What should I ask about a formal wear shop’s relationship with prom schools?
Ask how the shop reaches students: school events, partnerships, fashion shows or word of mouth. Find out whether any of it depends on a single person, a promise or an exclusive arrangement, and whether the schools, parents or student groups would work with a new owner.
Start by asking how students find the shop. Is it through a formal link with schools, an annual fashion show, social media, older siblings or the owner’s own contacts? A relationship that depends on the owner’s friendship with a staff member can end when the owner does.
Ask what is actually agreed with each school. Look for anything written: a sponsorship, a display at an event, a discount for students, a promise to avoid duplicate dresses. Ask whether any of these promises could create a cost or an obligation for the shop after the sale. Then look at how prom business flows through the year. Ask when students book fittings, how the shop handles popular dresses so two students do not arrive in the same one, and how returns, alterations and late orders are managed. Check complaints. Speak with the school contacts if the seller allows it, and ask whether they would continue the relationship. Your lawyer can advise on any agreements that need to transfer. Keep in mind that school policies about outside businesses can change, so ask how the shop would earn its place again, and what the owner does each year to keep it. A shop with a clear routine is easier to hand over.
Key takeaways
- Find out how students actually hear about the shop.
- Ask what is written down with each school and what is only a habit.
- Speak with the school contacts about continuing under new ownership.
Related reading
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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