Sell your franchised business today and retire tomorrow!
You already know that owning and operating your own franchise has proved the best way to be your own boss. However, after building up your successful franchise and reaping the rewards over many years, you’ll probably want to start winding down towards retirement. If the kids don’t want to take over the reins of the business you could be worrying about different ways to dispose of your franchise? It’s not difficult to realise the investment tied up in any successful franchise, here’s how…
Selling a franchise
You should already have some idea of the value of your business, and it will have increased to well over the sort of cash paid out to acquire the business. All your successes ensure that any new business owner acquires a valuable “turnkey” franchise operation that generates profits from day one. That’s the reason you need to be careful about comparing like for like, at the point of franchise sale.
It’s possible your existing franchisor is still marketing new franchises to potential business startups. And, you should be wary of simply just your successful business back to the franchisor, because you’re unlikely to achieve the sort of sale price you seek.
Valuing your franchise resale
Your accounts and business records will be the perfect indicator of the future profits and likely value already locked into your existing business. Of course, your franchise will only sell if it’s for sale at a price that your buyer is prepared to pay. Some tips on valuing the business include:
- Don’t be in too much of a hurry to sell. When buyers recognise an immediate sale is required, they have the upper hand!
- Ensure all your assets and stock in hand are valued accurately, as they will reflect the tangible assets owned by your business.
- Intangible assets are difficult to quantify. They include the customer goodwill that’s been built over the years, and the ongoing supplier relationships already established. In this respect, your existing and previous cash turnover is a good indicator to use.
In all honesty, you don’t need to have any worries about marketing your successful business as a franchise resale. Take time to learn more when you browse the range of resales at Franchise UK today, or get in touch to discuss your franchise resale opportunity with one of our experts.