Purchase an existing franchise?

[SunsetBeachFL]

Minority Franchising - Portal to the Franchising Industry - - Beauty-Related - Merle Norman Cosmetics

You may find the above info helpful although the numbers are stale, some of the figures are still fairly accurate; I'm sure there are a lot of other online resources.

Have you called any other existing Merle Norman salons, geographically similar (e.g. small town, no mall exposure), to get honest feedback from existing owners? Would the existing owner consider a buy-out over a period of a few years, or would she entertain some other way to structure the deal?

The reported start-up, as the only expensive requirement, is that you spend around $11k to purchase initial inventory, so the $15k that she was offered wasn't totally out of line but it probably didn't factor in the storefront lease, insurance, etc. I think you said you were going to get a good look at the books so you might consider having your CPA take a look before you make your offer. Good luck on whatever you decide and give us an update!

[wktully]

Originally Posted by SunsetBeachFL

Minority Franchising - Portal to the Franchising Industry - - Beauty-Related - Merle Norman Cosmetics

You may find the above info helpful although the numbers are stale, some of the figures are still fairly accurate; I'm sure there are a lot of other online resources.

Have you called any other existing Merle Norman salons, geographically similar (e.g. small town, no mall exposure), to get honest feedback from existing owners? Would the existing owner consider a buy-out over a period of a few years, or would she entertain some other way to structure the deal?

The reported start-up, as the only expensive requirement, is that you spend around $11k to purchase initial inventory, so the $15k that she was offered wasn't totally out of line but it probably didn't factor in the storefront lease, insurance, etc. I think you said you were going to get a good look at the books so you might consider having your CPA take a look before you make your offer. Good luck on whatever you decide and give us an update!

Thanks for this information - I appreciate it. I have asked the owner if she would consider owner financing - she was receptive to this idea and is investigating on her side. If she comes back agreeable then I would further ask for a detailed look at the books. In the meantime I am checking out other regional locations for feedback.

[Briefcase]

I just found this thread and was wondering the outcome. Did you buy? I am looking into a Merle Norman franchise too.

[wktully]

Originally Posted by Briefcase

I just found this thread and was wondering the outcome. Did you buy? I am looking into a Merle Norman franchise too.

No, I did not buy this franchise. We were unable to come to an agreement on the selling price. The owner was unwilling to move on her price and wanted to recoup all her costs on this business (including freight for new furnuture she had purchased in '08!). She had several offers on this business and wouldn't lower her price for anyone - in the end she liquidated for about 50% of the cost of her merchandise and fixtures. Too bad she wouldn't negotiate with anyone as it was a popular store in town.

[fredosmith]

Today, Merle Norman's vision carries on. The Merle Norman line includes hundreds of tried-and-true products, addressing the full spectrum of skin care and color needs for all women.Its Founded in 1931 and Franchising Since: 1989.
This opportunity is very good.Do not be late to purchase it.
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