Reselling a Franchise? Follow These Steps
Hallmark Business Brokers has much experience with the selling of businesses and understands how these transactions should be done. While it is not possible to design a one-size-fits-all approach to the process, there are four steps that are usually present in all business sales.
Step One: Review Your Franchise Agreement
Your franchise agreement may specify what you can and cannot do when you sell your business. For instance, when you decide to sell it, must you first offer it for sale to the company that arranged your franchise? Another consideration would be whether or not you are responsible for providing training to the new employees of the person who purchases your business. Even after reviewing your franchise agreement, get expert advice.
Step Two: Contact Your Franchisor
You need to discuss with your franchisor what they may do to assist you in selling your business, what qualifications a potential buyer must have, and how they determine what your franchise is valued. As before, get a second, expert opinion.
Step Three: Get Your Business Ready to Market
Make sure your business is in the best shape possible. Organize, prepare, and clean everything. Do things need to be fixed or replaced? Get a second or third opinion of what your business is worth, as is, and what it would be worth after preparing it. Will repairs be worth it?
Step Four: Sell Your Business
Again, make sure of the franchise operation’s level of involvement in the sale. Must they approve a buyer before you can sell? Are there other conditions in your agreement to be fulfilled? Even after the sale, you might have obligations to your franchisor, so make sure to double-check.