Steps Youll Encounter When Purchasing a Franchise Business
Steps Youll Encounter When Purchasing a Franchise Business
1. Start exploring the market: People who are determined to become successful franchisees must start with a review of the market. They should learn what the current trends are and what the future ahead is. Based on that and their own interest/skill, the prospective franchisees must choose a category to buy a franchise from.
2. Research the category: Most categories have numerous franchise opportunities under them. So, the next thing a person, looking forward to buy a franchise, must do is narrow down his area of interest. You can do this on the basis of time needed to run them (full-time, part-time or absentee owner) or on the basis of the budget.
3. Research the companies: The previous step will bring out some franchise concepts for you to concentrate on. Now, investigate each one of them. Look into their market presence, demand in the market and cost of starting the business. Also, don’t forget to check out the support and training system as well as the litigation history of the companies offering franchise business for sale.
4. Read the UFOC: After further narrowing down to a couple of concepts, ask for their UFOC or the FDD, as it will be known as from July this year. Read the said document thoroughly and don’t forget to take the help of a franchise attorney to decipher the legal parts. You can also take the help of your accountant to understand the earning claim and other financial parts of the Franchise Disclosure Document.
5. Visit on the Discovery Day: Check out how the companies are being run from up, close and personal on the Discovery Day. The way you will be escorted and shown the different departments of the company will prove how professional the company is as a franchisor. Make sure you clear all your doubts and queries on this day. After this, you will know which franchise business for sale offer you are going for.
6. Talk to other franchisees: Talk to the present and ex franchisees of the system and tally their answers. Try to know whether they have multi-unit franchisees. A multi-unit franchisee means that the system is doing quite well.
7. Go over the budget: Talk to your accountant and your franchisor to ensure how you are going to arrange for the budget. It’s advisable to keep some extra capital in hand for unforeseen situations.
8. Sign the franchise agreement: The step that will seal the deal should be taken only after you and your franchise attorney have gone through the agreement from top to bottom. Ask the franchisor if it allows some changes in the franchise agreement and make sure that your attorney extracts the best possible deal for you. Your purchase is over, and now you are a proud owner of a franchise business.
Steps Youll Encounter When Purchasing a Franchise Business - To learn more about this author, visit Michael Hemenway's Website.
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The franchise purchase process is not an easy one. If it was so, anyone with no real interest for franchising could have brought it and ruined the reputation by sheer incompetence! That is why when the franchisors offer franchise business for sale, they require the candidates answering their offers go through certain steps. This long-drawn process makes sure that only people really interested in starting a franchise gets to buy one. When such franchisees join the system, they are more likely to succeed and take the franchise business to a new level of prosperity. Below are the steps of franchise purchase process:
1. Start exploring the market: People who are determined to become successful franchisees must start with a review of the market. They should learn what the current trends are and what the future ahead is. Based on that and their own interest/skill, the prospective franchisees must choose a category to buy a franchise from.
2. Research the category: Most categories have numerous franchise opportunities under them. So, the next thing a person, looking forward to buy a franchise, must do is narrow down his area of interest. You can do this on the basis of time needed to run them (full-time, part-time or absentee owner) or on the basis of the budget.
3. Research the companies: The previous step will bring out some franchise concepts for you to concentrate on. Now, investigate each one of them. Look into their market presence, demand in the market and cost of starting the business. Also, don’t forget to check out the support and training system as well as the litigation history of the companies offering franchise business for sale.
4. Read the UFOC: After further narrowing down to a couple of concepts, ask for their UFOC or the FDD, as it will be known as from July this year. Read the said document thoroughly and don’t forget to take the help of a franchise attorney to decipher the legal parts. You can also take the help of your accountant to understand the earning claim and other financial parts of the Franchise Disclosure Document.
5. Visit on the Discovery Day: Check out how the companies are being run from up, close and personal on the Discovery Day. The way you will be escorted and shown the different departments of the company will prove how professional the company is as a franchisor. Make sure you clear all your doubts and queries on this day. After this, you will know which franchise business for sale offer you are going for.
6. Talk to other franchisees: Talk to the present and ex franchisees of the system and tally their answers. Try to know whether they have multi-unit franchisees. A multi-unit franchisee means that the system is doing quite well.
7. Go over the budget: Talk to your accountant and your franchisor to ensure how you are going to arrange for the budget. It’s advisable to keep some extra capital in hand for unforeseen situations.
8. Sign the franchise agreement: The step that will seal the deal should be taken only after you and your franchise attorney have gone through the agreement from top to bottom. Ask the franchisor if it allows some changes in the franchise agreement and make sure that your attorney extracts the best possible deal for you. Your purchase is over, and now you are a proud owner of a franchise business.
Steps Youll Encounter When Purchasing a Franchise Business - To learn more about this author, visit Michael Hemenway's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
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