Buying the Best Equipment for Your Franchise Business: 5 Tips

Once you buy a franchise, the next thing you need to look for is the franchise equipment. In many cases, the franchisor will have approved vendors and price lists in place. Else, it’s up to you to decide.

Here are some important tips for purchasing the right set of equipment for your franchise business.

Tip 1: List Your Needs

Preparing an equipment list is important, even before going for the purchase. To do that you need to understand day-to-day franchise operations and analyze which equipment suits the franchise. 

It is also important to understand if it is a worthy investment that lets you stay ahead of your competition. 

Tip 2: Arrange for Finance

Many of the franchise owners hesitate to buy new equipment or upgrade existing ones due non availability of financing. Arrange for the right type of finances for the equipment.

If you utilize most of your capital finance only on your equipment, then you are likely to face trouble in running your franchise.   

Tip 3: Look Around for the Best

Once you have decided on the right financing, you will have enough time to research on the best franchise equipment. Online reviews, trade shows, peer network, etc. may come in handy. 

Ask around and check industry associations and journals to check vendor reputation before making your purchase decision.

Tip 4: Decide on Buying or Leasing

Depending on your franchise type and your equipment budget, decide if you are to buy or lease the equipment. 

It is obvious that leasing costs less than buying new equipment. The 25-45 percentage saved on leasing can be utilized for franchise operations or marketing.

Tip 5: Shop for Used/Refurbished Franchise Equipment 

Another option is to consider buying used/refurbished equipment. However, you need to look for good deals, spare parts availability, reliability, and manufacturer support.

It is also advisable to compare the refurbished equipment with the newer model to check if it suits your needs. Also check if there will be any productivity loss if you do not go with the new model.

For more tips on purchasing the best franchise equipment, Contact Us.