Starting a new business can be overwhelming. If you want to avoid some of the common challenges of starting a business, you may want to consider buying an existing business or a successful franchise. The Small Business & Entrepreneurship Centre can help you through this process.
Talk with a lawyer before buying
According to the Government of Canada, if you decide to buy an existing business or franchise, you should consult with a lawyer to help draw up a buy and sell agreement that outlines the terms and conditions of the sale.
A lawyer can also help you develop legal contracts. Some potential contracts include, but are not limited to:
- Licensing agreements
- Franchise agreements
- Employment contracts
- Subcontractor agreements
- Partnership, incorporation or shareholder agreements
- Lease agreements
- Mortgage and purchase agreements
Find a lawyer
Find a local lawyer who can help provide you with legal advice and support.
Determine the business value before you buy
Before you purchase a business, it is important that you assess the current value of the business. This will help you decide how much money you're willing to pay for the business. The following organizations can provide items to consider before you purchase a business:
The Canadian Business Valuation Institute can provide you with a list of valuators located in Windsor who can assess the value of a business before you buy.
Benefits and challenges of buying a business or franchise
The Government of Canada provides a list of potential benefits and challenges for buying a business or franchise. Check out these recommendations to help you decide if this is the best option for you.