Thinking of buying a franchise?
We have loan solutions from 50%-80% of the the franchise cost available depending on your situation.
When you buy a stand-alone business or franchise, it’s essential to carry out your own checks to verify that the previous owner or franchisor has a solid underlying business system.
To assist with your decision on purchasing a franchise we have some important things for your to consider before your final decision
Key financial information
- Check the financial statements
- Tax Returns
- Profit and Loss statements
- Tax returns if possible also
- Projected sales and method used to calculate them
- Franchise fees
- Advertising and marketing cost
- Fit out and equipment cost
- Royalties cost
- Legal cost
Legal, compliance and contractual issues
- Is the franchisor involved in any current or potential litigation?
- Get your lawyer to check the franchise agreement.
- What are the restrictions on selling, staffing, pricing and supply arrangements?
- Is a lease involved?
- If so, check the lease. Is there a right to renew?
- How long has the franchise business been established?
- Does it comply with the mandatory Franchising Code of Conduct?