One of the country's top franchise brokers, gives 5 'must do' things to achieve the best result possible when negotiating to buy a franchise.

Len Ferguson, as co-founder of one of the country's most successful franchise brokerage firms, has unparalleled experience in the franchise sales market.

He talked us through five (5) key steps that you can apply to any business sale negotiation, and not just a franchise.

Save more than just a few $ with Len's expertise!

The 5 key things to know with time stamps on where they feature in the video above;

1. Gather information so you really understand the business. 

44 secs

Start with finding the weaknesses and the strengths of the business you want to buy in order to frame your negotiation strategy. YOU must understand the business fully yourself, and not solely relying on your advisers.

2. What is your strategy, your specific points of negotiation? 

2 min 20 secs 

Decide if you are after a blend of special terms and price, and generally a clear understanding of exactly what you want to achieve in the negotiation. Importantly, understanding why you are making the offer for a certain amount is crucial, rather than just 'throwing' a number at the seller.

Len gave a number of example terms that could be part of your consideration;

• Quick settlement,
• Long settlement,
• Included 'things',
• Vendor finance,
• Certain stock levels etc.

3. Negotiate your points.   

3 min 22 secs

You need to go into the negotiation with a specific list of things to negotiate on and tick those off as you progress through your points.

4. Document your negotiated agreement quickly.  

4 min 08 secs

In order to lock in your deal, don't delay once completed negotiating. Go to contract on it quickly to avoid either of you dwelling on aspects and backing out of verbal agreements. Sellers remorse could see a great deal fall apart through a slow pace in going to contract on terms you already agreed on face to face.

5. Be prepared to give something to get something.    

5 min 10 secs

It is true that the best outcome is where you go for the win-win. It helps the deal move along smoothly if both parties feel that fairness and value has been as close to equally achieved. Don't do 'non-commercial' crazy things that destroy goodwill and deals over relatively minor things. It pays for all to be flexible to a point.

All the extra detail you need is in the video, so make sure to grab your note pad and pen!