How to Sell a Franchise Business
You were proud when you purchased your franchise business. You went to work every day with a smile on your face and quickly learned the ins and outs of business ownership. However, the time has come to sell. You want to sell as quickly as possible, but you also want to get the value out of the business that you worked so hard to build into it. Preparing for the sale and knowing what you need to do can help you turn a tidy profit.
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Instructions
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Check your franchise agreement to determine if there are written rules regarding the sale of your franchise. If so, be sure to go over them with your franchisor to be sure that everybody agrees on the process.
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Ask the franchisor to let you know of any potential purchasers of your business. Sometimes, they are aware of investors who want to make a purchase and can assist you by introducing them to you.
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Prepare for the sale of the franchise. Get the business in tip-top shape. Have it cleaned, stocked and readied to be viewed by potential buyers. Make sure the books are up to date and accurate. Let employees know that the business will be sold and what is expected of them during the showing, sale and transition process. If you plan to ask that the employees be retained, let them know that also.
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Study the current market. Check the asking prices of similar businesses for sale in your area. Determine what your asking price should be based on that and other factors, such as type of neighborhood your business is located in.
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Know how to close the sale. It may mean you offer to come in two days a week for the first three months after the sale to help the new owners settle in. You may decide to reduce your asking price, but ask for the right to remove your stock from the shelves. Whatever it takes to sell the franchise and give you a profit, you need to determine and go after. Have the potential buyer go through the corporation requirements as well, so they can be qualified to make the purchase when the time comes.
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