If you are considering selling your franchise it is important you take into consideration the following…
1. Start Preparing For Your Exit Early
Selling your franchise is probably one of the most important transactions you will ever undertake and it is therefore vital that you get it right. The more time you allow yourself, the better. Many franchisees find it can take at least a couple of years to prepare effectively.
2. Business Valuation
If you’re going to sell your franchise business, you’ll need to know how much it’s worth. Many factors will influence the value of your business, so it’s crucial you consult a professional who has experience in franchising and understands the complexities involved in valuations. You should also be able to trust them, as you’ll want to get the best deal you can.
3. Hire a Franchise Sale Specialist
If you want to achieve the best price for your franchise and ensure the smoothest exit you should hire the services of a franchise sale specialist. Not only can they provide you with the above two services, they will also market your franchise to their database of franchise buyers via multiple marketing platforms and exclude any time wasters.
4. Franchisor Approval
When selling a franchise transactions are closed subject to a number of conditions. One of these is the approval of the franchisor. The franchisor will want to conduct its own due diligence on the buyer of the business. This will be to ensure the new owner is a suitable candidate to run the business, have enough cash on hand to manage expenses, and are ready to undergo the appropriate training program.