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December 8, 2006, Newsletter Issue #42: Existing Franchise for Sale and Your Accountant
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Tip of the Week
Bringing in an accountant to examine the books of an existing franchise for sale is very wise. Unless you have a detailed accounting background, get referrals from friends and business owners you trust for a qualified accountant who has some experience in business evaluations.
An accountant will review the franchise's financial statements and help you understand them. They can also help you develop a business plan. You might want to get a Dun & Bradstreet report on the franchisor. Your accountant should assess the earning projections made by the existing franchise for sale and help you understand the assumptions on which they are based.
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