How to Sell a Franchise
Selling a franchise isn’t the easiest process to complete in the world. The major confusion comes in when a business owner needs to answer the question: “how to sell a franchise?” Deciding that it’s time to sell, and actually successfully selling are two completely different concepts. However, it's important to strike when the iron is hot and not to delay the process unnecessarily.
Bronwen Barnard
28 March 2022
Summary
Selling a franchise isn’t the easiest process to complete in the world. The major confusion comes in when a business owner needs to answer the question: “how to sell a franchise?” Deciding that it’s time to sell, and actually successfully selling are two completely different concepts. However, it's important to strike when the iron is hot and not to delay the process unnecessarily.
Luckily, as business and franchise selling professionals we’re here to help! In this article, Business for Sale is sharing some valuable tips on how to make selling your franchise simple.
5 Steps to Selling a Franchise
1. List Your Franchise on Business for Sale
Although this first tip might come off a bit biased, facts remain facts! Business for Sale is the perfect platform to list and sell your franchise. Business for Sale is a one-stop shop where you get access to quality advertising, countless potential buyers and professional brokers and valuations. Listing on a selling platform is a great way to establish a direct line of communication between you and potential buyers.
2. Identify the right Person
Another useful tip to consider is talking about the potential sale with a selective view of your employees, a manager or someone with the financial ability and knowledge to run the business. Many workers aspire to own and operate a business similar to the one in which they work. They already know the ins and outs of the operations which can help them succeed. You might find your perfect buyer right under your nose.
3. Offer a Referral Reward
The potential buyer you approach first isn't always interested in buying, but they might know someone who is. You could be one incredibly simple chat away from meeting the perfect buyer for your franchise. Sometimes all you really need is to give people extra motivation. Like, promising a sizable referral bonus to anybody who introduces you to the final buyer.
4. List as Much Information as Possible
If you’re trying to reach serious buyers via listing sites it’s important to list as much information upfront as possible. This will ensure your business is perceived as legitimate. Limited information creates limited interest.
5. Be patient, but Active
It might take 6-12 months to sell an established franchise. An active and aggressive strategy to selling your franchise can help you get to the finish line faster. But remember to not give up hope, good things take time!
How to Value a Franchise Business
The key to getting your money's worth when selling a franchise is an accurate business valuation. A business valuation is a process of estimating how much a company is worth in monetary terms. For the owner, it means you’re getting the money you deserve after spending countless hardworking hours on your business, and for the buyer, it brings certainty that they are not overpaying for their investment. Business for Sale offers professional and accurate business valuations for your franchise if you list with us.
Now that you know all the tips and tricks, it's time to list! Contact Business for Sale and sell your franchise with ease.
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How Fast Can I Sell My Business?
With Business for Sale, buying or selling a business has never been easier. We have the ideal tool for you if you are an entrepreneur or are selling a business on behalf of a client. So, if you were looking for a way to speed up the selling process, list it with Business for Sale today!
How to Sell a Business Quickly
If you're thinking, "I need to sell my business quickly," it's critical to list your business on the right platforms that can give you access to the perfect potential buyers. Business for Sale does just that! Our packages are designed to meet the needs of both entrepreneurs and professionals. Whether you're a business owner looking to sell your company or an agent looking to market various businesses to the right audience, our platform will help you. Visit Business for Sale today!
Your Guide to Selling a Business
Believe it or not, selling your business has never been easier. If you are a business owner trying to sell or someone selling a business on behalf of someone else, Business for Sale is the secret weapon you'll need. With our online broking platform, you can prepare market-related valuations of your business while emails, enquiries, and marketing activities are managed from a central point.
Business Valuation Calculators: All You Need to Know
It’s always important to know your worth! A business valuation is a process of estimating the economic value of a company; as this provides owners with an unbiased assessment of its worth. A business valuation is often performed when an owner wants to sell all or a portion of their business or franchise. A business valuation calculator assists buyers and sellers in determining an approximate estimate of the worth of their business. Two of the most typical business valuation methods start with either yearly sales or annual profits, which are then multiplied by an industry multiple.
How Do I Know if My Business is Ready to Franchise?
Franchising can be the perfect opportunity for business owners to expand their business. After all, it’s the franchisee’s responsibility to invest their own capital and therefore they will work hard to ensure that their investment is profitable.
How to Sell a Franchise Business: As a Franchisee
The decision to sell a franchise is a big one that should be planned and prepared for carefully. If you are a franchise owner currently, chances are you have put a lot of money, time, and effort into the business. It makes sense that with this investment, you want to get the best possible price when you sell. The trick is to use the right steps to ensure a successful sale and a favourable outcome!
Business Brokers: Traits for Success
Starting out as a business broker may seem daunting; there are many who have been in the business for countless years who have all the connections that those just starting out would truly benefit from. This is where new brokers need to pluck up the courage to speak to those with more experience, and perhaps even form relationships with financial professionals, accountants, attorneys, and other professionals related to the buying and selling game. The right connections will put the broker a step ahead.
How to Sell a Business without a Broker
There are many small business owners who successfully manage to sell their businesses without using a business broker. There are a few benefits of selling your business without unnecessary third parties – a major one being that the business owner can avoid the transactional fees or commission that the business broker will require from the sale.
Business Valuations: Benefits of Getting One
Accurate figures can help business owners determine the asking price and how much room there is for business negotiation. Potential buyers should not be chased away by unfair asking prices and negotiations that can’t be justified. Equipped with the right facts and figures, fair business negotiations can run a lot more smoothly.
How Do I Sell My Franchise?
Whether you’re a new franchisor, or one that has been around a few years, finding the right platform to sell on (when you’re ready to) can be tricky. Many business buyers are opting to buy a franchise rather than a standalone business, because of all the benefits and security of buying a franchise offers. Business for Sale provides an interactive online platform for those looking to buy and sell their businesses. Why would you use a business directory to sell your business? There are a few great reasons!
How to Negotiate the Sale of Your Business
Selling your business is a serious undertaking, and requires immense preparation and planning. Buyers want to ensure that they are getting the best possible price, while sellers are trying to achieve the same. The process that takes place between the two parties in order to settle on a figure is the negotiation. And there is a definite art to negotiating!
Selling a Business in a Depressed Market
When the market conditions are less than ideal (like now), you’ll probably be reluctant to sell your business. We have already provided useful tips for selling a distressed business, but selling a business in a depressed market is a whole different ballgame. There are many different ways that you can hook a serious buyer who will give you the best price, if you follow some basic best practices.
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