BizBuySell | Top Site For Business For Sale But Awful for Franchise Opportunities
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- čas přidán 13. 07. 2024
- There are a lot of business-for-sale websites out there, but BizBuySell is definitely one of the most popular.
The site has been around for over 20 years and boasts a database of more than 50,000 businesses for sale. But BizBuySell is not so good when it comes to franchises.
In this video, we'll explain why BizBuySell is great for buying established businesses but terrible for finding franchise opportunities.
One of the main reasons BizBuySell is not a good resource for franchises is that they don't have a dedicated section for them.
Franchises are lumped in with all the other businesses for sale, which makes it difficult to find what you're looking for. And even when you do find a franchise listed on BizBuySell, there's no way to filter by location, so you could be looking at businesses thousands of miles away from you.
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00:00 Introduction
01:40 Businesses & Franchises for Sale on BizBuySell
02:11 Liberty Tax Franchise
02:27 Website Navigation
03:21 Popeyes Franchise
03:54 7 Eleven Franchise
04:33 Smoothie Franchise
05:33 Bubble Tea Franchise
05:45 Donut Shop and Bakery
06:08 Transition in Ownership
07:08 Buying a Business Varies Depending on the State
08:20 Vetted Biz Franchise Listings
08:41 Why BizBuySell show only a few franchise opportunities?
10:05 Are these really franchise opportunities?
11:20 Cruise Planners Franchise
12:24 Conclusion
#BizBuySell #VettedBiz
Bizbuysell.com is a top site for businesses for sale and they do have a decent selection of franchise resales. But in our opinion, it’s an awful source of information for franchise opportunities in the United States.
The Pros and Cons of BizBuySell
Now let’s start with the positive. BizBuySell has been the dominant force in the business for sale marketplace in the United States for 20-plus years. There are newcomers like Flippa selling websites, apps. But no one has the web traffic and the number of opportunities as bizbuysell.com.
They’re mostly focused on selling existing businesses and franchise resales. And comprise a very small percentage of the businesses for sale on their website. They’re part of CoStar, which is a publicly-traded company based in my home city of Washington, D.C. And BizBuySell is part of the marketplace division that includes BizQuest, FindaFranchise, apartments.com, LoopNet, as well as Lands of America.
Focusing a bit where we are right now in Miami, Florida. BizBuySell has over 1,500 businesses for sale in the state of Florida listed on their website. And there’s about 5,000 franchise resales across the whole United States on BizBuySell.
Right now, we’re gonna go through a few of those franchise resales. And keep in mind, this ranges anywhere from a $60 million group of franchise businesses all the way down to a few thousand dollars.
What you need to know about BizBuySell
One of the big issues I’ve been having with BizBuySell, it’s hard to navigate the site. It’s tough to figure out and sort…There’s no feature where you can sort by franchises like some other franchise resell sites have like franchiseflippers.com where you can actually sort brand by brand.
And then looking at four franchises for sale that are accessible for non-millionaires, you have a 7-Eleven for sale at $441,000 that has cash flow of over $200k. So not a bad multiple. And the owner is making themselves $175,000 from this business. If you were to open up a 7-Eleven, it would basically be around $400,000 depending on the location. So this could be a good way to fast-track finding the site, build out, and the time to break even by just buying an existing 7-Eleven franchise.
What to Consider When Buying a Franchise
They also have a smoothie franchise for sale on the website, but they don’t disclose the name. It’s for sale for about $300,000 and has cash flow of $120k. So again, the multiple is pretty reasonable, especially if it’s operated mostly by the owner.
So under $200,000, you know, there’s a bubble tea franchise in Texas, $170,000. It’s for sale in Texas, but there’s no financials. So it’s probably not making much money. And then you do have a donut franchise for sale at $75,000 that does $168,000 in sales but only $10k of cash flow. So if you’re gonna buy that business for $75k, you could be inheriting a big issue. And become a slave of the business where there’s not even enough margin to really live off the business unless you have a massive turnaround.
Want to read and learn more? Click here: www.vettedbiz.com/bizbuysell/
I came across your video and had a question for you. I am looking for an automotive business to buy including franchise opportunity and I keep seeing people say don't use a broker. Is that a true statement or not? I am new to this whole thing and I am getting overwhelmed by all the info out there. I want to get into something and my wife and I have a little under 300K to start with. Do you have any recommendations on this?
Did you buy your first house with a broker? If you did, it's probably worth atleast interviewing a few franchise brokers. Brokers won't have the full inventory of franchise opportunities but a good selection of 400-600+
Hi Rick, I'm in the process of selling my maid cleaning franchise if interested. You'll work directly with me no broker. Definitely less than your willing investment. I'll love to connect and d😢iscuss more. Let me know and I can send you my contact information.
I saw some business on BIZBUYSELL that cash flowed more than they were selling for. Any ideas on why they would sell for lower than cashflow? Possibly fake listing?
I presume fake listing or simple manipulation of the numbers. Could be a business where the revenue is very tied to the owner and will decrease when he leaves the business
That’s what I assumed. Thank you
They are bullshit!! Usually franchises saying what they expect you to make many years after startup. Franchises post bullshit numbers all the time. I regularly inquire about all those business and they are really startup franchises not established businesses. Also, believe it or not, many owners don't understand the numbers and put revenue as cash flow and vice versa.
So is that a bad thing if the cash flow revenue , is higher then the selling price of the business?
@@krest2012 it's bad in the sense that it is a red flag. Why would anyone sell a business for less than the total profit it achieves in one year? THat's more than a 100% ROI - great for buyer but awful for seller. the disconnect doesn't really make sense
is cash flow gross sales or net income? Thanks.
Not exactly net income but the number is similar. Will depend on if the franchise owner has debt, etc.
I know through looking through your website you help with Franchise businesses. Do you also help with assessing other business to buy?
No, currently just franchises.
I am 79 & looking to increase my income by $10K/mo net & have the business owner do seller financing. Something where 0 down with roughly 20% of profits to the seller amortized over 5 years but can be paid sooner if business prospers.
We're all looking for the needle in the haystack!
Very unlikely especially if you don't already have a relationship with the seller.
a #consultant mixture store?? I make #Epoxyprops all day that I deliver.... been working on #paperMotions #stopAnimation in the process of why I #Lease a storefront. #GoodLuck
I've seen pretty bad reviews about BizBuySell on Trustpilot. What is your take on these negative reviews?
I'll have to dive into them further!
@@Vettedbiz sure, pls give us your opinion when you get to it. Thanks!