Business Franchise June

93
RESALE CORNER
The price is right
It’s now possible to ﬁ nd the money for a traditionally more
expensive resales franchise – and all from an unlikely source…
E
XISTING FRANCHISED businesses that are made available as
resales are usually more expensive to acquire than the cost of
starting up from scratch. While there will always be exceptions
h
i
s
e

r
e
s
a
l
e
s
to this, this is the situation in the majority of cases. How then does a
prospective purchaser afford the additional cost and how can they raise the
necessary funds to gain the huge beneﬁ t of buying a resale? The SFLGS is a ﬂ exible scheme that allows purchasers with a strong f
r
a
n
c
It is now generally understood that a resale is a strong business plan but no personal security, such as a mortgage free house,
business proposition for funding via the main banks but to obtain a business loan from a bank. The government guarantees
what if you don’t have the security available to support up to 75% of the bank loan and these loans can be from £5,000 to a
a bank loan? maximum of £250,000. Yes there is paperwork to do and the business
Amazingly, the answer comes through the plan must be robust which makes this scheme an ideal vehicle to use
government. Rather than putting restrictions for the purchase of a resale opportunity. So now there is every reason
on business, as seems so often to be the to take on that resale opportunity you really want. ■
case, the government is actively promoting
the sale of businesses and assisting in their derrick simpson is the managing partner of Franchise
purchase through the recently re-launched
Resales Limited, which enables franchisors to provide a structured,
Small Firms Loan Guarantee Scheme
detailed and independent process (from exit planning to
completion) for their franchisees wishing to sell their businesses
(SFLGS). This is done via the snappily
while retaining overall control of the process and candidate
named Department for Business,
selection. See www.franchisresales.co.uk.
Enterprise and Regulatory Reform He has played an active role within UK franchising since 1988, including
(BERR) previously known as the DTI.
being director of franchise development with Kall Kwik & Prontaprint (ODC)
The scheme has now been revised and
and franchise director with the Myhome Group. Derrick has been both a bfa
Regional Chair and also a member of the bfa Board. He is a regular speaker
extended to cover businesses which
at bfa events on matters around franchise resales and is often consulted by
are over ﬁ ve years old. So it is now
existing members for advice on the subject.
available to purchasers of franchise
Derrick can be contacted at derricks@franchiseresales.co.uk
resales - most of which will have
traded for more than ﬁ ve years.
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
��
June 2008 www.businessfranchise.com
Page 1 | Page 2 | Page 3 | Page 4 | Page 5 | Page 6 | Page 7 | Page 8 | Page 9 | Page 10 | Page 11 | Page 12 | Page 13 | Page 14 | Page 15 | Page 16 | Page 17 | Page 18 | Page 19 | Page 20 | Page 21 | Page 22 | Page 23 | Page 24 | Page 25 | Page 26 | Page 27 | Page 28 | Page 29 | Page 30 | Page 31 | Page 32 | Page 33 | Page 34 | Page 35 | Page 36 | Page 37 | Page 38 | Page 39 | Page 40 | Page 41 | Page 42 | Page 43 | Page 44 | Page 45 | Page 46 | Page 47 | Page 48 | Page 49 | Page 50 | Page 51 | Page 52 | Page 53 | Page 54 | Page 55 | Page 56 | Page 57 | Page 58 | Page 59 | Page 60 | Page 61 | Page 62 | Page 63 | Page 64 | Page 65 | Page 66 | Page 67 | Page 68 | Page 69 | Page 70 | Page 71 | Page 72 | Page 73 | Page 74 | Page 75 | Page 76 | Page 77 | Page 78 | Page 79 | Page 80 | Page 81 | Page 82 | Page 83 | Page 84 | Page 85 | Page 86 | Page 87 | Page 88 | Page 89 | Page 90 | Page 91 | Page 92 | Page 93 | Page 94 | Page 95 | Page 96 | Page 97 | Page 98 | Page 99 | Page 100 | Page 101 | Page 102 | Page 103 | Page 104 | Page 105 | Page 106 | Page 107 | Page 108 | Page 109 | Page 110 | Page 111 | Page 112 | Page 113 | Page 114 | Page 115 | Page 116 | Page 117 | Page 118 | Page 119 | Page 120 | Page 121