Frequently asked questions

Many individuals looking for a franchise business opportunity are often initially looking for a start-up, but some may instead consider a resale opportunity. Resales might be a favourable option if they cannot find a new territory in their chosen area, or realise their strengths lie in growing a business and managing a team, with potentially more opportunity to be hands-off on the day to day running of the franchise.

A resale is a franchise territory which is an established, successful business which may have been built up over many years, which is now being sold on.

A franchise resale has already built a great local reputation and built the brand, there will be a customer base, team of employees and a guaranteed revenue.

Resales are part of the business cycle of any mature franchise network. Franchisees come to a point in their journey where they may wish to retire, move onto something different or realise their investment.

Most franchise networks in the UK will have a number of resale territories available at any one time.

Resales bring enthusiastic new faces into a franchise network, who are invested in the brand and will help achieve further growth for the franchisor and the franchisee.

A franchise resale is valued on a multiple of the operating profit of the company, representative of the success and turnover of the business.

You’re investing in the business which the previous owners have dedicated years of their life to establishing and building, helping it to become profitable and successful. Franchise resales require a larger initial investment than start-up franchises, but financial help is available.

Many banks look favourably on the franchise sector, due to the very high percentage of successful businesses. Resales also have a track record in the form of a proven profitable turnover, an existing team and an established client base, meaning banks will look favourably on any lending, even at a higher level and sometimes over a longer franchise term.

Resales also come with a franchise fee and ongoing royalty fees as the franchise owner is provided with the same level of support as start-up franchisees.

As a franchise, the business isn’t a standalone company- it is part of a franchise network. The franchisor wants someone to invest in the resale office who will continue to grow the brand, mutually benefitting their franchise network as a whole and the individual.

When owners decide they want to sell their business, the franchisors may become involved to ensure the franchise is sold to someone who aligns with the franchise’s mission and ethos- a good fit for both parties is important in achieving continues success. Many franchisors help to advertise and market resales, as well as recruit new owners.

Home Instead, like many franchisors, guides franchisees from the very first day of their journey until their last, and is invested in ensuring that when the day comes, a franchisee’s exit from the company is fully supported.

This for Home Instead is part of ‘The Franchise Journey’ for each franchisee, who they actively encourage to consider their goals from the beginning, including their exit strategy.

Franchisees who are looking to sell on their business are provided with a wealth of guidance and advice, helping them to realise their investment whilst being sure they are handing their business over to someone who shares the same high values and standards as Home Instead.

Resales are perfect for someone who has run a business before, or may have held senior roles in large corporates, and is looking for an investment opportunity they can develop further, but without the pressure of a start-up. You may want to buy a resale in a growing market or sector, and manage a steady, profitable business.

However, if you want to experience the highs and lows of starting your own business, you may be more suited to a start-up franchise where you can be more hands-on with the initial development of the business.

A resale franchisee ideally needs to be able to engage with and manage people straight away, as the existing team will already be established and have their way of working. They must have a very clear vision, ethos and culture that aligns with the franchise network.

With a franchise resale, you get all the positives of buying an established business, with all the added benefits of a full franchise support & training package and a well-known name.