I have done a short search but not found what I’m looking for so I’ll start a new thread.
I am ready to list my 2nd location for sale as a franchise and one of the details to include is whether or not to offer financing. (Obviously, this can be a selling point.)
I have always thought this was a bad idea (I purchased my first set of equipment from the original owners in an “owner financing” deal) but realize that it is quite typical in the restaurant business.
It is conservatively (but realistically) valued in the five figure range (includes franchise fee, training, and support), and given such, I hope to avoid the whole scenario of owner franchising. (They could not build it out for what I will sell it for, unless they did nearly everything themselves, and it would be close at that.)
My gut says to not offer financing and wait for responses first, to determine whether it is truly necessary.
If I should end up having to provide it, is there any advice out there as to how I should handle it (obviously with a lawyer) with terms and what not? Any related experiences would be great.
Thanks,
Ron
I am ready to list my 2nd location for sale as a franchise and one of the details to include is whether or not to offer financing. (Obviously, this can be a selling point.)
I have always thought this was a bad idea (I purchased my first set of equipment from the original owners in an “owner financing” deal) but realize that it is quite typical in the restaurant business.
It is conservatively (but realistically) valued in the five figure range (includes franchise fee, training, and support), and given such, I hope to avoid the whole scenario of owner franchising. (They could not build it out for what I will sell it for, unless they did nearly everything themselves, and it would be close at that.)
My gut says to not offer financing and wait for responses first, to determine whether it is truly necessary.
If I should end up having to provide it, is there any advice out there as to how I should handle it (obviously with a lawyer) with terms and what not? Any related experiences would be great.
Thanks,
Ron
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