Franchise Q&A Q&A
[Q] What should I consider when buying a franchise resale?
[BIO] LIZA
GRATTON Is head of franchisor services at Dennis & Turnbull Chartered Accountants, a leading fi rm of bfa- affi liated franchise accountants
[A] There are various things to consider when buying a franchise business through
resale as well as all the points you should review and evaluate when buying a new franchise. It is important to make sure you have access to the last three years’ accounts to see how the business has been operating and to be able to have a frank discussion with the existing franchisee as to why they are selling. When looking at how to structure the deal it is often better to buy the assets instead of the company in which it trades. This ensures that you don’t acquire any history that may be detrimental to you. You should, however, take advice from a franchise specialist accountant and solicitor in order that you understand the pros and cons of both share and asset purchases.
When going down this route apply exactly the same due diligence procedure that you would for a new franchise area, and ensure that you get the full support from head offi ce for training and marketing as a new franchise would receive.
[Q] Is age a barrier to buying a franchise?
[BIO]
NIGEL TOPLIS is managing director of Recognition Express, The ZipYard, Kall Kwik and Computer Xplorers
a sense of stability – an understanding that this franchise purchase may be their last major ‘business/job’ decision, so they better make it work! When recruiting prospective franchise owners I genuinely don’t look at age. For our four brands – Recognition Express, The ZipYard, Kall Kwik and ComputerXplorers – I’m looking for ‘people’ people, good organisers, strong communicators and above all people with passion – and frankly I can fi nd all of these attributes in a 60-year-old as much as in a 30-year-old.
[A] I have recruited franchise owners from their late 20s into their early 60s
and, frankly, age is simply not an issue. What is important, however, is the ability to perform – to have the energy, drive and ambition to give 100 per cent to the running of a business. Businesses do not fail because the business owner is ‘too old’ nor do they succeed simply because the owner is perceived to be a ‘young stallion’! Successful franchising is a marriage of two parties – with the franchisor bringing brand, system, training, marketing and ongoing support to the relationship and the franchise owner contributing their own business skills, ambition and desire, as well as a genuine willingness to ‘work the system’. There is a school of thought, of course, that says those prospective franchise owners of more mature years are more willing to follow the system and work in tandem with the franchisor than the young prospects. Age brings with it certain advantages; yes, experience and maturity, but also maybe a sense of purpose and
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Businessfranchise.com | July/August 2012
[Q] I am interested in becoming a franchisee, but how much of a free hand would I have in running the business?
[BIO] PETER
WILLIAMS Peter Williams is a well-established franchise consultant
[A] In answering your question it is necessary to consider the fundamental
concept of franchising which, essentially, is all to do with replication. Given that a business is tried, tested and proven, with a good trading record and adequate profi t margins, it might well be suitable for development as a franchise. If it is, the objective will be for its franchisees
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