What are hot deals and why do they exist?

A hot deal is a discounted franchise opportunity. Typically, the current owner is in need of a quick exit. This can be caused by a number of factors, most often a change in circumstances such as a divorce, a death in the family, or world events like COVID-19. Sometimes the original owner simply wasn’t the right fit for the business and poor performance has pushed them to sell quickly.

With the right plan and opportunity, you can overcome the challenges the original owner faced and turn the situation into a success.

How can you benefit?

Oftentimes, these opportunities are heavily discounted or the current owner will be open to negotiation. This gives you the opportunity to find a great deal and get more value for your invested capital.

A discounted operating franchise

In the case of an operating franchise, the heavy lifting is done. The previous owner will have set-up the location, equipment, and employees. You’ll be generating revenue day one instead of having to start from scratch. You’ll also benefit from the previous marketing efforts of the last owner, and will likely already have a number of customers that are familiar with your location.

An unopened location or territory

This type of opportunity may enable you to buy the brand you want in the area you desire for a discount.You’ll have a clean slate to build the business from the ground up with the full support of the franchisor. Oftentimes it is a less expensive entry point, with some unopened locations or territories going for 50% of the current franchise fee.