Facts about Franchise Acquisitions
In the United States, there are over 3,500 franchise systems.
These systems have over 700,000 franchise units, and represented 3.2% of the total businesses in the USA in 2004.
Even so, franchises represent over 35% of all retail and service business revenues in the U.S. economy.
More than 7 million people work for owners of franchised businesses.
Financing for buyers who are buying a franchise from a well established franchisor, even though the buyer’s franchise will be a start up, is available, as the default rate for buyers investing in well established franchises is historically so low.
Financing for buyers who are buying an established business (such as a Subway Sandwich Restaurant, or Dairy Queen, or Dr Vinyl dealership, or Cottman Transmission shop, or some other well known franchise that has already been in business for 3 or more years in that location) are called “Franchise Re-sales” and are the easiest small business loans to arrange, since
(a) Lenders have generally good experience with loans to buyers buying well known franchises, and
(b) A Franchise Re-sale is an established business, with historical cash flow records, and is not a start up.
The financial records of most franchise businesses are generally more reliable than some records of independent business owners, as the franchisors insist that each franchisee keep accurate financial records.
ABMI offers information on franchise opportunities available to buyers, including franchise start ups and franchise re-sales.
ABMI has specialized in helping entrepreneurs acquire franchises in the Midwestern USA for many years. If you're a buyer, and would like information on how to acquire a Kansas City franchise, or a Missouri franchise, or a Kansas franchise, or, prehaps, a franchise business anywhere in the USA, we can help.
For a no obligation, no cost consultation, please register with this web site, and we will contact you.