BizBuySell

BizBuySell Q3 2024 Insight Report is live https://bit.ly/3YshXMd which gives you a detailed overview of small business confidence and the business-for-sale market as we approach the final stretch of the year. Here are a few highlights: 🔹 Most small business owners are confident in receiving an acceptable price if they were to sell 🔸67% of owners say Trump will have the best impact on small business with tax reform in focus 🔹Service and retail businesses command higher prices 🔸 Acquisitions up 20% for manufacturing businesses, 15% for restaurants

Buying or starting a business requires a significant amount of research. The more informed you are before signing on the dotted line, the fewer surprises you’ll encounter and fewer opportunities for your investment to go sideways. Although there are no guarantees in life, the good thing about buying into a franchise system is that franchisors must adhere to a set of rules and regulations for all new franchisees. These are well organized and explained in detail in the Franchise Disclosure Document (FDD). The FDD serves as the go-to guide for prospective franchisees for the franchise offering. It breaks down each section of business operations and finances into 21 sections called Items. Item 1 through Item 21 cover topics like initial franchise fee, financial performance representations, how to handle dispute resolution, and the franchisor’s obligations once the franchise agreement is signed. The FDD is designed to provide all the information you need to make an informed investment. This article covers franchise financing options—Item 10 of the FDD. https://bit.ly/3ZKYwO4

The Franchise Disclosure Document (FDD) is incredibly detailed and meaningful if you’re considering purchasing a franchised business. It’s like an operating manual for potential buyers—each section outlines specific areas of the franchise system, such as obligations, expectations, financials, and more. Among the various sections, Item 9, also known as Franchise Obligations, is particularly important for potential franchisees to understand. Regardless of your business experience, the FDD will be your best friend when deciding if a particular franchise is worth the investment. https://bit.ly/3VVRSDn

If you're considering entering the world of franchising, understanding the ins and outs of franchise agreements is crucial. These legal documents govern the relationship between a franchisor (the company providing the franchise) and franchisee (the individual purchasing the rights to open and operate a franchise). This guide will cover everything you need to know about franchise agreements, their role in the franchise business model, and key elements to consider before signing. https://bit.ly/3DrKFEM

Compliance is a necessary aspect of selling any business, and when executed well, facilitates a smooth transaction. For small business owners in sectors such as retail, hospitality, personal services, restaurants, dry cleaning, and more, understanding regulatory compliance is essential; businesses of all sizes must adhere to specific local, state, and federal regulations. Being well-prepared and knowledgeable about these requirements can prevent delays or complications during the sale. As you navigate selling your business, remember that meeting the necessary regulatory standards not only supports a legally sound arrangement, but also enhances the attractiveness of your business to potential buyers. https://bit.ly/3ZRJZ36

Business liabilities, such as debts, legal obligations, and pending lawsuits, can potentially affect a company's financial health and perceived value. During due diligence, prospective buyers will thoroughly examine all liabilities. If they discover undisclosed current liabilities, it can lead to a lower offer, extended negotiations, or deal cancellation. A business owner must be transparent about total assets and liabilities to support a smoother sale process, instill buyer confidence, and increase the value of the business. There are several important categories of liabilities that most businesses must navigate, including tax liabilities, employee liabilities, and environmental issues. https://lnkd.in/gMyRKpRp

Although motivations for starting a business vary, very few people (or none!) get into it just for fun. The goal is usually to make money, create a job for yourself, build something you can pass on to your children, or as a long-term investment. For this reason, it’s important to pay close attention to the franchise agreements, particularly the numbers. Numbers rarely lie; the financial records of a franchise can offer valuable insights into whether or not you’ll succeed as a franchisee. Of course, geographic location and business experience will impact your success. But if a franchise system does not have a proven history of profitability, then you may want to save your initial investment for one that does. Item 21 of the Franchise Disclosure Document (FDD) provides detailed financial information about the franchise overall and is designed to help you determine whether the franchise offering is lucrative. https://bit.ly/4fE236P

If you’re an entrepreneur looking to purchase a franchised business, you’ve most likely heard of a Franchise Disclosure Document (FDD)—the legal document franchisors must provide to potential franchisees. Mandated by the Federal Trade Commission (FTC), it covers critical information about the franchise system and an overview of the financial viability. The FDD is organized into sections that cover specific elements of the franchise agreement and the business relationship between the franchisor and the franchisee. For example, Item 19 of the FDD focuses on earnings claims, now called Financial Performance Representations (FPRs). Let's now narrow our focus to Item 19 and explore how it can help you better understand the Financial Performance Representations in the FDD. https://bit.ly/3PdYbi8

Navigating the complexities of buying or selling a business requires expert guidance and careful planning. We've gathered valuable insights from seasoned professionals in the field - including business brokers, M&A advisors, certified appraisers, and SBA lenders - to help guide you through the process. Drawing from their extensive experience in business acquisitions, exit strategies, deal structuring, and transaction financing, these experts share their most valuable advice. Thanks to our valuable contributors Melanie Smollen, Matt Cole McDonald, Katrina Loftin CBI MAMI, and Sean Whitehead. https://bit.ly/3BKkvg5

As 2024 comes to a close, we want to thank you for being part of our community. Your trust in our platform means the world to us. We remain committed to working alongside you and supporting your success. Wishing you a joyful holiday season and a fresh start to a prosperous new year!