How do I sell my franchise business?
Having to sell a franchise is something that franchisees will face for any number of factors. It’s important to remember that what made the franchise an attractive prospect for you will be the same for any new buyer.
You may find selling a franchise daunting, but if you do it the right way, you can make sure the sale leads to a financially secure end.
Ideally, from the day that you buy the franchise, it is to your advantage that you have an exit process in mind. This allows you to be fully prepared, should you need to sell. This also allows you to review the franchise from an objective standpoint. Perhaps in uncovering flaws in the model, you could fix these before selling and this can potentially increase the value.
The right buyer
Though it is usually your responsibility as the existing franchisee to find a new franchisee, it’s vital that you work with the franchisor to find a buyer you are both happy with. The franchisor makes the final decision whether a potential franchisee has the right attributes to join.
The right price
Of course, you want to make sure you get the best price possible for your franchise. Some factors to consider:
If there is any economic uncertainty, it is better to wait for the market to stabilise. If the period is unsettled, you will find that buyers are reluctant to spend money.
If you’re considering selling, then do it when the business is doing well. If a business is booming, a buyer can see that the franchise is an opportunity that can be profitable.
Speak to professionals
Seek advice and support from your franchisor, financial advisors, solicitors and bank representatives. Though you may know your business best, they can give informed advice based on the market and the financial situation and review the situation objectively.
Keep the business running
Though you are planning to sell, it’s important that you make sure that you continue to run the business as before. You still need to dedicate yourself to making the franchise a success. If the franchise is doing well, it makes it a more attractive prospect and can help in securing you a better deal.
Find out more about selling your franchise buy taking a look around our website at UK Franchise Opportunities.