From brokers to buyers and everyone in between, there are many stakeholders you will deal with throughout your franchise resale journey.
All of these parties naturally play their own role, but one key player is all too often overlooked: your own franchisor.
Of course, it goes without saying that you must at the very least get the green light from your franchisor regarding any prospective new franchisee taking over the business. But a best practice franchise resale will see your franchisor take a far more active and important role.
From the moment you decide to sell your franchise, maintaining open communication with your franchisor and keeping them in the loop about your plans and intentions can greatly smooth your franchise resale process.
Here we explain why it’s important to be upfront with your franchisor, how they can help you sell your franchise, and why it’s a good idea to introduce them to your assigned franchise business brokers early in the process.
Why you should involve the franchisor in your franchise resale
“Resale” is curiously considered a dirty word in certain parts of the franchise world. However, the reality is that when done properly, everyone wins from a franchise resale – and your franchisor is a key stakeholder in its success.
It is extremely likely they have lived and breathed the often complex franchise resale process before with previous departing franchisees. As such, they will have highly worthwhile insights they can share with you about the process and what to expect – especially with a resale in your sector.
So by engaging them at the very start of the process, you can gain invaluable knowledge about what your own franchise resale process will look like.
More information about the wisdom they can impart is below, but in short, what your franchisor shares with you can help you put together a solid resale strategy that’s aligned with their expectations. All of this will increase the chances of a successful sale that pleases all parties.
What the franchisor can help with in your franchise resale journey
By involving your franchisor in the franchise resale process, you are instantly tapping into their wealth of expertise and resources which will help guide you along the way.
Key aspects of the franchise resale process they can assist you with include:
Defining the recruitment criteria
Gaining a full understanding of your franchisor’s recruitment criteria at the start of the process is essential.
By knowing the type of buyer the franchisor is willing to accept, you can align your marketing efforts to target those who are more likely to meet their expectations.
This prevents wasted time and resources being spent on potential buyers who may not get approval from the franchisor.
Preparing to sell your franchise
Your franchisor can advise you on what you need to prepare in advance of a franchise resale.
This may include updating your financial records, reviewing contracts, or ensuring your business is in optimal operational condition to help pique the interest of potential buyers.
Your targeted resale strategy
Developing an effective resale strategy is crucial for attracting the right buyers.
Having likely been on the journey before, your franchisor (or their recommended resales partner) can offer informed insights into positioning your business in the marketplace, setting a realistic asking price, and effective marketing approaches.
Finding buyers
Your franchisor’s established network and industry connections can be invaluable when it comes to finding interested parties and connecting you with qualified prospects.
So by involving them, you instantly expand your pool of potential buyers and increase the chances of a successful sale.
There’s even a possibility they already have investors or buyers lined up and waiting to snap up your business at the earliest opportunity.
The benefits of introducing your business brokers to the franchisor as early as possible
We strongly recommend enlisting the services of specialist franchise business brokers to smooth your resale process.
Once you have done this, it is beneficial to introduce them to your franchisor as early as possible in the process.
This fosters a friendly, collaborative and productive environment from the off, where everyone is on the same page and working towards the ultimate goal of selling your franchise business for maximum value.
The three biggest benefits of bringing your franchisor and business broker together are:
Streamlined communication
In uniting you, your franchisor, and franchise business broker, you are establishing clear lines of communication.
This makes it far easier to work together to develop effective marketing campaigns, exchange important information, address concerns, and ensure a smooth transaction.
Building confidence
When your franchisor sees you have engaged professional franchise business brokers to act on your behalf, it demonstrates your commitment to a successful sale.
It also signifies you are taking the necessary steps to proactively find a qualified buyer and brings more experience to the table, instilling confidence in the process from the franchisor as a result.
Expertise integration
Your business brokers bring expertise in franchise resales, whilst your franchisor offers invaluable industry-specific knowledge.
When these two parties collaborate alongside your personal efforts, you greatly benefit from a holistic approach that maximises the chances of achieving your desired outcome: selling your franchise for the best possible price.
Do you need help with selling your franchise?
We hope this article has given you some more insight about why involving your franchisor brings tremendous benefits to your franchise resale journey.
If you have any questions or need assistance with selling your franchise, we’d love to help. Franchise Business Brokers boast one of the UK’s biggest and most experienced team of dedicated franchise resales experts, all of whom are ready to help you navigate this complex process and ensure you achieve the best outcomes.
