Business Acquisition and Franchises

Video from our FREE Online Business Course
http://www.myownbusiness.org
Session 11 Buying a Business or Franchise

Question:
"Could you tell us about some of the considerations you took into account when Yum Yum acquired the Winchell Donut Chain?"

Lincoln Watase
President, Yum Yum Donut Shops, Inc.

Topics covered in this video:
Buying a business, franchising, chain stores, acquisition, merger

Transcript:
The acquisition of the Winchell's donuts chain by Yum Yum Donuts was a major step for Yum Yum. With more than double the stores and with stores stretching out into states like Oregon, Washington and Oklahoma, the acquisition was an important for a company the size of Yum Yum. Fortunately, the founder of Yum Yum, Phil Holland and his partner Frank Watase had really modeled Yum Yum after the Winchell chain, so in many ways we had a huge advantage of being very familiar with the Winchell operation prior to our acquisition.

The majority of Winchell's stores are located here in Southern California, the same place geographically where Yum Yum has the majority of our stores, so the Winchell acquisition was a very good fit for Yum Yum. The final consideration we gave in looking at the acquisition was we wanted to make sure, after doing our business plan and projections, that we were in a strong position to be able to service the debt that we were taking on in order to finance the acquisition.

Category:

Education

Tags:

• Start
• starting
• business
• buying
• franchise
• evaluate
• finance
• opportunities
• pros
• cons
• revenue
• chain
• stores
• acquisition
• merger