Jean and Jim talk about the first franchise Jean bought and how that one small decision has sparked her passion for franchises and helping others make theirs a success.
Main Questions Asked:
- How long from the time you walked into the store, did it take you to close on the deal?
- Am I hearing that you did not have a lawyer by your side through this?
- What were you thinking?
- When you went into the business were you thinking about the exit?
- How did you determine the valuation, how did you know the number was right?
- How have you determined what you want for the business now?
- As you look back, what kind of advice do you give people?
- What other mistakes did you make that you tell people about?
- Is that the common dominator amongst those that are failing (no marketing)?
- Tell us about your book and explain the title?
Key Points made:
- It wasn’t all peaches and cream, there were some failures along the way. (1:38)
- You’ve become kind of a franchise operations expert. (2:10)
- I could immediately see why that business was for sale and I could think of 100 things I could to make it profitable. (3:17)
- It took me about 4 weeks to close on the deal. (4:28)
- I didn’t know that the franchisor could have closed the shop and we would have lost our entire investment. (4:53)
- I never had a lawyer at all when we bought that business. I did not take it to an attorney. (6:30)
- I didn’t ask for tax returns, they had only be open 11 months and showed a $5k profit. (6:58)
- You might ask, why would someone buy this business. (7:01)
- I thought this would be an awesome opportunity. (7:27)
- It never crossed my mind that I could not be successful. (7:29)
- I’ve had some setbacks along the way. (7:58)
- I wasn’t thinking about the exit, I was too young and thinking I’m going to make a bazillion dollars from this. (8:50)
- I didn’t know that the number was right. I just went off the P&L he gave me. (8:54)
- I spoke with a business broker and he told me how to value that, 2.5 to 5 x’s your cash flow. (11:15)
- The one thing I tell them about buying a business, is to make sure the franchisor accepts you. (12:10)
- I tell franchisees that you have to market your business even if you pay a marketing fee. (12:50)
- Yes, you need to market your franchise. (13:47)
- In 2015 I will be doing my first franchise event for any small business owner. (15:39)
- Some mistakes I’ve made were so costly. (17:35)
- The book is called F Ups Franchisee screw ups that will cost you thousands. (17:41)
- The number one mistake was that I worked behind the counter in my store every day. (18:15)
- It’s not always a good thing to hire your kids…I’ve fired two of my children. (19:06)
- There is a bit of a dark side to a family business. (19:30)
Resources Mentioned
www.jeankuhn.com or Jean@jeankuhn.com
Book:
F Ups – Franchisee Screw-Ups that can cost you thousands.
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Tennessee Valley Group
Jim Cumbee established Tennessee Valley Group to help business owners fulfill their dreams for life after business ownership.
It’s a mission that his 30+ year career history had prepared him well for—in addition to being an attorney, transition mediator and business broker, Jim has been a buyer, seller, and entrepreneur. His broad range of experience gives him unique insight into how business buyers and sellers can achieve their goals.
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