1. Franchise Resale Pricing

The price of a franchise resale is primarily determined by the operating income the location is currently achieving. This income-based valuation reflects the business’s actual performance and profitability, making it a key factor in negotiations. For buyers, understanding the franchise’s financial statements and verifying income claims is crucial.

Check out our guide to understanding cash flow to learn more about business sales, expenses, and growth. 

2. Maintaining Brand Value in Franchise Resales

Franchisors have a vested interest in ensuring that franchise resale prices do not dip too low. A low resale price can negatively impact the perceived value of the franchise brand as a whole. To prevent this, franchisors often set minimum price thresholds and actively monitor resale transactions to maintain brand integrity and value. 

Due to the franchisor’s guidelines and controls, franchisees may have limited ability to independently determine the resale prices of their franchises.

3. Franchisor’s Role in the Franchise Resale Process

Buying a franchise involves significant franchisor participation in the sale process. The franchisor typically drives the sale process, requiring potential buyers to undergo a thorough vetting process. This vetting ensures that the new owner is financially stable, experienced, and capable of maintaining the franchise’s standards.

4. Demand for Significant Down Payments

To promote financial stability and reduce risk, franchisors may require buyers to make a substantial down payment, sometimes up to 50% of the purchase price. This down payment ensures that the buyer has a significant financial stake in the business and is less likely to be over-leveraged with debt, which could jeopardize the franchise’s success.

To help you get started, we’ve put together a short guide on how to finance buying a franchise. 

5. Franchise Fees on Transfers

Franchisors usually charge a franchise fee on the transfer transaction. This fee can vary but generally covers the costs associated with transferring ownership, including administrative expenses and the cost of training the new owner. Buyers must factor this fee into their overall budget.

6. Working Capital Needs for Buyers

In addition to the purchase price, buyers need sufficient working capital to cover operational expenses, inventory, and unforeseen costs during the transition period. Having adequate working capital ensures that the business can continue to operate smoothly and meet its financial obligations from day one.

7. Mandatory Upgrades Before Closing

Before a franchise resale transaction closes, the franchisor may require completing necessary upgrades to the location. These upgrades ensure that the franchise meets current brand standards. If these upgrades are not completed, the franchisor can opt to withhold estimated upgrade costs from the sale proceeds to ensure compliance.

8. Closing Documents and Funds For Franchise Resales

To protect their financial interests, franchisors might require closing documents and funds to flow through their lawyer. This ensures that outstanding fees or debts owed to the franchisor are settled before the seller receives the sale proceeds. This step helps maintain financial clarity and accountability.

9. Full-Time Franchise Owner/Operator Requirements

Franchisors often prefer that the new owner be a full-time operator. They look for individuals with relevant skills, experience, and a commitment to running the business hands-on. This approach helps ensure the new owner is fully engaged and can drive the franchise’s success through active management and leadership.

10. Adherence to the Franchise System

New franchisees must adhere strictly to the established franchise system. This includes following operational procedures, marketing guidelines, and other franchise-specific protocols. Compliance is critical to maintaining brand consistency and avoiding potential legal disputes with the franchisor.

Navigating the intricacies of franchise resales requires a keen understanding of both the franchisor’s and franchisee’s perspectives. As a business broker, my goal is to help buyers and sellers understand these nuances and facilitate smooth, successful transactions. By being aware of the franchisor’s requirements and preparing accordingly, potential buyers can confidently step into ownership, ready to take the franchise to new heights. 

If you’re considering buying or selling a franchise, contact me for expert guidance tailored to your unique situation.

The post Everything You Need To Know About Franchise Resales first appeared on Acuity Business Group.

That’s why we have compiled our best tips to help you navigate securing a business loan. Read on to discover how you can turn financial challenges into opportunities for success. 

Craft a Winning Business Loan Request

To create a compelling loan request, begin by presenting a powerful prospectus. Condense your business or project details into a concise document that clearly articulates the purpose of the loan and how it aligns with your overall business strategy. 

Showcase your commitment by highlighting your financial contribution and capacity for future reinvestment. This demonstrates dedication and reduces the perceived risk for the lender.

Check out our guide on how to write an effective business plan for tips and inspiration. 

Establish Credibility 

To alleviate lender concerns, understand and address leverage, liquidity, profitability, and activity ratios. Familiarity with your company’s financial ratios is crucial for a credible loan application.

