Avoiding Fraud When Buying a Franchise Business

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Do You Think You Do Not Need Due Diligence When Buying a Franchise?

Opening up a new franchise location can cost upwards of $250,000. This is a lot of money for a business buyer to invest in a new unproven location.

New investigative reports are now stating that the selling of new franchise locations is where the real profit is earned by franchisors, rather then as previously believed on the 5% franchise fee paid  from the sale of product. The franchise sales staff  earn a large chunk of the $30,000 plus franchise fee charged. Plus the company makes a profit on the construction costs of the new store.

Many people have the idea that our government’s registration rules exist to protects the consumer from being cheated. In truth it has made the problem worse. Read more

Accrual Accounting

Vital Things you Need to Know About Valuing a Business

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Putting a value on a business is a separate function from auditing, evaluating or doing “due diligence.” There are three or more generally accepted methods of valuing a business. These are:

  • Comparable sales: What have other similar businesses with similar financial information sold for?

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Business Fraud

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Are your employees stealing from you? That is a form of business fraud.

If you own a business, of any size, did you ever consider that while you are working hard to make a living to support your family and staff, there are those that are also working very hard against your actions. Read more