15 factors creating Franchise buying opportunities.....

Submitted by Fayaz on Fri, 10/02/2009 - 12:08pm.

My clients often ask "why is this guy selling"? A perfectly normal question and usually there is a legitimate answer from a truthful seller. But many of my clients also go further and want to know what constitutes a good "buying opportunity", especially in today's topsy turvy economy, so I put this together.....read on 

 

 

15 Factors creating Franchise buying opportunities
 
1.     Death, divorce, illness, catastrophic circumstances on seller side
2.     In Arbitration/Termination, poor compliance record, bad operator
3.     Some absentee ownership situations; 15 stores-need to trim investment portfolio, manpower shortage, geographical consolidation
4.     Rampant theft, high food costs, inattentiveness or capability issues
5.     Complete lack of interest, hands off management, owner bored, audit harassment
6.     Clashes with the Franchisor, AD, Field Consultant and the System
7.     Remodel time/Relocation time
8.     Retirement, leaving area, moving on
9.     Openly advertised distress sale
10.Loan problem, debt issues, cash flows tight
11.Low menu prices, no LSM, thin margins (the Quizno’s story)
12.Strategic buy for future development coming to area; foresight
13.Your 7th store, just for cash flow to pay debt service
 
14. AD management style and inconsistent tolerance levels
15. Small town opportunities, lower sales but higher profits
 
The question is, how do I find a franchise and buy it for the right price, with reasonable terms? ……that is the service I perform everyday for my clients.
 
 
fayaz@mrfranchiseman.com    949-253-4610
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