subject: Selling A Franchise [print this page] So, is it time to realize the net worth of your hard work over the years on your franchise business? Business buying and selling is a common practice in the world today. There are many always to sell your business, be it a self owned small business or a large franchise. But, one has to prepare well before actually selling it off.
Franchise business have a niche over self owned businesses in a away that they do business on a large scale and the brand value help the seller get buyers easily.
You must check your franchise agreement before planning the sale of your business. Make sure you go by the clause(s) mentioned in the agreement, if any. Ask the franchisor about the flexibility or rigidity of the agreement and plan the sale accordingly.
You can also ask the franchisor or any other franchise outlet of the same franchise business if they know any potential buyers. Generally, franchisors are of great help because they have a huge client base so they know people who may be interested.
You must have often seen people getting the walls of their house painted or fittings re-organized when they put their house to-let. Similarly, you must prepare your business by organizing all furniture, fixtures and equipments. Like you present your products and services in the best possible manner, similarly, present your business nicely in the platter so as to attract potential buyer(s).
There are certain set of rules that regulate franchising in any country. One must identify all such regulations and abide by them.
Study the market for the current trends and competition. Compare the prices of competitive businesses and accordingly decide the price you want to quote for your business for sale. There are some franchisees working on salary basis, so they should take assistance of the franchisor in quoting the price of the franchise for sale.
As I always say; negotiation is an art. No buyer would be willing to buy your business at the price you ask. Thus, you will need to reduce the asking price in order to finalize the deal. It is the prime objective of any business to make profits out of a deal, so, settle at a good price that is profitable for both the parties. If the buyer intends to highlight certain weaknesses of your business, support your asking price with the strength of your business.
Make sure you pay due attention towards the routine functions of the business. This can be done only when you hire a professional business broker to handle all the work related to sale of your business. However, you must keep an eye on the brokers activities and keep enquiring about developments.
Be fair in your deal. Sign the non disclosure agreement and disclose the necessary facts and figures of the business to the buyer. Also, state the true reason of sale of the business even if it is downfall/loss.
Avoid mistakes on your part so as to get into the most profitable deal.
