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

Understanding the Role of Business Brokers when Purchasing a Business


Using business brokers to do the hard work can help at times, but they also have their drawbacks. There are some good services business brokers can provide, but don’t confuse using one with hiring one. Brokers don’t work for buyers; they either represent the seller or the deal. They are not trusted, unbiased advisors for the buyer unless they have been engaged by them exclusively and not being paid by the seller.

A common misconception about business brokers is that many relate to them as they would real estate agents. They go into the process thinking a business broker is going to deal with them as a buyer broker, as a real estate agent deals with a homebuyer.

Brokers can help you locate businesses, be a buffer between parties, and assist in putting the deal together. They will not represent your interest or negotiate you deal, or do your work. They will not take you to visit thirty businesses like a real estate agent will with houses.

With so many buyers and few sellers, brokers compete for getting as many listings as they can, good and bad. “There’s a buyer for every business”, in their mind, so business brokerage is a quantity, not a quality oriented business. About 90% of the listings online are controlled by brokers. Business brokers only sell about 4% of the small businesses that change hands each year. They’ll often represent selling more, but studies have shown the number closer to 4%. Eighty percent of online listings never sell.

To get a broker to point out the best businesses for you, it is important to demonstrate to a broker that you are serious about buying a business and you’re ready to buy immediately, should the right opportunity present itself. A business broker’s only asset is their time; they do not want to waste it. They leverage their time most effectively with having many listings and being able to sell them quickly. Impress the broker as a serious buyer to get them to choose you, over hundreds of other buyers, to show the premium listings to.

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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

Points to Ponder when Choosing a Business Broker


Communication and feedback is important within a relationship with a business broker. A good broker will at least respond to all offers and inquiries quickly to show they are serious. Proper business courtesy demonstrates a professional attitude and that they are serious and committed. Another thing to look for is the level of detail in their business profiles.

There is a lot of information to consider when making an offer on a business opportunity listing, including the business’s strengths, weaknesses, opportunities, marketplace, competitors, legal issues and background. When a broker responds to your inquiry with a one-page description of the business, and does not have much more data or backup to provide to you, you know this broker isn’t going to be the most effective to work with. This shows how little they care to know about their listings. This is one reason why 80% of businesses listed do not sell.

A good broker will do all they can to insure the business will sell quickly if they are doing the seller a good service. They will understand that the seller has to keep running the company as if it is not going to sell. If the seller is forced to focus too much attention on the sale, they will find their business declining. With this in mind, a good broker will provide a good service to the buyer as well, when they care to know enough details about the business to present to an inquiring buyer even though they often represent and are paid by the seller.

There are three important issues to discuss with business brokers:

Ask them to walk you through their process of working with a buyer
Ask if they co-broker deals of if the simply sell their own listings
Ask what is the typical deal structure of their deals

Their answer to the typical deal structure of their deals is an indicator as to how effective they will be as a broker. If they simply answer, “mostly cash,” they are either “bluffing” or not selling enough businesses. If they answer “mostly third-party financing through a bank,” wrong answer, again; only about 6% of deals are financed that way. How about the broker who answers “Most of my deals contain some element of seller financing, creative financing, or creative deal structure.” This would be the broker to deal with. This one clearly understands that every deal is unique and they know how to massage the deal to a successful closing.

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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

Your Time is Precious – Don’t Waste it When hen Searching for a Business to Buy

There are several areas where people commonly waste time searching for the right business to buy. Keep two things in mind when buying a business; there are many more buyers in the market than businesses to be sold and the good businesses sell fast. The biggest competition comes from other buyers; therefore, you need to act quickly on a good opportunity.

There are five typical issues that cause people to waste time:

Turning the search into a looking process rather than a buying process -The Internet is the best and the worst thing to ever happen to the business for sale marketplace. The best because of the abundance of businesses listed and the worst because it leads you to click, click, click to look at them all. We’re too quick to move on to what we think can be a more promising deal to digest the information and make an effective inquiry.

