- Resources /
- Acquisition Process
Buyer Registers at www.FranBizNetwork.com
Buyer agrees to the confidentiality agreement on the website and gains access to listings. Once he identifies a business of interest, he contacts his FranBizNetwork agent for details.
Buyer visits the location as a customer. He is discreet and doesn’t speak to anyone about the business.
Make an Offer
Buyer contacts FranBizNetwork agent who will draw up an offer, subject to further due diligence review, franchisor approval, and third party financing. In addition to the offer, Buyer will submit a financial statement and resume to the Seller so he can feel confident Buyer will be approved by the Franchisor and will be able to complete the transaction.
Due Diligence Review
Once Buyer and Seller have come to an agreement on price and terms, Seller will provide items for due diligence review, including P&Ls, payroll records, lease, franchise agreement, tax returns and inspections. Buyer will have 10 days to go over these items with his advisors and complete his evaluation of the business.
Submit Franchisor Application
Buyer’s FranBizNetwork agent will help gather the materials required and submit the package to the Franchisor, including the completed Franchisor application, business plan, and any other documentation required by Franchisor.
Apply for Financing
FranBizNetwork agent can help identify a suitable lender and help Buyer assemble the materials requested for an application.
Secure Franchisor Approval
Generally the Franchisor will require prospective franchisees to attend a discovery day at corporate headquarters as well as one or more interviews with their executive staff.
If Buyer is approved, training can take anywhere from 2-12 weeks, depending on the brand. Location of the training also varies.
Obtain Lease Assignments
Once Buyer has gained preliminary Franchisor approval, Seller or FranBizNetwork Agent will contact the Landlord and begin coordinating the lease assignment.
Secure Lender Approval
When the loan is approved all parties will schedule a date for close of escrow and changeover.
Final escrow and Franchisor paperwork will be signed, and a FranBizNetwork agent will meet Buyer and Seller at the business on the morning of change over. Buyer will verify the inventory on hand and do a final walk-thru of the premises to make sure the equipment is in good working condition. Once title agent receives the final inventory count and list of any agreed upon repairs, he will disperse funds and close escrow.