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Monday, June 22, 2026

Starting or taking over a franchise: two different paths to entrepreneurship

Starting a business and taking over a business are two different approaches that cater to distinct profiles, aspirations, and situations.

Diverse profiles, no ideal model

The first key takeaway from the conference is that there is no single profile for a business creator or buyer. Networks are currently observing a wide diversity of candidates. The economic climate has also contributed to this evolution in profiles.

Starting a business often attracts people who want to build a project from scratch, develop an untapped market, and gradually build their business. Among them are experienced executives looking to become business owners, but also younger entrepreneurs who prefer to create their own business rather than follow a traditional corporate career path.

Taking over an existing business generally appeals to candidates seeking greater security. They are reassured by the existence of a customer base, revenue, team, and operational history. However, experts emphasize that taking over a business is not a default option: it can also attract ambitious individuals looking to accelerate their entrepreneurial development by leveraging an already established structure.

In all cases, the real common denominator is the desire to start a business. Whether it's a new venture or a takeover, franchisors are primarily looking for people capable of leading a project, managing a team, and integrating into the network long-term.

Technical skills are not the determining factor.

Contrary to some misconceptions, a lack of technical experience in the relevant sector is generally not an obstacle. Franchisors emphasize that their training programs are specifically designed to enable candidates from very different backgrounds to succeed.

Franchise networks increasingly seek behavioral qualities: the ability to manage a business, commercial acumen, leadership, the capacity to build team cohesion, empathy, and rigorous management. Job-specific skills can be acquired through the initial training and ongoing support offered by the franchise.

This logic also applies to takeovers. Even when a point of sale already exists, the franchisor wants to ensure that the buyer possesses the necessary human and entrepreneurial qualities to continue and develop the business.

Are existing franchisees given preference during a takeover?

The speakers explained that it is common practice to offer takeover opportunities first to franchisees already present in the network. This sometimes allows them to expand their area of operation, strengthen their local presence, or achieve economies of scale by managing multiple outlets.

However, none of the represented networks exclusively reserves takeovers for their existing franchisees. New entrants are also carefully considered and even represent a significant proportion of those taking over existing franchisees. These external candidates often bring new skills, a different energy, and contribute to renewing the network.

The main criterion therefore remains the suitability of the profile to the project rather than seniority in the network.

Profitability is often faster in a takeover

One of the main advantages of the takeover lies in the existence of already established assets: customer base, local reputation, turnover, existing team, management tools or even commercial partnerships.

However, stakeholders are reluctant to provide universal timeframes for achieving profitability. Numerous factors influence a company's performance: location, local market potential, quality of previous management, condition of the point of sale, profile of the buyer, and the economic context.

Despite these reservations, everyone acknowledges that taking over a business often offers a faster start since it immediately benefits from an existing operation. Certain sectors particularly illustrate this advantage. In the kitchen design sector, for example, starting a new business requires several months before the first significant invoices are generated, whereas taking over a business allows the immediate benefit of sales already committed.

However, the participants emphasize that a takeover does not automatically guarantee success. The new owner must be able to maintain existing performance levels, motivate the team, and instill their own development strategy.

Financing is generally easier

The issue of financing is another advantage frequently associated with a takeover. Banks appreciate the visibility provided by historical balance sheets, past results, and knowledge of the local market.

When a company demonstrates several years of solid performance, financial institutions have concrete elements to assess risks. This often facilitates obtaining the necessary financing.

However, this rule has exceptions. If the acquired company is struggling or underperforming, financing can be more complex. Conversely, some startups benefit from excellent conditions when the network has a solid track record and strong credibility with banking partners.

Franchisors also emphasize that the candidate's profile remains crucial. Their experience, management skills, and personal contribution are examined with as much care as the performance of the business in question.

A three-way relationship: franchisor, seller, and buyer

Unlike a classic creation, a takeover introduces a third party into the relationship: the seller, i.e. the franchisee who is selling his business.

The participants then describe a genuine coordination effort between these three parties. The franchisor assists the seller in preparing the sale, evaluating their business, and presenting the project to potential candidates.

