about us | buying | selling | expanding

Working with an experienced business broker and franchise consultant can be very helpful to first time business opportunity buyers. With eighty years of collective entrepreneurial experience, plus business brokerage and franchise consulting experience that dates back to 1978, the three officers of American Marketing Group, Inc. can help you in your quest in locating a business opportunity or further developing you existing business aiding you to fulfill your dreams whatever your dreams may be. We can help you find the right business, negotiate the price, terms and conditions, as well as assist you in finding proper financing or potential investors.

 Buying an Existing Business:

Purchasing an independent business or existing franchise can be very complicated, intimidating, and frustrating for an educated or first-time buyer. Our job is to help you cut through the red tape and make sense of the piles of information supplied by the seller so you can make a decision based on facts and not just emotion. Since buying a business is both a very legal proposition and depends a great deal on business financial statements, we always suggest that a prospective purchaser engage an attorney, accountant, and other experts that will help in the buying process.

There are six steps in the process for Buying an Existing Business utilized by American Marketing group to insure the buyer finds business opportunities best suited to his or her personal needs.

  1. We conduct a Buyer Interview and develop a Buyer Profile based upon this interview, determining such things as skills, wants, needs, and qualifications of the buyer.
  2. Next the Buyer enters into a Confidentiality Agreement. This is done to help protect Sellers from problems that might arise with employees, competitors and vendors.
  3. After the potential buyer has been thoroughly screened and has entered into a confidentiality Agreement we reveal businesses we feel appropriate for the buyers needs.
  4. When the Buyer expresses interest in a particular business we arrange and conduct a tour of the appropriate business stressing the confidentiality needs of the Seller.
  5. Once the buying interest of a Buyer is well established in a particular business we engage in initial negotiations in order to develop a firm offer from the buyer. Next we present the offer and help to establish a counter offer.
  6. Upon gaining acceptance in principal of any offer we work with both the Buyers and Sellers team of Professionals to develop closing documents acceptable to both Buyer and Seller.
Buying a Franchise:

Buying a franchise to start-up allows you to be in business for yourself…but, not by yourself. The franchisor is there to help you get into business and stay in business. Joining a franchise system is like belonging to any group. You become a member of a franchise team that share common interests, goals, and objectives. Also, you contribute to problem solving and new ideas to assist the system in its future growth. You pay a franchise fee for the rights to a franchisor’s name, logo, system, basic training, and your franchise unit opening training. On-going royalties are paid on gross revenues for the right to continue to use the franchisor’s name, logo, and system, plus on-going training, in-field support, and future product or service development. An advertising royalty is also typical in a franchise system to help promote each unit’s sales revenues and name branding. A high-quality franchise has a proven business concept that has withstood the test of time and is universally acceptable to a large base of people to help insure long-term financial success. The franchisor’s management team will have the ability to train and support you on your trek to success in the business world. Purchasing an existing or new start-up franchise may be safer, but can be difficult and nerve-racking if you’ve never done it before. Our job is to help you gather, review, and understand the information supplied to you by the franchisor so you can make a sound business decision.

Just as in buying an independent business buying a franchise entails several steps.

  1. Buyers quite often us with interest in a particular Franchise opportunity. Other times buyers express interest in certain types of businesses during the development of their Buyer Profile. In any case Buyers are screened for financial capabilities and for any particular attributes required by the Franchisor to determine their qualifications to become a Franchisee.
  2. Once a Buyer has both expressed a desire and has generally met the Franchisors qualifications the Buyer is given a Franchise disclosure document and is required to sign a receipt of disclosure. This is required on the first personal meeting between the Franchisor or it’s agent with the intent to sell a Franchise. The disclosure document contains all information required by law regarding the Franchisor; it’s Officers Agents a list of existing Franchisees along with a copy of the Franchise Agreement and all related contractual agreements. Be sure to contact existing Franchisees regarding the Franchise opportunity. Franchisees are a great source of information and insight.
  3. The prospective Franchise buyer is the toured so he may gain a better understanding of the Franchisor and the Franchise business along with the daily operations requirements. During this touring process the Franchisor and its Agent do a thorough review with the Franchise Buyer regarding the nature and requirements of the Franchise. This is done business to make sure that a good marriage between Franchisor and Franchisee is possible. Entering into a Franchise Agreement is no guarantee of success for the Franchisee. But having a qualified, well informed Franchisee certainly helps minimize future problems.
  4. During the touring process the Franchisor decides on whether to accept the Buyer as a Franchisee.

  5. Upon acceptance closing documents are drawn up to include all final details of entering into the Franchise Agreement. These include such things such as definition of the Franchise Territory or general location, designation of a manager and any other parties involved such as partners and spouses.
  6. Once the documents are finalized, delivered and five business days have passed the Franchise sale can be closed.
  7. Closing begins the final phase of the Franchise buying process. During this phase the Franchisee enter into the Franchise Agreement with several contingencies to be met. First a site or location for the new Franchise business must be found reviewed and approved by the Franchisor. A lease or purchase of the site on terms satisfactory to the Franchisor must be negotiated. Upon obtaining a site, general design and layout will be completed so financing can be obtained. Other approval requirements of the Franchise Agreement must also be fulfilled.
  8. Armed with financing, approved site and lease, architectural drawings will be contracted completed and submitted to the Franchisor for approval. When these architecturals are complete bids should be obtained and a contractor hired. Licenses and permits should be obtained. Construction according to the approved design along with installation of approved furniture, fixtures equipment and signage is begun to coincide with training so that an expeditious Franchise opening will occur.
  9. Franchisors live and die by the quality of their training and support. A good Franchisor will strive to train Franchisees to operate the Franchise as if it were their own.
  10. Support is critical to the success of the Franchise business. Franchisors must maintain standards, effectively market, train support and innovate to stay fresh in light of new and renewed competition. Franchisees however should not look to the Franchise System for a quick and easy way to get rich quick. Rather the Franchisor and the Franchise System should be viewed as railroad track to control movement towards success.