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: 37,466
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: 66
Posts: 1,082
Rep Power: 8
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: 7
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: 37,466
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: 7
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
4th of July parade...
Steve
Today 10:35 AM
Today 10:35 AM
by Steve
0 14
Unemployment rates drop,...
Steve
07-02-2015 12:40 PM
Today 10:30 AM
by Steve
4 154
Is it too late to do...
markty
06-16-2015 05:28 PM
Today 10:25 AM
by Steve
6 2,056
I dont know what to do...
Bradcook21
06-21-2015 08:49 AM
Today 10:19 AM
by Steve
13 2,249
Should I buy this Exmark...
googus
07-03-2015 09:22 AM
Today 10:16 AM
by Steve
4 138
Just about mid year, how...
GreenWorx
06-24-2015 07:05 PM
Today 10:14 AM
by Steve
7 1,966
another newish job for me
holymoly
06-07-2015 08:34 AM
07-03-2015 02:06 PM
by American L&T
9 2,168
Before & After tree...
COREtreeservice
07-01-2015 09:20 PM
07-01-2015 09:20 PM
by COREtreeservice
0 106
Dogs
Mr. Mow
06-29-2015 02:37 PM
07-01-2015 11:28 AM
by Steve
6 1,938
Ready to learn and get...
Koley Lawn & Landscape
06-28-2015 05:16 AM
07-01-2015 11:26 AM
by Steve
8 1,913
Three Stripe Land Care...
hammr04
06-30-2015 07:19 PM
07-01-2015 11:24 AM
by Steve
1 102
Country Life Lawn Care
darleneh
06-29-2015 11:24 AM
06-30-2015 01:25 PM
by Steve
3 1,762
Rubber mulch...
avetslawncare
06-24-2015 09:28 PM
06-29-2015 09:23 PM
by Chilehead
6 1,917
Marketing ideas
xandrew245x
04-29-2014 06:35 AM
06-25-2015 07:11 PM
by GreenWorx
34 5,798
Never ending sod jobs
avetslawncare
06-05-2015 09:46 PM
06-25-2015 11:42 AM
by Steve
11 2,405
Weed and Feed Service...
mike94740
06-23-2015 05:50 PM
06-24-2015 09:56 PM
by avetslawncare
2 1,823
Trimming hedges / trees,...
Hard-Body lawn & garden
06-23-2015 07:08 PM
06-24-2015 09:59 AM
by Steve
1 1,824
Hi Everyone from Arkansas
KellyMarie
06-04-2015 04:16 PM
06-23-2015 01:34 PM
by KellyMarie
4 2,101
how to make customers...
Bradcook21
05-27-2015 05:04 PM
06-23-2015 06:36 AM
by GreenWorx
7 2,342
problems with a customer...
LawnCareMan280
06-16-2015 10:26 PM
06-22-2015 11:11 AM
by Steve
6 2,139
Please review this FREE...
markty
06-21-2015 07:42 AM
06-22-2015 11:00 AM
by Steve
1 1,848
A good commercial bid...
burtle
06-20-2015 09:09 PM
06-22-2015 10:56 AM
by Steve
1 1,915
What would you do with...
holymoly
06-20-2015 06:48 PM
06-22-2015 10:48 AM
by Steve
1 1,878
New Member just joined...
vgoleco@hotmail.com
06-19-2015 03:49 PM
06-22-2015 10:42 AM
by Steve
2 1,866
Credit Cards - What's in...
Shark1611
06-16-2015 03:04 PM
06-21-2015 07:24 PM
by Chilehead
4 1,977
Blade usage
Wolf4dk
06-16-2015 12:18 AM
06-21-2015 05:35 PM
by kslawn
4 1,982
Hello, I am new to the...
adamslawnservices
06-17-2015 08:06 PM
06-19-2015 10:28 AM
by Steve
3 1,901
First commercial bid
SGL1
06-12-2015 08:57 PM
06-18-2015 05:04 PM
by SGL1
9 2,373
Needing a website built
burtle
06-17-2015 09:02 AM
06-18-2015 11:02 AM
by Steve
7 2,058
I have been rude and...
