TAKE THE GUESSWORK OUT OF BUYING A FRANCHISE
in this article:
A new online pre-purchase evaluation tool from Franchise Accountants helps franchise buyers get it right
Buying a franchise business is often a trek into the unknown. That’s especially true for first-time buyers and, even if you have some business experience, evaluating a new start-up location requires a lot of careful research. No matter how big or small the brand, every situation is different.
On top of this, buying a business can be an emotional rollercoaster, with the highs that come from the excitement of being your own boss being balanced by the dips of anxiety that come from the financial risk involved if it doesn’t work out. It’s a big decision so, just like buying a house, it pays to get a professional pre-purchase assessment from an expert before you buy – and that’s exactly what a new online tool from the award-winning specialists at Franchise Accountants provides.
‘This is an industry first which is designed to provide a potential franchise buyer with all they need to know about how any specific opportunity might suit their own circumstances,’ says Philip Morrison, the Principal of Franchise Accountants. ‘As one franchisor told me, there’s no other pre-purchase report like this on the market – it will provide a franchisee with everything they need to know.’
Philip explains how the process works. ‘Starting with a simple online question and answer session, we collate and analyse your information, apply our insights and know-how and create a 25-30 page Pre-Purchase Report which is tailored to your specific circumstances. This addresses the viability, profitability and sustainability of the opportunity and its financial fit for you.
‘The service also includes a face-to-face or Skype meeting to allow you to discuss the report in person with one of our experts. We don’t make the decision whether you should buy any particular business or not, but we do ensure that you have the information you need to make an informed decision.’
The whole process is based on many years’ experience. During that time, Franchise Accountants has worked with over 1,000 ‘new to business’ franchise buyers and evaluated over 250 franchise systems. ‘Each of the buyers is unique, and each of the businesses is unique,’ says Philip. ‘What works for one franchise buyer may not work for another. That’s why we’ve developed a 7-step process which provides a structured approach to creating a road map for making informed decisions. It’s like a financial matching exercise for finding out if the numbers work for you.’
The Pre-Purchase Report is designed to answer the following questions for prospective franchisees, master franchisees and franchisors:
• Can I afford it? Will my financial position be strong enough to make this work?
• Will it make money? When will it make money? How much money is it likely to make?
• Can I get my money back when I sell it? Am I putting my capital at risk?
• What do I need to know to make the numbers work so that there will be more money coming in than going out?
• Am I being realistic with my expectations?
• How does this opportunity measure up against other similar franchises?
Philip says, ‘Any accountant will ask the questions like: Is this business opportunity affordable? Is it profitable? Is it viable? Is it sustainable? What makes Franchise Accountants different is our knowledge of franchising in general and individual franchises in particular. We carry out industry- and franchise-specific benchmarking around performance measures based on our enormous experience. It all goes to reducing the potential risk for you as a potential buyer.’
Philip explains that there is always an element of risk when buying a business. ‘After all, if there were no risk, then everyone would be doing it!’ he points out. ‘However, it’s because of the risk that the rewards of business ownership should be greater than working for someone else.
‘Buying a franchise is about mitigating the risk. You should be mitigating it to some extent by joining an established brand and benefiting from the training, support, marketing and buying power that the franchise offers. But you still need to define what is an acceptable risk to take for your own individual circumstances. Our pre-purchase evaluation process helps you work that out.’
Philip emphasises that investing in a Pre-Purchase Report is not a substitute for doing your own homework into specific aspects of a business such as, for example, foot traffic or rental terms of a particular location, nor can it provide a guarantee of business success.
‘What it does do, though, is give you a framework to evaluate the franchise on the numbers that count, educate you in knowing what you need to know and reduce the risk by making informed decisions. Once you have that, you are in a better position to find a total package that works for you and the business alike. It helps you get it right.’
‘Getting access to this specialist knowledge takes just three steps:
1. Ring 0800 555 8020 from anywhere in New Zealand. We’ll advise which fixed price band suits you and register you for the online Pre-Purchase Report portal.
2. Log on, upload your information and answer some relevant questions.
3. Book in a meeting or Skype meeting to review the report and its findings.’
See this advertorial on page 90 of Franchise New Zealand Year 27 Issue 01
Contact details for Franchise Accountants
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|contact||Hayden Cargo or Philip Morrison|
This material is copyright © Franchise NZ Marketing Limited, Franchise New Zealand ™ magazine and Franchise New Zealand On Line . While it may be downloaded for personal use, no part may be reproduced in any form whatsoever without the specific written permission of the publisher.