Businesses for Sale Los Angeles, California

Buying a business is exciting. There are many choices and, in some cases, financing to help you own a business. When purchasing a current operation, consider the benefits of using a business broker to evaluate the opportunities and complete the transaction.

A California franchise broker helps prospective business owners to evaluate businesses for sale. By purchasing a franchise, the new owner takes advantage of established business model and brand recognition. Buying businesses for sale Los Angeles may include ongoing operations support.

Business Owner Benefits

A franchise broker helps you to look at the big picture as well as the details involved in buying or selling a business. You start by discussing the kind of franchise you’d like to buy. There are two basic types, according to the Small Business Administration (SBA): business format franchises or product franchise.

The business format franchise includes franchisor operational support and is considered an all-inclusive model. In contrast, the product franchisesells the franchisee trademark license rights. Ask the business broker, attorney, or coach about the franchise type that meets your needs.

Existing California franchise operations can save the business owner on inventory costs, signage, and equipment as well as employee selection and training.

Research and Due Diligence

A business broker can help you to perform necessary due diligence required when buying businesses for sale Los Angeles. The broker helps you get to know businesses of interest. He or she obtains needed offer documents from the franchise to describe company and owner history, financial statements, and fee structures. Documents relating to the franchise relationship are also relevant at this stage.

The Federal Trade Commission and Better Business Bureau may also have information about a franchise, including existing franchisees of the business. Take the time to visit operations of the franchise if at all possible. Then, speak to owners who currently work with the franchise to identify pros and cons.

Review the Paperwork

The process of buying a franchise includes key paperwork known as the Franchise Disclosure document. The disclosure document includes information about the franchise fee, or the money you pay to purchase a license. Royalty fees may also apply if the franchisee pays the company for ongoing use of franchise resources. Since franchise fee structures vary, it is essential to compare offer prices in the industry and location of interest. Your accountant and attorney can be instrumental in reviewing these important details.

Income Expectations

According to Franchise Business Review, the average business (about fifty percent) across all industries and locations earns $66,000 after operating costs. The average restaurant franchise earns more than $82,000 each year. The top seven percent of franchises net more than $250,000 per year.

According to QSR Magazine, fast food franchises remain franchise leaders. Retail brands products and services, hotels and lodging, business services, and commercial/residential services continue to show year-to-year growth. Kid, fitness, senior, and personal electronics-focused franchises are also popular.

Purchase the Business

After identifying the best franchise for you with the business broker, you must sign franchise agreement documents. Allow your accountant and attorney to review the fine print before signing. Consider any future changes, modifications, restrictions, or provisions now.

Celebrate the purchase afterwards, because buying a business is a step towards greater financial freedom.

Based in Los Angeles, California, the author has many years of experience of working as a professional consultant for the past ten years and has helped many people who have been looking for business franchising opportunities in the state.