The Art of Selling the Franchise

The moment you purchased your franchise business, you were so proud. You learned quickly the hows and whys of business ownership. However, the time to sell has come. You are thinking to sell it as soon as possible and you want to derive the value out of the business as you worked so hard for it. A clear understanding of what you need to do to make a successful sale can help you earn handsome amount of profit.

Instructions:

Review your Franchise Agreements and go through with the terms of transfer and sale. Be sure that everybody agrees on the process.

Follow all the necessary steps mentioned in the agreement to set up the sale of your Franchise to a third party, meet up with franchisor and verify your rights to avoid any kind of misunderstanding.

Bring out all transferable and enduring contractual obligations in knowledge to prospective buyers in writing, at least 10 days prior to sale date.

Send written notices of your ‘intention to sell’ to all parties the Franchise Agreement with copies a minimum of 30 days prior to the intended sale date unless conditions in the agreement allow for a shorter notification period.

If you did not find any clause related to sale or transfer, hire a franchise attorney. By taking an attorney’s help you will be able to find means of exiting the Franchise Agreement legally without losing your investment.

Study the current market and prepare a sales package inclusive of your employees, assets, Determine what should be your asking price and other relevant factors required by the city in which your franchise operates.

Ask the franchisor if he is aware of the investors within your territory who are looking to make a purchase and can assist you by introducing them to you.

Before pitching your sale, get ready with the facts and figures. Prepare a list of answers to potential questions of prospective buyers and update yourself with the market, forecasts and profit history.