Franchise businesses rank as one of the leading business opportunities. Many entrepreneurs opt to buy a franchise business. Franchises offer a host of appealing benefits including stability, a proven concept, as well as a network of established resources.
To see current franchise businesses for sale, click here.
If you are considering exiting your franchise, follow these tips for reselling a franchise business.
Your Guide to Reselling a Franchise
According to recent findings from the International Business Brokers Association (IBBA), experts have declared it’s currently a seller’s market and a great time for owners to consider exiting. To help guide you through your transition, utilize the following four tips.
Consult Your Franchise Agreement
Before you make any significant decisions, be sure to review your franchise agreement. Many franchisors layout specific parameters for franchisees looking to sell their business and some franchisors even offer assistance in the selling process.
In addition to reviewing the agreed-upon selling process, you should also make careful note of any transfer fees or mandatory training for the new owner once your business switches hands. While selling any type of business presents a variety of challenges for owners, reselling a franchise often involves a few more obstacles.
Contact Your Franchisor
After reviewing your franchise agreement documents, contact your franchisor as soon as possible to alert them of your exit plans. During this conversation, consider asking the following questions.
- Will I receive assistance selling my business?
- What qualifications must a prospective buyer have?
- How is my franchise location valued?
While these questions are a great start to beginning your exit process, consider enlisting the help of a certified business broker to provide the best guidance.
Prepare the Business for Sale
To receive the best asking price, ensure your business is in tip-top shape from your books to the building condition both inside and out. Consider investing in small maintenance fixes or even a professional service to obtain an accurate business valuation to further help you obtain desirable offers.
Keep in mind the franchise business industry has grown for the eighth year in a row. The industry’s performance paired with your well-prepared business should provide plenty of offers to consider.
Negotiate a Deal & Exit Your Business
After listing your business for sale, consult with your franchisor about any offers you receive. Depending on the franchisor’s level of involvement with the selling process, any prospective buyers may need to be approved before the sale is final. For tips on exit planning, click here.