Buying a franchise business, or any business for that matter, is one of the largest decisions that one can make. Sampson & Associates has developed proven methods and techniques to assist the prospective franchisee throughout this process. Not only do we assist in all the technicalities of the purchasing process, we also help in your decision on whether or not a business is the right one for you.
At Sampson & Associates we recognize the importance of striking a balance between the personal and financial criteria required to purchase and maintain a successful franchise. There is much preparation work a potential purchaser should do prior to attending a franchise meeting. This begins with a thorough and honest self appraisal of personal and financial qualifications.
The personal criteria are equally important in the purchasing process as the financial criteria. The prospective Franchisee needs to evaluate whether or not the business is suited to his or her lifestyle and expectations and whether or not the business can be healthily maintained once the purchase is completed. Due diligence should be conducted in deciding what business the purchaser is interested in buying
At our initial information meeting, we, along with the prospective Franchisee, will perform a thorough self analysis of personal goals and qualifications. Such points as past experiences, personal skills, working history, business fears and goals will be address in this form. This helps Sampson & Associates to know the personal aspirations of the purchaser thereby enabling us to tailor our services to your needs.
Click here for a copy of our Personal Analysis Form
- The preparation of a comprehensive net worth statement. This should consist of all assets and liabilities.
- The analysis of how much unencumbered funds the potential purchaser has and how easily accessibly these are.
- The preparation of a complete monthly budget so as to maintain normal living expenses. It is wise to retain 6 months carried forward of these living expenses.
The above three steps will show the amount of personal funds that can be invested in a business. This information is not only useful for the purchaser’s knowledge but can be useful to the Franchisor and the bank and should be readily available. Additional amounts could be training costs, legal, and accounting. With these, Sampson & Associates can help in deciding what price range the potential purchaser is working with and can assess a realistic business plan for the first 3 years of operation. Sampson & Associates has a very close business relationship with two major Canadian banks and can help in obtaining financing for the purchaser, should it be required.