Support your loan request with robust research and evidence. Focus on presenting one project, avoid industry jargon, and ensure your proposals are grounded in realistic data.

Master Your Credit History

Maintaining a stellar credit history is crucial. Regularly check personal and business credit scores for errors and to understand your current status. Use these scores as a tool for improvement, implementing practical tips like timely bill payments and paying down debt.

Scrutinize Lenders’ Terms

Beyond the interest rate, delve into the terms and conditions offered by various lenders. Flexibility and optimization should be prioritized over mere cost considerations. This strategic approach ensures that the chosen loan aligns with your business needs.

When exploring financing options, ask questions about loan terms, percentage financed, repayment flexibility, and collateral requirements. A comprehensive understanding of these factors helps you make an informed decision.

Deal with Challenges Transparently

Confronting financial challenges is inherent in entrepreneurship. Transparent communication is key—keeping stakeholders informed, presenting a detailed recovery plan, and involving them in decision-making fosters trust and collaboration. 

Acknowledge mistakes, anticipate challenges, and maintain a positive outlook. This transparent approach transforms hurdles into opportunities for growth and reinforces your commitment to long-term success.

Conclusion

Securing a business loan is a pivotal step toward achieving entrepreneurial success. This expert advice will help you confidently navigate the loan application process. We have even more information about how borrowing money can be a great business move and how to do it right in this blog post.  

If you’re thinking about buying or growing a business, get in touch to find out how we can help! 

The post Successfully Navigate the Business Loan Landscape first appeared on Acuity Business Group.

The days when small business loans took a mere two months to finalize are gone, and the process is now considerably longer. To successfully navigate this challenge and secure the funding you need to acquire your dream business, you must be well-prepared and proactive. In this blog post, we’ll explore how you can increase your chances of obtaining small business funding in Western Canada with the help of a case study.

One Canadian’s Journey to Business Ownership With Small Business Financing

Sarah had always dreamed of owning a business. She had the skills, the passion, and a clear vision. After years of saving, researching, and attending business acquisition seminars, she was finally ready to take the plunge. Sarah set her sights on a small manufacturing company in Alberta, but soon realized that securing financing wouldn’t be a walk in the park.

Challenges Faced in Obtaining Financing

Sarah quickly learned that commercial loans were no longer the straightforward process they once were. With the help of an experienced business broker, she identified one of the main challenges to obtaining financing: tougher documentation requirements. Financial institutions wanted to see comprehensive documentation to evaluate her creditworthiness and the viability of the business she intended to purchase.

Proactive Strategies for Financing Success

Undeterred, Sarah knew her dream was within reach with the proper preparation. She put together a financing package that would impress any lender.

Buyer Profile: Sarah crafted a compelling buyer profile that showcased her extensive industry experience and the skills that would help her succeed.

Net Worth and Bank Statements: She provided a detailed and accurate net worth statement along with transparent bank statements that clearly outlined the source and amount of her down payment.

Credit Score Report: To be fully prepared, Sarah obtained her own credit score report, revealing a high score and a history of responsible financial management. If her score had been low, she would have provided extra documentation to explain the rating.

Business Plan: Sarah’s business plan was nothing short of impressive. It laid out strategic and achievable marketing strategies, staffing plans, and product development initiatives. Check out our step-by-step guide on how to write a business plan.

Realistic Financial Projections: Her financial projections were realistic and clearly showed how the business would support her, generate a return on investment, and enable her to repay the loan efficiently.

Preparation Pays Off When Applying for Business Financing

With her well-prepared business financing package in hand, Sarah’s small business loan application stood out among the rest. The financial institution recognized her as a sophisticated operator who had done her homework. Sarah secured the financing she needed, and the loan processing time, although longer than expected, did not hinder her dream of business ownership.

Sarah’s journey to business ownership in Western Canada is a testament to the importance of preparation and determination in today’s competitive financing landscape. Remember, the key to success is demonstrating your readiness and commitment to loan lenders, making them more inclined to support you. Take the time to gather the necessary documents, plan meticulously, and position yourself for financing success in the exciting world of business buying.

If you’re considering franchise ownership, we have even more tips just for you in our blog post about how to finance buying a franchise. Your dream business may be closer than you think!

The post How To Secure Financing To Buy a Business in Western Canada first appeared on Acuity Business Group.

