquisition of a going concern. Hopefully the opportunity you are contemplating is in a healthy trading position, which bodes well for your own prospective achievements. However, you should not assume success to be automatic. To maintain continuity, customer confidence and loyalty, you are going to have to "hit the ground running" in all respects. There will be little scope for error and a worst case scenario would be for your customers to desert you because they view you in a less favourable light than your predecessor.  

Together with your personal input of hard work, the adequacy of your training programme is paramount and I recommend you discuss it in detail with the franchisor and preferably arrange a hand-holding period, working alongside the outgoing franchisee who can show you the ropes.  

To summarise: in considering a resale, ask a lot of questions of the franchisee who is selling up and make sure the answers are complete. Also, get to know the franchisor - with whom you will have a long-term contractual relationship - and take professional advice before making any payment or signing an agreement. Lastly, in deciding to go ahead, I suggest you adopt a "new broom" approach, be seen to bring fresh energy and impetus to the business, and aim to drive it towards enhanced turnover and profitability.