When buying an existing salon, how do you transfer funds for existing memberships? - Page 3

megatanman · 09-17-2007, 02:21 PM

I asked the seller to pro rate waht was left on existing memeberships and deduct from the selling price.

Unfortunately she was a cheap witch and decided to screw her customers
She deleted all outstanding packages and sessions,When the customers came back in,they were like"what happened to my membership?"I explained to them how the business was transferred and how the previous owner deleted there memberships.They were angry! Some of them were her friends too.

I didn't give them her number,but I told them where she was working now.Most of them collected from her and came back as customers.

Thats why you don't "buy" and existing business.Do an asset purchase and form your own corporation.

4SeasonsTan · 09-19-2007, 03:14 PM

I've had this same question...... my answer is if you buy a business that nets $60,000 a year, then it doesn't matter whats on the books as far as tanning sessions sold by the previous owner. You're buying a profitable business that if run correctly will net $60,000.

Give the person $150,000 and welcome to the tanning industry!

Smileysnob · 09-20-2007, 12:50 PM

Quote:

Originally Posted by 4SeasonsTan

I've had this same question...... my answer is if you buy a business that nets $60,000 a year, then it doesn't matter whats on the books as far as tanning sessions sold by the previous owner. You're buying a profitable business that if run correctly will net $60,000.

Give the person $150,000 and welcome to the tanning industry!

I still dont agree with that - no matter how much teh salon makes a year! You are entitled to atleast a pro rate of what is left in there packages...

09-17-2007, 02:21 PM	#21 (permalink)
megatanman I love Derf!! Join Date: Aug 17 2007 Location: Ohio Posts: 261 Rep Power: 1	Re: When buying an existing salon, how do you transfer funds for existing memberships I asked the seller to pro rate waht was left on existing memeberships and deduct from the selling price. Unfortunately she was a cheap witch and decided to screw her customers She deleted all outstanding packages and sessions,When the customers came back in,they were like"what happened to my membership?"I explained to them how the business was transferred and how the previous owner deleted there memberships.They were angry! Some of them were her friends too. I didn't give them her number,but I told them where she was working now.Most of them collected from her and came back as customers. Thats why you don't "buy" and existing business.Do an asset purchase and form your own corporation.

09-19-2007, 03:14 PM	#22 (permalink)
4SeasonsTan Join Date: Apr 15 2005 Location: Atlantic Beach, FL Age: 38 Posts: 42 Rep Power: 0	Re: When buying an existing salon, how do you transfer funds for existing memberships I've had this same question...... my answer is if you buy a business that nets $60,000 a year, then it doesn't matter whats on the books as far as tanning sessions sold by the previous owner. You're buying a profitable business that if run correctly will net $60,000. Give the person $150,000 and welcome to the tanning industry! __________________ www.fourseasonstan.info www.myspace.com/fourseasonstanningsalon

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