Are you a franchisee looking to sell your current operation? The good news is that a franchised business is more likely than an independent business to sell for top price. In other words, because it is backed by systems and infrastructure, a franchise business is more desirable to buyers.
Step 1: Get Your Franchise Ready to Sell
Once you’ve made the decision to sell your franchise, let your franchisor know.
First, get in touch with your franchisor. It makes no sense to keep the sale a secret from your franchisor as they are used to having franchisees leave at some point. Inquire whether they can assist you with a transfer or resale. Find out how much aid they provide. Significant differences exist between franchises in the method.
Some franchisors can assist you with a variety of sale-related tasks. However, some people only want to approve the new franchisee and do not want to be involved in the selling at all.
Obtaining a valuation, modifying or normalizing your financial records, and creating a marketing package for your company—often referred to as a business overview or an offering memorandum—are all included in preparation.
Step 2: Promote the Sale of Your Franchise
The majority of business brokers market enterprises for sale using their own exclusive databases and web platforms. A business broker can accomplish this for you if your franchisor does not aggressively market the sale of your company. Resales are a little more complicated than selling an independent firm because franchises have different marketing strategies for selling your business.
Step 3: Close the Deal After Negotiations
Once a buyer has been identified who is enthusiastic about both your company and the franchise model, you may haggle over a price and start the closing procedure. Selling an independent business differs from selling a franchise in a number ways, including the requirement that the buyer obtain a copy of the FDD 14 days before the franchise is granted. Additionally, before purchasing a franchise or making an offer, franchisors may compel prospective customers to attend the Discovery Day. Depending on the preferences and procedures of the franchisor, the procedure differs.
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