In this FDD Talk 2016 post, you’ll learn the following:
- Section I – Background information on the First Choice Business Brokers franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a First Choice Business Brokers franchise, based on Item 7 of the company’s 2016 FDD
- Section III – Presentation and analysis of First Choice Business Brokers’ financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
- five year business plan projection (including projections for business sales commissions – owner and associates, total income, marketing, total cost of sales, gross profit, accounting fees, miscellaneous, salary/wage/reception/assistant, telephone, transport/auto, office rent, total expenses, and net profit/loss) that was created by the franchisor’s affiliate, Las Vegas 101, in connection with its plan to open and operate a First Choice Business Brokers Office in Salt Lake City, Utah
Section I – Background Information
Lots of people dream about owning their own business, but if you don’t already have entrepreneurial experience, the whole idea can seem so daunting that many never even try. That’s where a business like First Choice Business Brokers (FCBB) can make all the difference by helping people navigate the choices, the requirements, and everything else it takes to get started.
FCBB was founded in 1994 and started franchising in 2005. The company grew the number of locations to its 2010 peak of 22 in the U.S. and 1 abroad. The international location appears to have closed, and the overall number of locations has been a bit of a roller coaster, with declines outstripping gains. The current number of locations is 16, with two of those being company-owned.
Here’s how First Choice Business Brokers helps clients harness their entrepreneurial dreams into business-owning reality:
FCBB maintains an extensive confidential list of businesses for sale by their owners. For those wishing to explore the possibilities and take the plunge into business ownership, FCBB provides expert valuation services to reveal how much bang you’re getting for your buck. FCBB will then also guide clients through the entire business buying process from start to finish.
The company also helps with leasing representation for both property owners and tenants.
Managing the Business Buying Process
FCBB clients begin their journey by sitting down with an FCBB sales professional who will conduct an interview that helps them figure out what kinds of businesses to show you.
A key part of this process is forming a realistic view of the financial situation of would-be business buyers, which includes proof of funds so everyone is on the same page about the possibilities open to you as some businesses won’t even discuss details unless you can show your ability to purchase.
To see the full range of opportunities, you must also sign a confidentiality agreement to ensure you don’t start your own similar business based on what you learn from prospects.
Clients can then visit businesses in which they’re interested to determine which one is the best choice for them.
FCBB helps you write up your offer using the most comprehensive (and proprietary) purchase agreement you’ll find anywhere, which is typically accompanied by an earnest money deposit (EMD) of 10% or $10,000 (whichever is greater).
If the offer is accepted, you can then dive deeper into the details of the business (due diligence) and withdraw your offer if you don’t like what you see (and get your deposit back as well).
If all is in order, then a closing is scheduled. The process is detailed but not especially complicated.
An Interesting Franchise Niche
The FCBB concept is great – helping others become business owners by helping them navigate the process from start to finish. The concept is strong enough to itself become a franchise operation, although it hasn’t taken off in a major way yet.
It should also be recession-proof because when the economy is good, buyers have the money to buy, and when the economy is poor, many owners have to sell, which makes for great opportunities among the entrepreneurially astute.
Section II – Estimated Costs
- Please click here for detailed estimates of First Choice Business Brokers franchise costs, based on Item 7 of the company’s 2016 FDD.