Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Business > Franchise Building, Entrepreneurs, Business Leaders, & Innovators Discussions

Franchise Building, Entrepreneurs, Business Leaders, & Innovators Discussions Are you interested in starting your own lawn care franchise or are you interested in buying into one? Let's talk about different franchise opportunities and how to build your own franchise. Also we discuss different entrepreneurs who inspire us!

Lost money on a sandwich franchise


Franchise Building, Entrepreneurs, Business Leaders, & Innovators Discussions

Are you interested in starting your own lawn care franchise or are you interested in buying into one? Let's talk about different franchise opportunities and how to build your own franchise. Also we discuss different entrepreneurs who inspire us!
Reply
 
Thread Tools Search this Thread
  #1  
Old 06-09-2009, 11:56 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,533
Rep Power: 10
Steve has disabled reputation
Default Lost money on a sandwich franchise

Today I was talking with an entrepreneur who lost quite a bit of money on a sandwich franchise.

He had gotten some money from a death in the family and decided he would buy this already up and running franchise from another business owner.

There were two big problems. The new owner had a fulltime job elsewhere and second, the previous owner cooked the books and showed the business to be making money when it was in fact losing money.

The store is now closed.

We were having this discussion about how you can just never really verify such things. My view was I am sure there is a way to potentially put some money aside in a fund that would only be transfered to the original owner if certain financial conditions are met, however barring that, there is no way to certify a business made $x amount of dollars last year.

Hmmmm maybe you could get the businesses accountant to sigh off that the business did indeed make what ever they claim to have made in some kind of audit? And then the accountant would be held liable if this were false?

What's your thoughts on something like this?

Any thoughts on how to confirm such income before you buy a already running business or franchise?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 06-10-2009, 12:05 AM
swstout's Avatar
swstout swstout is offline
Steve
 
Join Date: Jan 2009
Location: Canastota, NY
Age: 65
Posts: 1,082
Rep Power: 7
swstout is on a distinguished road
Default Check

Lawn care business tipsLawn Care Business Book
Quote:
Originally Posted by Steve View Post
Today I was talking with an entrepreneur who lost quite a bit of money on a sandwich franchise.

He had gotten some money from a death in the family and decided he would buy this already up and running franchise from another business owner.

There were two big problems. The new owner had a fulltime job elsewhere and second, the previous owner cooked the books and showed the business to be making money when it was in fact losing money.

The store is now closed.

We were having this discussion about how you can just never really verify such things. My view was I am sure there is a way to potentially put some money aside in a fund that would only be transfered to the original owner if certain financial conditions are met, however barring that, there is no way to certify a business made $x amount of dollars last year.

Hmmmm maybe you could get the businesses accountant to sigh off that the business did indeed make what ever they claim to have made in some kind of audit? And then the accountant would be held liable if this were false?

What's your thoughts on something like this?

Any thoughts on how to confirm such income before you buy a already running business or franchise?
The first thing I would do before investing is to check his rateing with his suppliers. How he paid his bills would indicate how well he was doing.

Steve
__________________


Reply With Quote
  #3  
Old 06-10-2009, 10:05 AM
turfmaster's Avatar
turfmaster turfmaster is offline
Senior Member
 
Join Date: Apr 2009
Location: Midwest
Posts: 366
Rep Power: 6
turfmaster is on a distinguished road
Default

Some years ago we bought a retail business.
The previous owners told us the business averaged so much per year for the last 5 years.

Our agreement with them was to view their tax returns with our accountant to verify their numbers prior to purchasing the business.
Reply With Quote
  #4  
Old 06-10-2009, 01:37 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 36,533
Rep Power: 10
Steve has disabled reputation
Default

Quote:
Our agreement with them was to view their tax returns with our accountant to verify their numbers prior to purchasing the business.
How did that ultimately work out? Also was there anything in the contract to compensate you if they had lied about the previous income or no?

Do you have any further advice on what to look out for when purchasing a used business?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
  #5  
Old 06-11-2009, 10:31 PM
AccountingSPOT AccountingSPOT is offline
Junior Member
 
Join Date: Jun 2009
Location: Elma, WA, & Virtually across the Country
Posts: 14
Rep Power: 6
AccountingSPOT is on a distinguished road
Default

If I were buying a business, I would require an audit (done by a CPA) of the financial statements...would you buy a house w/o doing an inspection? Hopefully not! An audit verifies (at least to a very high likelyhood) that the financial statements are accurate and the profits they show are for REAL.

