There’s No Accounting For Taste
April 10, 2009 by John Denton
Filed under Buying A Business, Franchise Businesses
After my little dummy spit on franchises, I had a client yesterday ask me if I had a fast food franchise for sale as his wife is looking to buy one. Not only that, he mentioned a particular franchise by name. As it happens, I know one of my colleagues has one listed so we may be able to help. And that’s all fine!
However, after getting more information, I suggested his wife look at another business we have listed which would suit her background very well and in my opinion would be a much better match. They are
comparable in price so let’s compare;
Fast Food Franchise
7 days a week
Long hours
Low staff loyalty
Low gross profit
Rely on passing trade
Royalties payable
Alternative Business
5 days a week and flexible
Low flexible hours
High staff loyalty
High gross profit
Loyal niche client base
No royalties
And there’s more ……….
And so it goes on. But the client is still leaning towards the fast food franchise. Why? Because it is perceived as being ’safe’ and the brand is well known. It comes back to that old sales maxim – sell the client what they want NOT what they need! Either business is a good buy – otherwise we would not have listed and marketed them both. And buyers have THEIR reasons for buying which may not be the same as our own.
Just goes to prove, there’s no accounting for taste!
Regards,
John