This preparatory phase is particularly important. The seller must identify the strengths and weaknesses of their business, prepare the information necessary for the transfer, and help to reassure the buyer.

Furthermore, franchisors emphasize a key legal principle: the franchise agreement is generally concluded intuitu personae, meaning it is based on the individual circumstances of the franchisee. Therefore, the sale of the business does not automatically transfer the franchise agreement. The franchisor must approve the buyer before a new contract can be signed.

This rule allows the network to ensure that the future franchisee possesses the necessary qualities to succeed.

Why do franchisees sell their businesses?

The most frequent reason remains retirement. In established networks, many long-standing franchisees are now reaching retirement age.

Other situations can also lead to a sale: health problems, changes in personal plans, family changes or the desire to realize the value created over the years.

Some franchisees choose to sell their business when it has reached an attractive valuation. Those involved sometimes refer to this phenomenon as "the lure of the check," although they emphasize that this motivation remains a minority within their networks.

Whatever the reason, everyone emphasizes the importance of planning ahead. The more the transfer is prepared in advance, the more likely it is to proceed smoothly for the seller, the buyer, the employees, and the franchisor.

Team management: a major human challenge

One of the most developed themes of the conference concerns human resource management during a takeover.

Unlike starting a business from scratch, the buyer inherits an existing team. Since employment contracts are transferred with the company, they immediately become responsible for the current employees.

Stakeholders consider this team a strategic asset. Its experience, customer knowledge, and mastery of procedures are often key success factors.

The transition must therefore be carefully prepared. Preliminary meetings, information sessions, time for collective or individual discussions: everything must be done to reassure employees and present them with the new company project.

The new owner must quickly establish a relationship of trust while gradually asserting their own management style. This step is essential to prevent departures and maintain business continuity.

The importance of the handover period

To facilitate this transition, a handover period is generally organised between the seller and the buyer.

Its duration varies depending on the situation. Some sellers want to leave quickly, while others remain available for several months to support their successor. However, networks recommend clearly defining the terms of this period during the sale negotiations.

The stakeholders believe that a support period of approximately one month is often a good compromise. This timeframe allows for the transmission of essential information, the introduction of partners, facilitating contact with the teams, and ensuring a smooth start to the first few months of operation.

However, they also point out that a time must come when the seller steps aside so that the buyer can fully take their place at the head of the company.

Enhanced support from the franchisor

Whether starting a new business or taking over an existing one, the franchisor's support remains at the heart of the model.

The networks represented explain that they often devote as much time to a business buyer as to a new business owner. Initial training is generally maintained, even when the point of sale already exists.

This approach aims to ensure that the new owner fully masters the fundamentals of the network. Franchisors caution against the temptation to assume that an already successful business requires no further learning. On the contrary, they believe it is essential to fully reintegrate the brand's methods, procedures, and standards in order to continue developing the business.

The support is then tailored to the specific needs of the project: financial management, management, business development, performance optimization or structuring of growth.

Recommendations for future entrepreneurs

The first is not to oppose creation and takeover. Both options should be considered with an open mind, as each has specific advantages.

The second is to meet with franchisors as early as possible. Some opportunities can disappear quickly, whether it's a new location or an existing outlet to take over.

The third recommendation is to dedicate time to discovering the profession. Candidates are encouraged to meet franchisees, visit points of sale, and immerse themselves in the day-to-day operations to verify that the project truly aligns with their personal and professional aspirations.

Finally, the speakers encouraged candidates not to get hung up on funding issues. Solutions often exist when the project is solid and trust is established between the different parties.

This conference demonstrates that starting a business and taking over an existing one are two complementary paths to entrepreneurship in franchising. Starting a business offers the satisfaction of building a project from the ground up and conquering a new market. Taking over an existing business provides greater visibility and allows you to leverage pre-existing assets.

The choice depends primarily on the profile, objectives, and expectations of the future entrepreneur. In both cases, success rests on the same fundamentals: a well-prepared project, a relationship of trust with the franchisor, strong personal commitment, and the ability to unite teams around a shared ambition. Beyond financial or technical considerations, franchising thus appears above all as a human adventure based on support, knowledge transfer, and a shared desire to succeed.

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