An audit will confirm that there are no errors or fraud going on with the financials. I was trying to find a link to a source indicating just how much an auditor would be liable for, but have been unable to find anything solid. An auditor does hold some liability, I'm just not sure to what extent.

As far as setting funds aside until certain financial obligations are met...anything can be agreed upon in the sale agreement. However, as an honest SELLER, I would not agree to those terms. That would put my business sale profits in the hands of the new management.
__________________
Holly Neitzel
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Lost Information footerlou Gopher Software Support Archived Question & Answers - Read Only 1 08-02-2007 03:35 PM
Job awarded then lost KimKriel General Talk 5 04-07-2007 05:15 PM
Lost a sale tiedeman Lawn Maintenance / Lawn Renovation 2 02-19-2007 01:42 PM
I lost all of 2006! Gopher Software Support Archived Question & Answers - Read Only 2 11-16-2006 08:35 AM
Lost 1 customer already tiedeman Show Off - Picture Post - Photo Gallery 5 11-16-2006 08:20 AM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Business Name
sanchez5
10-28-2014 11:55 PM
Today 10:19 AM
by jrs.landscaping
4 154
Difference between lawn...
sanchez5
Yesterday 04:20 PM
Today 05:58 AM
by Billy Goat
1 104
Gie-review / What's new...
ExtremeLawncareServices
10-25-2014 09:19 AM
Yesterday 10:35 PM
by ExtremeLawncareServices
5 378
My Newest Toy (B.P....
Dan Tanner
10-23-2014 05:50 PM
Yesterday 12:26 PM
by Steve
6 481
Pavers
crieg122
10-28-2014 02:49 PM
Yesterday 12:24 PM
by Steve
3 165
West cost lawn prices
SGlawncare
10-09-2014 09:51 PM
10-28-2014 11:08 PM
by SGlawncare
4 842
Say Hello !!!
Steve
03-19-2007 11:18 AM
10-28-2014 02:51 PM
by Steve
1,193 340,980
Help a brother...
tbtigers03
09-28-2014 11:41 AM
10-28-2014 02:38 PM
by Steve
14 1,875
Business Cards
crieg122
10-25-2014 12:03 PM
10-28-2014 02:37 PM
by crieg122
4 353
Lawn Care business...
crieg122
10-23-2014 01:23 PM
10-28-2014 11:28 AM
by crieg122
15 665
So how do you guys...
Mr. Mow
10-26-2014 07:55 AM
10-28-2014 04:56 AM
by Billy Goat
2 297
Hi Steve From West...
Mr. Mow
10-21-2014 01:59 PM
10-28-2014 01:37 AM
by Steve
3 492
Pressure Washing Like a...
TNTurf
08-01-2014 11:47 PM
10-27-2014 10:36 PM
by SGlawncare
12 1,212
new to the forum
madmedic8575
10-24-2014 02:52 PM
10-27-2014 12:14 PM
by Steve
1 311
Dealing With Gas Can...
Mr. Mow
10-21-2014 01:41 PM
10-26-2014 10:59 AM
by stevef1201
13 675
Leaf removal
madmedic8575
10-24-2014 04:14 PM
10-26-2014 07:45 AM
by Mr. Mow
5 431
raking leaves ?
robert8509
10-22-2014 09:19 PM
10-25-2014 12:09 PM
by biglee
10 585
Leaf Box & Loader Set...
ringahding1
10-21-2014 06:20 AM
10-25-2014 11:46 AM
by crieg122
6 576
hey everyone
robert8509
10-22-2014 08:16 PM
10-24-2014 11:07 PM
by robert8509
7 476
12 Years in Business!
Chilehead
10-23-2014 08:07 AM
10-23-2014 11:08 PM
by Chilehead
2 403
Cheapskate Landlord...
Mr. Mow
10-20-2014 06:33 AM
10-23-2014 05:55 PM
by biglee
13 731
Hi from SoCal
Jmoney
10-23-2014 11:29 AM
10-23-2014 12:51 PM
by Steve
1 366
Workmans compensation...
CDLAWNCARE
10-15-2014 08:05 AM
10-23-2014 12:33 PM
by Steve
5 832
Pda
stevef1201
10-18-2014 02:05 PM
10-23-2014 06:12 AM
by ringahding1
4 658
Hello, from TEXAS
sanchez5
10-17-2014 09:56 PM
10-22-2014 01:27 PM
by Steve
6 722
Organic Lawn Care...
NHray
