Can you sell your franchise?
Circumstances can change. Even if you’re running a lucrative franchise, there may be professional, or personal, reasons why you’re no longer able to operate it.
But when you reach a new stage in your life, can you sell your franchise? The answer is yes, you can. However, you’ll need to get a few things in order to help you find a buyer.
Step one: Preparing your franchise for sale
The first step is to seek advice from people who have experience of selling franchises. If you’ve maintained a good relationship with your franchisor, tell them about your decision to sell. They will have supported other franchisees through this process in the past, so they’ll be able to provide some valuable advice. Another person you’ll need to contact is a broker or business transfer agent, so you can obtain an accurate valuation of your franchise.
Step 2: Marketing your franchise to potential buyers
As you’ve already been through the process, you’ll have a clear understanding of a person’s motivation for taking on a franchise. Often it’s about more than joining a business with a well-established brand name; the franchise owner has to be passionate about the product or service that they’re selling. That’s why it’s important to target your marketing material to find potential buyers who share the same passions as you. Including some information about the personal rewards of running the franchise alongside all the financial and technical details is more likely to compel them to buy.
Step 3: Managing the handover
Even if you’re eager for a quick sale, it’s important that you don’t rush through the negotiation stage. Make sure you set aside ample time to meet with your buyer and talk them through all aspects of the business. Also, be prepared to answer a lot of questions during the negotiation process. Remember to be honest with your answers – evading any questions may raise suspicions and delay the sale.
When you sell your franchise to a new owner, you’re not only selling your business, but also a reputation that you’ve established, so make sure the sale goes well.