Sometimes a person in Bloomfield Hills wants to become a business owner but does not necessarily want to start on their own from the ground up. Two options that they may be interested in learning more about, then, is buying an existing business and franchising.
Advantages to buying an existing business
There are some advantages to buying an existing business. If a person buys an existing business, they take on full ownership of the business and control over its direction. Existing business generally already have an established customer base. In addition, their operating expenses are already known, and their employees are likely already fully trained.
Advantages to franchising
In a franchise, the franchisor sells the rights to use their logo, name and business model to the franchisee. The franchisee can use the larger brand’s products. In addition, the franchisee benefits from the franchisor’s name recognition, promotions and marketing. Franchisors can also help franchisees with site selection, training, product supply and marketing plans. Many franchises, especially restaurants and hotels, are household names.
Learn more about starting a business
Whether you decide to start a business from the ground up, buy an existing business or buy a franchise, you will likely have many questions. Sometimes, these questions, when unanswered, can lead to short- or long-term detrimental effects on your new business. Therefore, making informed decisions are of utmost importance, This post, however, is for educational purposes only and does not contain legal advice. Our firm’s website on business and corporate law may be of interest to those who want to learn more about this topic.