10-17-2014 06:05 PM
10-22-2014 01:23 PM
by Steve
3 688
first year update
cmdlawncare
08-12-2014 05:41 PM
10-22-2014 07:47 AM
by ringahding1
4 1,682
What parts do you carry...
Just for Cuts
10-17-2014 09:08 AM
10-21-2014 01:36 PM
by Mr. Mow
16 967
Jungle to Beautiful
stevef1201
10-17-2014 09:54 AM
10-21-2014 01:26 PM
by stevef1201
11 830
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
10-21-2014 01:19 PM
by ExtremeLawncareServices
158 11,921
Sunny Beach Tennis...
SGL1
10-19-2014 11:24 PM
10-21-2014 01:04 PM
by SGL1
4 556
Have you ever had to...
SouthernRootsLawnCare
07-26-2014 02:41 PM
10-20-2014 08:34 PM
by biglee
10 2,153
Look out Bob Villa -...
Mr Dave
09-30-2014 10:06 AM
10-20-2014 05:42 PM
by SGL1
7 1,642
how to fi d commercial...
mchampion319
10-19-2014 09:50 PM
10-20-2014 04:41 PM
by Steve
1 532
Hello From Tennessee
mrmann901
10-17-2014 10:02 PM
10-20-2014 04:24 PM
by Steve
1 596
questions on order to...
jack2048
10-13-2014 11:15 AM
10-20-2014 03:27 PM
by Mr. Mow
15 1,051
This sucks...
Matther777
09-18-2014 04:56 PM
10-20-2014 02:14 PM
by Steve
14 2,574
Cement mixer
KevinsLawns
10-15-2014 08:03 PM
10-20-2014 02:11 PM
by Steve
7 779
Hello ! New guy Rob here
RWorthley1
10-17-2014 04:05 PM
10-20-2014 02:09 PM
by Steve
1 633
Snow Blowing
gwilson98
10-12-2014 02:21 PM
10-17-2014 02:51 PM
by Steve
6 965
Spreading Weeds?
WesleySnips
07-27-2014 09:46 PM
10-17-2014 07:49 AM
by SGL1
6 1,271
Grasswhoopins.com Anyone...
GRASS WHOOPINS
06-21-2011 11:38 PM
10-16-2014 01:30 PM
by ExtremeLawncareServices
42 9,673
I Want to buy old...
ExtremeLawncareServices
10-10-2014 10:04 PM
10-15-2014 09:12 PM
by ExtremeLawncareServices
6 987
Do you find weed eating...
chuck2s
10-15-2014 02:10 PM
10-15-2014 02:10 PM
by chuck2s
0 708
Incorporating &...
WesleySnips
10-01-2014 09:39 PM
10-15-2014 01:37 PM
by kslawn
20 1,839
Falling into business
stellarmowing
09-28-2014 04:35 PM
10-15-2014 05:57 AM
by ringahding1
8 1,834
Apartment Complex and...
lxarth
06-22-2011 01:10 PM
10-14-2014 06:25 PM
by jrs.landscaping
42 9,960
I LOVE hedge trimming
stevef1201
10-13-2014 09:05 AM
10-14-2014 01:06 PM
by Steve
5 845
Help with seeder...
ExtremeLawncareServices
10-09-2014 07:39 AM
10-13-2014 08:09 PM
by ExtremeLawncareServices
5 1,011
The Market watch
WesleySnips
10-12-2014 08:47 PM
10-13-2014 05:40 PM
by SGL1
3 839
» Popular Tags
2wd 4x4 aerocore apartment bid apartment lawn care estimate applying billy goat brushcutter bush charge christmas deliquentaccounts exmark ferris foreman georgia gopherhaul grass gravely hills holiday how much to charge how to how to bid hydraulic labor cost landscape services lawn lawn care lawn care busines plan lawn care business book lawn care business podcast lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care seo lawn care website lawn care website seo lighting lighting brass outdoor lights managing a lawn care business marketing mechanic mowing mulch mulch estimate new buisness new business ordinance podcast promotion property management company push versus ride savannah scag scag v-ride scripts seo snow plowing starting a business starting a lawn care business stihl sulky theft toro tractor auger trailer mate pro walk behind walker wright stander rh
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 10:49 AM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 10:49 AM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy