Business Brokers | Own A Franchise

Many franchise brands receive hundreds of applications per month because they are so popular and it is tough for them to be lenient on some of their most basic qualifications. One of the reasons they are a profitable (and popular) brand is because they determined long ago what financial requirements and backgrounds are needed for a successful franchisee. At Blue Stone Business Group we only work with some of the most popular and successful franchises in the industry i.e.: Ben & Jerry’s, 7-11, Aamco, Hardees, Carl’s Jr., Maaco, Molly Maid, Express Pros Staffing and many more. Almost every franchise brand we work with requires a minimum NET WORTH of $200,000. This is NOT how much money you have in the bank, but is a result of a calculation of your assets minus your liabilities (please see the document below). At this point in the process no one needs to know all of your holdings, they just need a rough idea of what your net worth is.

Also, please note that even if you have enough capital to pay cash for a franchise resale, this does not mean you will meet their net worth qualifications. They may have a business selling for $100,000 and you could pay cash for the business, but they still will require you to have (for example in the case of Brightstar) $350,000 in net worth. This may seem odd, but if you are going to have the financial “horsepower” to drive your new business forward and be successful you may need to put a lot more money into marketing, etc. to turn the business around.

Please do a quick calculation (it does not have to be 100% accurate) and determine this figure for the profile (see worksheet below if you need help).

Here are some common qualification requirements by various franchises for resales or start-ups:

Assets	Current
Cash on Hand and Unrestricted in Banks…………………............	$
U.S. Government Securities……………………………….............	$
Notes Receivable…………………………………………………..	$
Life Insurance, Cash Surrender Value - NOT death benefit……. amount (do not deduct loans)	$
Other Stocks and Bonds…(401K and Roth IRA)	$
Real Estate……………………………………………………........	$
Automobiles Registered in Own Name…………………………...	$
Other Assets (itemize) Motor Cycle	$
Total Assets…………………………………………….	$

Liabilities & Net Worth	Current
Notes Payable to Banks……………………………………………	$
Notes Payable to Others………………….......................................	$
Loans Against Life Insurance……………......................................	$
Accounts Payable…………………………………………………	$
Interest Payable………………………............................................	$
Taxes and Assessments Payable………………………………..…	$
Mortgages Payable on Real Estate………………………………...	$
Brokers Margin Accounts……………............................................	$
Other Liabilities (itemize)	$
Total Liabilities…….……………………………..........	$

Total Assets - Total Liabilities = Net Worth……….....	$

Source of Income	Current
Salary (annualized)……………………………………………….	$
Bonus and Commissions…………………………………………..	$
Dividends and Interest…………………………………………….	$
Real Estate Income………………………………………………...	$
Other Liabilities (itemize)	$
Total Income……………………………………………	$

Available Capital to Invest in this Franchise………...	$

Net Worth Question