subject: Putting A Franchise For Sale [print this page] Most of the time people generally ask a business broker about how to sell a franchise business. It is a valid and important question because at some point the vast majority of franchise owners will want to sell their business for a variety of reasons including retirement, divorce, relocation, start a new etc. In this article well discuss general tips on how to put a franchise business for sale and will hopefully make the sales process easy to understand and much smoother so that you have a successful business transaction.
First of all you should contact the franchisor, let them know that you are considering selling for a reason. Most franchisors have explicit rules regarding the transfer of franchise until to new ownership buyer qualification, disclosure, transfer fee etc, so you must read the agreements carefully when you buy or set up a franchise. Most franchisors can also be very helpful in the consummation of the re sale and may even have a prospective buyer on their file, so you might not have to do too much to sell your business.
As any other business, before you move forward to selling your business and list them for sale, you should invest some time to prepare and provide sufficient information for a comprehensive listing package that should include a business summary profile, equipment and asset list, and most important current and past financial statements. Ill be frank here, no one would like to buy a business whose financial statement is going down over the past year, if your business is going in loss it is better to wait till you can stable the sale of your business or else you will find a huge difficulty in selling your franchise. It is possible to sell a franchise which is going on loss but that effects the sale amount, if you dont mind going on loss and selling your franchise then go ahead, whereas if you want to gain some extra profit with your business sale then you should wait to get the business in good condition before you plan on selling it.
The next comes is pricing your franchise for sale, industry sales statistics indicate that the no.1 reason why most small businesses and franchises dont sell is because they are overpriced, it is very important for an entrepreneur to establish a realistic and credible asking price for their business that can be supported on a number of levels, including financial history and market comparables. Even though overprizing is what you should avoid but you shouldnt under price your business as well as it will result in huge financial loss. So make sure you consult a financer and get your franchise evaluated, as the market is always changing so will the value of your business. Always keep an eye on the market and know when the price of your industry is rising, that would be the best time to sell your franchise and gain some extra profits from it. Nearly every one puts their franchise for sale, but the timing and tactics you use make you different from the rest.
