Preparing to sell a franchise can be daunting. Whether you are the core franchise owner who helps all of your franchisee owners or whether you own a single franchise location there is a lot of information to work through. There are many checklists for selling your business, but we specialize in selling franchise businesses. Getting together financial information and working with the whole franchise to correctly sell your business will take special attention to detail.
1. Get Your Franchise Or Franchises Organized
When you own a franchise or are the original owner of a franchise chain there is a lot of work that goes into developing your business. It must be determined exactly what you own within the franchise before you sell it. If you own a single location within a collection of franchises, typically you do not own the branding or marketing. If you are the owner of the “parent franchise” you typically do not own the separate locations but own the franchise product.
If you own a single franchise, a lot of franchise companies have information on the sale of your business and disclaimers on the process. You may need to sell the franchise back to the central business or they may manage the sale of your franchise. If you are the primary owner of the franchise foundation, you shouldn’t have to communicate with your separate franchise owners. The contracts you have with them should carry over to the new franchise company owner.
2. Prepare Your Franchise’s Financial Information
Just as the position you hold within a franchise can complicate the sale of your business, it also affects the financial information regarding your company. Organizing your financial information before selling your franchise is essential to be transparent with the buyer of your franchise. Getting the past 3 years of tax information on your franchise can help inform your buyer of the average annual income of your business and it plays a major role in determining the value of your franchise.
3. Get A Business Valuation
Getting a business valuation for your franchise is extremely important to selling your franchise. It can help in the listing and marketing process of your franchise. Strategic Business Brokers Group can provide advisement on your franchise’s value. With this information we can help you sell your franchise effectively.
4. Communicate With Your Franchise Business Owners
Depending on your franchise situation it might be best to communicate within your franchise. If you own a single franchise business owner communicate to the primary owner. If you are the core owner, communicate with the franchise owners and indicate the new buyer will uphold their existing franchise contracts. You may have a franchise owner who would be interested in purchasing the full franchise.
Contact Strategic Business Brokers Group (SBBG) To Sell Your Franchise
If you are looking to sell your franchise effectively in Arizona contact us to get a business valuation and help in the selling process. We can connect you with buyers who are interested in purchasing your franchise.
