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Check out all the latest articles from MBA Business Brokers...
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| Purchase Process for Subway |
The process for buying a Subway has many steps and takes some time for those new to the system. The article is intended to improve the understanding of the process.
The entire process follows these steps:
1. Review the advertising and email MBA Business Brokers.
2. MBABB will send out a confidentiality agreement.
3. You complete the confidentiality agreement and return it to MBABB.
4. MBABB will send you the address and the financial information associated with the location. The financial information will be summarized from internal franchise operating reports. The reports include sales and food costs. They also include royalties and advertising expenses. The remaining costs, such as rent and utilities are pulled from leases, bank statements, etc.
5. You should drive to the location and have a sandwich. Depending on the location, you may want to vary your visits. Subways typically have a strong lunch during the week. Weekends are typically slower, unless the store is having a special Sunday promotion during football season. In short, you should plan to visit the store during the week at lunch time. Simply act like a ........... [ Read Full Article ]
|  8/9/2004 | | | | Evaluating Food Businesses |
Trade-Offs In the Food Business
For those of you considering the purchase of a food business, there are many factors to consider. These factors tend to be a complex matrix of trade-offs among the characteristics of the model.
First and foremost, prospective buyers need to consider the trade-offs associated with different food service business models. Bear in mind, that there is no “good” or “bad” aspects. There are simply trade-offs.
First, let’s take a look at franchises versus non-franchise models. If you are looking to purchase a non-franchise restaurant, you need to ensure that the location is well established and has plenty of clientele. If a restaurant has a long history and good reputation with a substantial client base, then the risk of purchase is lower. If the restaurant is not part of a franchise and has only been its current location for a few years, the risk is substantial. Conversely, franchises can typically survive regardless of length of service. Franchises typically engender a certain level of recognition, regardless of their length of operation in a particularly location. Thus, the risk of complete failure with a ........... [ Read Full Article ]
| | 8/6/2004 | | | | Evaluating Internet Businesses |
Buying a Web Based Business
Web Businesses for Sale
The lure of web retailing is strong and now there is a relatively large number of web based businesses for sale. Web based businesses have some important differences that must be taken into account. Fortunately, there are very easy ways to validate revenue, gross margins and monthly expenses. Most potential purchasers can gain strong visibility into the site, the technology, its customers, site visit statistics and it’s operations very quickly and easily. For non-technical purchasers, evaluating the soundness of the site’s infrastructure may be challenging. If your due diligence provides comfort in these areas, and you can confirm a net income and a sound operation, then you might offer one to two times net income for the business. In this article, I will explain how to conduct due diligence on a web based business, why it is only worth one to two times net income and why it may be better to start from scratch rather than pay any type of a premium to acquire a web business for sale.
Background
Today, there is an abundance of web based businesses in play. There are several benefits........... [ Read Full Article ]
| | 8/1/2004 | | | | Evaluating Car Washes |
Introduction
Purchasing a car wash for sale offers many advantages over building one from scratch. This article outlines those advantages, some of the realities and the specific circumstances that make for an ideal purchase are related below.
There are several models of car washes proliferating throughout the country and the world today. However, they can be categorized into three general classes; self service, full service and express car washes. Understanding the differences between these models will be critical is defining your selection criteria as you evaluate car washes for sale.
Self Service Car Washes For Sale
Self service car washes are by far the easiest models to manage. Self service car washes are characterized by bays, wands and vacuum cleaners. Customer feed their coins, bills or credit cards into a variety of cleaning apparatus for the privilege of cleaning their own cars. Usually, customers will park their car in a bay and use a wand to spray and scrub their car. A timer controls the amount of water, soap and wax that the consumer can use. Once clean, the consumer exits the bay to dry and vacuum the car. Many sel........... [ Read Full Article ]
| | 7/19/2004 | | | | Evaluating Coating Businesses< |
Paint and Powder Coating
Introduction
There are a fair number of businesses in the light industrial area that are for sale at any given time. Light industrial businesses have some appeal because they share some unique characteristics. The barriers to entry are moderately high, because most light industrial endeavors require are $200,000 to get started. The costs of equipment, payroll, insurance, building lease, etc. will create a demand for capital that many individuals cannot meet. In this article, we are going examine coating related businesses for sale.
Most consumer products have many parts and most of those parts need to be “coated” in one way or another. Coating the bare metal, wood or plastic parts may be done to improve function, aesthetic appeal or durability. In the businesses I have performed due diligence on, I have reviewed metal plating, paint and powder coating. I can save prospective buyers a great deal of time when looking at this class of business. As the result of reviewing several companies in each category (plating, painting and powder coating) I have reached several important conclusions.
The G........... [ Read Full Article ]
| | 7/19/2004 | | | | |
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