Franchises Are Increasingly Preferred Over Purchases of Existing Businesses
July 27, 2022 – In a June 2022 survey of aspiring business owners, 18% indicated a preference for the option to “buy a franchise” over buying an existing business. While 38.5% indicated interest in the franchise purchase option, only 20.3% indicated an interest in buying an existing business.
While reasons for the preferences were not solicited, the benefits of a network of successful franchise owners and recognized brands are well-documented, with more than 780,000 franchise units in the US. Startups of entirely new businesses are more likely to fail, and purchases of existing businesses can require much more capital up front with many of the same risks and no network of training and support often available to franchisees.
Looking at this data over time, one can see the preference for franchise ownership over an existing business purchase increasing in the last several months, to levels not seen since October 2021. One can speculate that the uncertainty brought about by the pandemic, while spurring entrepreneurs to consider business ownership, also pushed those inclined to look at the relatively lower-risk purchase of a franchise.
This survey of future business owners was conducted June 23-30, 2022 for the most recent Small Business Startup Sentiment Index™.
FranchiseVentures is the leading demand– and lead-generation platform for potential franchisees to thousands of growing franchise systems in the United States and Canada. Its franchise lead generation brands include Franchise.com, Franchise Solutions, Franchise Gator, Franchise Opportunities, Franchise For Sale, SmallBusinessStartup.com and BusinessBroker.net, and together they provide the largest aggregation of prospective franchise buyers in the U.S.
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Published on Wednesday, July 27th, 2022.