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Read This Before Pursuing an Indiana Franchise Opportunity

 



There's a special appetite among certain Indiana business investors. As opposed to buying a private business, they prefer a tried and true business model. Buying an existing franchise is typically more favorable for these risk takers. But buyer beware; franchises for sale across Indiana demand quite a few additional considerations that demand evaluation.

How many of the target franchises exist in your market? The pond is only so large and there's only so much space for even the most popular franchises. There are franchisers that require the business to sit at specific locations. Some are more appropriate for residential/retail; some are more suited on a busy metropolitan street - it all depends.

Be sure to verify earnings claims. Confirm these claims against other similar franchise numbers. If you know what the market looks like then you know what's realistic and what isn't feasible. Before purchasing an franchise for sale in Indiana, get earnings claims in black and white. The more savvy franchisers will have comparable numbers and percentages ready for buyers.

Find the identity. Who's behind the curtain pulling the strings? Who are the principal owners, managers, and officers? They should be upright and have plenty of experience. All royalties and up-front fees ought to be thoroughly disclosed. Are those managers interested in building long-term relationships with franchisors?

Franchise fees. The barrier to entry usually runs somewhere between $10,000 to upwards of a quarter of a million dollars. This is just the fee for "goodwill", or the ability to do business behind the trademark name and other intangibles. Keep in mind that this fee doesn't buy a franchise for sale in Indianapolis forever. Term limits determine how long a franchisee can hold the name.

The franchise agreement is the most important document. Treat it like a movie script - memorize it and really take it to heart. It outlines contract terms and conditions encapsulating approval requirements for transfer of ownership; cost sharing, fees, and royalties; and time frames for brick and mortar upgrades.

If you are selling a business or looking to buy a business in Indiana, send me an inquiry about your situation and we can talk about what to do next.




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