Buying a Franchise? How to Buy One that’s Already Successful.
If you want to buy a franchise, don’t buy a new one – buy an existing location that is already operational and successful.
Can you test drive a franchise? Maybe not, but you can certainly ask questions when deciding which one to get into. Visit or call existing franchisees in the same system and see how they feel about the franchisor and the business requirements. Here are some questions you should ask:
Do you feel the franchisor can be trusted? Why or why not?
Are you happy with policies and procedures? If not, what would you change?
Do you feel you’re getting the advertising and marketing support you were promised?
Is the business and profits meeting your expectations?
How would you rate the franchisor?
Would you buy this franchise again, knowing what you know now?
What are the main problems of the business?
Do you believe it has the potential to grow? How?
Once you are satisfied with your research on the franchisor, find out all you can about how the franchise contract is structured. There are many items in a franchise agreement that an investor should understand. Here are a few:
Is the contract transferable or is the buyer required to enter into a new agreement at new terms and conditions with the franchisors?
Does the franchisor have the right of first refusal to buy the business? Typically, they do.
Are there restrictions from owning other franchises or even multiple locations? Some franchise contracts don’t allow you to own other businesses; you must devote your full time to that particular business. It may not even allow you to buy a second or third of that particular franchise.
Will the franchisor assist in the financing? Approval by the franchisor is very often required and you will incur the cost of going through the training before you can close the deal. The approval process can cost up to $3,000 - $5,000, and you can still be turned down. Be sure to understand how much of your time and money is at risk subject to approval from the franchisor.
Your due diligence is very important in researching the franchise. Investigate both the franchise and the franchisor and all issues related to the contract.
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Now I would like to share with you what a Billionaire once told a friend of mine. Who immediately put what he learned to use and went from Bankruptcy to Multi-Millionaire in just a few short years. Discover how to do that for yourself. Listen to the whole story here! ==> http://www.successinsiders.com/home.html
This article is derived from an interview between Lance Hood from SuccessInsiders.com and top business buying expert Richard Parker.
From Lance Hood – SuccessInsiders.com
Research, Investment, Buying Business, Business Brokers, Chambers of Commerce, Making Money, Wealth, Business Skills
If you want to buy a franchise, don’t buy a new one – buy an existing location that is already operational and successful.
Can you test drive a franchise? Maybe not, but you can certainly ask questions when deciding which one to get into. Visit or call existing franchisees in the same system and see how they feel about the franchisor and the business requirements. Here are some questions you should ask:
Do you feel the franchisor can be trusted? Why or why not?
Are you happy with policies and procedures? If not, what would you change?
Do you feel you’re getting the advertising and marketing support you were promised?
Is the business and profits meeting your expectations?
How would you rate the franchisor?
Would you buy this franchise again, knowing what you know now?
What are the main problems of the business?
Do you believe it has the potential to grow? How?
Once you are satisfied with your research on the franchisor, find out all you can about how the franchise contract is structured. There are many items in a franchise agreement that an investor should understand. Here are a few:
Is the contract transferable or is the buyer required to enter into a new agreement at new terms and conditions with the franchisors?
Does the franchisor have the right of first refusal to buy the business? Typically, they do.
Are there restrictions from owning other franchises or even multiple locations? Some franchise contracts don’t allow you to own other businesses; you must devote your full time to that particular business. It may not even allow you to buy a second or third of that particular franchise.
Will the franchisor assist in the financing? Approval by the franchisor is very often required and you will incur the cost of going through the training before you can close the deal. The approval process can cost up to $3,000 - $5,000, and you can still be turned down. Be sure to understand how much of your time and money is at risk subject to approval from the franchisor.
Your due diligence is very important in researching the franchise. Investigate both the franchise and the franchisor and all issues related to the contract.
---------------------------------------------------------------------------------------------------------
Now I would like to share with you what a Billionaire once told a friend of mine. Who immediately put what he learned to use and went from Bankruptcy to Multi-Millionaire in just a few short years. Discover how to do that for yourself. Listen to the whole story here! ==> http://www.successinsiders.com/home.html
This article is derived from an interview between Lance Hood from SuccessInsiders.com and top business buying expert Richard Parker.
From Lance Hood – SuccessInsiders.com
Research, Investment, Buying Business, Business Brokers, Chambers of Commerce, Making Money, Wealth, Business Skills
Labels: Business Brokers, Business Skills, Buying Business, Chambers of Commerce, Investment, Making Money, Research, Wealth
posted by Ralph Marcus (Mark) Maupin | 11:31 AM
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