5 Reasons Why You Should Invest in a Resale Franchise


If you’re looking to start a new small business, one option you should consider is becoming a resale franchisee. According to SBA.gov, a franchise is a business that uses a pre-existing business model owned by another company. In this case, it’s a business model for selling used products at low prices. Below are five reasons why investing in a resale franchise may be the right plan for you.

1. Low Overhead

Most regular retail chains have to enter into expensive partnerships with product manufacturers. The profit margin for both the manufacturer and the store can be rather thin. This is not the case with resale. With resale, the products are not shipped to the shop via distribution chains from a factory. They may have been in the past, but that cost was absorbed long ago. Due to this fact, used products that are sold in a resale shop are pretty much pure profit. The only additional expenses are for labor, the building and utilities.

2. It Helps the Environment

According to Forbes, the textile industry is one of the top 10 polluters in the world. Part of this is due to all the chemicals that are needed to transform raw materials into clothing. The top selling item in resale shops is clothing. However, this clothing is recycled. It was manufactured a long time ago. Reselling it doesn’t require the manufacturing of new clothing in a factory. If being green is something you care about, running a resale shop is a great idea.

3. The Franchise Gives You Brand Recognition

Becoming a franchisee with an already existing brand is not like launching a completely independent start-up business. You get to use the name, logo and other intellectual property already associated with a national chain. This means that you won’t have to spend as much money on marketing to get the word out. Many customers may simply shop at your store due to that branding. This can be a significant advantage over not being a franchisee.

4. It Allows You to Work with People
The resale industry is really a people industry. The emphasis is not so much on the products as it is on providing low cost items to a community that needs them. While working in resale, you’ll get to meet many people. Many of these will be people in lower income brackets that will be thankful that you sell items at a serious discount versus other stores. If you’re very sociable and like being involved in your community, being a resale franchisee is an excellent choice.

5. It Can Be Fun

Beyond all else, working in resale can be fun. Unlike a regular retail store that sells new products, you’ll never know what you will get. Many items may surprise you. Some can be downright funny. If you don’t like routine and have a sense of humor about things, running a resale shop can be a good alternative to the kind of monotonous work you find in other industries.