Franchise Re-Sales:An Encore Performance of a

Proven Business Model

Franchise Re-Sales:An Encore Performance of a

Proven Business Model

Three Ways to Get Into Business Three Ways to Get Into Business

• Start from scratch

• Buy an existing independent business

• Invest in a franchise

Starting an independent businessStarting an independent business

To succeed you must have– A marketable product or

service– The know-how to operate a

business– The ability to create a plan– Money and expertise– Desire to go it alone– Ability to take risks

Purchasing an Existing BusinessPurchasing an Existing Business

• Established track record and reputation

• Existing customers

• Lower perceived risk • Hard to determine the

value• Records may be

incomplete• May pay a premium

Why Do Independent Businesses Fail? Why Do Independent Businesses Fail?

The E Myth• Doing what you know, love and

enjoy will bring success.

• Being “a technician” versus being an “entrepreneur”.

• Working “in” the business versus. working “on” the business

•A proven system

•Training and ongoing support

•Being in business for yourself, but not by yourself

•Win-win relationship … starts with mutual benefits and grows from there

•Brand Name Recognition

Invest In a FranchiseInvest In a Franchise

• Business is up and running at the start• Existing customer base• Immediate revenue stream• Trained employees in place

• Possible discount price

• Turn around opportunity

Invest in an Existing Franchise Business

PROS:

• Value/price of business – cannot quantity off-book cash transactions

• Decreased cash flow after debt service

• Good-will

• Need for non-compete with seller

• What “baggage” comes with the business?

• Unfavorable lease or other terms

• Complexity of purchase

Invest in an Existing Franchise Business

CONS:

Why Do Owners Sell?Why Do Owners Sell?

• Planned to Build and Sell

• Retirement

• Want a new challenge

• Bad fit – struggling

• Life gets in the way - Death, Divorce, Moving, Illness, etc.

• “Other Motivations”

Where Can You Find Re-sale OpportunitiesWhere Can You Find Re-sale Opportunities

• Business brokers - they represent only the seller.

• Sellers i.e. Franchisees

• Franchise companies

• Coaches – we often know before anyone else…

The Entrepreneur’s Source The Entrepreneur’s Source

• Help them define their Income, Lifestyle, Wealth and Equity goals

• Present them with franchise opportunities that match these goals

• Help them evaluate the options to determine the right choice

• Give them confidence to take control of financial/career future

Here’s what we do for our clients:

I Can HelpI Can Help

Gerri Sefi416-628-3171

gsefi@esourcecoach.comwww.theesource.com/gsefi

Contact Me