1. Determine The Type Of Life And Income You Want
When searching for the right business for you, start by determining the minimum amount of income you are willing to earn. If a franchise you are interested in cannot deliver that income, cross it off your list. Next, decide how much time you want to spend at the franchise business. Narrow down your list even further by removing the franchise businesses that cannot deliver the lifestyle you want.
2. Buying A Business Is Less Risky Than Starting One
Buying an existing business means receiving an operation that is already creating cash flow and profits. On top of that, buying a franchise business means being a part of a proven brand, using a successful marketing system and having access to a solid, support structure.
3. Hire A Broker
There are a lot of choices you face while deciding what business to buy. Specialist franchise brokers know the market inside and out, can offer professional insights, help you narrow down the list of franchise businesses to buy, and guide you through the whole buying process. They also have access to silent listings, a type of listing that has no marketing program and is only presented to suitable buyers.
4. Your Success Team
Your Finn Franchise Broker can recommend experts in franchise law, franchise business accounting and franchise finance to help ensure that you get the best deal and experience the most efficient business transfer possible.
5. Conduct A Thorough And Objective Investigation
Once you have found a business that you would like to buy, it is imperative you research important information about the business before starting negotiations. Be prepared to sign a confidentiality agreement, ensuring you will only use the information provided to you to decide whether or not you want to move forward. Your Finn Franchise Broker can help you to understand contracts, leases, financial statements, tax returns and other important documents used to operate the business.
6. Determine A Fair Price
Determining a price is the most emotionally charged part of the whole buying process. The seller will have one idea how much the business is worth, while you, the buyer, will typically have another. Many factors go into determining a price, but usually the party who is most prepared has the most leverage. Your Finn Broker will provide you with the business profile and due diligence package for the business you are interested in buying.
7. You Are Unproven
Franchises already have an established brand and reputation. You are the risky one. When discussing buying a franchise business with a specialist franchise broker or the current franchisee, you need to show how you plan to grow the business and why you will be a good franchisee. Over the last 10 years, more than 99% of the applicants that Finn Franchise Brokers present to franchisors, have been approved and resulted in a sale.
8. Buying At A Fair Price
Business appraisals are a mix of art and science. However, there are ways of estimating a fair price. If you want the expert in your corner, The Finn Buyers Advocate Service will help you to review the franchise and business information for the opportunity and highlight your negotiation opportunities for a better result than if you choose to go it alone.
9. Getting Finance
Use a professional commercial finance broker who will guide you through the financing process. They will prepare your application and find the best deal for you. Approaching your local bank directly about franchise finance can often result in an unnecessary knock-back, ask us for the best way to get finance from the major banks.
10. Start The Transition Process Before The Deal Is Complete
To ensure a smooth transition, start working in your new franchise business with the existing franchisee before the deal is complete. Take the time to talk to employees, customers and suppliers to ensure that you are properly trained in operating the business.