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As a potential franchisee, you have the option of becoming
a franchisee in a new facility at a new location or
purchasing an existing franchise.
A
new franchise will mean everything is current, clean
and under warranty-but for a higher price tag, of
course.
An
existing franchise will involve a smaller investment
and thus, will allow for a greater possibility of
financing. However, it is important that you assess
the seller's reason for selling. Is the business not
performing to expectations because of poor management,
poor location, poor support from the franchisor, an
indifferent staff, outdated equipment and/or facilities,
etc.? Be wary of what the seller or broker tells you.
After all, they are trying to convince you to buy
the business!
Regardless
of the obstacles and the extra caution you must take,
considering a "used" franchise is worth
your time. Use the same analytical tools you would
to a new franchise. Do your homework. Be thorough.
Be unrelenting.
Next:
Stage 3: Close the Deal
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