Edmonton Business For Sale | How To Acquire A Franchise
Many entrepreneurs like the idea of buying franchises because of the processes that come included with it says Edmonton business for sale. Franchises have spent a long time developing successful processes for not only running their business, but for marketing the business, hiring staff and even creating a product or service. Thatís attractive for many business owners, especially entrepreneurs who have no prior business ownership experience. And although only a franchise can be a great experience, entrepreneurs need to understand that not all franchises are created the same, including what processes are included in the business. Itís buyer beware when entrepreneurs are considering which franchises to buy, and that their best friend will be research.
Many people think of extremely large companies like McDonaldís or to Tim Hortons when they think of franchises says Edmonton business for sale, and anyone who thinks of McDonaldís franchise understands that thereís a ton of processes in that business. Everything from the look of the restaurant, to the training of the staff, to how their products look and taste and are presented, thereís a lot of processes there. Entrepreneurs should first understand that when they are buying a franchise, they are paying extra in order to get that brand recognition and those processes. There is a franchise fee on top of the sale of the business as well as monthly royalty fees. How much those royalty fees cost varies greatly from franchise to franchise, but it should always be taken into consideration when entrepreneurs are considering purchasing franchises.
There is always inherent risks when it comes to purchasing any business regardless of whether itís a franchise or not, and therefore entrepreneurs need to do their research when it comes to making that purchasing decision. An accountant will be an extremely good resource for entrepreneurs who are deciding on which franchise to buy. An example of this is when an entrepreneur took franchise information to their accountant thinking that this pizza franchise was an opportunity that was too good to pass up. After their accountant went through all the financial details, be found that the royalty fees there are going to be charged was higher than any royalty fee previously charged any franchisee before. After calculating that increased royalty would have on their bottom line, their accountant determined that this was not a good business opportunity simply based on the franchise royalty fee. This helped the entrepreneur avoid making that purchasing decision that could have been extremely costly.
Entrepreneurs should take not only the franchise financials to their accountant, but they should also take all of the franchise documents including the franchise agreement, the lease information and even payroll from the existing location. All of these different pieces of information will come together to form a puzzle at the accountant can put together and make a clear picture on. Edmonton business for sale says that this can help entrepreneurs get a clear understanding of what it would look like to own business and if that is a good decision for them.
Many business owners assume when they hear franchise that it is a no risk option for business ownership says Edmonton business for sale. While franchises often have a high rate of success, most likely because of the franchises systems that have been developed to help create successful business owners, all entrepreneurs should understand that purchasing any business no matter what it is comes with inherent risks, determining if it is the right risk for them is a decision they have to make. And should make that decision after looking at all of the facts. Owning a business carries a risk, and industry Canada says that 50% of all entrepreneurs close the door to their business in five years, but only 14% of franchisees go out of business in the same amount of time. Many people looking to on a business decide that they like the odds of owning franchises a lot better.
When business owners are considering the right franchise for them, the first thing they should do says Edmonton business for sale is look at a variety of options. Often people get stuck on a certain franchise they like or are familiar with, and donít look at any of the other options. This would be a huge mistake because a business owner needs to know involved with owning that franchise and can get a clear picture of that by looking at the different options out there. How involved is the franchise or in the running of the store or decision-making, did they have to pay any additional fees for national advertising or for their website? Will they be forced to use a certain supplier, how are the royalty fees structured and will they ever increase? These are all things that a business owner can start to get idea of what franchise structure they like, and what options they prefer. Edmontons business for sale also recommends that if a business owner doesnít like a lot of the structure that franchises offer, they may not be great candidates for purchasing franchises. If thereís too many things that a business owner is going to change, they are often better off by opening their own business where they can choose all of the processes and all of the products and services themselves.
Edmonton business for sale says once business owners have decided on a franchise that fits them, and makes a lot of sense been there next step will be to take the franchise information and the financials to their chartered professional accountant in order to get a good idea of the viability of the business. Chartered professional accountants have lots of experience crashing financial information for businesses, and will be able to give potential business owner a good idea on if it is good risk or if itís not. Accountants can often help business owners make incredible deals, or avoid terrible mistakes.