Could this be your moment to try something new, to take a chance, to be your own boss? The Franchise Insights Startup Sentiment Index™ (SSI) says yes, it very well could be a good time for buying a franchise. 

In their latest report, Franchise Insights stated, “A record high percentage (91.4%) of aspiring business owners are planning to launch their business within the next 12 months.”

In their 2021 report, Franchise Insights found that it was a better time to “buy a business than a home.” The explanation was this: “Preliminary results from the University of Michigan’s September 2021 survey of consumer confidence as reported by Business Insider show that the lowest percentage of consumers in four decades think that “now is a good time to buy a home.” High prices and low inventory have taken a toll on consumer enthusiasm about a piece of the American Dream. On the other hand, August’s Franchise Insights Startup Sentiment survey — collected over a similar time period — showed that of individuals researching franchises, 67.9% agree or strongly agree that “now is a good time to start a business”.

It’s a great point—when you buy a business, such as a franchise, you have the potential to create the income you desire. From there, you might secure a financial portfolio to buy a new home.

Should You Buy a Franchise or Existing Business?

A 2022 Franchise Insights survey found that people preferred to buy a franchise over an existing business (non-franchise). Their June 2022 survey of people aspiring to own a business showed that 38.5% were interested in a franchise purchase option and only 20.3% wanted to buy an existing business. 

Although the respondents did not specify why these were their preferences, Franchise Insights proposed that the reasons could be the benefits of a network of successful franchise owners with a recognizable brand compared to the high failure rate of new businesses that often require much more capital up front with no training or support along the way. 

What you may not know about being a franchisee is that you can sell your business again, and do so with the support of the Franchise Development team and their expertise. This is called a “resale.” Your business can be an investment in your future in a way that a solo startup might not be.

Signs It’s a Good Time to Buy a Business

The best time to buy a business is when it is right for you. There are also indicators:

• Look for a growth industry that will likely appeal to others who want to use your product or services.
• If you are personally ready for a change in your professional life.
• You want to make an investment that can increase in value and have the capital to do so or interest rates on loans are favorable.
• Your personal goals are aligned with the mission of the franchisor, if you are buying a franchise business.

You can learn more about the startup investment costs, onboarding and training for franchisees, and the value of this established brand for franchisees.