Many entrepreneurs find themselves opting to join a franchise business as they begin their entrepreneurship journey. Franchises offer a host of appealing benefits including stability, a proven concept, as well as a network of established resources. While franchise businesses continue to rank as one of the leading business opportunities, there comes a time in every business owner’s career when it’s time to sell. If you’re considering exiting your franchise, follow these tips from Sunbelt Business Brokers for reselling a franchise business with ease.
According to recent findings from the International Business Brokers Association (IBBA), experts have declared it’s currently a seller’s market and a great time for owners to consider exiting. To help guide you through your transition, utilize the following four tips.
Before you make any significant decisions, be sure to review your franchise agreement. Many franchisors layout specific parameters for franchisees looking to sell their business and some franchisors even offer assistance in the selling process.
In addition to reviewing the agreed-upon selling process, you should also make careful note of any transfer fees or mandatory training for the new owner once your business switches hands. While selling any type of business presents a variety of challenges for owners, reselling a franchise often involves a few more obstacles.
After reviewing your franchise agreement documents, contact your franchisor as soon as possible to alert them of your exit plans. During this conversation, consider asking the following questions.
While these questions are a great start to beginning your exit process, consider enlisting the help of a certified business broker to provide the best guidance.
To receive the best asking price, ensure your business is in tip-top shape from your books to the building condition both inside and out. Consider investing in small maintenance fixes or even a professional service to obtain an accurate business valuation to further help you obtain desirable offers.
Keep in mind the franchise business industry has grown for the eighth year in a row. The industry’s performance paired with your well-prepared business should provide plenty of offers to consider.
After listing your business for sale, consult with your franchisor about any offers you receive. Depending on the franchisor’s level of involvement with the selling process, any prospective buyers may need to be approved before the sale is final.
Whether you choose to exit your business to pursue other opportunities or are interested in browsing other businesses for sale, be sure you’ve fulfilled your franchise agreement before starting something new.
Reselling a franchise can quickly turn into a complicated process, but that doesn’t mean you have to go through it alone! When you’ve decided it’s time to sell, contact Sunbelt Business Brokers to get in touch with a professional intermediary experienced in franchise sales near you.