A Business Owner’s Guide to Buying a Franchise in Florida

You have found a business owner’s guide to buying a franchise in Florida. Florida has one of the highest numbers of franchises in the country. In 2020, the Sunshine State reportedly had over 59,000 franchise establishments and ranked third for total franchise employment growth. Today, more and more business owners are inclined to buying franchises because of the sustained success that these establishments have to offer.

Thinking of investing in a franchise business? Here’s what you need to do first.

Research Different Franchise Types

A Business Owner’s Guide to Buying a Franchise in Florida

Like it’s the case when you’re buying any business, buying a franchise also starts with lots of research. The very first thing that you need to do when you’re planning on purchasing a franchise in Florida is conduct an initial research on the different local opportunities available. This is also the stage where you research franchise requirements and ensure that you qualify for the business you’re interested.

It’s important to remember that just because a particular franchise is currently popular doesn’t necessarily mean that it would make a good investment for you. The “right” franchise depends on your budget, qualifications, and of course, your personal interests and preferences. When searching for Florida franchise options, look out for:

• Potential Market: The franchise you end up buying should have a growing market to allow for successful business opportunities.
• An Excellent Sales Record: Is your franchise of interest profitable? Take a good look at its previous sales to determine how beneficial it would be to invest in the franchise.
• Local Competition: How much competition does the franchise currently have in the local market? You don’t want to invest in an industry that’s saturated and is extremely competitive.
• Upselling Opportunities: Does the franchise offer promising upselling opportunities? From a business point of view, investing in a franchise that allows you to upsell your products is a great way to keep making profits.
• Social Responsibility: Is the franchise socially responsible? Find out if/how they support causes you care about, and what measures the franchise has taken to be more socially responsible.
• Franchise Fees: Don’t forget to inquire about the franchise fees!

If possible, try shadowing a franchise owner to get a deeper insight into what running that particular franchise looks like. This will also help you narrow down your options and determine what type of franchise you should be investing in.

Do a Cost Benefit Analysis

A Business Owner’s Guide to Buying a Franchise in Florida

Making an old-fashioned Pro & Con list never hurts! The next thing on your agenda should be a cost benefit analysis, and a pro & con list can help you get down to the nitty gritty details.

It’s simple: start by writing down all the benefits you’ll get if and when you buy a particular franchise. For instance, buying a famous food franchise in Florida would give you the advantage of a thriving market, an established brand with a huge local clientele, foolproof recipes, and trained staff, to name a few. On the other hand, you’ll be faced with your fair share of expenditures and liabilities that go into running a franchise business. This includes the franchise fee, budget for marketing campaigns, royalties, and mark-ups on ingredients or merchandise.

Weighing in the monetary pros and cons will help you conduct a cost benefit analysis and determine if you’re taking a financially wise decision.

Speak to Franchisers

A Business Owner’s Guide to Buying a Franchise in Florida

When you’re searching for franchises and still figuring out how to go about the process, don’t hesitate to reach out to individuals who actually know how these things work. It’s highly recommended that you speak to multiple franchise owners and discuss your preferences in detail to get a better idea of how to approach your investment.

Talking to current franchise owners also helps you learn from their experiences. You should use this opportunity to ask them critical questions that would help you with your decision making process. For instance, inquire about the budget they started off with, how long it took them to make good profits, and what challenges they faced during this time. Ask them what they’d have done differently if given the opportunity. Treat your encounters with franchisers as educational experiences, and use their knowledge and advice to make the right choice.

Review the Franchise Agreement

A Business Owner’s Guide to Buying a Franchise in Florida

Finally, make sure that you’re critically reviewing the franchise agreement before you sign off on it. This is the formal contract you’ll be presented with if you’re deemed as a strong candidate by a current franchise owner. It lists all the legal rights and obligations you’ll have to comply with once you’ve made the purchase.

If you’ve never bought a franchise before, make sure you hire a lawyer to navigate through the franchise agreement and fully understand the terms and conditions outlined. Also make sure that any verbal commitments made prior to the contract are clearly mentioned in the contract. Your attorney will help you pick up on any discrepancies and ensure that you’re signing a verified document that mutually benefits both parties involved.

Ready to buy a franchise in Florida? You’ve come to the right place. The Business Exchange of Florida is one of the leading business/real estate brokerage firms in the Sunshine State. In the last couple of years, we’ve helped countless investors and business owners successfully actualize their franchise investment goals and buy the right franchise.

For more information about our work and how to go about the franchise buying (or selling) process, give us a call at 1-561-602-2519.You can also connect with us on Facebook or LinkedIn.