As a broker and sales consultant franchise, I am often asked what the process is to sell a franchise. It is valid and important question, because at some point the vast majority of franchise owners want to sell their companies for various reasons, including retirement, relocation, divorce, owner of engraving, etc. Here are some general tips below that all franchisees must keep in mind before putting their franchise for sale and should make the sales process takes place much more smooth.

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Contact the franchisor

It is important to let your franchisor know that you plan to sell a number of reasons. Most of the franchisor have explicit rules (read your franchise agreement) regarding the transfer of the franchise new unit property, including buyer qualifications, disclosures, transfer fees, etc. Most of the franchisor may also be very useful in the new consumption and sale in May even have a potential buyer in the dossier which has expressed an interest in your specific location or territory.

Sale of preparation

Before moving to a list, it is imperative that the franchise owners to invest the time to prepare and provide sufficient information for a complete list package which should include a summary profile, equipment and a list of assets, and especially Current and past financial statements. Most buyers will not go ahead with a purchase unless they and their advisers have been adequately financial information to verify the company is a good investment. I strongly recommend to consult your accountant or a book keeper to help them prepare business documents to help validate and support your asking price.

Regarding the development of a profile, most professional business brokers are very effective in helping business owners to organize and prepare a profile that can be a tool played a role in sales process. A professional and thorough profile can also be valuable ultimately saving time for the seller and buyer.

Price of your franchise to sell

Statistics on sales of the industry indicate that the # 1 reason why most small businesses and franchises do not sell because they are too. It is very important for business owners / sellers to establish a credible and realistic asking price for their business that can be supported on a number of levels, including financial history and comparable markets. You should consult your company’s franchise or other franchise owners in your system again on recent sales to give you an idea of where the market.

You May also want to find and consult a local broker business in your area upon request and rely on guidelines quotes for your type of franchise. It is also important in most cases to offer terms to the potential buyer because the majority of small businesses cover the acquisition will not be acceptable to the bank or SBA.

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Privacy

Unlike the sale of assets such as real estate, maintaining the confidentiality of a small sales business can be very important for the owner / operator for a number of reasons. It is not uncommon for employees, customers, suppliers and even become very concerned (or worse) if they become aware that the company for sale. Competitors May also use knowledge of the company to be on the market potential gain unwanted and inappropriate benefits.

The best way to maintain the confidentiality of a sale is to retain the services of a professional broker or intermediary who has experience in marketing companies confidential and franchises for sale. This includes the provision of services such as screening, qualifications, and requiring buyers to sign a non-disclosure agreement before not to disclose confidential information.

Marketing and advertising your franchise for sale

Franchise owners have today a number of options when deciding how they would like to market and advertise their franchise for sale. This includes courses “for sale by owner” route, which has advantages and drawbacks. The biggest disadvantage is the risk of loss of privacy and possible negative effects May it have on the company and its chances to sell. The biggest advantage of a “for sale by owner” transaction is the owner obviously is not liable to pay a commission to a brokerage firm or franchise.

The most common franchise owners to choose when selling a franchise is to hire a professional or franchise broker to manage the sale. Most brokers are paid a commission only after the sale is completed, there is usually no advance fees. They are also familiar with their local market and buyer demand, and can help to maintain confidentiality and the preparation and the price of a company selling so he has a good chance to attract a qualified buyer.

Regarding advertising, most brokers also employ a number of local and national “business for sale” websites that can give up a confidential list and exposure to potential buyers. They also work (or co-broke) with other brokers professionals in their field who might have a potential buyer for your business.