Bradenton Beach, FL (PressExposure) May 05, 2009 -- Rick Bisio, franchise consultant, spoke to aspiring entrepreneurs at a meeting held in Tampa, Florida. He discussed franchising as he focused on researching and purchasing existing franchises. The first tip Rick gave the group was, âBe discreet; most sellers will not broadcast that the business is for sale. This is positive for you and for the seller. Selling a business takes time and it is in everyoneâs best interest if the employees and customers do not spend time concerned about âwhat ifs.â
Rick explained his system for researching a franchise; study the franchisor, meet the owner, call other franchisees, explore external changes, learn about the employees and examine the physical plant.
âIt is important that you study the franchisor, as this is the person you will be signing a long-term contract with, not the seller,â Rick said. âIf you are satisfied that this franchise will conform to your skill set and fulfill your financial and lifestyle needs, then it is time to meet with the owner. Find out why he/she wants to sell and ask to see the history of the franchiseâs financial performance. The seller should be happy to supply balance sheets, income statements, tax returns and other financial statements.â
Rick recommends calling other franchisees in the business to learn more about the possible downsides, as it is unlikely that the seller will readily disclose this information. âYou must execute your due diligence to discover if there are internal or external problems that will make the business undesirable. Visit the area Town Hall and inquire if any large projects are slated for the area where the franchise is placed. These types of projects can be positive or negative; it is helpful to know what is happening in the area.â
If one is happy with all they have found out at this point, and they are seriously considering purchasing the franchise, Rick added some final advice, âFind out about the employees, their salaries, the hours they work, their skills and the rate of employee turnover. Ask if there are any employment agreements or understandings, salary disputes, etcâ¦ Examine the physical plant. Look into the location and equipment, the status and terms of the lease, the temperament and availability of the landlord, and the value, age and condition of all equipment and vehicles.â
The group of young entrepreneurs was quite satisfied with the information and advice provided by Rick Bisio, as they gave a hearty applause after his speech. They left with a good understanding that to guarantee success in purchasing a franchise, they must do good research. They learned the importance of making sure they will like the business model and franchise management team, they understand the financials and are aware of the surrounding community.
Rick Bisio of FranChoice Consulting is the author of the book, The Educated Franchisee.
To learn more about how to identify a great franchise businesses and stacking the deck in your favor, go to http://www.educatedfranchisee.com or buy the book - The Educated Franchisee â on Amazon.com. Rickâs books and articles cover everything you need to know about buying a franchise, owning a franchise, franchising skills and requirements, finding the right franchise, recognizing great business opportunities, starting and building your own business and more about business franchises.
This Press Release was submitted by Right Now Marketing Group, LLC