What should I look for in an eyewear shop’s frame brand relationships and displays?
Ask for the supplier agreements or account terms for each frame brand, and find out which accounts will continue under a new owner. Then check the displays: who owns the fixtures, what condition they are in and whether a brand supplies or controls them. Brands that pull their lines after a sale leave empty shelves.
Start with the list of brands the shop carries. For each one, ask who the account is with, what the terms are for ordering and returns, and whether there is a minimum order. Some suppliers want to approve a new owner before they keep the account, so ask about that early.
Next, ask what each brand gives the shop. Some provide display units, signs or sales support. Ask who owns those items. Fixtures belonging to a supplier can leave when the account ends. Then look at the displays themselves. Are they clean, well lit and arranged so customers can try frames easily? A tired display may cost sales and cost money to replace. Take photos and note which units are worth keeping.
Finally, watch which brands customers ask for. A line that sells well but sits on a fragile account is a risk. A line that is left on the wall may not be worth keeping. Your lawyer can read the supplier agreements; your accountant can show how brands contribute to the shop’s earnings. Talk to the staff about which suppliers are easy to deal with. A good rep who visits regularly is worth something, but the relationship may belong to the seller personally.
Key takeaways
- Ask which supplier accounts transfer and whether suppliers must approve the new owner.
- Find out who owns each display fixture.
- Match the brands customers ask for to the strength of the account behind them.
Related reading
12 pages on the same subject, grouped by topic.
Buying
- Expert answerHow should I examine a cheese shop’s cutting, wrapping and display routine?
- Expert answerHow can I judge how much of a frame shop’s work comes from corporate decor jobs?
- Expert answerHow do I assess a body shop’s frame machine and measuring system condition?
- Expert answerHow do I check a frame shop’s cash flow in the weeks after the holiday rush?
- Expert answerHow do I check a frame shop’s repeat artist and gallery clients before buying?
- Expert answerHow do I check a frame shop’s staff skills and who handles the delicate work?
- Expert answerWhat should I check about a frame shop’s mat cutter and mounting press?
Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.