Purchase Existing Franchise

Discussion in 'Starting a Business' started by Live4Purpose116, Jun 9, 2016.

  1. Live4Purpose116

    uix_expand uix_collapse
    New Member

    Jun 9, 2016
    Likes Received:
    Total "entrepreneurial newbie" here. The most entrepreneurial thing I've done thus far in life is close on 5 real estate transactions (as a realtor) back in 2013, before giving up and getting back into the working world.

    I returned to an industry wherein I had 4 years previous experience. Now going on 7, now more involved in the sales/business development aspect. Now desire to get into it for myself.

    The appeal in purchasing an existing franchise is the national accounts that will generate automatic revenue, on top of what I am able to generate on my own.

    I have a specific franchise in a specific location (in another state) in mind. I have a friend who works for this particular franchise, and while I do not personally know the owner, my friend strongly feels that the owner is not passionate about the business, neglects operations, and spends a lot of time away from work. I honestly don't even know whether this guy would be interested in selling.

    My idea would be to simply reach out to this guy by writing a letter to him and asking if he has any interest in selling the operation. If so, I would need a situation where I could partner with him 50/50, I run the operation while he sort of takes on a role of "consultant," until his magic number is reached (price), then he hands his share over to me. The reason for this is obviously because I have no money, assets, or credit to purchase the business outright.

    Would love to hear some experienced people's feedback on the above scenario - how feasible it is, best way to approach, etc.

    Bonus material:

    The company's rules for purchasing a franchise are to have a certain net worth and a certain amount of liquid cash. I do not meet these requirements. But theoretically, I would think that by partnering with the current owner, he would qualify me until I am able to reach these requirements myself. Am I right?

    Thanks in advance!

Share This Page