In this step-by-step guide, we will walk you through each section of a business plan and provide valuable tips to help you write an effective plan that stands out and inspires confidence from potential lenders.

The Importance of a Business Plan

A well-structured business plan serves as a roadmap, outlining your goals, strategies, and vision. It provides direction and clarity, ensuring everyone in your business is on the same page and working towards a common objective.

Externally, a comprehensive business plan impresses investors and lenders by showcasing your professionalism, market analysis, and financial projections. It instills confidence and increases the likelihood of securing funding or partnerships.

Internally, a business plan aligns your team, providing a solid foundation for decision-making and action. It forces you to critically evaluate your ideas, market potential, and financial feasibility, ensuring you are well-prepared to overcome challenges.

Executive Summary

The executive summary needs to be compelling in two ways; it should grab attention and provide a concise overview of your business plan. Use this section to effectively communicate your unique value proposition and outline the key points that will entice potential investors or lenders to dive deeper into your plan.

Pro tip: Craft a captivating opening sentence that hooks readers from the start.

Company Description and Vision

Tell your readers a story about your company that includes its history, mission, vision, and values. In your company story, showcase your products or services, define your target market, and highlight your competitive advantage. This section of your business plan should capture the essence of your business and demonstrate your understanding of the market landscape.

Pro tip: Clearly define your target market and address a specific need or problem that your business solves. Show how your unique value proposition sets you apart from competitors.

Market Analysis and Strategies

In this section, you dive deeper into the market landscape by identifying your target audience, assessing competitors, and analyzing industry trends. Share your marketing and sales strategies, the reasons why you’ve chosen them, and the success you’ve already had. Providing data-driven insights and actionable plans demonstrates your market expertise.

Pro tip: Conduct thorough market research to identify emerging trends, customer preferences, and potential growth opportunities.

Organization and Management

When presenting a business plan to investors, it is important to showcase the people who make up the company. Introduce yourself and your management team, and highlight relevant qualifications and experience. To help people have a better understanding of how the company works, include a clear organizational structure, and define roles and responsibilities. Showcasing a capable leadership team instills confidence in investors and demonstrates your ability to execute your business plan effectively.

Pro tip: Emphasize your team’s ability to drive the company’s success and showcase any unique skills or expertise that differentiate your team.

Product or Service Offering

Now is the time to delve into the specifics of your products or services, highlighting their unique features, benefits, and pricing. Clearly outline your value proposition and address customer pain points. If applicable, include details on your production processes, technology, and intellectual property to showcase your operational capabilities.

Pro tip: Highlight the unique features and benefits of your product or service, but also focus on the emotional appeal it brings to customers. Clearly articulate how your offering solves their pain points or improves their lives. By emphasizing the emotional connection, you grow stronger brand affinity and differentiate yourself from competitors in a meaningful way.

Sales and Marketing Strategies

This is a key section of your business plan because, without sales, your business will not be successful. Outline your sales and marketing strategies, including customer acquisition plans, pricing models, and promotional activities. Add a comprehensive marketing plan that aligns with your target audience and differentiates your business from competitors. Be sure to highlight key metrics and milestones you will use to measure success.

Pro tip: Craft engaging narratives that showcase the value of your products or services and demonstrate how they solve customer problems. Incorporating storytelling techniques into your marketing strategies helps you create a memorable and impactful impression on potential investors and lenders.  

Financial Projections and Funding Requirements

Investors and lenders will be very interested in this financial information. Objective and realistic financial projections, including sales forecasts, income statements, cash flow analysis, and break-even analysis should be included in this section. Be sure to justify your assumptions and demonstrate financial viability. Present a clear understanding of your funding requirements, showcasing your plans for utilizing investment or loan proceeds effectively.

Pro tip: Provide a well-supported explanation of your financial projections, demonstrating a thorough understanding of your industry’s trends and market conditions. Incorporate key performance indicators (KPIs) and benchmarks to track your progress and demonstrate your ability to achieve sustainable growth.

Risk Assessment and Contingency Plans

Risk is part of any business venture and should be tackled head-on, not swept under the rug until it can’t be ignored. Identify potential risks and outline strategies to mitigate them. By anticipating challenges and developing contingency plans, you will maximize your risk management capabilities and be prepared for potential hurdles.

Pro tip: Conduct a comprehensive SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis to identify potential risks and develop robust contingency plans. Show that you have considered various scenarios and have strategies to mitigate risks, ensuring your business’s long-term stability and success.

