How to Sell a Franchise
For those business broker and even franchise consultant, they are often asked about the process of selling a business franchise. This is an essential question today because there are franchise owners that are planning to sell their franchise business. Some of the reasons include retirement, divorce or they are burned out with it.
If you are planning to sell your franchise, there are some things that you need to consider before putting your franchise business for sale. This would eventually lead to success in the sale process making it smoother and much more organized.
- Getting in touch with the parent company
It is important to inform your franchisor that you are selling your unit for a number of reasons. It is advisable that you think about what you will say. Watch out because in the franchise agreement, you can find rules regarding transfer of ownership. There might be parameters for buyer’s qualification and even transfer fees. There are some franchisors that can help you in the sales of your franchise business. They may have potential buyer on their files that might be interested in your location.
- The preparation for sell
Before starting to go over the list of prospective buyers, you would need sometime to prepare a sufficient information about your unit. This includes business profile, assets list and financial statement. Most of the buyers are keen with particular details and they will not go for the purchase not unless adequate financial information is presented. This is can help in determining if the business is a good investment. It is best if you hire an accountant that would help you in your business records. There are businesses brokers who are good when it comes to helping the business become organized and prepared when it comes to creating business profile. This is a much need tool especially in the sales process of the business. A professionally done profile can save time and money of both buyer and seller.
- Setting a price over your franchise
Some businesses don’t sell because they are overpriced. As a seller, you need to set a price that is realistic and credible enough. It should be supported by financial history and other document. It is best if you can consult your parent company regarding the going rate for the resell of their franchise. It is best to ask the advice of business brokers so they can give you pricing guidelines.
The confidentiality of selling a franchise is very important for the owner. It is not good for employees to find out about the sale because this can affect their work. Competitors may also take advantage of the idea that you will be selling the company. It is best if you can hire a business broker that can keep the confidentiality of marketing business. They can screen potential buyers that will sign non disclosure agreement before releasing any information.
- Market your business well
There are several options when it comes to marketing and to advertising your business for sale. It is best if you can outsource the marketing to professionals.
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