Selling my franchise

So, you have decided to sell your franchise! It’s a big decision and you will want to ensure you get the best possible price for it, after all, you’ve worked hard at building it up over the years, right?! Having determined the type of sale i.e. Asset or Share and arrived at a ‘realistic’ price all you need to do now is find someone to buy it from you, simple!

First things first –

Your Franchisor will often have the right of first refusal so, in the first instance, if you haven’t already done so, you should notify your franchisor of your intention to sell, they may well want to take the business back under their control. If they don’t want to buy it from you, they might have a list of prospective new franchisees on their books they could introduce to you, bear in mind that you will probably be charged a commission for the introduction! Secondly there may be a fellow franchisee looking to expand their network and your business could help them achieve that.

If those options aren’t open to you, give some thought to your network of friends and acquaintances, you never know!!

There are numerous websites, publications and specialist broker services available but before you go down that route there might be a purchaser ready and waiting a lot closer to home!

If you do need to advertise your business for sale, there are a bewildering array of options available and choosing the right approach is crucial in finding the right buyer at minimal cost.

Confidential or Open?

Selling your business will almost certainly have an impact on one of your most valuable assets… your people. You will need to consider what impact the announcement of the sale of your business will have on each individual employee. Some employees will be quite relaxed and even look forward to the change whilst others might see it as a real threat to their security and, in the extreme decide to move on. This could have a serious impact on you and the saleability of the business, so you need to decide whether to keep the sale low key until it is a done deal. You certainly will want to ensure that the first any of your employees hear about this is directly from you, not when they open the trade magazine and come across it in the Businesses for Sale section or when they are talking to the delivery driver who’s just turned up at the back door!

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