An effective business plan requires careful thought, research, and attention to detail. By following this comprehensive guide, you will be well-equipped to create a compelling business plan that captures the attention of potential investors and lenders. Your plan also serves as a roadmap for your business’s success.

Start writing your winning business plan today and pave the way for a prosperous future!

The post Mastering the Art of Writing an Effective Business Plan: A Step-by-Step Guide first appeared on Acuity Business Group.

1. Multiple streams of income

Motels can provide more than just overnight accommodation for guests.  A motel can increase revenue by adding multiple streams of income.  Additional income can be generated through an onsite restaurant, convenience store, gaming pub with VLT’s, an ATM machine, or boardroom facilities that can be rented out to community groups and organizations.

2. Flexible service offerings

Motels, and the accommodation industry in general, offer owners a great deal of flexibility with respect to the level of service offerings.  The accommodation industry has three levels of offerings including limited service, mid-range, and extended-stay options.  Motel owners can analyze the costs and revenue generated by each level of service offering in their particular geographic location to determine which offers the greatest opportunity for reliably increasing profits.  Service offerings can be re-evaluated and adjusted in response to changing market conditions.

3. Owners can decide how involved they want to be

Motel owners can choose to live onsite and be involved in day to day operations or they can remain at arm’s length and hire a team to manage the business.  Motels are a great option for a business owner who would like to spend a few years running the business and then transition to a more hands-off approach.  With guidance from the right team of professionals, motel owners can create a business and operations plan customized to their preferred level of involvement.

4. Cash flow

With most motels, there is typically established cash flow.  Since payments are made daily and reservations are year-round, a new motel owner does not have to wait for a first big purchase or account receivables to generate cash flow.  Provided a new motel owner has done their due diligence during the purchase process, future cash flow should be relatively easy to estimate based on historical occupancy rates and upcoming projected reservations.

5. Return on investment

Return on investment for motels is generally healthy.  Like any business, it is affected by various factors such as location, physical condition, size, operations, and the current economy.  When it comes time to sell, if the business has been run well, revenue streams are diversified, and occupancy rates have been strong then it is more likely to earn a higher sale price.  A business plan that outlines future opportunities for growth can help increase the return on investment by showing potential buyers how to continue to grow the business into the future.

Purchasing a motel is a business opportunity that can meet the needs and wants of many business owners.  With flexibility in terms of service levels, involvement, and succession planning, a motivated owner can truly create their own optimal balance between work and life.  If you have been considering purchasing a business in the accommodation industry, a qualified business broker can help you assemble the right team of professionals, evaluate listings to determine the best fit for your business goals, and help you create a business plan that will propel you towards success once the deal is done.

Contact Acuity Business Group to learn more about accommodation businesses currently on the market.

The post 5 Reasons a motel can be a great business venture first appeared on Acuity Business Group.

Traditionally, a business is considered sold and ownership is transferred after the seller is paid in full.  Today many buyers are not willing to make a lump sum payment to finalize the transaction.  To achieve their asking price, sellers have to be flexible and creative in their terms concerning payment and closing.  Two methods sellers have been using to close deals are earnouts and vendor financing.

Earnouts

Earnouts are a flexible option where terms and conditions are unique to each circumstance.  In an earnout agreement, the buyer agrees on a purchase price and commits to additional compensation to the seller if pre-determined criteria and performance targets are met.  This type of deal is a good option when a business for sale has recently experienced a period of exceptional profits as well as when a business has entered a new market or has new offerings. 

Earnouts help to eliminate some of the uncertainty buyers are feeling.  The structure shows that the seller believes strongly in the future success of the business.  It also reduces the financial burden on the new owner.  Most importantly, earnouts motivate the buyer and seller to work together to help the business reach peak performance before, during, and after the sale is completed.    

Vendor financing

Vendor financing is a second option that encourages buyers to make an offer.  It is no secret that it can be difficult to obtain financing to buy a business.  While there are some alternatives to traditional financing options, these can be extremely expensive.  Some business owners may be able to offer financing, also known as a vendor take back.  In this type of deal, the buyer agrees to pay the seller a percentage of the sale price over an agreed-upon period.  The payments include interest and the rate can be negotiated between the buyer and the seller.  It offers an added layer of protection for buyers because they can easily recover costs that were not properly disclosed before the sale was finalized.  This structure keeps the owner engaged throughout the transition period which can be very beneficial for the buyer as they learn the ropes.  I recently closed a deal using vendor financing over three years at an interest rate of prime plus 1%.  Both parties were pleased with the terms of the agreement and that helped to propel the transaction over the finish line. 