Fear of making an inquiry - It doesn’t cost you anything and you’re not going to do anything wrong. You’re just looking for additional information and making inquiries.

Apprehension about making offers due to missing information - For example, maybe you don’t know all the financial details reported by the business, which could affect your offer. On the other hand, you are worried about losing the opportunity. So make the offer with protective clauses to allow you to back out of the deal and be fully protected.

Letting others dictate the rules - Don’t be bullied by brokers; this is your money, your future, and you are the boss; be in control.

Looking for the Perfect Business - You won’t find it; they all have their drawbacks. It’s up to you to select one which your strengths will be a valuable asset to make the undervalued business and valuable business.

Cut down on the search time to be better spent on improving and growing your new business. Focus on the goal and stick to the plan and move forward.

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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 Businesses, Business Brokers, Chambers of Commerce, Making Money, Building Wealth, Business Skills

Resources for Choosing and Researching the Right Type of Business to Buy

Manufacturing, service, retail, wholesale and the internet businesses all have different values. There are software programs available for determining value and helping to speed up the process of researching and analyzing businesses.

Through a good valuation program and interactive software containing legal agreements, templates and sample letters of solicitations you can cut the average business purchasing time by 70%. These time-saving materials can also be a savings on fees charged by attorneys and accountants. Of course you must use an attorney and accountant, but you can save a lot on their fees.

You can use solicitation letters to find businesses that are not currently on the market. The one we use generates as high as a 40% response rate. Follow up letters to send to sellers, forms, logs and checklists, and other interactive resources provide templates for doing your research.

It is important that the area of business you choose to purchase meets certain criteria about you and your needs. Choose business that will benefit from your strengths, while they do not suffer from your weaknesses. One common mistake made by many is turning a hobby into a business. This is a bad choice because their prejudices of the hobby can have an adverse effect on the business. The definition of a good business is one that has a good fit, has the opportunity to grow, make plenty of money and be enjoyable to run.

The resources are endless when considering the purchase of a business. The Internet, business brokers, classified sections, attorneys, accountants, Chambers of Commerce but most of all people are the best resources. Attend workshops and seminars; learn by networking with others who have businesses and get the word out that you are looking to purchase a business.

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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

How to Find an Undervalued Business for Sale at a Great Price

There are over 23 million small businesses in the USA; about 10 million of them are non-home-based businesses. There is no shortage of businesses to be purchased. The key is to get in front of business owners, talk to people in the business community about businesses. Decide what type of business you are right for and begin your research.

An undervalued business is one where the foundation is in place, it is operating and bringing a profit, but not running at its full potential. It could be that the owner is tired, or hasn’t the will or ambition to drive the business successfully. How often have you gone into a local business and seen that it was making money, “in spite of the owner.” They’re not serving the customers properly or their product line could be better. Still, they are making a profit. This is an example of an undervalued business; one you could purchase and grow into a valuable one.

Once you have an idea of the type of business you’re looking for, you need to find a motivated seller; someone who wants out. They may not want out because it is a bad business; there probably isn’t anything wrong with the business itself. There are many valid reasons for selling a business, including death, divorce, retirement and many more.

What is a great price? Different types of businesses have different values. Examples of different businesses are manufacturing, service, retail, distribution or an internet business. We have proprietary software which we’ve used for over 1,000 transactions and specific businesses to formulate valuation. Simply enter in the data; answer the questions related to the business and it generates a valuation report.

The resources are endless when considering the purchase of a business. The internet, business brokers, classified sections, attorneys, accountants, Chambers of Commerce but most of all people are the best resources. Attend workshops and seminars; learn by networking with others who have businesses and research online.

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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

Are You Sick of the 9 to 5 Grind?—Buy a Business and Work for Yourself



I recall reading a study that indicated 74% of people actually hate their job and dread going to work every morning. What would your life look like if you owned your own business? The simple fact that you are working 9am to 5pm is incentive enough to think about making a change. Add the commute back and forth to work and most of your day is spent working for someone else, doing something you hate; in other words, you hate most of your life! It’s time to stop making excuses and start making a change-motivate and create a path to success:

“I just don’t have the time.”

