Should I Buy a Business or a Franchise?

Want to be your own boss but not sure which way to go about it? Here, you can weigh up the pros and cons to see whether buying a franchise or a business would suit you best:



One of the positives of buying a franchise is the increased number of loan options available to you.

Brand names and a transparent track record of cash flow are preferred by banks and other lenders, so choosing a franchise will make it easier to secure funding. Franchises that have fewer locations may be less attractive to lenders as they have not quite proven the feasibility of the business in all types of environments.

The franchise will often provide information and advice regarding financing the acquisition.

However, unlike buying a business, you will have to pay for the use of their name through your sales (for example, McDonalds charges 5%) and contribute to the national marketing spend.

You will also be asked for an initial franchise fee, and you will need some working capital.


Similarly, success in financing the purchase of a business will be determined by the type of business you want to buy. If you go for a business that has had a rocky financial past, a bank will be more reluctant to lend to you.

One of the slightly more tricky aspects of buying a business is that you should be prepared to pay a larger proportion of the price upfront – around 30 to 50 percent, and be able to finance the rest. However, if you still want to buy a business but don’t have the cash up front, there are several other ways that you can do so.

You could co-op buy the business – maybe with someone else who previously wanted to buy it but didn’t have enough money. Lease with an option to buy is another possibility whereby a down payment is made, enabling you to lease the business as a minority stockholder.

Implementing an ESOP (Employee Stock Ownership Plan) would provide you with capital by selling stock to employees in the business. You could also use the assets of the business to get financing from factors, finance companies and banks…..Continue reading at Should I Buy a Business or a Franchise?

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Business Franchises For Sale – Featured U.S. locations

Featured VR Business Franchises For Sale in various US locations:

Business Sales Franchise, Chicago

Buy a VR Business Sales franchise in Chicago, where the area has been rated as having the most balanced economy in the United States, due to its high level of diversification. The Chicago metropolitan area has the third largest science and engineering work force of any metropolitan area in the nation. 
Read more about this Business Franchise For Sale…

Business Sales Franchise, Ft. Lauderdale

Are you done spending countless hours going through available business opportunities that are nothing but scams and dead ends? Are you sick of the mindless drudgery pitched to you by one broker after another who cares nothing about your interests and needs? Are you fed up with filling out one NDA after another to the point of nausea? 
More information about this Business Franchise For Sale…

Business Sales Franchise, El Paso

Are you tired of filling out endless NDA forms for businesses for sale that do not meet your interests and needs professionally or financially? Then take this opportunity to contact VR Business Sales on how to buy your very own franchise, helping facilitate the ownership of a business from the established seller to the aspiring buyer!
Read more about this Franchise Business For Sale…

Business Sales Franchise, Washington, DC

As a VR Business Sales franchise owner, you will have the ability to work closely with every office owner as both an advocate and mentor with the right tools and training necessary to compete successfully in the business intermediary industry.
Read more about this VR Business Franchise location…

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