After years of building up your business, you’re finally ready to get out there and sell a franchise. Every path to selling a franchise is unique, but it all comes down to your determination to sell and your buyer’s faith in your business. Whether you’re gearing up to sell your first franchise or your hundredth, here are some tips to help to make franchise selling a little smoother.
If you are ready to look at selling a franchise or any other well established business, contact us today and discuss our confidential marketing strategy to get you the best offer for your business.
Look for the Right Franchisee
Selling a franchise is not a “set it and forget” type of deal. When you’re selling a franchise, you will inevitably work closely with the buyer. They will be another face representing your brand, so you want to make sure you find a buyer that lines up with your company values. This person should also share your goals and be open to discussing growth opportunities to help your business thrive. If your sale is public, you can consider asking current employees their thoughts on franchising. There may be an employee that has always wanted to be a bigger part of your business and would be a great fit as a franchisee.
Open and Operate a Test Location
While this can be a large financial undertaking for many, choosing a lucrative location and opening a test spot could help you sell your franchise more easily. If buyers can see that your franchises are running well and they can go to a location and see it for themselves, they may be more interested in purchasing a franchise of their own from you. Selling a franchise is almost like selling a house. It’s about location and seeing first hand if that franchise is the right fit for a potential buyer. Having a test location is also a smart way to test out new products and ideas without putting your franchisees at risk.
Gather All of Your Information
A new buyer or someone buying a resale franchise is going to want to have as many facts in front of them before they decide to make a purchase. Gathering all the information necessary to pitch to potential buyers is critical in helping them understand why buying your franchise is a great idea. If you’re a new seller, get together historical data on your existing business and pitch why expanding into franchises will not only benefit your business and your buyer. If you’re a reseller, you can keep more critical information to yourself until you know you have a serious buyer, show why reselling this location is a worthy investment for a potential buyer.
Work With a Broker
When selling a franchise, the process can be long and tedious with many moving parts. It is in your best interest whenever you make riskier business decisions to work with a professional. A broker can open doors to their network to help you find potential buyers too. Brokers will take a fee, but it is a worthy investment to sell your franchise successfully. If you’re looking to expand your business and sell a franchise contact one of our brokers. We will work with you every step of the way to properly evaluate your business and help you sell your franchise to the right buyer.