It is important businesses that are considering becoming a franchisor avoid costly mistakes. New franchisors should take proper advice when changing their business into a replicable business format franchise. It is vital that the potential franchisor makes the most of their resources and does not waste time or money.
NatWest’s Franchise Development Director Mark Scott says, “We advise that all businesses considering becoming a franchise avoid costly mistakes by using only respected BFA advisors. Avoid seeking advice from people or businesses that have simply paid their way to the top of web searches.”
The banks are very supportive of well set up and managed franchise businesses. When the bank reviews the structure of a franchise it looks for strong systems with robust management and advice from a BFA accredited consultant and lawyer.
- Don’t be caught out by results at the top of search engines.
- only use a BFA affiliated adviser.
- It may cost you more in the short term but the long term benefits will outweigh them
To avoid making costly mistakes, businesses becoming a franchisor need to approach the BFA for guidance. Get experienced and knowledgeable advice on how to structure a good franchise.
A referral to a BFA consultant can ensure that the correct structure is in place. They will work with a lawyer and in time introduce the concept to the Banks’ franchise teams. Working with BFA professionals will make becoming a franchisor easier in operations and access to funding for your business and your franchisees.
In my last post I outlined five aspects of credibility that you should determine when finding a franchise M&A advisor. Below are five more points that continue the theme. To read the last entry visit that outline points 1 to 5 go visit - http://www.selectyourfranchise.com/franchise-blog/2009/09/franchise-ma-advisor/.
It is vital that the franchise Merger and Acquisition specialist you choose can help you to find out:
6. Who are the likely buyers for my franchise business, and why?
7. What is the likely value range for my franchise company; what’s your approach to putting a price tag on it, and how will I know that I’m getting the best price and terms for my business if I choose your M&A advisory firm to sell it?
8. Do you have any client reference letters and will we be able to speak to referees?
9. How do your fees work?
Minimum cash at close?
How long is the “tail” on the agreement?
10. What can your M&A advisory firm do in advance of a franchise business sale to help us improve our ultimate transaction value?
Shield offer their own Business Improvement Programme and sell businesses with operating profits of £500k. Free valuations are offered to qualifying franchise businesses, in any sector, anywhere in the world.