Franchise Clearly

Many business buyers choose franchises because they’re attracted to companies with well-defined organization and processes, and they often think that they can buy a franchise on their own without the help of a business broker. After all, the rules are specific, and the procedures are standardized. That should make it easier, right?

That’s a little like showing up at the Boston Marathon with a pair of running shoes and lots of enthusiasm, but no running experience.

Our job as business brokers is to help buyers understand the process and make it through the sale as quickly and cleanly as possible. Every franchisor is different, but the buying process can take months. It’s complex and can sometimes be frustrating for first-time buyers.

As soon as a buyer/seller agreement is in place, we begin the process with a due diligence introduction call where we set expectations and provide an overview of the steps involved to close the transaction smoothly. We provide a lot of information and answer as many questions as possible. But buyers are often busy people, and it’s hard to retain all the steps and the requirements they’ll need to fulfill over the next few months.

Franchise Clearly has proprietary software that helps manage the due diligence process and provides transparency. For The UPS Store Franchise, that includes:

• An Initial Interview phone call with The UPS Store Franchise followed by an Executive Interview call to discuss ownership, operations, and marketing plans
• Disclosed with a Franchise Disclosure Document (FDD) and completing a Personal Financial Statement
• Submitting a Letter of Intent and application fee Providing documentation and responding to requests from third parties: the franchisor, the lender, and the landlord, all of whom are key to the deal
• Following corporate approval, mandatory training is required from The UPS Store, which includes web-based Tutorials, two weeks of in-store training at a The UPS Store Certified Training Center, and attending an interactive workshop at corporate headquarters in San Diego.

The back-and-forth information requests from the franchisor and lender take time, and it can be a frustrating process for buyers; there’s a lot of “hurry up and wait.” That’s where an experienced broker can make a difference. We help buyers understand what’s needed and why, and keep the process moving along. We have a system for tracking where the buyer is in the process, what’s been requested, what’s still outstanding, and in whose court the ball is.

That allows buyers (and sellers) to be more relaxed and focus on their current business, knowing that someone has done this before and is taking charge of ensuring the deal gets done.

We always tell buyers that there will be issues and obstacles to overcome, but we also help them stay focused on the goal: to become a franchise owner and begin a new phase in their life of financial growth and independence.