| How can you make sure you buy a business, not a | | | | you can buy supplies from, where you can advertise |
| job? The last thing a buyer wants to do is to jump out | | | | and what you can advertise. The owner may discover |
| of the job pan into the franchise fire. Without proper | | | | that by contract, they have to participate in an ad that |
| planning and serious investigation, the buyer can buy | | | | does not seem to work for their location. The answer |
| themselves a job with very long hours. They meant to | | | | to this complaint is to know what you are getting into |
| buy a business, but they ended up with a job with | | | | before you turn over your money to the franchise |
| excessive hours. The cause of this problem is the | | | | seller. Make sure you understand all parts of the |
| buyer did not do the homework to correctly | | | | contract, including what you can and cannot do while |
| understand the business and then plan for the | | | | running your business. |
| personnel needed to cover the operating hours. In the | | | | A very smart idea is to speak with other franchise |
| poorly planned business the owner ends up captive to | | | | owners before making the purchase. Ask all types of |
| these uncovered hours. They have in fact bought | | | | questions including would you do it again or not. Find |
| themselves a job and not a business. | | | | out what they like and do not like. Find out what their |
| Areas to investigate | | | | day-to-day business life is like and are their things |
| When considering buying a business, many potential | | | | about it that they wish were different. Listen carefully |
| business buyers are attracted to franchises. They | | | | as to what they like and do not like. It is far better to |
| believe that owning a well-known franchise will almost | | | | hear the truth before purchase than after the money |
| guarantee success. This is not absolutely true, but it | | | | has been handed over to the seller. Surprises are likely |
| does have merit. A food franchise is the most likely | | | | to be in the favor of the seller and not in the favor of |
| business to snare the buyer into buying a job. These | | | | the buyer. Make your own judgment as to whether |
| businesses always are employee-heavy and always | | | | the restrictions on owners is something that seems fair |
| fighting a turnover of personnel. When the employees | | | | or just another profit area for the franchise seller. |
| are absent from work or just non-existent, the owner | | | | Read about the pluses and minuses on the Internet |
| must step in and do the job. Owners of food | | | | The Internet covers almost all aspects of what a |
| franchises must have a very good staff to operate | | | | franchise owner is likely to experience after becoming |
| efficiently and without excessive hours on their part. | | | | an owner. This and other owners are the best places |
| This takes planning, training, and ongoing recruitment of | | | | to find answers from parties other than the seller. This |
| employees. If this is not planned for and built into the | | | | information can be studied and then put into questions |
| budget, this can be a factor that will over time ruin the | | | | to the seller you are dealing with on a franchise. |
| owners' passion for their business. The most important | | | | Informed buyers will always make better decisions and |
| area the potential owner needs to know about is the | | | | also maybe better contracts when making the |
| number of people needed to run the business | | | | purchase. Knowing what to look for that is not in your |
| correctly. The franchise people or the previous owner | | | | favor helps to keep mistakes from occurring in the |
| should be able to give very detailed facts and figures | | | | deal. Study the prices that other franchises go for and |
| in this area. The new owner must make sure the cost | | | | the rational for the prices. This will help ferret out |
| of proper staffing is covered in the business plan. Poor | | | | puffed-up prices and numbers that are hard to justify |
| planning here can have devastating long-term effects | | | | by the seller. |
| on running the business. | | | | If the answers do not seem to make sense or are still |
| Good employees and good staffing | | | | fuzzy when answered, then the potential buyer can |
| Food franchises are in need of well-trained employees | | | | make a counteroffer or just walk away. There are |
| who are reliable and do the job the way it should be | | | | good deals in the franchise business, but it is up to the |
| done. A staff that is good at their job is a treasure to | | | | buyer to find then with their own due diligence. Listen |
| have. One that is unreliable and lacking in job skills will | | | | to the answers that are given, but then verify for your |
| be a constant headache for the business owner. This | | | | self. |
| is an area that the franchise should be able to give | | | | Conclusions |
| very good advice to the new owner and also help in | | | | There are many franchise offers that can be looked |
| the training program. If you are buying a new franchise, | | | | at by a potential buyer. The choice depends on the |
| this is usually included as it is critical to success. Hiring | | | | interest of the buyer. Be careful of buying a franchise |
| and training of staff are very important elements of a | | | | that you have no passion for, as it will become a very |
| food franchise. | | | | big part of your life. It will help a great deal if you have |
| Training a good assistant is imperative if you ever | | | | a feeling for the business. There are large spreads in |
| want to have some time away from the business. | | | | the prices of franchises for one solid reason. The price |
| With these elements in place, an owner can have | | | | depends on what is included and if it is an existing |
| days off and even take a vacation in the future. | | | | business, how is it doing for the current owner? A |
| Without the personnel, the owner has bought a | | | | high-profit business is certainly attractive if the price is |
| constant job with hours that will kill over time. When an | | | | fair in relation to the verified profit. If the staff is solid |
| owner has a good right hand person available to run | | | | and the assistant managers are likely to stay, that is |
| the business, this will take a great deal of pressure off | | | | another big plus for the business. |
| of the owner's shoulders. | | | | Ask tough questions of the current owner like, "Why |
| Trading Bosses or buying a business | | | | are you selling?" and "How did you come up with the |
| Many franchise owners discover after they have | | | | price that you are asking?" Listen to the answers and |
| purchased the franchise is that all they have really | | | | verify any numbers that are given as part of the |
| done is change from one boss to another boss. Many | | | | answer. Have your own experts go over the figures |
| franchise operations are very restrictive and controlling | | | | just to make sure they are accurate and give a true |
| as to what the owner can do when running the | | | | picture of the business. |
| business. This includes setting hours of operation, who | | | | |