Selling Your Franchise

Most franchise owners are likely to want, at some point during their management, to offer their franchise for sale due to different problems like owner burn-out, relocation, etc. Here is some general advice that will hopefully help you in selling your franchise successfully. When offering your franchise for sale it is important that you contact the franchisor and explain the details of your actions. More often than not they have rules or fees regarding the transfer of the franchise unit to new ownership. On the other hand, they may prove helpful in finding a buyer, as one may have already expressed interest in your specific business or location. Before any action is taken, be sure that you have compiled comprehensive lists that should include, but are not limited to: a business summary profile, current and past financial statements, etc. Any serious buyer interested in your franchise for sale will not make a serious attempt in buying it unless he is informed and sure that your asking price is the correct one. Statistics show that sellers have a high tendency to overprice, thus leading to a very low sales figure among franchise owners. Before settling on a price you should consult with your franchise company or even with a local Business Broker about the demand for your type of franchise business. Furthermore, unlike the sales of assets, keeping a business sale confidential may prove to be a very wise thing to do. For example, your employees can get a little unnerved upon finding out about your franchise for sale, or competitors may use this information to attain certain advantages. You might consider hiring an intermediary to keep the information from reaching the public. When advertising your franchise for sale, you have two main ways of doing it. The first one involves not using a Business Broker, and displaying a "for sale by owner" sign. While this won't keep the sale information from going public, you will bypass any intermediary fees involved. The other option is to hire a professional Business Broker that will help you find prospective buyers, either by their own means or by contacting other Business Brokers in the area.