Thinking of converting to a Franchise Shop any words of wisdom

[anthony smith]

Been in business for over 20+ years, and thinking of retirement.
Not sure how sellable a private shop is going to be is my reason for
looking at doing this.
Welcome your thoughts and experiences

 

[Drip Dry]

The thought is that you may get more when you sell a franchise, and the franchisor usually will help you
sell it, but... It cost you money to get in and then it usually cost you money to get out.

So, I would find out how much that adds up to and then figure out if you would make that money ( and then some ) back when you sell

 

[WildWestDesigns]

I would also keep in mind the area that you are in as well. I've been through Winchester many a time, the ole ball and chain is from Huntland.

Also, I would check to make sure if they want you to run the store for so long before you sell and if you are planning to still run it for at least that time frame (if they have such a stipulation).

I don't know if I would want to deal with the headache of having to go by another person's rules if I was planning on just getting out anyway, but that could just be me and I am a strange one at that.

 

[iSign]

how soon do you hope to get out?

I would think another reason someone might do this, is to "retire" the biz name you've worked under for 20+ years, make the transition with all your clients knowing you are still owner, at same location, selling same quality...

...and then after transitioning your street cred over to the new fran-pro-o-rama name... you can retire (with whatever no-compete clause you are required to sign...

...all the while, still having your original biz name (and reputation) intact, in your possession, and in retirement... until you get bored being retired, and then you would presumably be able to enter the fray again, although perhaps a few towns over

 

[Pat Whatley]

Do some research for horror stories on selling a sign franchise.

Here's an interesting read....
http://www.complaintsboard.com/complaints/signarama-california-c309609.html

 

[Billct2]

There was a franchise near here that had the exact same thing happen, it bankrupted several owners till one came along that finally made it work. And it was never considered a failure because it never closed, now I see that they only have to disclose the owners for the last 12 months, so that explains how that get by.

 

[rjssigns]

If I was close to retirement I'd find a buyer for the equipment and transition myself out.

Then go find a part or full time mindless job and coast to the "golden years".

No way would I be signing contracts and having major capital expenditures late in the game.

Remember, everything looks great on paper then reality pays a visit...

 

[jtinker]

Every franchise story I heard has ended in disaster. The companies dont care about you, your shop, your employees all they know is that they sold a franchise and you are on your own.