The Step by Step Process of Selecting and Buying a Business

Buying a business involves several steps and the first step can start right here at The-Franchise-Investigator.

Which Opportunity:

Start by finding a category that interests you. It could be Retail, Food & Restaurants, Business or Residential Services, Automotive, Child Education & Development, or one of many other categories. Once that has been determined then investigate all the opportunities within that category. You will also need to determine the amount you are willing and capable of investing.

If all the available choices have left you undecided about which opportunities may be the best one for you, then we recommend you work with a qualified franchise consultant. They will work with you to determine your goals, interest and requirements and will use their in-depth knowledge of the industry to make recommendations on the companies that are a match to your criteria.

If there are opportunities you find on this site you wish to get more information on then click on the “INVESTIGATE MORE” links you will find throughout the site then fill out and submit the Information Request Form. - Your Privacy - You will then be contacted or sent the requested information.

If at this point you are still interested and want to continue moving forward you will be asked to supply detailed financial information. Keep in mind buying a business takes an investment, sometimes a substantial investment, and like buying a house or car, you need to financially qualify. We will talk more about how to finance your business in a little bit further down the page.

Due Diligence:

Once you have submitted your qualifications the company will send you very detailed information about their company and opportunity in the form of the Uniform Franchise Offering Circular (UFOC). This document will provide all the details about their business experience, finances, litigation, their obligations to you, your obligations to them, earnings claims - How Much Income Can You Earn? - , list of current and past owners, contracts, plus much more.

It is always recommended you take the UFOC to a qualified attorney and financial advisor and have them review it’s contents. You will also want to contact as many current and past owners as you can to get their perspective and experiences with the business plus you should visit some of the businesses too.

Financing:

Everything is looking good, time to think about how and where to secure financing. - Financing Options - Typically you will find you can finance somewhere between 60% to 80% of the total cost to open the business. In many cases the company will have a preferred lender or a variety of lenders they will introduce you to. The financing options can range from SBA (Small Business Administration) loans, commercial business loans, or equity loans such as a home equity loan or a 401K loan. There are some companies that provide financing directly.

Discovery Day:

You’re ready to move forward. You will now visit the company headquarters where you will meet all the people who will support you in getting the business open and in the day to day operations. When both sides agree they want to finalize and you are ready to sign the bottom line there is a mandated 10 day cooling off period before the agreements can be finalized. This is all for your protection and to ensure this is what you want to do.

You're Now a Business Owner:

Lots to do now but the company will be with you every step of the way. They will help with things like site selection, lease negotiations, marketing material, grand opening, hiring, plus provide you training and on-going support. After all, they can only be successful if you're successful. As the saying goes, you will be in business for yourself, not by yourself.

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