If you came across an easy and lucrative business opportunity, would you take it?
For most entrepreneurs, the answer is yes. However, you can only take advantage of the opportunities you can see, and some of the best opportunities may be flying below your radar.
For example, rent-to-own franchising is successful and fulfilling, but most entrepreneurs don’t know exactly how it works. Keep reading to discover what it is, how it works, and whether it is right for you or not!
How Does Rent-to-Own Franchising Work?
Our guide is going to walk you through doing a rental franchise the right way. Before we go any further, though, we need to explore exactly how rent-to-own franchising works.
Basically, an entrepreneur reaches an agreement with a franchisor. This agreement sets out certain important details about when and how you would eventually take ownership of the franchise.
This agreement usually involves running the franchise for a certain number of years before buying. The contract will also outline things like the rental agreement for the property, maintenance requirements, option money, and the purchase price of the business.
The Need to Negotiate
With standard franchising, you don’t have to engage in much negotiation. However, with rent-to-own franchising, negotiation is critical before you can get down to business.
For example, the seller will likely present you with a contract outlining all of the aspects we touched on before (and then some). Chances are that you will want to negotiate on elements of the contract, such as the purchase price before you sign anything. In some cases, the contract may specify how the two of you will determine the purchase price at a future date.
Rent-to-Own Benefits
Now you know some of the basics of rent-to-own franchising, but is it the right choice for you? In order to figure that out, it’s important to understand the different pros and cons of rental franchises.
The biggest benefit is that you get to experience running a business without fully committing right away. It’s very common for businesses to fail in the first five years (in fact, 45% of new businesses fail during those first few years). And if you start such a business from scratch, you may be left with nothing to show but extreme debt. With rent-to-own franchising, you can make sure the business is viable before you end up buying it.
Rent-to-own franchising also gives you an extended support network for your business. When you run into difficulties, all you have to do is consult the seller about what you should do.
Rent-to-Own Drawbacks
There are some major benefits to rental franchises. But, as you might expect, there are some major drawbacks as well.
For example, the whole point of rent-to-own is that you don’t have to dive into business ownership right away. If you’re new to running a business, though, you might end up agreeing to a very unfair contract with the seller and be left holding the bag.
Once you buy the business, it’s yours forever. While that may sound like a good thing, you might not want to run this business for the rest of your life. When you realize that, it can be stressful and time-consuming to sell your business to someone else.
Consider Standard Franchising
If you’re reading this, then you’re likely interested in rent-to-own franchising — what if you could have the best of both worlds when it comes to running a business?
With standard franchising, you don’t have to worry about intense negotiations or restrictive contracts. You can enjoy the benefits of a proven business and business model rather than creating a startup from scratch. Should you wish to move on to other franchises or other opportunities entirely, you can do so very easily.
Long story short? Standard franchising offers all of the benefits of rental franchising and none of the drawbacks!
Explore the Best Franchise Opportunities Today!
Now you know the benefits of both rent-to-own and standard franchising. But do you know who can help bring your franchise dreams to life?
Here at Freeway, we make it easy for entrepreneurs to go into business for themselves. To see how we can help you get started, all you have to do is give us a call at (877) 822-3024 or contact us today!
