What should I check before buying a glass shop franchise resale?
Before buying a glass shop franchise resale, check the territory and the mix of residential, commercial and auto glass work, what the franchisor must approve and charge on a transfer, which suppliers and systems you must use, and the condition of the vans and crew. Get every franchisor term in writing before you commit.
A franchise resale means you buy the owner’s business and step into the franchisor’s system at the same time. That gives you a brand and a method, and also a third party with a say in the deal. For a glass shop, the checks are the territory, the work mix, the franchisor’s transfer terms, required costs and the crew and vehicles.
Territory and work mix
Ask exactly what the territory is, whether it is exclusive, and whether the franchisor can change it. Then split the shop’s revenue across residential, commercial and auto glass work. A shop leaning on a few insurance or fleet relationships carries a different risk from one with many small customers. Ask which jobs the current owner personally wins.
Transfer approval and fees
The franchisor usually has to approve a new owner. Ask in writing what the approval process involves, how long it takes, what training is required and what the franchisor will charge. Ask your lawyer whether any disclosure document applies to the resale. Ask your lawyer whether an offer should be conditional on approval, so you are not committed before the franchisor has agreed.
Required suppliers, systems and ongoing costs
Franchisees are often tied to approved suppliers, software and marketing programs. List every ongoing payment to the franchisor and every required purchase, then compare them with the shop’s real statements. Ask whether system upgrades are coming and who pays. Check whether the shop’s own relationships sit outside the system, since those may not stay with you.
Crew, vans and equipment
Installers carry the work, so ask who stays after the sale and who holds the skills. Inspect the vans, racks, cutting tools and lifting gear, and ask for maintenance records. If the franchisor requires branded vehicles or tools, find out whether they transfer or must be replaced.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- GuideBuying a glazing contractor in Canada
- GuideBuying an auto glass repair and replacement shop in Canada
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- Expert answerHow do I check a windshield repair business’s mobile vans before buying?
- Expert answerHow do I read an auto glass shop’s insurance, fleet and cash work?
- Expert answerCan I buy a windshield repair business if I’m not a glass technician?
- Expert answerWhat changes when a windshield business does chip repair only?
Due diligence
Financing
Selling
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Canadian Franchise AssociationIndustryInterested in Buying a Franchise?
- 02Canadian Franchise AssociationIndustryFranchise Disclosure Legislation across Canada
- 03Business Development Bank of CanadaGovernment5 tips to finance a franchise purchase
- 04Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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