Focus on your goal, not your problems or excuses

Get educated; read books, attend seminars and workshops on weekends and evenings

Network with other business owners-get the word out that you are looking to buy a business

Search the internet for a business during “off hours”


“I’m too old.”

I said to my cousin, “I just can’t believe you’re turning 50!” She said, “It’s okay; fifty is the new 35!”

Colonel Saunders was 67 when he went into the Kentucky Fried Chicken business

35-55 is a great time to go into business for your self. You have years of working and acquiring skills and experience. You have developed the wisdom and to be able to identify your strongest skills and the patience to persevere.

“I don’t have enough money.”


Money is the point of all this and you don’t need as much as you think.

Start small and build something big

Ask for seller financing-if the seller is motivated, he’ll be inclined to agree. This way, he still gets to collect some cash flow from the business without having to run the business. There are also tax advantages to seller financing rather than getting paid off in one big payment at the time of sale.

So, problems are just excuses. Go on doing what you are doing and nothing will change. You will never have the time, you will continue to grow older, and you will not have enough money. Why not make the change? So many others have done it before you, and many more will after you.

Motivate and create a new career and start your new life now!

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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

Buying an Existing Business versus Starting up a New Business

Starting a business is a rich man’s game, and buying an existing business is a poor man’s game. Most people would think that the opposite is true.

There are many advantages to buying an existing business rather than starting a new business. Statistics show that 96% of business startups fail within the first five years, with 80% failing with the first 3 years. With the odds of failure being so high that you are going to lose your entire investment of time and money within 5 years or less, that is a rich man’s game. Anyone who can afford this type of loss must be pretty rich.

Buying an existing business with an ongoing infrastructure of a provable business model, one that has been operating for a few years or more and is making a profit sounds like a much better deal. Profits will flow immediately versus a startup where there is no way to predict when you will be showing a profit. A solid customer base is already formed; people are familiar with what you have to offer, so there is no need for start up marketing.

The history of a business is in place and you can review it to determine potential profits for the future. Policies and procedures are in place, employees are trained, and the business is operating. Simply step into the seller’s shoes, add some of your own personal touches, maybe a new product or service, and you’re on your way to making your new business grow and thrive.

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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 Businesses, Business Brokers, Chambers of Commerce, Making Money, Wealth Building, Business Skills

Tips for Buying a Business – it’s Easier and Less Expensive than You Think

Purchasing an undervalued business at a reasonable price can be quite profitable while it accelerates the path to financial independence and eliminates many of the risks of new startups. The key is finding businesses that are already profitable but earning far less then they could be.

An undervalued business is one which is doing well but it is not operating to its best potential. Maybe the owner just isn’t motivated to continue growing the business and updating the marketing techniques. Lack of motivation or desire to keep a business growing is often due to death, divorce, retirement or many other valid reasons. In any event, an undervalued business can be a great deal for someone who is fresh and motivated to improve the business. The idea is to get a good solid business and turn it into a great one.

There are some critical steps to take before becoming a business owner:

Become educated; read how the experts do it, attend seminars and workshops, network with other business owners
Take a self inventory of your own strengths and weakness to determine the type of business that would thrive from your strengths and not suffer from your weaknesses
Discover your passion; what type of business do you see an opportunity for yourself in?
Get the word out that you are looking to buy a business
Keep in mind the restrictions of owning a business; how much work is involved, how much of your physical time is required and whether running the business fits well with your needs and lifestyle.

When you are accustomed to working for someone, you begin to see things as an employee. Many people never get out of the mindset of working for someone as opposed to working for themselves. Going into business does not allow the luxury of getting on the job training, because the goal is to make sure that the money which has been invested is not wasted. The beauty of purchasing existing businesses is that they are not as expensive or involved as people may think. Owning a business is well within reach of the majority of people who want to own a business.

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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, Creating Wealth, Business Skills