What should I check before buying a mattress franchise resale?
With a mattress franchise resale, check the age and condition of the floor models, which supplier lines the store can still order, any open warranty or comfort-exchange claims, how delivery is handled, and the booking and lead history. Then ask the franchisor in writing what it must approve before the sale can go ahead.
A general franchise resale checklist is a good start, but a mattress store has its own loose ends. Display beds age, customers hold open claims, and the supplier decides what the store may sell. A buyer who knows where those loose ends sit can ask for the right records early, before negotiating anything else.
Floor models and supplier lines
Ask for a list of every display bed with its age and condition. Worn models can hurt sales and may need replacing soon after you take over. Then ask which supplier lines the store carries and whether those supply terms continue for a new owner. Some arrangements depend on the franchisor, so request the paperwork and read what happens on a change of ownership.
Open claims and customer promises
Ask about warranty claims or exchange promises that may run for a long time. Ask for a list of open claims, how each is being handled and who pays for it after the sale. Your lawyer can tell you how the purchase agreement should allocate them. Also ask about deposits taken for beds not yet delivered, since the new owner will usually be expected to deliver them.
Delivery, bookings and the franchisor
Check how delivery works and whether the carrier’s arrangement carries over. Ask for the booking and lead history across a full year so you can see how steady the store’s pipeline is. Finally, ask the franchisor what it must approve, what training it expects of you and what happens to the territory. Get those answers in writing before you rely on them.
- Display bed list with age and condition.
- Supplier agreements and any change-of-ownership terms.
- Open warranty, exchange and deposit records.
- Delivery arrangements and any carrier contract.
- A year of booking and lead records.
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Due diligence
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 CanadaGovernmentWhat is inventory
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