Protection for all parties

When considering a deal using earnouts or vendor financing, due diligence is still extremely important.  My top three recommendations to anyone entering into an earnout or vendor financing agreement are as follows:

• Document everything in writing, including the terms of the deal and all relevant accounting assumptions;
• Have the deal drafted and reviewed by experts, including a business broker, accountant, and lawyer experienced in handling business for sale transactions; and
• Be sure the agreement includes a dispute resolution process.

One certainty that impacts all business for sale transactions is that no one knows what the future holds.  When we are open to alternative financing arrangements like earnouts and vendor financing, we can overcome buyer hesitancy and structure transactions where everyone walks away a winner.  If you would like to talk about buying or selling a business using either of these strategies, please reach out and book a time to chat!

The post Flexible payment plans help close the deal first appeared on Acuity Business Group.

Get to know yourself

Different personality types are better suited to the franchise business model.  Franchisors expect franchisees to operate within the established systems, processes, and rules.  There is not always room for creativity or impulsivity.  For someone who finds it difficult to operate within a highly regulated environment, adapting to the franchise business model may be difficult.

It is also important for business owners to know where their strengths and interests are.  For example, someone who is tech-savvy may excel in a franchise concept like cell phone repair or IT solutions for small businesses.  A person with a background in education may gravitate towards a concept like tutoring or educational products.

Learn what franchises are available

Many people still equate a franchise with businesses like fast food or a retail concept such a pet supplies.  There are hundreds of types of franchise businesses that are profitable options.  Start by doing some online research to learn more about the available options.  One great resource is Franchise Canada Online.

Know your numbers

Before making an offer on a franchise, you need to have a firm grasp on two important sets of numbers.  These numbers are what you can afford to spend and franchise costs.  Reviewing your financial situation should be done with a qualified accountant or bank officer that has experience working with small business owners and franchises.  In addition to the cost to purchase the franchise, you also need to confirm ongoing expenses such as franchise fees, inventory or equipment, and employee costs.  These expenses should be assessed alongside sales projections and other financial information included in the franchise disclosure document.

Understand your local demographics

Take a look at what businesses are in place locally and what is lacking.  Understanding what products and services are currently being underserved despite a demonstrated need is a great way to narrow down your franchise options.  Take a look at things like the local demographics, infrastructure, and areas similar to your own where franchise concepts are thriving.

Look for agile franchisors

This year all types of businesses had to be creative, flexible, and agile in response to the global pandemic.  When assessing franchisors, take a look at their ability to successfully pivot things like offerings or delivery methods during these past few months.  Also look at how franchisors have stepped up to support franchisees, both during the initial phase of the pandemic and ongoing.

Franchise businesses have long been a great model for new and experienced entrepreneurs.  Taking time to consider the five things listed above is one way to start down the road to a successful franchise purchase.  If you have questions about buying a franchise, contact us to learn how we have helped people just like you to make a successful franchise purchase.

The post 5 things to consider when buying a franchise first appeared on Acuity Business Group.

Earnouts can be a useful tool in a few different circumstances, including when

• A business is listed for sale following a period of exceptional profits or growth and this success has not had the opportunity to be replicated.
• A business has one or two customers that make up a significant percentage of sales.
• A business has recently entered into a new market or introduced new products and services.

How it works

There is no one specific formula to be followed for earnouts.  Each deal is as unique in its structure and terms as is the business that is being sold.  Depending on the circumstances, an earnout can take place over twelve months or be extended over a three to five year period.  The buyer typically pays a portion of the asking price up front and then settles the balance through future payments.

Successful earnouts are carefully structured with an emphasis on objective measures such as performance metrics, typically financial targets, to determine the future compensation that will be paid to the seller.

Both parties benefit

When negotiated correctly, both the buyer and the seller benefit from the earnout model.  Primarily, this structure can help eliminate some of the uncertainties faced by buyers and allow the seller to enjoy the benefits of future growth made possible by the work they did before selling the business.

A second important benefit to earnouts is that it gives a buyer a significant amount of confidence and reassurance about the future of the business.  When a seller believes in the business so strongly they are willing to defer payments into the future, this can help assuage fears and close the deal.

