How to Obtain a Franchise
- 1). Contact a franchise broker through an association such as the Franchise Brokers Association. Find franchises available for sale with the help of the franchise broker. Go to the World Franchise Council website to find international franchises for sale. Access the Franchise News Center website to find franchises for sale by category.
- 2). Hire an attorney and an accountant to evaluate a potential franchise purchase opportunity. Analyze the market. Evaluate the competition, market share, suppliers and current customer needs.
- 3). Ask the franchisor for the franchise's tax returns and financial statements. Have your accountant evaluate the tax returns, income statement, balance sheet, cash flow statement and financial ratios and determine the value of the company. Compare the financial ratios to industry profiles.
- 4). Evaluate your financing options based on your personal savings and potential loan opportunities from banks, friends and family, government organizations, private investors and asset based lenders. Come up with a range within which you would be comfortable with making an offer. Walk through the franchise property and identify any potential issues.
- 5). Negotiate a final price with the franchisor and have your attorney write up a purchase agreement.