As a service to subscribers we have listed some important matters that a buyer of a franchise should consider prior to buying a business.This summary is not intended to provide all that is essential for a satisfactory business transaction, but rather to draw attention to certain matters that should be considered. There is no substitute for professional advice when concluding what may well be one of the largest transactions you will ever conclude.

Deloitte & Touche and Biz.for.Sale accordingly accept no responsibility for any inaccuracies in this document and the user, by proceeding further, hereby indemnifies Deloitte & Touche and Biz.for.Sale against all demands, claims, costs, loss and/or damage which the user may suffer/incur arising out of or in connection with the use by the user of the information contained in this document.

 

1.		CONCEPT
1.1		What is the concept?.
1.2		How long have they been in operation?
1.3		What makes them unique?
1.4		Can the "product" or "systems" be easily duplicated?
2.		MARKET EVALUATION
2.1		What is the size of the market?
2.2		What is the current growth rate and what are the future growth prospects?
2.3		What are the prevailing market trends?
2.4		How is the market segmented?
3.		CURRENT COMPANY PERFORMANCE
3.1		How many branches exist?
3.2		What is the profitability as indicated by margins?
4.		BUSINESS PLAN
4.1		What is the motivation for franchising the business?
4.2		How does franchising fit into the current business plan?
5.		COMPANY FINANCIAL STATEMENTS
5.1		What is the operations profitability?
5.2		Detailed specification of set up costs.
6.		MARKETING PLAN
6.1		What is the current marketing expenditure
6.2		What is the media spread?
7.		CONTROL MECHANISMS
7.1		What procedures and controls are currently in place?
7.2		What are the current operating standards?
7.3		What financial controls are in place?
7.4		Has a franchise champion been identified? If so, what are this persons leadership qualities?
8.		TRAINING
8.1		To what extent does the product/service require training?
8.2		Have training programmes been developed?

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Should you wish Deloitte & Touche to assist you with your busines transaction, please contact Stuart Gregory
Manager
Tel: +27 31 5607069
Fax: +27 31 5607351
e-mail: stgregory@deloitte.co.za.