Earnouts can help to reduce the immediate financial burden on buyers.  Access to liquid funds and adequate financial resources is one of the main barriers for buyers and earnouts alleviate much of this strain.

Finally, earnouts are an effective way to motivate all the involved parties to work together to reach the same goals.  This cooperation can benefit company performance before, during, and after the sale is completed.  It can help with things like employee and customer retention and also ensure a smooth and successful transition between owners.

Tips to minimize risk

Using the earnout method involves a level of risk but risk is inherent to some degree in all business for sale transactions.  There are a few key strategies that should be used to make the earnout as successful as possible for both the buyer and the seller.

Using a business broker and team of experts that are familiar with structuring earnouts and seeing them through to completion is critical.  People experienced with earnouts can troubleshoot issues before they arise, problem-solve effectively, and maximize the probability that the deal reaches fruition.

There should be no verbal agreements when structuring earnouts.  An easy to understand contract with clear and objective terms is the cornerstone of a successful earnout.  It bears mentioning that the contract should outline all the accounting assumptions that will be used when determining future payouts to avoid confusion or misreporting of earnings and profits.  While this type of document can take a significant amount of time and effort to put together, without it the deal is far more likely to sour and leave one or both parties missing out on the benefits of an earnout.

Last but not least, the earnout agreement should include a dispute resolution process to be followed if issues arise before the final payment is made.  Having a process in place before it is needed can help to save a significant amount of time and money.  It can get the deal back on track more quickly should problems arise.  The dispute resolution process gives both parties objective steps to be followed to promptly and successfully mediate circumstances that could threaten the success of the plan.

Earnouts can be very successful for both buyers and sellers when structured properly.  While many may shy away from this transaction method for fear of the risks involved, having a better understanding of the benefits and putting an individualized plan in place can help to overcome these fears and close a deal that might otherwise be lost.  If you have questions about using an earnout to buy or sell a business, please give us a call!  We can chat more about how it works and help you determine if it is the right choice for your business goals and circumstances.

The post How earnouts can be used to buy and sell a business first appeared on Acuity Business Group.

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Depending on what type of franchise you are buying, there can be significant upfront costs.  These costs may include the price of the business, franchise fees, working capital, and inventory.  Many prospective franchise owners do not have the amount of liquid assets required by the franchisor.  There are different ways owners can finance their purchase.

Business Development Canada

Business Development Canada is a financial institution devoted exclusively to business owners.  They provide financing for a range of business expenses including

• Purchasing a business,
• Buying equipment,
• Purchase order financing,
• Transferring a business, and
• Working capital.

While traditional banks may be reticent to provide financing for a franchise purchase, Business Development Canada is committed to helping business owners be successful.  In addition to business financing, the organization also offers advisory services to help with business management, revenue generation, and operational optimization.  Acuity Business Group has worked directly with Business Development Canada on several occasions to help clients secure financing for a business purchase.

Government Grants

The Government of Canada offers a wide variety of financing options and grants specifically for business owners.  Financial assistance includes grants, loans, capital investments, wage subsidies, private sector financing, and tax credits.  Special grants can be accessed based on where your business is located, service and/or product offerings, and owner demographics.  Similar to Business Development Canada, the Government of Canada also offers additional resources to help business owners with financial planning, accounting, and budgeting.

Family and Friends

It is not uncommon for business owners to approach family and friends for financial support when they decide to buy a franchise.  This can be an exciting opportunity for people to be part of a business owner’s success!  Before exchanging any funds, all involved parties should document in writing the terms of the loan including things like the loan amount, interest rate, and repayment terms.

It is important to remember that many Franchisors will insist that the buyer provide anywhere from 40% to 60% of the purchase price as liquid cash (i.e.: unencumbered cash sitting in the bank).  They also require that buyers have initial cash on hand to pay for inventory, legal fees to put towards setting up a corporation and reviewing franchise documents, and more.  The reason for this is that the Franchisor does not want the new Franchisee to take on too much debt.  It can be stressful enough as a new owner to build the business up without having to worry about high debt payments.

Working with an experienced business broker can be a great way to determine the pros and cons of various financing arrangements and help get documentation in place to make a successful request.  If you are ready to join the exciting world of franchise ownership, contact Acuity Business Group to learn more about how we can help!

The post How to finance buying a franchise first appeared on Acuity Business Group.