Subshop Franchise Buyer's Checklist

 

Before buying a Subshop franchise, every prospective buyer should ask the following questions and gather the suggested documents for further analysis.
 

The rental burden and Royalty and Sales Combo report are the primary two pieces of information to start with, but you have to know how to dissect these reports, test them and extrapolate information from them

 
 Additional documents required for basic due diligence:
 
  1. The Lease, amount and term
  2. Franchise agreement
  3. Royalty and Sales Combo report
  4. Weekly Sales and inventory costing numbers
  5. Cash Control sheets
  6. Monthly or bi-monthly Evaluation reports
  7. Remodel status
  8. Store Income and Expense report
  9. CAM charges
  10. Outstanding Equipment leases
  11. Average pay rates

Now that you have this information you will need to interpret it and use it to your benefit. My own personal check list has many more CRITICAL items on it. You will also need the protective terms to put into a Purchase Agreement that will be acceptable to a seller, and may need to understand why certain terms are specific to a Subshop deal. If you do not know what to do next or how, contact me and tap into my expertise. fayaz@mrfranchiseman.com, 800-401-6424, or 949-253-4610

 

 

 

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