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Franchise Re-Sales:An Encore Performance of a
Proven Business Model
Franchise Re-Sales:An Encore Performance of a
Proven Business Model
Three Ways to Get Into Business Three Ways to Get Into Business
• Start from scratch
• Buy an existing independent business
• Invest in a franchise
Starting an independent businessStarting an independent business
To succeed you must have– A marketable product or
service– The know-how to operate a
business– The ability to create a plan– Money and expertise– Desire to go it alone– Ability to take risks
Purchasing an Existing BusinessPurchasing an Existing Business
• Established track record and reputation
• Existing customers
• Lower perceived risk • Hard to determine the
value• Records may be
incomplete• May pay a premium
Why Do Independent Businesses Fail? Why Do Independent Businesses Fail?
The E Myth• Doing what you know, love and
enjoy will bring success.
• Being “a technician” versus being an “entrepreneur”.
• Working “in” the business versus. working “on” the business
•A proven system
•Training and ongoing support
•Being in business for yourself, but not by yourself
•Win-win relationship … starts with mutual benefits and grows from there
•Brand Name Recognition
Invest In a FranchiseInvest In a Franchise
• Business is up and running at the start• Existing customer base• Immediate revenue stream• Trained employees in place
• Possible discount price
• Turn around opportunity
Invest in an Existing Franchise Business
PROS:
• Value/price of business – cannot quantity off-book cash transactions
• Decreased cash flow after debt service
• Good-will
• Need for non-compete with seller
• What “baggage” comes with the business?
• Unfavorable lease or other terms
• Complexity of purchase
Invest in an Existing Franchise Business
CONS:
Why Do Owners Sell?Why Do Owners Sell?
• Planned to Build and Sell
• Retirement
• Want a new challenge
• Bad fit – struggling
• Life gets in the way - Death, Divorce, Moving, Illness, etc.
• “Other Motivations”
Where Can You Find Re-sale OpportunitiesWhere Can You Find Re-sale Opportunities
• Business brokers - they represent only the seller.
• Sellers i.e. Franchisees
• Franchise companies
• Coaches – we often know before anyone else…
The Entrepreneur’s Source The Entrepreneur’s Source
• Help them define their Income, Lifestyle, Wealth and Equity goals
• Present them with franchise opportunities that match these goals
• Help them evaluate the options to determine the right choice
• Give them confidence to take control of financial/career future
Here’s what we do for our clients: