It’s often said that “Timing is everything.”
And that can certainly be true when buying a franchise.
With that in mind, I’m going to share what some great times are to buy a franchise business.
Let’s begin!
4 Terrific Times to Buy a Franchise Business
Before I share these with you, you need to know that none of them are etched in stone. Instead, they’re four of the best scenarios. The ideal situations about a potential franchise business purchase are always individual to your personal circumstances.
That said, here they are.
1. When the stock market is up.
Admittedly, this one is rather challenging. Why?
Because it requires market timing. And it involves a lot of unpredictability.
That said, if you happen to be looking to make a move away from corporate America and toward owning a business, a stock market that’s been trending up could benefit you a lot.
That’s because your investments may be in a good enough place to buy a franchise business.
Keeping that in mind, you’ll need to work with a financial specialist to help you decide if you should use your funds for a business purchase.
2. When your kids are out of college, or close to it.
It would be great if you were looking to buy a franchise when most or all your children’s college was paid for.
Unfortunately, experience shows me that’s not always the case.
As a matter of fact, more people than not mention “future college costs” as part of their conversation with me when we talk money. And it’s prevented some of them from moving forward on the purchase of a franchise business opportunity. And that’s okay. Because there’s always the future.
3. When you’re a 401(k) millionaire.
This recently coined term means that the value of your retirement accounts has reached at least $1 million. And that’s a great position to be in.
Why? Because there are now ways you can use part of your 401(k) or IRA to start a business. Like this one with the Rollover as Business Start-up (ROBS) plan. From the IRS:
A ROBS is an arrangement in which prospective business owners use their retirement funds to pay for new business start-up costs. ROBS plans, while not considered an abusive tax avoidance transaction, are questionable because they may solely benefit one individual – the individual who rolls over his or her existing retirement funds to the ROBS plan in a tax-free transaction. The ROBS plan then uses the rollover assets to purchase the stock of the new C Corporation business.
But here’s the thing.
If you decide to go this route, your ROBS plan needs to be set up perfectly. Otherwise, it can be disqualified. If that’s the case, the IRS states that it “can result in adverse tax consequences to the plan’s sponsor and its participants.”
Given these points, if you decide to take advantage of using part of your well-funded retirement plan to buy a franchise, find an expert who knows how to set up a ROBS plan correctly.
4. When the franchise brand you’ve been watching becomes available in your area.
Also timing related, this one could work in your favor.
For instance, let’s say you’re interested in a specific franchise concept. And as time goes by, you can see yourself owning one or more.
You’ve wisely set up a couple of Google Alerts to help you stay up to date with their plans and announcements.
Consequently, one of their announcements concerns their interest in expanding in your area. Timing-wise, this could work in your favor
That’s because you may have been putting money away so you could make a move when the timing was right.
And in the case of the franchise opportunity you’ve been watching for the past little while, the timing is right. Because you feel ready to go into this business.
Top Franchises For Sale 2025
Healthier 4U Vending
Superior machine quality, complete hands-on training, & cutting edge locating services make Healthier 4U the choice 4U!
Cruise Planners
Join the #1 travel agency franchise. Our affordable franchise is for every lifestyle. Start your journey today.
In Summary
Wrapping up, buying a franchise business may end up being about timing.
For example, things could go your way if the stock market has been doing well.
Or as your kids finish college, you may find yourself with more financial flexibility to do the things you want. In your case, that may include owning a franchise.
Or reaching 401(k) millionaire status could provide the capital needed for a new adventure. Like franchise business ownership!
Finally, when a franchise brand you admire becomes available locally, it could be the perfect time for you to dive into entrepreneurship.
Each of these moments could serve as a strategic opportunity to buy a franchise, so you can be your own boss.
~~~
The Franchise King®, Joel Libava, is a top franchise expert. He’s written over 2,000 different articles on franchise ownership and personally consults with people who are looking to buy a profitable franchise. Go here to find out how The Franchise King® can help you become your own boss.