biglee
06-15-2015 10:11 PM
06-18-2015 10:46 AM
by Steve
10 2,141
Start LIKING FACEBOOK...
rlclawncare123
02-26-2015 12:06 AM
06-17-2015 08:38 AM
by burtle
9 3,222
Customer keeps adding...
Mr. Mow
06-13-2015 06:22 AM
06-16-2015 10:23 AM
by Steve
11 2,401
Pass discounts onto...
burnell76
06-03-2015 06:33 PM
06-16-2015 10:02 AM
by burnell76
3 2,069
burned grass only where...
nhauto
06-15-2015 05:28 PM
06-16-2015 09:45 AM
by Steve
2 1,938
Half year mark review.
Steve
06-02-2015 11:24 AM
06-15-2015 01:04 PM
by Steve
18 2,693
These are the days on...
ExtremeLawncareServices
01-11-2015 10:41 AM
06-15-2015 01:01 PM
by Steve
86 9,762
New Member
Bruce Fehr
06-05-2015 07:13 PM
06-15-2015 12:53 PM
by Steve
6 2,072
New to the business,...
CarefreeMowing
06-12-2015 02:36 PM
06-15-2015 12:50 PM
by Steve
1 1,960
Beginner Mistakes:...
Steve
01-31-2007 11:45 AM
06-13-2015 08:48 AM
by holymoly
45 12,091
New to the forum, new to...
CarefreeMowing
06-11-2015 12:35 PM
06-12-2015 10:44 AM
by Steve
2 1,869
problems with a customer
LawnCareMan280
05-19-2015 06:28 PM
06-11-2015 10:50 PM
by stallman419
8 2,435
Website Review
Outdoordesignsknox
06-08-2015 08:44 PM
06-11-2015 09:48 PM
by Just for Cuts
13 2,329
Anyone need help? I have...
biglee
05-06-2015 12:22 PM
06-10-2015 01:45 PM
by holymoly
15 3,026
Hello from the GREAT...
gbfarmsllc
06-09-2015 11:10 AM
06-10-2015 01:29 PM
by Sprinkler Buddy
2 1,940
Hey guys and gals, I'm...
Joeyhall
06-03-2015 03:54 PM
06-08-2015 02:15 PM
by chris2500hd
8 2,190
Mowing Bermuda...
Mr. Mow
06-02-2015 12:45 PM
06-08-2015 12:45 PM
by Steve
12 2,352
Hey Guys
PrattLandscaping
06-07-2015 06:37 PM
06-08-2015 12:23 PM
by Steve
2 1,959
Share your stolen...
SGL1
05-27-2015 09:05 PM
06-08-2015 11:54 AM
by Steve
25 2,916
Hello there My name is...
zwalk1839
06-04-2015 11:10 PM
06-08-2015 11:52 AM
by Steve
4 2,073
Laid off oil field...
Mr. Mow
05-30-2015 09:03 AM
06-08-2015 06:20 AM
by Mr. Mow
4 2,189
» Popular Tags
ad landscaping advertising aerocore apartment bid apartment complex bark billy goat brushcutter blowout bob villa bush collections commercial contract help curb appeal services deliquentaccounts demonstration design ditches door hangers edging employee problems equipment dealer equipment rental foreman free advertising google growing a lawn care business hardscapes hills husqvarna increase customers jobs landscape landscape services landscaping landscaping training lawn aeration lawn care lawn mowing marketing marketing secrets more customers business mr dave mulch new business ordinance past due patio install per hour charge per hour service profit on employee push versus ride scag scripts sell the vision seo shell small engine repair sq ft steep lawns swzt trailer tree tree pics trimmer rack up sell employee web design website website design www.greenturion.co.za
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 12:22 PM.


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

All times are GMT -5. The time now is 12:22 PM.

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