Posted by ken in sc on July 20, 2008 at 06:56:03:
In Reply to: Business Buyer vs Deal Maker posted by Steven St on July 19, 2008 at 10:59:25:
I recently looked at a franchise opportunity. The owner told me his rate of return and it looked great. After due diligence however, particulary looking at his last two years numbers, it became obvious that if he and his wife were not working there, and had been replaced by salaried employess, the numbers were just average. So, I did not buy one. I wanted to own, not work. I have a friend with a Scholtsky's Delit franchise.....he put in 40K 13 years ago, financed the deal over ten years, a now since it is paid off gets around 4K per month. He has never worked there and once a months show up for a long Saturday, reviewing the books and listening to complaints, concerns, implementing ideas etc. That is more what I was looking for. Owning and tweaking for better returns.